bullish
Torex Semiconductor (6616 JP) - Bright Spots on the Horizon for FY26/3
SUMMARY
- FY24/3 results were consolidated net sales -19.4% YoY, OP dropping from JPY 3,976mn in FY23/3 to an operating loss of JPY 1,778mn, and profit attributable to owners of parent dropping from JPY 2,179mn in FY23/3 to a net loss of JPY 4,297mn. Nevertheless, the Company maintained the dividend of 56 yen.
- The two main losses incurred in FY24/3 were 1) inventory write-down in mfg. cost of sales and 2) extraordinary impairment loss. Following weak 1H FY25/3 results, partly reflecting the Q2 foreign exchange loss of JPY 298mn due to the sharp yen appreciation in Q2, TOREX revised down its full-term forecasts for FY25/3, noting that the original budget had anticipated a completion of the adjustment of distribution inventories during the 1H, and a clear recovery in demand from the 2H.
- TOREX again revised down full-term profits, to net loss on Q3 results, with Phenitec citing weakness in industrial equipment, etc., particularly in North America (see our 2/17 Q3 Flash for details). Since depreciation peaks in FY25/3, it will become easier to record profits going forward.
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