Marubeni Corp
TSE:8002
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
1 966.5
3 138
|
| Price Target |
|
We'll email you a reminder when the closing price reaches JPY.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Marubeni Corp
You don't have any saved screeners yet
I am Nobuhiro Yabe, CFO of Marubeni. Thank you very much for joining us today.
I'd like to now present the consolidated financial results for the Q3 of fiscal year ending March 31, 2019.
Please refer to Page 1 of the PowerPoint presentation material.
First of all, Q1 to Q3 net profit increased by JPY 54.8 billion or 33% year-on-year to JPY 219.6 billion. This was the record-high 9-month number recorded. Excluding onetime items from the net profit, adjusted net profit increased by JPY 22 billion or 13% year-on-year to about JPY 190 billion. This was also record-high Q1 to Q3 number. Out of the profit increase of JPY 54.8 billion, about JPY 22 billion was the increase of adjusted net profit, and an improvement in onetime items was about JPY 32 billion.
Adjusted net profit increase was driven by Forest Products and Transportation & Industrial Machinery in non-resources and by energy in resources. Onetime items improvement was mainly non-recurrence of accounting effects of the year-earlier U.S. tax reform and gain on sales and evaluations (sic) [ valuation ] in Consumer Products and Power Business & Plant.
Net D/E ratio was 0.99x, 0.05 points better than the end of the last fiscal year.
The yearly forecast for the net profit remains unchanged at JPY 230 billion.
In Q1 to Q3, we realized a net profit of JPY 219.6 billion. The progress against the forecast is 95%. Asset value for a part of the existing projects may be remeasured at the end of the fiscal year based on the operating environment. And therefore, we are keeping the net profit forecast unchanged at JPY 230 billion. I would refrain from mentioning the specific names of the projects that we are concerned about because we are in negotiation with a third party or partners, but in terms of the business, those are the grain and power businesses.
In grain business, U.S.-China trade friction is lingering and is impacting on our grain business. As for power business, we invest in merchant-type IPP projects, taking market risks. Due to the supply-demand condition, which has been worsening, one of the project performance has been affected.
As we keep our yearly forecast for the net profit unchanged, the yearly dividend is set at JPY 34 per share, which is at the minimum level that we have explained to you. Now based on the strong adjusted operating cash flow and good progress in new investments, the forecast for free cash flow after dividend has been revised upward by JPY 40 billion from the November announcement to JPY 160 billion. For this fiscal year, we reduced the remaining free cash to repay debts and plan to reduce net debt-to-equity ratio to about 0.9x as expected.
Now please turn to Page 7, which shows net profit and adjusted net profit by segment. As I mentioned, last year, there were accounting effects of U.S. tax reform. In addition, there was a variety of onetime items. So basically, I would like to focus on the fluctuation of the adjusted net profit.
Profit increase of non-resource was driven by Forest Products. In Forest Products, pulp prices rose and Musi Pulp profitability improved and contributed to our business performance. Next is the adjusted net profit of Transportation & Industrial Machinery, which increased by about JPY 5 billion year-on-year. Construction, industrial machinery, aerospace and automotive businesses showed solid results. With lower profit of grain business, Food adjusted net profit decreased by about JPY 6 billion to about JPY 15 billion. In addition to the position loss of Gavilon in the first half, the business environment remains tough as the U.S.-China trade friction lingers.
As for resources, energy has been the driver. With rising oil prices, profit of E&P business improved, and natural gas and LNG-related business showed strength.
That concludes my presentation. Thank you for your attention.