RS Technologies (3445) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales rose 14.7% YoY to ¥17,616m and operating income rose 14.0% to ¥3,001m; ordinary income fell 9.4% and net income attributable to owners of parent fell 3.6%.

• Reclaimed and prime wafer businesses grew sales and operating income; new equipment, materials and energy businesses added sales but contributed little operating income.

• Comprehensive income was a loss of ¥4,167m, versus income of ¥7,070m a year earlier, with foreign-currency translation adjustments contributing to the swing.

Financial highlights

• Net sales were ¥17,616m and gross profit was ¥5,320m, versus ¥15,358m and ¥4,105m, respectively, in Q1 2024.

• Operating margin was 17.0%, down 0.1pt YoY; ordinary income was ¥3,252m and ordinary margin was 18.5%, down 4.9pt.

• Net income attributable to owners of parent was ¥1,717m; basic EPS was ¥65.02, versus ¥67.60 a year earlier.

• Comprehensive income attributable to owners of parent was a loss of ¥1,557m, versus income of ¥3,611m in Q1 2024.

Outlook and guidance

• FY2025 forecast: sales ¥75,000m, operating income ¥15,100m, ordinary income ¥16,600m and parent-attributable profit ¥8,760m; the forecast was unchanged.

• FY2025 forecast basic EPS is ¥331.56; first-half forecasts include sales of ¥36,050m and operating income of ¥7,300m.

• FY2027 targets: sales ¥100bn, operating income ¥21.9bn, ordinary income ¥23.4bn and net profit ¥12.7bn; 2025–2027 targets include ROIC above 13% and ROE above 14%.

• Reclaimed-wafer capacity is planned to exceed 1m wafers/month by 2027; 8-inch prime-wafer capacity targets more than 300,000/month by 2027, with 12-inch capacity at 300,000/month after 2027.