Yamaichi Electronics (6941) Q2 2024 earnings summary

Executive summary

• 1H FY2023 net sales fell 31.5% YoY to ¥18.6bn and operating income fell 76.5% to ¥1.5bn; FY2023 sales and profit forecasts were cut on a slower-than-expected recovery.

• Weakness in smartphone, PC and memory semiconductor demand weighed on Test Solution; automotive-related connector products remained comparatively resilient.

Financial highlights

• 1H FY2023 net sales were ¥18.6bn, operating income ¥1.5bn, ordinary income ¥1.6bn and net profit ¥1.1bn; YoY declines were 31.5%, 76.5%, 77.1% and 77.1%, respectively.

• 1H EPS was ¥58.24, down from ¥250.41 YoY; BPS was ¥1,823.96, up ¥82.33.

• FY2023 latest forecast: net sales ¥38.4bn, operating income ¥2.9bn, ordinary income ¥2.8bn and net profit ¥2.0bn.

• Latest FY2023 forecast implies YoY declines of 18.2% in sales, 68.3% in operating income, 69.8% in ordinary income and 72.3% in net profit.

Outlook and guidance

• FY2023 forecast reduced from ¥42.0bn to ¥38.4bn in sales and from ¥6.6bn to ¥2.9bn in operating income versus the August 4 forecast.

• 2H recovery in mobile devices, particularly smartphones, is expected to be slower than previously anticipated; memory semiconductor investment is expected to resume.

• Anticipated demand growth for automotive semiconductors centers on autonomous driving and ADAS; TS expects solid logic socket demand, especially automotive MCU and ADAS applications.

• FY2023 exchange-rate assumptions are ¥144/USD and ¥155/EUR, versus FY2022 actual rates of ¥135.47/USD and ¥140.97/EUR.