COPRO-HOLDINGS | 7059
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Sessa Investment ResearchFebruary 15, 2024

Construction technician dispatching business, mainstream of theCompany, saw a significant surge in sales and profit in FY2024/3 3Q

3Q Flash

The demand for the business is expected to be strong for the time being

Earnings Summary
COPRO-HOLDINGS. Co., Ltd., (COPRO) announced its 3Q FY24/3 (9 months) results after
the market closed on Wednesday, February 14, 2024. Key consolidated figures included
net sales of ¥17,496 mn (+28.8% YoY), operating profit of ¥1,406 mn (+63.0% YoY),ordinary profit of ¥ 1,480 mn (+70.8% YoY), and profit attributable to owners of parentof ¥936 mn (+79.7% YoY). Sharp increases in sales and profits were achieved.
 3Q Trends by Business Segment
COPRO CONSTRUCTION. Co., Ltd. (formerly COPRO-ENGINEERED), which operates theCompany's core business of construction technician dispatching, actively stepped up its
recruitment activities in order to capture the growing demand along with the applicationof the overtime caps to the construction industry in April 2024. As a result, the number ofrecruits reached 1,539 for 3Q FY24/3 on a cumulative basis, an increase of 514 (+50.1%YoY). Then, the number of technicians increased by 803 (+31.2% YoY) to 3,373, a recordhigh, (2,570 at the end of the previous 3Q) at the end of 3Q. The proactive recruitment
brought the significant growth in net sales. And it absorbed the increase in recruiting andpersonnel expenses, resulting in an operating profit increase of ¥404 mn YoY.
In the mechanical design and development engineer dispatching and contracting
services and the system engineering services (SES), ATMOS and VALUE ARK CONSULTING
merged as of October 1, 2023, and changed its name to COPRO TECHNOLOGY. Co., Ltd.
The operating profit decreased by ¥16 mn YoY, due to the aggressive advance expenses
of advertising aiming at increasing the number of recruits, particularly for “Bscareer
Mechanical and Electrical”, project search site, and “Bscareer IT”, project introduction site.
In head office costs, though SG&A expenses rose by 8.9% YoY in 3Q, they were much
lower than the increase ratio in sales comparatively, due to lower personnel and stockbased compensation costs supported by streamlining back-office operations. Then, theratio of SG&A to sales was 19.9%, down drastically from 23.5% in the previous 3Q.
 FY24/3 full-year forecasts
The Company, which made an upward revision at the time of the 1H results
announcement, sticks to the same revision: The demand for human resources in theconstruction industry is expected to remain strong due to the application of the overtime
caps to the construction industry to start in coming April, and the Company will continue toflexibly invest in recruitment and the like to secure as many engineers as possible, which is
the key to business growth.
FYNet Sales(¥mn)

YoYOper. profit
YoY Ordin. Profit YoY(¥mn)
(¥mn)
（％）
（％）
（％）

10,819
20.7
1,344
50.3
FY2019/3
13,122
21.3
1,592
18.4
FY2020/3
14,83613.1
1,437-9.7
FY2021/3
15,589
5.1
1,621
12.8
FY2022/3
18,79120.5
1,321 -18.5
FY2023/3
24,298
29.3
2,042
54.5
FY2024/3 CE
FY2023/3 3Q
13,584
18.7
862 -23.1
FY2024/3 3Q
17,496
28.8
1,406
63.0
Source: Compiled by SIR from TANSHIN financial statements.

1,336
1,585
1,439
1,619
1,324
2,115
866
1,480

51.1
18.6
-9.2
12.5
-18.2
59.7
-22.6
70.8

Net profit(¥mn)

938
1,084
1,009
962
864
1,361
521
936

YoY

（％）

54.4
15.5
-6.9
-4.6
-10.2
57.4
-15.9
79.7

EPS*(yen)

113.8
115.1
53.4
51.1
46.5
72.3
28.1
49.9

DPS*(yen)

21.0
30.0
37.5
20.0
25.0
45.0
-Team coverage

research@sessapartners.co.jp

Note : A two-for-one stock split of common stock was conducted on September 30, 2023.
*EPS and DPS are retroactively adjusted to reflect a 1-for-2 stock split.

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