Kokusai Electric (6525) Q1 2025 earnings summary

Executive summary

• 1Q FY25/3 revenue nearly doubled year-over-year to JPY 65.2 bn, driven by equipment sales and concentrated shipments, especially to China.

• Net income surged 401% YoY to JPY 13.3 bn.

• Adjusted operating profit reached JPY 19.4 bn, up from JPY 5.6 bn a year ago.

• Comprehensive income rose to JPY 14.6 bn from JPY 4.4 bn YoY.

Financial highlights

• Gross profit for 1Q FY25/3 was JPY 29.4 bn (+105.6% YoY); gross margin 45.0%.

• Operating profit increased to JPY 17.9 bn from JPY 4.0 bn YoY.

• Basic EPS for the quarter was JPY 56.76, up from JPY 11.52 YoY.

• Adjusted net income per share was JPY 61.21, up from JPY 16.41 YoY.

• Cash and equivalents at quarter-end were JPY 87.8 bn, down from JPY 92.6 bn at prior year-end.

Outlook and guidance

• No change to FY25/3 full-year forecast: revenue JPY 217.5 bn (+20.3% YoY), adjusted operating profit JPY 51.0 bn (+34.8% YoY), adjusted net income JPY 35.6 bn (+30.4% YoY).

• Operating profit projected at JPY 44.8 bn (+45.7% YoY); net income forecast at JPY 29.0 bn (+29.6% YoY).

• Annual dividend forecast is JPY 32.00 per share, up from JPY 22.00.

• Equipment and service revenues both forecast to rise; equipment up 26%, service up 10% YoY.

• DRAM, Logic, and NAND expected to continue recovery in that order; 1H performance to match initial forecasts.