Sinoseal (300470) H2 2025 earnings summary

Executive summary

• Revenue reached ¥1,768.84 million, up 12.91% year-over-year; net profit attributable to shareholders was ¥385.40 million, down 1.80% year-over-year; adjusted net profit (excluding stock incentive expense) rose 5.40%.

• Gross margin was 45.58%, down 2.76 percentage points year-over-year, mainly due to product mix and international expansion.

• Cash flow from operations increased 26.82% year-over-year to ¥408.80 million.

• The company maintained its leading position in the domestic mechanical seal industry and expanded international business, with overseas revenue up 37.04%.

• Proposed cash dividend of ¥5 (tax included) per 10 shares for 2025.

Financial highlights

• Revenue: ¥1,768.84 million (+12.91% YoY); net profit: ¥385.40 million (-1.80% YoY); adjusted net profit: ¥415.42 million (+5.40% YoY).

• Operating cash flow: ¥408.80 million (+26.82% YoY).

• Gross margin: 45.58% (-2.76ppt YoY); EPS: ¥1.8725 (basic and diluted).

• Total assets: ¥3,501.39 million (+8.51% YoY); net assets: ¥2,897.95 million (+8.40% YoY).

• R&D investment: ¥89.79 million, 5.08% of revenue.

Outlook and guidance

• 2026 revenue target: ¥1,825.23 million (+3.19% YoY); net profit target: ¥414.15 million (+7.38% YoY); adjusted net profit target: ¥443.43 million (+6.66% YoY).

• Focus on capacity bottleneck resolution, sustained R&D, and talent development to maintain industry leadership.