Yushin Company (6482) Q2 2025 earnings summary

Executive summary

• Net sales rose 21.6% year-over-year to ¥12,133 million in the first half, driven by strong custom-ordered equipment sales and increased demand in Japan and Europe.

• Operating profit increased 31.4% year-over-year to ¥911 million, supported by higher sales despite increased personnel expenses.

• Ordinary profit declined 12.2% year-over-year to ¥738 million due to foreign exchange losses.

• Profit attributable to owners of parent decreased 1.0% year-over-year to ¥534 million.

• The company will change its trade name to "Yushin Company" effective April 2025.

Financial highlights

• Gross profit improved to ¥4,895 million from ¥4,113 million year-over-year; gross profit margin for the first half: 40.3%.

• Operating profit margin: 7.5% (first half FY2025); full-year forecast: 10.2%.

• Comprehensive income dropped to ¥329 million from ¥1,373 million year-over-year, mainly due to negative foreign currency translation adjustments.

• Total assets decreased to ¥41,565 million from ¥42,821 million at the previous fiscal year-end, mainly due to a reduction in cash and deposits.

• Orders received increased 15.6% year-over-year to ¥12,990 million; backlog decreased to ¥9,617 million.

Outlook and guidance

• Full-year consolidated forecasts unchanged: net sales of ¥25,500 million (+8.0% YoY), operating profit of ¥2,600 million (+6.7% YoY), and profit attributable to owners of parent of ¥1,800 million (+6.4% YoY).

• Annual dividend forecast maintained at ¥20 per share; dividend payout ratio target of 30% or more.

• Anticipates continued sales growth in Japan and Asia in the second half, especially in the mobility and medical fields.

• Expects higher raw material and labor costs but projects profit growth due to increased sales.