MEITEC (9744) Q1 2025 earnings summary

Executive summary

• Net sales rose 5.1% year-over-year to ¥32,910 million for the quarter ended June 30, 2024, driven by strong demand from leading manufacturers and increased engineer assignments.

• Operating profit increased 12.5% year-over-year to ¥4,767 million, with profit attributable to owners of parent up 22.2% to ¥3,223 million.

• The number of engineers increased to 12,686 as of June 30, 2024, up 0.9% year-over-year, with 631 new engineers hired in April 2024.

• Utilization ratios and working hours improved, supporting higher productivity.

Financial highlights

• Consolidated net sales for 1Q FY2025 were ¥32,910 million, up 5.1% year-over-year.

• Operating profit reached ¥4,767 million, up 12.5% year-over-year, with a margin of 14.5%.

• Profit attributable to owners of parent was ¥3,223 million, up 22.2% year-over-year, with a profit margin of 9.8%.

• Gross profit increased to ¥8,992 million from ¥8,413 million year-over-year.

• Earnings per share rose to ¥41.75 from ¥33.65 year-over-year.

Outlook and guidance

• Full-year forecast (ending March 31, 2025): Net sales ¥132,700 million (+4.5% YoY), operating profit ¥17,500 million (-0.9% YoY), ordinary profit ¥17,600 million (+0.4% YoY), profit attributable to owners of parent ¥12,100 million (+2.0% YoY), EPS ¥156.72.

• Interim dividend forecast: ¥88.00 per share; full-year dividend forecast: ¥188.00 per share, including a ¥30.00 commemorative dividend.

• Initial forecast for 2Q FY2025 projects net sales of ¥65,000 million and operating profit of ¥8,200 million.

• 2Q profit attributable to owners of parent is forecast at ¥5,600 million.