Mitsui High-tec (6966) Q2 2025 earnings summary

Executive summary

• Net sales rose 11.1% year-over-year to JPY 103,969 million, driven by strong EV demand and yen depreciation, but operating profit fell 6.9% due to higher costs, weaker electronic parts orders, and delayed price pass-through.

• Profit attributable to owners of parent declined 8.2% to JPY 7,075 million, while comprehensive income increased 6.0% to JPY 11,261 million on foreign currency gains.

• Electrical parts sales increased on robust demand and new product launches, but operating profit declined slightly due to higher depreciation and investment.

• Electronic parts sales edged up from currency effects, but operating profit dropped on weak semiconductor demand and higher depreciation.

• Full-year earnings forecasts for both sales and operating profit were revised downward due to expected declines in orders and continued weak demand.

Financial highlights

• Net sales: JPY 103,969 million (+11.1% YoY); operating profit: JPY 7,850 million (-6.9% YoY); net profit: JPY 7,075 million (-8.2% YoY).

• EBITDA increased 8.5% YoY to JPY 14,811 million; EBITDA margin was 14.2% (-0.3pts YoY).

• Ordinary profit decreased 12.2% YoY to JPY 9,431 million, impacted by lower operating profit and reduced FX gains.

• Capital investment rose 14.9% YoY to JPY 13,535 million; depreciation up 33.1% to JPY 6,960 million.

• Total assets increased to JPY 214,780 million as of July 31, 2024, up from JPY 195,696 million at the previous fiscal year-end.

Outlook and guidance

• Revised FY2025 net sales forecast to JPY 214,000 million (-9.7% from initial), operating profit to JPY 13,000 million (-38.1%), and net profit to JPY 9,500 million (-32.1%).

• Basic earnings per share forecast is JPY 51.98, reflecting the stock split.

• Electrical parts orders expected to decline due to production adjustments and lower Japanese automaker sales in China.

• Electronic parts demand not expected to recover in H2; orders to decrease further due to sluggish semiconductor demand and inventory adjustments.

• Dividend forecast unchanged, with stable and continuous payments targeted.