COPRO-HOLDINGS | 7059
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Sessa Investment ResearchMay 15, 2024

Striking expansion of business performance; An increase in dividend
payment since the listing is to continue

4Q FlashEarnings results summary
COPRO-HOLDINGS. Co., Ltd., (hereafter, the Company) announced the full year resultsfor FY2024/3 after the market close on Tuesday, May 14, 2024. The key consolidated
figures increased sharply, including net sales of ¥24,098 mn (+28.2% YoY), operating
profit of ¥2,141 mn (+62.0% YoY), ordinary profit of ¥2,211 mn (+67.0% YoY), and profit
attributable to owners of parent (hereafter, net profit) of ¥1,463 mn (+69.3% YoY).
Business performance trends
COPRO-CONSTRUCTION. Co., Ltd., (formerly COPRO-ENGINEERED), which operates thecompany’s core business of construction technician dispatching, proactively increased
the number of recruits to meet the expanding demand for labor against the backdrop ofregulations capping overtime work which started in April 2024, thinking it the mostimportant to establish the system to get hold of the technicians, a driving force for thebusiness expansion of the company. As a result, the number of the technicians increased
by 791 (+28.5% YoY) to 3,568, a record high. Reflecting the record high, net sales ofCOPRO-CONSTRUCTION surged and its operating profit reached ¥3,298 mn, (+29.3%YoY) absorbing recruiting and personnel expenses.
Regarding mechanical design and development engineer dispatching and contracting
services and SES (system engineering service), ATMOS Co., Ltd. and VALUE ARK CONSULTING
Co., Ltd. merged and changed the name to COPRO TECHNOLOGY. Co., Ltd. as of October 1,2023, unified their sales and recruiting structures and consolidated their administrativedivisions. As of November 30, 2023, COPRO THECHNOLOGY. Co., Ltd. took over thedispatching business and SES business (system engineering services) with quasiassignment contracts from PIC, which was engaged in the web/software development
and system consulting business. As a result, the number of engineers rose by 102(+39.4% YoY) to 361. Operating profit posted a small loss of ¥10 mn due to theaggressive advance use of expenses such as advertising spending to increase the numberof the recruits. Head office costs worked as a contribution of ¥108 mn to a profit YoY
along with lower personnel and stock-based compensation costs by streamlining backoffice operations in the head office.
FYNet Sales(¥mn)

YoY
（％）

Oper. profit(¥mn)

13,122

21.3

1,592(1)

FY2021/3

14,83613.1

FY2022/3(2)15,5895.1

FY2020/3

YoY（％）

Ordin. Profit
(¥mn)

18.4

1,585

1,437-9.7

1,621

12.8

YoY
（％）

Net profit
(¥mn)

18.6

1,084

1,439-9.2

1,009

1,619

12.5

962

YoY

（％）

15.5

EPS(4)

DPS(4)

(yen)

(yen)

56.4

15.0-6.952.418.8-4.6

50.4

20.0

FY2023/3

18,79120.5

1,321-18.5

1,324-18.2

864-10.2

46.1

25.0

FY2024/3(3)24,098

28.2

2,141

62.0

2,211

67.0

1,463

69.3

74.4

50.0

FY2025/3 CE

30,000

24.5

2,700

26.1

2,714

22.7

1,755

19.9

92.0

60.0

FY2024/3 2Q

11,137

28.5

737

56.9

810

71.8

510

81.9

26.2

15.0

FY2025/3 2Q CE

13,948

25.2

1,032

40.0

1,046

29.0

675

32.3

35.4

20.0

Team coverage

research@sessapartners.co.jp

Source: Compiled by SIR from TANSHIN financial statements.

Note: 1) A two-for-one stock split of common stock was conducted on April 1, 2021. (2): For 2022/3, “the account standard for revenue
recognition” and the like were adopted, but the effect was negligible. Therefore, SIR showed the percentage change from the previousyear. 3) A two-for-one stock split of common stock was conducted on October 1, 2023. 4) EPS and DPS are retroactively adjusted toreflect a 2-for-1 stock split. EPS – diluted shares adjusted.

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COPRO-HOLDINGS | 7059

Sessa Investment Research

Dividend increase and earnings forecast
The demand from the construction industry, major client of the Company, is expected
to remain strong due to urban development project related works, renovation works ofaging infrastructure facilities, construction works of new semiconductor factories, andthe like. The so called “2024 problem” is also expected to continue to play a positive role
for the business performance of the Company and help it with its sharp increase inprofits for this fiscal year. Dividend per share will be increasing by ¥10 on a retroactive
revision basis for FY2025/3, meaning a consecutive increase since the listing in March2019.

2Sessa Investment Research

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such as trading in securities issued by the company, or they may have the possibility of doing so in
the future. For this reason, the forecasts and information contained in this report may lackobjectivity. Sessa Partners assumes no liability for any commercial loss based on use of this report.
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