MEC Company (4971) Q3 2024 earnings summary

Executive summary

• Q3 FYE12/2024 net sales reached ¥13,682 million, up 37.1% year-over-year, marking a record high for the period.

• Operating income rose 118.3% to ¥3,649 million, and net income attributable to owners of parent increased 53.9% to ¥2,627 million year-over-year.

• Growth was driven by strong demand in advanced electronic substrates, recovery in PC and server-related products, and improved production efficiency.

• Major product lines (CZ, EXE, SF, V-Bond) all saw double-digit sales growth year-over-year.

• Chemical segment sales were ¥13,041 million, up 32.6% year-over-year, with shipments increasing 23.6%.

Financial highlights

• Gross profit for Q3 was ¥8,397 million, up 42.7% year-over-year, with a gross margin of 61.4%.

• Operating income margin improved to 26.7% from 16.8% a year ago.

• Basic earnings per share rose to ¥140.32 from ¥90.39 year-over-year.

• Total assets increased to ¥31,101 million, and net assets to ¥26,398 million as of September 30, 2024.

• Cash and deposits rose to ¥10,508 million from ¥8,756 million at the previous fiscal year-end.

Outlook and guidance

• Full-year FYE12/2024 net sales forecast is ¥18,500 million, up 32.0% year-over-year.

• Operating income forecast is ¥4,900 million, up 96.6% year-over-year; net income forecast is ¥3,600 million, up 56.2% year-over-year.

• Annual dividend forecast maintained at ¥45 per share.

• Demand for CZ Series and chemical adhesion promoters expected to grow with semiconductor market recovery and expansion of IoT, AI, and 5G.

• No change to previously announced full-year earnings forecasts.