MEC Company (4971) Q2 2024 earnings summary

Executive summary

• Q2 FYE12/2024 net sales reached ¥8,882 million, up 43.3% year-over-year, setting a record high for a six-month period.

• Operating income rose 181.8% year-over-year to ¥2,362 million, with net income at ¥1,890 million.

• Growth driven by chemicals for PCBs, advanced electronic substrates, and improved production efficiency.

• Overseas sales ratio increased to 79.5%, with indirect exports included at 76.3%.

Financial highlights

• Net sales for Q2 FYE12/2024: ¥8,882 million (up 43.3% YoY); operating income: ¥2,362 million (up 181.8% YoY); net income: ¥1,890 million.

• Gross profit margin improved to 60.6% from 58.8% year-over-year; gross profit reached ¥5,383 million.

• EBITDA for Q2: ¥3,029 million; EPS: ¥100.97, up from ¥56.79 year-on-year.

• Operating income margin improved by 13.1 percentage points to 26.6%.

• Exchange rate impact contributed ¥422 million to sales and ¥246 million to operating income.

Outlook and guidance

• Full-year forecast revised upward: net sales ¥18,500 million (up 32.0% YoY), operating income ¥4,900 million (up 96.6% YoY), net income ¥3,600 million (up 56.2% YoY), EPS ¥192.26.

• Dividend forecast maintained at ¥45.00 per share for FY2024.

• Growth expected from semiconductor market recovery and expansion in high-density, high-frequency PCB demand.