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Bridge Report on Ferrotec Holdings Corporation: The results for fiscal year March 2022 and earnings estimates for the fiscal year March 2023

NOTE TO EDITORS: The following is an investment opinion issued by Investment Bridge

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

Report Highlights

* The sales of the fiscal year ended March 2022 were 133,821-million-yen, up 46.6% year on year. Amid the global shortage of semiconductors, the sales of the material products (quartz, silicon parts, ceramics, and CVD-SiC) used for the semiconductor manufacturing process increased 35.4%, while the sales of the electronic device business grew 56.4% year on year, thanks to the good performance of products for devices related to the next-generation telecommunication system 5G, etc. Regarding profit, gross profit rose due to the sales growth, and gross profit margin increased 2.7 points due to the rise in utilization rate. Operating income grew significantly by 134.4% year on year to 22,600 million yen, as the augmentation of SG&A was offset. Ordinary income increased 215.9% year on year to 25,994 million yen. There was no foreign exchange loss, which was posted in the same period of the previous term, and a foreign exchange gain of 2.5 billion yen was recorded.

*For the term ending March 2023, sales are expected to increase 34.5% year on year to 180 billion yen, and operating income is projected to grow 32.7% year on year to 30 billion yen. Projecting considerable increase of sales and profit, further breaking past records this term as well. In terms of sales, in response to requests for production increase from semiconductor clients, the company is continuing proactive investment in production increase and project increase in sales backed by this investment. In terms of profit, projecting considerable increase in profit by reinforcing facilities and establishing new factories at an early point. The company plans to pay an ordinary dividend of 70.00 yen/share. This is the third consecutive term of dividend increase, and the expected payout ratio is 18.4%.

*Based on the strong business performance, the company increased the sales target for the final term of the medium-term management plan (the term ending March 2024) by 53% from the previous plan and net income by 40% and set a goal to achieve 230 billion yen in sales and 40 billion yen in operating income. Moreover, the company plans to further grow sales to 290-billion-yen, operating income to 52 billion yen, and net income to 27 billion yen in the term ending March 2025.

*The target figures for the medium-term management plan and the long-term vision have been significantly raised. It seems that there will be no major changes in the favorable business environment in this term as well, and we would like to keep an eye on its status.

*On the other hand, sales of new businesses are expected to be approximately 29 billion yen in the term ending March 2024. Businesses that cannot be categorized at this time, such as new base businesses and M&A candidate businesses, are being considered. Thus, we would like to pay attention to their contents as well.

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


About Bridge Report:

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


Kaoru Hosaka

Investment Bridge Co., Ltd.


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