LEC (7874) Earnings: Operating Profit Decreased 45.8% YoY to 704 Million Yen, Net Income Down 40.6%

LEC (7874) released its latest financial results, reporting operating profit decreased 45.8% year-on-year to 704 million yen. Net sales were 18,710 million yen, an increase of 7.9% year-on-year. However, profitability declined, with ordinary profit decreasing to 941 million yen (-28.0% YoY), and net income attributable to owners of the parent dropping to 397 million yen (-40.6% YoY). Comprehensive income came in at 659 million yen (-15.8% YoY), and earnings per share (EPS) stood at 12.16 yen. From a financial structure and valuation perspective, the equity ratio is maintained at 41.1%, indicating a moderate level of stability, with retained earnings standing at 24.79 billion yen. Meanwhile, interest-bearing debt is reported at 42.40 billion yen, while return on equity (ROE) and return on assets (ROA) are 1.23% and 0.44% respectively. While top-line growth continues, margin improvement remains a key focus moving forward.