■ Performance trends of Yazaki Electric <3153>

For the first quarter of the fiscal year ending March 2025 (April-June), the cumulative consolidated financial results show that revenue decreased by 6.7% year-on-year to 10,670 million yen, operating profit increased by 19.7% to 325 million yen, ordinary profit increased by 19.3% to 356 million yen, and quarterly net profit attributable to the parent company's shareholders increased by 5.4% to 205 million yen, resulting in a decrease in revenue and an increase in profit.

The company's business is composed of three segments: Plant Business, Industrial and Equipment Business, and Transportation Business.

Among these, the Plant Business has been performing well, mainly due to construction and maintenance projects related to customers' carbon neutral initiatives, despite the customers' unfavorable profit environment.

In the Industrial and Equipment Business, while there is strong corporate investment interest, revenue decreased due to postponed projects and production adjustments by major equipment manufacturers affected by the spread of the novel coronavirus. Additionally, the Transportation Business experienced a decline in revenue as it was unable to offset the large projects completed in the previous year's same period.

Looking ahead, with increasing demand for the company's technology, it is expected that orders will continue to be steady, especially in response to changes in the business structure of Plant Business customers, including those in the iron & steel sector, and in maintenance work.

In the Industrial and Equipment Business, there continues to be active interest in the field of specialized air conditioning, with a steady flow of new projects such as receiving orders for electrical facilities at Narita International Airport and water treatment equipment at purification plants in various fields.

In the Transportation Business, while a slight deficit was seen in the first quarter, this is typical of a period with fewer orders, as the company tends to have a second-half order-heavy style. Expectations for a turnaround in the latter half are high, especially considering the successful track record of providing total solutions for the Tobu Railway <9001>'s N100 series new limited express Spacia X.

The consolidated performance outlook for the fiscal year ending March 2025 includes a revenue increase of 1.8% year-on-year to 660 billion yen, an operating profit increase of 18.1% to 46 billion yen, an ordinary profit increase of 16.9% to 47 billion yen, and a net income attributable to parent company shareholders increase of 27.9% to 34 billion yen. Regarding dividends, an increase to 32 yen per share is expected, a 4 yen increase compared to the previous fiscal year.

(Written by FISCO guest analyst Fumiya Mizuno)