Sanyo Denki (6516) Q2 2025 earnings summary

Executive summary

• Revenue for FY 2024 H1 was $326M (¥46,526 million), down 23.3% year-over-year, with operating profit falling 56% to $21M (¥3,046 million) and net profit dropping 72.4% to $11M (¥1,600 million).

• Declines were driven by weak demand in telecom, semiconductor, and factory automation sectors, partially offset by robust GPU server and medical equipment demand.

• Orders received increased 5.2% to ¥40,568 million, but order backlog declined 35.8% to ¥38,381 million.

• New group company established in Chengdu, China, and new production technology engineering services launched.

• The company shifted to a company-based segment reporting structure effective April 1, 2024.

Financial highlights

• Gross profit margin decreased to 25.4% from 26.6% year-over-year, with gross profit at ¥11,838 million, down from ¥16,121 million.

• Basic earnings per share dropped to ¥134.24 from ¥478.80 year-over-year.

• Interim dividend increased to $0.53 per share; annual cash dividend per share forecast is ¥150.00.

• Cost of goods sold fell by $69M due to lower raw material and outsourced processing costs.

• Total assets at September 30, 2024, were ¥145,078 million, down from ¥150,688 million at the previous fiscal year-end.

Outlook and guidance

• FY 2024 full-year revenue forecast revised down to $673M (¥96,100 million), a 14.9% decrease year-over-year.

• Operating profit expected to decline 44.1% to $46M (¥6,600 million), with net profit forecast at $33M (¥4,700 million), down 55.1%.

• No revisions have been made to the previously announced business results forecast.

• Continued growth anticipated for GPU servers and government projects, but major industry demand recovery remains delayed.