Macnica Holdings (3132) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were ¥256.3 billion, down 8% year-over-year, with the semiconductor business in an adjustment phase and the network business showing strong growth domestically and overseas.

• Operating income reached ¥12,047 million, a 41.7% decrease year-over-year, mainly due to a decline in the industrial equipment sector within the semiconductor business.

• Ordinary income decreased 39.1% year-over-year to ¥11,947 million, and net income attributable to owners of parent fell 40.9% year-over-year to ¥8,030 million.

• The network business achieved significant growth, driven by strong sales of endpoint security-related products.

• The acquisition of Glosel Co., Ltd. was completed, enhancing the automotive semiconductor business.

Financial highlights

• Semiconductor business net sales were ¥218.7 billion, down 13% year-over-year; network business net sales were ¥37.6 billion, up 32% year-over-year.

• Net income attributable to owners was ¥8.7 billion, a 53% decrease year-over-year.

• Gross profit for Q1 FY2024 was ¥31,556 million, down from ¥36,602 million year-over-year.

• Cash and cash equivalents at quarter-end increased to ¥50,848 million, up ¥12,224 million from the previous fiscal year-end.

• Dividend forecast for FY2024/2025 is ¥210 per share (pre-stock split), with a payout ratio of 30%.

Outlook and guidance

• Full-year FY2025 net sales forecast is ¥1,100,000 million (+6.9% year-over-year), with operating income of ¥64,000 million (+0.4%).

• Net income attributable to owners of parent is forecast at ¥42,000 million, down 12.6% year-over-year.

• The outlook for FY2024 remains unchanged, with expectations of a semiconductor market recovery and continued network business growth.

• The company expects continued strength in security and data analysis products, with recovery in capital investment in electronics.