Asahi Intecc（7747.JT）Guidance does not look conservative

Investment Rating - The report assigns a 12-month rating of Neutral to Asahi Intecc with a price target of ¥2,220.0 [6][20]. Core Insights - Asahi Intecc's Q4 FY6/24 operating profit was ¥2.5 billion, reflecting a year-on-year increase of 53.8%, although it fell short of the IFIS consensus of ¥2.9 billion [2][7]. - Strong sales in China were a significant factor, with estimates indicating a 3.4 times increase in sales in Q4 compared to the previous year [2][3]. - The FY6/25 operating profit guidance is set at ¥25.2 billion, representing a 13.9% year-on-year growth, which is above the firm's previous forecast and higher than market expectations [4][5]. Summary by Sections Financial Performance - Q4 FY6/24 operating profit was ¥2.5 billion, below consensus but above internal expectations, driven by strong sales in China [2][7]. - FY6/25 operating profit guidance is ¥25.2 billion, higher than previous forecasts and market assumptions [4][5]. Market Outlook - The company anticipates continued strong sales in China for FY6/25, supported by a recovery in case numbers and normal inventory levels [3][5]. - The operating profit margin is expected to improve to 21.6%, an increase of 1 percentage point year-on-year [5]. Company Profile - Asahi Intecc is a mid-sized medical device manufacturer specializing in stainless wire technology, with a strong market presence in Japan and manufacturing operations primarily in Thailand and Vietnam [10].