Bridge Report on Ferrotec Holdings Corporation: Results for Fiscal Year March 2022 and Earnings Estimates for Fiscal Year March 2023


TOKYO–(BUSINESS WIRE)–Investment Bridge, one of Japan’s leading independent investor relations services firms, has released a “Bridge Report” on Ferrotec Holdings Corporation (TOKYO:6890) reviewing its results for fiscal year March 2022 and earnings estimates for fiscal year March 2023.

Report Highlights

* Sales for the year ended March 2022 were 133,821 million yen, up 46.6% year-on-year. Amid the global shortage of semiconductors, sales of hardware products (quartz, silicon, ceramic and CVD-SiC parts) used for the semiconductor manufacturing process increased by 35.4%, while Electronics business sales were up 56.4% year-over-year. , thanks to the good performance of products for devices related to 5G next-generation telecommunication system, etc. On the profit side, gross profit increased due to sales growth and gross profit margin increased by 2.7 points due to higher utilization rate. Operating income increased significantly by 134.4% year-on-year to 22,600 million yen as higher general and administrative expenses were offset. Ordinary income increased 215.9% year-on-year to 25,994 million yen. There was no foreign exchange loss, which was recorded in the same period of the previous term, and a foreign exchange gain of 2.5 billion yen was recorded.

*For the period ending March 2023, sales are expected to increase 34.5% year-on-year to 180 billion yen, and operating income is expected to increase 32.7% year-on-year to 30 billion yen. Projection of a considerable increase in sales and profits, breaking even more past records this quarter as well. In terms of sales, in response to increased production demands from semiconductor customers, the company continues to proactively invest in increased production and projects increased sales supported by this investment. In terms of profits, project a huge increase in profits by strengthening facilities and establishing new factories at an early stage. The company plans to pay an ordinary dividend of 70.00 yen/share. This is the third consecutive dividend increase and the expected payout ratio is 18.4%.

*Based on the strong business performance, the company has increased the revenue target for the last period of the mid-term management plan (the period ending March 2024) by 53% compared to the previous plan and net income by 40% and has set itself the goal of achieving 230 billion yen in sales and 40 billion yen in operating income. Additionally, the company expects to further increase sales to 290 billion yen, operating profit to 52 billion yen and net profit to 27 billion yen for the period ending March 2025.

*The target figures of the medium-term management plan and the long-term vision have been raised considerably. It also looks like there won’t be any major changes in the favorable trading environment during this period, and we’d like to keep an eye on its status.

* On the other hand, new business sales are expected to be around 29 billion yen for the period ending March 2024. Businesses that cannot be classified at this time, such as new core businesses and candidate companies for mergers and acquisitions are being studied. Thus, we would also like to pay attention to their content.

To view the full report, please visit the website at the URL listed below.

About the Bridge report:

Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information on earnings, business strategies and other information on Japanese listed companies. Investment Bridge was founded in August 2000 and is one of the leading independent IR support service companies in Japan. Investment Bridge specializes in providing various solutions to Japanese listed companies with the aim of expanding our clients’ shareholder base and liquidity through increased business recognition and understanding.


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