Mitsui High-tec (6966) investor relations material

Executive summary

• Achieved year-over-year growth in both revenue and operating profit for the first time in four years, driven by a favorable business environment and strong performance in core businesses.

• Net sales reached JPY 130,672 million (+20.6% YoY), operating profit JPY 11,818 million (+86.2% YoY), and net profit JPY 9,943 million (+137.3% YoY) for the first half.

• Electrical Parts Business saw increased revenue and profit due to higher sales for hybrid vehicles, global demand, and one-time gains.

• Electronic Parts Business benefited from strong automotive and consumer electronics demand, cost pass-through, and a weak yen.

Financial highlights

• Net sales: JPY 130,672 million (+20.6% YoY); operating profit: JPY 11,818 million (+86.2% YoY); ordinary profit: JPY 13,319 million (+122.8% YoY); net profit: JPY 9,943 million (+137.3% YoY).

• EBITDA: JPY 18,820 million (+43.8% YoY); EBITDA margin: 14.4% (+2.3ppt YoY).

• Operating profit margin improved to 9.0% (+3.2ppt YoY); net profit margin rose to 7.6% (+3.7ppt YoY).

• Capital expenditure increased to JPY 17,710 million (+12.8% YoY).

Outlook and guidance

• Full-year earnings forecast revised upward: net sales to JPY 272.0 billion, operating profit to JPY 19.5 billion, net profit to JPY 14.5 billion.

• Second-half profit expected to decline due to absence of one-time gains, increased upfront investments, and higher material/energy costs.

• Medium- to long-term growth outlook remains unchanged despite potential absence of one-time gains and demand uncertainty in FY2027.