Yokowo Co., Ltd.

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Latest Results

Latest Financial Announcements

Financial Announcements for the Current Term

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

2020/3 2021/3 2022/3 2023/3※
Net sales
(million yen)
1Q 14,975 11,569 16,021 18,926
FY 60,595 59,976 66,848 76,000
Operating profit
(million yen)
1Q 1,175 426 1,219 1,087
FY 4,916 5,179 4,684 7,000
Ordinary profit
(million yen)
1Q 932 346 1,287 3,057
FY 4,583 5,320 6,529 8,000
Profit attributable to owners of parent
(million yen)
1Q 694 242 916 2,031
FY 3,440 3,818 4,663 5,500
Basic earnings per share
(yen)
1Q 34.32 11.95 40.80 87.16
FY 169.85 184.55 202.28 235.94

*Numbers for the full year of the term ending March 2023 are forecasts announced on August 4th, 2022.

Overview of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

Net sales in the first quarter of the consolidated fiscal year under review amounted to ¥18,926 million, an increase of 18.1% year on year, due to the sales in both the Vehicle Communication Equipment and the Personal Communication Equipment segment remained almost unchanged, and the sales in the Circuit Testing Connector segment significantly increased.
The Company reported operating profit of ¥1,087 million, falling 10.9% year on year, because the Personal Communication Equipment segment posted lower profit and the Vehicle Communication Equipment segment showed a loss due to physical distribution cost in high level and continuing cost associated with rising raw materials prices, and increasing cost due to the weakening of the yen, despite substantial year-on-year profit growth in the Circuit Testing Connector segment. Ordinary profit increased 137.5% year on year, to ¥3,057 million, reflecting an exchange gain of ¥1,916 million. Profit attributable to owners of the parent increased by 121.6% year on year, to ¥2,031 million mainly due to a rise in ordinary profit.

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

Vehicle Communication Equipment

In the automotive market, the main market for this segment, the global shortage of semiconductors, parts supply stagnation and other impacts persisted from the preceding fiscal year. As a result, automaker production slowed. A breakdown by region shows that vehicle sale volumes in the U.S. market fell from the same period a year earlier because of shortages of stocks. They also fell in the Chinese and Japanese markets, affected by lockdowns in the Chinese city of Shanghai following a surge in COVID-19 cases.
In these circumstances, mainstay products for car manufactures, such as shark fin antennas and GPS antennas achieved high sales in overseas by the weakening of the yen but low sales in Japan.
As a result, sales for this segment remained almost unchanged year on year, at ¥10,281 million (up 1.0% year on year). The segment reported a loss of ¥1,201 million (a gain of ¥1 million in the previous fiscal year), reflecting greater physical distribution costs attributable chiefly to a surge in ocean freight, higher labor costs at production sites in China and Vietnam associated with the appreciation of the local currencies and increased cost due to rising materials prices since the fiscal year ended March 31, 2022. In addition, the deduction of unrealized profit increased substantially due to higher inventory validation by the weakening of the yen.

Circuit Testing Connector

In the semiconductor testing market, the main market for this segment, demand related to testing remains very strong, reflecting strong demand for high-end personal computers associated with the expansion of telework and servers, and the tight supply of semiconductors for electronics equipment including cloud services and smartphones.
In these circumstances, sales of jigs for semiconductor back-end testing, the main product of the Group, were higher year on year, due to benefits from the weakening of the yen, and an increase in strong orders and launching on mass production of new products for logic semiconductor testing sockets and sockets for high-frequency testing. Sales of jigs for semiconductor front-end testing were temporarily sluggish due to 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 ¥6,203 million (up 82.5% year on year). The segment reported a profit of ¥2,026 million (up 162.7% year on year) largely due to increased sales and higher profit associated with the weakening of the yen, despite cost-up caused by rising raw materials prices and high fixed costs by the expansion of production capacity.

Personal Communication Equipment

In the market for mobile communication terminals, a key market for this segment, sales of smartphones were on a downward trend. However, 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 these circumstances, net sales for the fine connector business, for which fine spring connectors act as core products, decreased year-on-year, reflecting a decrease in sales of products for POS terminals and products for wearable devices, such as wireless earbuds, due to the global shortage of semiconductors and production adjustments at customers caused by a resurgence of COVID-19.
In the medical device business, which is included in the segment, sales increased year on year, reflecting an increase in sales of the components to the main customers as well as sales of unit-based devices.
As a result, sales for this segment remained almost unchanged year on year, at ¥2,440 million (up 0.1% year on year). The segment posted a profit of ¥262 million (down 41.3% year on year) chiefly owing to lower profit on the back of lower sales in the fine connector business as well as a higher labor cost ratio at production sites in China mainly due to a strong yuan, and changes in the business structure.

Future Outlook

The following are our assumptions for the results forecast for the fiscal year ending March 31, 2023.
・COVID-19 shows no signs of abating and will remain unpredictable. We will prioritize strict infection control measures at our production bases and expect that we will be able to operate stably.
・In the automobile market, the main market for the Company, the lingering impact of the global shortage of semiconductors and stagnation in parts’ supply is expected to continue in the first half of the fiscal year under review.
In the semiconductor testing market, demand remained strong reflecting brisk demand for high-end personal computers and servers in association with the expansion of teleworking. Given negative factors such as a downward trend in smartphone sales, demand is expected to grow at a slower pace while remaining at a high level.
・In the market for mobile communication terminals, the growth of POS terminals and other electronic terminals are expected to stagnate throughout the fiscal year under review due to the global shortage of semiconductors, in addition, smartphone sales are on a downward trend.
・In the advanced medical equipment market, the situation of the hard-pressed medical front line associated with the spread of COVID-19 infections has been mitigated in Overseas attributable to progress in vaccinations and the shift in various countries to a policy of coexisting with COVID-19, despite COVID-19 resurge in Japan. We expect demand in this market remains almost unchanged.
Based on these assumptions, our forecasts for net sales and each profit for the first six months (first half) and the full year are as shown in the table below.
 We base our performance forecasts below on an exchange rate of ¥130 against US$. (an exchanged rate of ¥120 against US$ as of the previous forecast in May 2022)

〇 Forecasts for the first six months of the fiscal year (first half)
Net sales for the first half of the fiscal year ending March 31, 2023 have been revised to be ¥37,900 million (up 22.4% from the first half of the fiscal year ended March 31, 2022), based on the result and the latest sales forecast of the first quarter of the fiscal year ending March 31, 2023.
Operating profit for the first half of the fiscal year ending March 31, 2023 is expected to be ¥2,700 million (up 34.8% from the first half of the fiscal year ended March 31, 2022). While sales growth and profit hikes are expected in the Circuit Testing Connector segment following the weakening of the yen, negotiations are underway on revisions to selling prices in response to the sharp cost increase due to surging logistics expenses and material prices in the Vehicle Communication Equipment segment and the effect of the revision is not taken into account for the first half.
Ordinary income has been revised to be ¥3,700 million (up 68.0% from the first half of the fiscal year ended March 31, 2022), and profit attributable to owners of the parent has been revised to be ¥2,450 million (up 60.5% from the first half of the fiscal year ended March 31, 2022), reflecting an expectation of a foreign exchange loss of ¥1,000 million based on an exchange rate of ¥130 against US$.

〇 Full-year forecasts
Net sales for the fiscal year ending March 31, 2023 have been revised to be ¥76,000 million (up 13.7% from the fiscal year ended March 31, 2022) in view of the outlook about orders that will be won in the Vehicle Communication Equipment and the Personal Communication Equipment segments, although sales growth is anticipated for the second half in the Circuit Testing Connector segment.
Operating profit for the fiscal year ending March 31, 2023 is expected to be ¥7,000 million (up 49.4% from the fiscal year ended March 31, 2022). since it is foreseen that the profit/loss status will be improved by cost-cutting efforts at production bases and sales price revisions in the Vehicle Communication Equipment segment and that both sales and profit in the Circuit Testing Connector segment will increase.
Ordinary income has been revised to be ¥8,000 million (up 22.5% from the fiscal year ended March 31, 2022) and profit attributable to owners of the parent has been revised to be ¥5,500 million (up 17.9% from the fiscal year ended March 31, 2022), based on our assumptions of an exchange rate of ¥130 against US$ and no foreign exchange gain or loss.