Shinko Electric Industries (6967) Q1 2025 earnings summary

Executive summary

• Net sales increased 8.4% year-over-year to ¥53.4 billion for Q1 FY2024, with all profit metrics rising due to yen depreciation and improved product demand.

• Operating profit nearly doubled year-over-year to ¥7.3 billion (+96%), with margin rising from 8% to 14%.

• Profit attributable to owners of parent grew 36% year-over-year to ¥5.0 billion.

• EPS improved from ¥27.04 to ¥36.70 year-over-year.

• Semiconductor industry recovery remains limited, except for strong AI-related demand; PC, server, and auto sectors remain sluggish.

Financial highlights

• Gross profit rose to ¥10.97 billion from ¥7.13 billion year-over-year.

• Ordinary profit increased 24% to ¥6.9 billion year-over-year.

• Comprehensive income reached ¥5.4 billion, up from ¥4.3 billion year-over-year.

• Total assets increased to ¥397.3 billion as of June 30, 2024.

• Net cash provided by operating activities was ¥6.6 billion, down from ¥12.1 billion year-over-year.

Outlook and guidance

• FY2024 full-year net sales forecast at ¥250.0 billion (+19% YoY), with operating profit expected at ¥44.0 billion (+77% YoY).

• Ordinary profit projected at ¥45.0 billion (+65% YoY), and profit attributable to owners at ¥30.0 billion (+61% YoY).

• Full-year earnings per share forecasted at ¥222.03.

• Exchange rate assumption for FY2024 is ¥135/USD from Q2 onward.