Tokyo Seimitsu (7729) Q1 2025 earnings summary

Executive summary

• Orders rose 27% year-over-year and 20% sequentially, with both SPE and Metrology segments contributing; net sales for Q1 FY2025/3 rose 11.3% year-over-year to ¥29,626 million.

• Net profit attributable to owners increased 10% year-over-year to ¥3,554 million, but declined 59% sequentially.

• Operating profit decreased 4% year-over-year and 63% sequentially; recurring profit fell 8.1% year-over-year.

• Orders increased 26.5% year-over-year, driven by strong demand in China and AI-related sectors, despite continued weakness in consumer electronics.

Financial highlights

• 1Q FY2025/3 sales: ¥29.6B (+11% YoY, -35% QoQ); operating profit: ¥4.1B (-4% YoY, -63% QoQ); net profit: ¥3.6B (+10% YoY, -59% QoQ).

• Gross profit on sales increased to ¥11,873 million from ¥11,203 million year-over-year.

• Net profit per share rose to ¥87.89 from ¥80.63 year-over-year.

• Orders reached ¥37.4B in 1Q FY2025/3, up from ¥29.5B in the prior year.

• Extraordinary gains of approximately ¥4.0B to be recorded in 1H FY2025/3 from fixed asset sales.

Outlook and guidance

• FY2025/3 sales forecast: ¥143.0B (+6% YoY); operating profit: ¥27.0B (+7% YoY); net profit: ¥21.8B (+13% YoY).

• Dividend per share forecast: ¥216, up ¥24 YoY.

• Interim net profit forecast raised due to a ¥4.0B extraordinary gain.

• Recovery in consumer electronics demand remains uncertain; forecasts based on current order trends.

• AI, HBM, CIS, and China demand underpin SPE outlook; Metrology expected to be flat YoY.