Meiko Electronics (6787) H1 2026 presentation earnings summary

Financial performance highlights

• Net sales rose to 111.5 billion yen in FY2025 Q2, up from 98.2 billion yen in FY2024 Q2, with operating income margin improving to 10.9%.

• Automotive, module, and telecommunications applications saw notable sales growth, with automotive up 3.3% and telecommunications up 32.6%.

• High-layer and HDI PCB segments experienced significant increases, with HDI 10 layers or more up 58.5% and package PCBs up 57.1%.

• ROE reached 15.2% and dividend per share was maintained at 45 yen, reflecting strong profitability and shareholder returns.

• Market capitalization increased to 252.3 billion yen, indicating positive investor sentiment.

Strategic initiatives and investments

• Construction of new factories in Nanyo and Hai Duong, Vietnam, with a combined investment of 4.5 billion yen, targeting semiconductor packaging and assembly expansion.

• Vietnam Plant #4 and Hoa Binh Plant #1 are being developed for high-layer HDI and memory module PCBs, with investments of 25 and 50 billion yen respectively.

• Consideration of a new Quang Minh Plant in Vietnam for advanced HDI PCB production, with a planned investment of 40 billion yen.

• Tendo Factory commenced full-scale mass production and is expanding equipment for increased demand and new product development.

• Joint venture with ACCL in Vietnam to produce high-layer PCBs for AI servers, with mass production scheduled from 2027.

Market outlook and business development

• Global high-layer PCB market is projected to grow at a CAGR of 6.5%, with AI server-related PCBs expected to see even higher growth rates.

• Production strategy focuses on AI server substrates, including PKG, HDI, and high-layer PCBs, leveraging multiple plants in Vietnam and China.

• Business strengths include 150 engineers and the ability to support customers from prototyping to mass production across multiple international sites.

• Expansion in Southeast Asia is driven by anticipated AI server demand and the need for advanced PCB technologies.

• R&D efforts are being enhanced through industry-academia collaborations and new product development, especially in embedded device PCBs.