Yokowo Co., Ltd.

IR Information

Latest Results

Latest Financial Announcements

Financial Announcements for the Current Term

Trends in the Past Three Fiscal Years and the Current Fiscal Year

2019/3 2020/3 2021/3 2022/3※
Net sales
(million yen)
FY 54,752 60,595 59,976 66,000
2Q 26,645 29,933 27,111 30,969
Operating income
(million yen)
FY 3,082 4,916 5,179 5,000
2Q 1,324 2,504 2,049 2,003
Ordinary income
(million yen)
FY 3,286 4,583 5,320 4,900
2Q 1,742 2,211 1,716 2,202
Profit attributable to owners of parent
(million yen)
FY 2,209 3,440 3,818 3,450
2Q 1,287 1,645 1,272 1,526
Basic earnings per share
(yen)
FY 109.18 169.85 184.55 148.00
2Q 63.64 81.30 62.69 66.86

*Numbers for the full year of the term ending March 2022 are forecasts announced on November 10, 2021.

Overview of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022

Net sales in the first half of the consolidated fiscal year amounted to ¥30,969 million (up 14.2% year on year), a record high for the first half. In the Vehicle Communication Equipment and Personal Communication Equipment segments, net sales decreased year on year in the second quarter chiefly due to the global shortage of semiconductors and production adjustments at customers caused by a resurgence of COVID-19, while net sales in Circuit Testing Connector segment increased significantly, reflecting strong demand. Operating income decreased to ¥2,003 million (down 2.3 % year on year), reflecting a substantial improvement in Circuit Testing Connector segment, offsetting a year-on-year decrease in Personal Communication Equipment segment and loss in Vehicle Communication Equipment. Ordinary income increased to ¥2,202 million (up 28.3% year on year), reflecting an exchange gain of ¥176 million attributable to the weakening of the yen. Profit attributable to owners of parent increased to ¥1,526 million (up 20.0% year on year) mainly due to a rise in ordinary income and other factors.

Overview of Financial Results for Each Segments and Explanation of Consolidated Results Forecast

Vehicle Communication Equipment

In the automobile market, the main market for this segment, automobile manufacturers were forced to further cut back production in the second quarter, mainly due to the global shortage of semiconductors and delays in parts procurement caused by a resurgence of COVID-19 in the ASEAN region. Demand, including demand carried over from last year, was strong in each region. However, growth in sales volume slowed and declined in the second half due to production adjustments at automobile manufacturers.
In this environment, mainstay products for car manufactures that are sold in Japan and overseas, such as shark fin antennas and GPS antennas, and ETC antennas and other products mainly marketed in Japan achieved net sales substantially exceeding the levels in the second quarter of the previous fiscal year due to the reaction to the production cutbacks from the first quarter, despite a decrease in orders by the production adjustments at automobile manufacturers.
As a result, sales for this segment increased year on year, to ¥18,843 million (up 21.8 % year on year).A sharp fall in sales in the second quarter, a greater-than-expected increase in physical distribution cost attributable chiefly to a surge in ocean freight, and the maintenance of the production system in anticipation of a recovery in production at automobile manufacturers, among other factors, resulted in a segment loss of ¥488 million (a loss of ¥345 million in the previous fiscal year).

Circuit Testing Connector

The semiconductor testing market, which is the main market for this segment, is on a downward trend, reflecting decreased demand for personal computers due to the penetration of telework and online learning. However, demand related to testing remains very strong, reflecting a tight supply of semiconductors for cloud services and for smartphones and other electronics equipment.
In these circumstances, sales of jigs for semiconductor back-end testing, the main product of the Group, were higher year on year, due to an increase in orders for logic semiconductor testing sockets and sockets for high-frequency testing and launching on mass production of new products. Meanwhile, there were some production delays due to restrictions on the operation of the Malaysian plant caused by a lockdown. Sales of jigs for semiconductor front-end testing increased year on year due to a steady expansion in the turnkey business that offers one-stop solutions services including peripheral devices. Demand for MEMS probe cards (YPX) for high-frequency electronics components testing rose significantly, reflecting the penetration of 5G smartphones, and sales of the probe cards exceeded the year-ago level.
As a result, sales for this segment increased year on year, to ¥7,540 million (up 10.4 % year on year). The segment posted a profit of ¥1,755 million (up 38.2 % year on year), due to an increase in profit margins by raising the in-house production ratio despite an increase prices of raw materials.

Personal Communication Equipment

In the market for mobile communication terminals, a key market for this segment, the number of smartphones shipped declined due to the global shortage of semiconductors, but sales of wearable terminals are expected to grow given their diversification and greater sophistication. The POS terminal market has been growing steadily in a wide range of industries, including those engaging in logistics and manufacturing, with a view toward improvements in operational efficiency through information management. In addition, other markets, including the market for industrial equipment, are also expected to grow.
In this environment, net sales for the fine connector business, for which fine spring connectors act as core products, posted a year-on-year decrease, reflecting a decrease in sales of products for POS terminals and products for wearable devices, such as wireless earbuds, in the second quarter due to the shortage of semiconductors and production adjustments at customers caused by a resurgence of COVID-19 in the ASEAN region.
In the medical device business, which is included in this segment, net sales decreased year on year, mainly reflecting a decline in sales in the first quarter, even thorough sales of unit products remained steady, and sales of parts has been improving due to the easing of pressure in the medical front lines.
As a result, sales for this segment decreased year on year, to ¥4,585 million (down 4.6% year on year). The segment posted a profit of ¥736 million (down 34.6% year on year), mainly reflecting a decline in the weighting of relatively high-margin products in the fine connector business and lower sales.

Explanation of Consolidated Results Forecast

 The following are our assumptions for the results forecast for the fiscal year ending March 31, 2022.
 COVID-19 vaccinations have been received progressively and COVID-19 cases are about to decrease and calm down. On other hand, the next COVID-19 surge is concerned and will remain unpredictable. The company will prioritize strict infection control measures at production bases and assume that the company will be able to maintain stable operation. In October this year, the domestic restriction on movement in Vietnam implemented in the second quarter were phased out and the capacity utilization rate at Vietnam production base, the main production base for Vehicle Communication Equipment segment, is returning to normal. Since June this year, the capacity utilization rate at Malaysia production base, the main production base for Circuit Testing Connector segment and Personal Communication Equipment segment, had been 60% under the government's lockdown policy. However, because of the rapid penetration in vaccinating employees, operations at full capacity have been permitted since October, and mass productions are stable. About production bases other than the above, operations have been conducting normally and stable since the beginning of the fiscal year ending March 31, 2022. Those conditions assume to continue in the second half of the fiscal year ending March 31, 2022.
 In the automobile market, automobile manufacturers were forced to further cut back production since August this year, mainly due to the global shortage of semiconductors and delays in parts procurement caused by a resurgence of COVID-19 in the ASEAN region. However, the market will be expected recovery in November and will increase production from December due to production adjustments at automobile manufacturers.
 In the semiconductor testing market, demand for semiconductors, including 5G-related devices, assume to rise significantly.
 In the mobile communication terminals market, POS terminal and wearable manufacturers have been cutting down production due to global shortage of semiconductors since August this year, which is assumed to continue within this year. However, it will be assumed to recover from the beginning of 2022.
 In the advanced medical equipment market, the medical front lines where avoid non-essential surgery operations due to the spread of COVID-19 become easing. The market is likely to improve to some extent in the second half of the fiscal year ending March 31, 2022.
 Based on those assumptions, the company revised the full-year sales forecasts for the entire Group as shown in the table above in consideration of the results in the first half and the latest forecast of orders. The company revised operating income since the company assumed that, despite increases in sales and income in the Circuit Testing Connector segment will rise, Operating loss in Vehicle Communication Equipment is assumed due to continuing a greater-than-expected increase in physical distribution cost and raw materials prices, and sales and income in the Personal Communication Equipment segment will decline. The company revised ordinary income and profit attributable to owners of parent as shown in the table above, given expectations of non-operating expenses of ¥100 million including foreign exchange losses (non-operating expenses including foreign exchange losses at previous forecast of ¥500 million), assuming an exchange rate of ¥110 against US$.
 The company assume an exchange rate of ¥110 against US$ (¥105 against US$ for the previous forecast) from November this year to the end of the fiscal year under review.