Meiko Electronics (6787) H2 2026 presentation earnings summary

Financial performance and outlook

• Net sales are projected to rise from ¥240.6 billion in FY2025 to ¥320.0 billion in FY2026, with operating income increasing from ¥24.6 billion to ¥38.0 billion and net income from ¥19.8 billion to ¥27.0 billion.

• Operating margin is expected to improve from 10.2% in FY2025 to 12.0% in FY2026, with further gains targeted through FY2028.

• Investment is set at ¥70 billion annually from FY2026 to FY2028, supporting capacity expansion and technology upgrades.

• Dividend per share is planned to increase from ¥115 in FY2025 to ¥160 in FY2026, with a consistent 15% payout ratio.

• ROE is forecast to rise from 14.6% in FY2025 to 17.1% in FY2026, reaching 21.1% by FY2028.

Business and product strategy

• Automotive and AI server applications are key growth drivers, with automotive PCB sales rising and AI server-related products expanding rapidly.

• Product mix is shifting toward high-layer and high-density interconnect (HDI) PCBs, especially for advanced electronics and AI.

• New factories in Vietnam, including Plant #4 and Hoa Binh, are focused on high-layer, HDI, and AI server substrates.

• Joint venture with ACCL targets high-layer MLB PCBs for AI servers in Southeast Asia.

• M&A of FCL Components Limited strengthens contract design, development, and advanced module capabilities.

Medium-term plan and market positioning

• Medium-term plan targets net sales of ¥460 billion and operating income of ¥65 billion by FY2028, with an OP margin of 14%.

• CAGR for net sales is projected at 24.1% from FY2025 to FY2028, with operating income CAGR at 38.2%.

• Market focus includes automotive, AI servers, smartphones, and satellite communications, with significant investments in R&D and production capacity.

• Global PCB market is expected to grow, with the company aiming to outpace industry CAGR through product and geographic expansion.

• Strategic investments in Vietnam and partnerships are designed to capture demand in high-growth segments and enhance competitiveness.