Shin-Etsu Polymer (7970) Q2 2025 earnings summary

Executive summary

• Signs of recovery in the semiconductor industry, especially for high value-added products, with gradual growth in semiconductor-related containers.

• Net sales for the six months ended September 30, 2024, rose 2.4% year-on-year to ¥54,737 million, with operating profit up 17.7% to ¥6,922 million and ordinary profit up 3.6% to ¥6,633 million.

• Profit attributable to owners of parent was ¥4,589 million, nearly flat year-over-year.

• Comprehensive income increased 28.8% year-on-year to ¥10,278 million, driven by foreign currency translation gains.

• Stable sales in automotive-related products, supported by a weaker yen and solid demand for input devices and silicone products.

Financial highlights

• Gross profit improved to ¥17,244 million from ¥15,798 million year-on-year.

• Dividend per share increased to ¥25.0, up 13.6% year-over-year.

• Cash flows from operating activities improved to ¥8,622 million; free cash flow remained stable.

• Cash and cash equivalents at period end were ¥41,851 million, up from ¥42,636 million at the previous period end.

• Basic earnings per share was ¥56.81, nearly flat from ¥57.01 a year earlier.

Outlook and guidance

• FY2024 net sales forecast at ¥106,000 million, up 1.6% from FY2023.

• Operating profit projected to rise 15.8% to ¥12,800 million; ordinary profit to ¥13,000 million.

• Net income per share expected at ¥109.0; dividend per share forecast at ¥50.0.

• Precision Molding Products segment expected to drive growth, while Electronic Devices and Housing & Living Materials forecast to decline.

• Profit attributable to owners of parent for the full year forecast at ¥8,800 million, up 1.4%.