SWCC Corporation (5805) Investor update summary

Financial performance highlights

• Net sales rose 9.8% YoY in Q2 FY2025, with operating profit up 11.9%, driven by strong Power Infrastructure and Communication & Mobility segments.

• Full-year guidance was revised upward as both sales and profits outpaced historical averages and initial plans.

• Profit attributable to owners more than doubled YoY, and ordinary profit increased by 59.3%.

• Construction Cables saw a smaller-than-expected decline, while Power Infrastructure and Communication Cables outperformed.

• Dividend forecast was raised by ¥20 to ¥200 per share, reflecting improved profitability.

Segment performance and outlook

• Energy and Infrastructure net sales dipped 3.7% YoY due to withdrawal from aluminum overhead lines, but operating profit rose 8.5% on higher construction volumes and value-added.

• Communication and Components net sales surged 27.3% YoY, with strong growth in Mobility, Semiconductor, and Industrial Applications.

• Power Infrastructure business expanded market share, especially with SICONEX®, and is targeting further growth via capacity expansion.

• Construction Cables business is being transformed into a cash-cow through DX initiatives and operational integration.

• Seismic Isolation business is being exited due to slowing growth and profitability.

Strategic initiatives and growth drivers

• Capex of ¥2.0 billion planned for SICONEX® capacity expansion, aiming for 220% sales growth over FY2023 by FY2026.

• New easy-install cables and SICOPLUS training address labor shortages and reduce skill dependency in Power Infrastructure.

• Labor-saving construction methods and 2D code product tracking improve efficiency and traceability.

• EC platform development for Construction Cables enhances customer convenience and operational efficiency.

• Market share in utility substations projected to rise from 63% in FY2025 to 88% by FY2030.