Macnica Holdings (3132) Q2 2025 earnings summary

Executive summary

• Consolidated net sales for FY2024 1H were ¥519 billion, down 5.1% year-over-year, with operating income at ¥22.4 billion, down 41% year-over-year, and net income at ¥15.2 billion, also down 41% year-over-year.

• The semiconductor business faced significant weakness, especially in the industrial equipment market due to sluggish demand in China and inventory adjustments, while the network business showed robust growth, particularly in endpoint security and data analysis products.

• Full-year forecasts for FY2024 were revised downward due to the delayed recovery in the semiconductor market, with net sales and profit targets reduced.

• A 1-for-3 share split was executed on October 1, 2024, and Glosel Co., Ltd. was consolidated into the balance sheet as of March 2024 and into the profit and loss statement from April 2024.

• Comprehensive income dropped 69.1% year-over-year to ¥11,031 million.

Financial highlights

• Semiconductor segment net sales fell 10% year-over-year to ¥445.5 billion, while network segment sales rose 35% to ¥73.5 billion.

• Operating income for the semiconductor business dropped 53% year-over-year, while network business operating income surged 76%.

• Gross profit for the interim period was ¥60,268 million, down from ¥70,966 million year-over-year.

• Cash flows from operating activities were ¥18.5 billion, down 18% year-over-year.

• Net income per share was ¥84.68, calculated assuming a 1-for-3 share split.

Outlook and guidance

• Recovery in the semiconductor market is now expected to be delayed until the next fiscal year, with continued weakness in industrial equipment.

• Network business is projected to remain strong both domestically and internationally.

• Revised full-year targets: net sales ¥1,040 billion, operating income ¥44.5 billion, net income ¥30 billion, and operating margin 4.3%.

• Net income per share forecast for FY2025 is ¥166.65, reflecting the share split.

• Dividend forecast for FY2025 is ¥35 per share at year-end, post-share split.