Latest Results
Latest Financial Announcements
Financial Announcements for the Current Term
- Financial Results Briefing for the First Half of the Fiscal Year Ending March 31, 2024
- Financial Results Briefing for the First Quarter of the Fiscal Year Ending March 31, 2024
Trends in the Past Three Fiscal Years and the Current Fiscal Year
| 2021/3 | 2022/3 | 2023/3 | 2024/3 | ||
|---|---|---|---|---|---|
| Net sales (million yen) |
3Q | 43,737 | 48,727 | 60,278 | 57,104 |
| FY | 59,976 | 66,848 | 77,962 | 76,000 | |
| Operating profit (million yen) |
3Q | 3,771 | 3,752 | 5,100 | 747 |
| FY | 5,179 | 4,684 | 4,739 | 1,000 | |
| Ordinary profit (million yen) |
3Q | 3,232 | 4,459 | 6,619 | 1,764 |
| FY | 5,320 | 6,529 | 5,675 | 2,400 | |
| Profit attributable to owners of parent (million yen) |
3Q | 2,373 | 3,200 | 4,422 | 963 |
| FY | 3,818 | 4,663 | 3,147 | 1,400 | |
| Basic earnings per share (yen) |
3Q | 116.54 | 139.28 | 189.72 | 41.35 |
| FY | 184.55 | 202.28 | 135.01 | 60.06 | |
*Numbers for the full year of the term ending March 2024 are forecasts announced on February 8th, 2024.
Overview of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2024
Effective from the first quarter of the consolidated fiscal year under review, the Company has changed the classifications and names of its reporting segments as follows.
「VCCS（Vehicle Communication Comfort & Safety）」:
Former 「Vehicle Communication Equipment」-「Platform Business」
「CTC（Circuit Testing Connector）」: Former 「Circuit Testing Connector」
「FC（Fine Connector） / MD（Medical Device）」:
Former 「Personal Communication Equipment」-「Advanced Devices Business」
「Incubation Center」:「Platform Business」+「Advanced Device Business」
Net sales in the third quarter of the consolidated fiscal year under review amounted to ¥57,104 million, a decrease of 5.3% year-on-year, reflecting decreased year-on-year sales in both CTC and FC・MD segment, despite increased year-on-year sales in VCCS segment. The Company reported an operating profit of ¥747 million, a decrease of 85.3% year-on-year, reflecting decreased profit in FC・MD segment while decreased sales and a loss in CTC and Incubation Center segment, which is focused on new business, although VCCS segment profitability had been improved significantly. Ordinary profit decreased by 73.3% year-on-year, to ¥1,764 million, reflecting an exchange gain of ¥1,062 million attributable to the weakening of the yen. Profit attributable to owners of the parent decreased by 78.2% year-on-year, to ¥963 million reflecting a decreased in ordinary profit.
Overview of Financial Results for Each Segments and Explanation of Consolidated Results Forecast
VCCS (Core product: Antenna for Vehicle)
In the automotive market, the main market for this segment, sales are improved as the global shortages of semiconductors and component supply stagnation eased. A breakdown by region shows that the number of units sold in the United States, China, and the Japanese market increased.
In these circumstances, mainstay products for automobile manufacturers, such as shark fin antennas and GPS antennas, achieved high sales in overseas by the weakening of the yen and increasing production of automobile manufacturers.
As a result, sales for this segment increased year-on-year, to ¥41,561 million (up 21.7% year-on-year). The segment reported a profit of ¥2,009 million (a loss of ¥1,434 million in the previous fiscal year), due to increased profit associated with an increase in sales, decreased physical distribution costs by low ocean freight rates, and collection of cost increases, despite increased production volume and high labor costs at production bases in China and Vietnam associated with the strengthening of the local currencies.
CTC (Core Product: Semiconductor Testing Socket and Probe Card)
In the semiconductor testing market, demands for PCs and smartphones continued to decline compared with the previous year, moreover stagnant demand for servers has been prolonged due to inventory adjustments by semiconductor manufacturers and curbs on capital investment.
In these circumstances, sales of jigs for semiconductor back-end testing, the mainstay product of the Group, decreased year-on-year, due to a decrease in orders for logic semiconductor testing sockets. Sales of jigs for semiconductor front-end testing decreased year-on-year because of lower sales in both the turnkey business which offers one-stop solutions services including peripheral devices and MEMS probe cards (YPX) for high-frequency electronics components testing.
As a result, sales for this segment decreased year-on-year, to ¥9,182 million (down 50.1% year-on-year). The segment reported a loss of ¥726 million (a gain of ¥5,925 million in the previous fiscal year), due to decreased profit associated with a decrease in sales and an increase in fixed costs reflecting actions to support future semiconductor miniaturization and R&D investment in improved production efficiency, despite curb on expenses such as labor costs.
FC (Core Product: Fine spring connector for electronics) ・MD (Core Product: Medical devices and units)
In the market for mobile communication terminals, a key market for this segment, sales of wearable terminals are expected to grow given their diversification and greater sophistication. However, unit shipments of smartphones were on a downward trend due to the economic downturn. Demand for POS terminals was slow down, although the POS terminal market had 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 these circumstances, net sales for FC business, for which fine spring connectors act as core products, decreased year-on-year, reflecting a decrease in sales of POS terminals, and a decrease in sales of a product for wearable devices, such as wireless earbuds, due to customer's production adjustment.
In MD business, sales increase year-on-year due to strong sales of catheter components for a major domestic medical device manufacturer which is a major customer.
As a result, sales for this segment decreased year-on-year, to 6,058 million (down 18.5% year-on-year). The segment reported a profit of ¥41 million (down 95.8% year-on-year) chiefly owing to decreased profit associated with a decrease in sales in FC business.
Incubation Center (Core Product: Antenna and providing solutions for MaaS/IoT)
The Company has been engaged in full-scale business development efforts, aiming to create new businesses and innovate business models for new growth markets such as MaaS, and IoT as well as the optical communication market for higher-speed and larger-capacity communication. Due to organizational changes implemented during the first quarter of the consolidated fiscal year under review, development in these new business fields was split off from existing operating departments and classified under the Incubation Center as a new reporting segment comprising the Platform Business and Advanced Device Business. The MaaS/IoT market, which is a key market for this segment, is expected to grow steadily, reflecting the advance of mobility including car sharing, and the widespread adoption of IoT connecting everything through the Internet.
In these circumstances, the Platform Business has made progress in expanding sales of MIMO antennas utilizing smart antenna technologies for IoT, and vehicle key management solutions for MaaS and rental cars. For the Advanced Device Business, which includes the segment, the Company has developed systems for the mass production of optical connector products utilizing photoelectric conversion device technologies for the optical communications market.
As a result, sales for this segment increased year-on-year, to 296 million (up 6.7% year-on-year). The segment reported a loss of ¥592 million (a loss of ¥398 million in the previous fiscal year), because the segment which is in the early stages of its development, generates sales at a small scale and involves up-front investment.
Future Outlook
The following are our assumptions for the results forecast for the fiscal year ending March 31, 2024.
・In the automobile market, the main market for the Company, a full-scale recovery in production at automobile manufacturers are expected to be continued until the fiscal year ending March 31, 2024 because the global shortage of semiconductor expected to be normalized, although production adjustment for some of customer.
・In the semiconductor testing market, the downturn that developed from the second half of the fiscal year ended March 31, 2023 has been bottomed out and is expected to be recovered in the next fiscal year.
・In the market for mobile communication terminals, stagnation of the sale of POS terminals and other electronic terminals caused by the global recession is expected to be recovered with customers’ liquidating excess inventory.
・In the advanced medical equipment market, demand for minimally invasive medical procedures using catheters and similar products is expected to grow steadily.
・In the MaaS/IoT market, steady growth is expected, reflecting the advance of mobility solutions and widespread adoption of IoT.
Our forecast for sales and operating profit are shown in the table above based on the result of the third quarter of the fiscal year ending March, 31 2024 and the latest forecast of orders. This reflects increased profit of VCCS segment driven by increased sales, improving profitability by business structure reform and decreased physical distribution costs and increased profits of CTC and FC・MD segment associated with increase in those sales. Our forecasts for ordinary profit and profit attributable to owners of parent are as shown in the table above, which incorporate a foreign exchange gain of ¥1,400 million under an exchange rate of ¥145 against US$.