Tokyo Seimitsu (7729) Q3 2025 earnings summary

Executive summary

• Orders, sales, and profits increased year-over-year for the first nine months of FY2025/3, driven mainly by the SPE segment and demand for generative AI and Chinese domestic production.

• Both SPE and Metrology segments saw YoY growth in orders and sales, with SPE showing stronger profit expansion.

• Quarterly results for 3Q FY2025/3 showed significant YoY increases in sales and profits, despite some sequential declines.

• Comprehensive income grew 53.6% YoY to ¥18,361 million.

Financial highlights

• 1-3Q FY2025/3: Orders ¥110.4B (+23% YoY), Sales ¥103.1B (+16% YoY), Operating Profit ¥19.1B (+33% YoY), Net Profit ¥18.1B (+71% YoY).

• 3Q FY2025/3: Sales ¥31.7B (+25% YoY, -24% QoQ), Operating Profit ¥5.7B (+89% YoY, -39% QoQ), Net Profit ¥4.6B (+121% YoY, -54% QoQ).

• Full-year FY2025/3 forecast: Sales ¥146.0B (+8% YoY), Operating Profit ¥28.5B (+13% YoY), Net Profit ¥23.3B (+20% YoY), Dividend per share ¥228 (+¥36 YoY).

• EPS for the nine months was ¥448.08, up from ¥263.33 YoY.

• Gross profit margin improved, with gross profit at ¥42.7B (up from ¥36.2B YoY).

Outlook and guidance

• FY2025/3 full-year forecast revised upward for SPE; Metrology guidance unchanged.

• Gen. AI and China demand expected to support SPE sales; power semiconductor demand remains sluggish.

• Net profit per share for the full year forecasted at ¥575.95, up 20.2% YoY.

• Metrology sales recovery expected to be moderate, with charge/discharge testing system growth likely in the next fiscal year.

• Forex impact minimal due to high ratio of yen-based business; assumption remains at ¥145/USD.