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IR & Research Intelligence

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NITTO KOGYO CORPORATION manufactures and sells a variety of power switchboards. The Company also manufactures metal/resin parts for power switchboards, and circuit breakers.

<ul><li>NITTO KOGYO Corporation (hereafter, the Company) announced its earnings results for FY2024/3 on May 15, 2024.</li><li>In addition to posting record net sales, the Company recorded profit growth for all three of its segments.</li><li>While the price of raw materials and parts rose, the Company’s gross profit margin improved 1.4 ppt YoY to 26.8%. </li></ul>

NITTO KOGYO Corporation (hereafter, the Company) announced its earnings results for FY2024/3 on May 15, 2024.In addition to posting record net sales, the Company recorded profit growth for all three of its segments.While the price of raw materials and parts rose, the Company’s gross profit margin improved 1.4 ppt YoY to 26.8%. 

Nitto Kogyo Corporation (6651 JP) - 4Q Follow-Up

TSUBAKIMOTO KOGYO CO., LTD. is a wholesaler of machinery, equipment, and parts, most of which are produced by Tsubakimoto Chain and Mitsubishi Heavy Industries. The Company primarily distributes transmission equipment and industry materials. Tsubakimoto Kogyo also handles factory automation equipment/systems including robots and control systems.

<ul><li>Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) is an industrial equipment–related trading company with a history that goes back more than a century.</li><li>While primarily handling power transmission products, such as motors and chains, the Company also handles factory automation (FA) equipment, including conveyors for automobiles and liquid crystals.</li><li>Furthermore, the Company is expanding into other industrial equipment parts, including actuators, such as cylinders, for semiconductor-manufacturing equipment, and conveyor equipment in factories, inspection equipment, and various types of meters. </li></ul>

Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) is an industrial equipment–related trading company with a history that goes back more than a century.While primarily handling power transmission products, such as motors and chains, the Company also handles factory automation (FA) equipment, including conveyors for automobiles and liquid crystals.Furthermore, the Company is expanding into other industrial equipment parts, including actuators, such as cylinders, for semiconductor-manufacturing equipment, and conveyor equipment in factories, inspection equipment, and various types of meters. 

Tsubakimoto Kogyo (8052 Jp) - Record Net Sales for Second Consecutive Year

SRG TAKAMIYA CO., LTD is a construction scaffolding leasing company.  The Company's product line includes scaffolding rental and planning for various construction projects.  SRG Takamiya also offers outsourcing services.

<ul><li>Takamiya (hereafter, the Company) announced its FY24/3 full-year earnings results on Friday, May 10, 2024 after the market closed.</li><li>Sales, operating profit, and net profit were below its initial estimates, except for ordinary profit.</li><li>However, a significant increase in profits were achieved thanks to the strong performance of its high-margin rental business.</li></ul>

Takamiya (hereafter, the Company) announced its FY24/3 full-year earnings results on Friday, May 10, 2024 after the market closed.Sales, operating profit, and net profit were below its initial estimates, except for ordinary profit.However, a significant increase in profits were achieved thanks to the strong performance of its high-margin rental business.

Carta Holdings, Inc. provides on-line information retrieval services on a contract or fee basis.

<ul><li>Operating profit for 1Q (Jan-Mar) FY2024/12 was ¥985 mn, already achieving 65.7% of progress in 1Q against the full-year target.</li><li>Reason: a steady growth in programmatic advertising business including the collaboration business with Dentsu and the drastic cost reduction implemented in 2023 helped, while the bottoming out of reservation-based advertising business was not yet recognized in 1Q FY2024/12.</li><li>In addition, the phasing out of the use of third-party Cookies in Google Chrome, which was included in the initial performance plan as a downside risk, has been postponed to 2025 or later. </li></ul>

Operating profit for 1Q (Jan-Mar) FY2024/12 was ¥985 mn, already achieving 65.7% of progress in 1Q against the full-year target.Reason: a steady growth in programmatic advertising business including the collaboration business with Dentsu and the drastic cost reduction implemented in 2023 helped, while the bottoming out of reservation-based advertising business was not yet recognized in 1Q FY2024/12.In addition, the phasing out of the use of third-party Cookies in Google Chrome, which was included in the initial performance plan as a downside risk, has been postponed to 2025 or later. 

Torex Semiconductor Ltd. designs and develops analog power management ICs. The Company offers products including voltage detectors, regulators, and DC/DC converters used in small electronic devices.

<ul><li>While current underlying demand has yet to show signs of a strong recovery, progress has been made in inventory adjustments in the distribution supply chain, and TOREX expects a recovery in sales from the 2H of 2024, and the top priority for this term is strengthening sales expansion initiatives.</li><li>Regarding the initial FY25/3 consolidated OP forecast, in addition to a contribution of ¥1,150mn from the +8.7% YoY increase in net sales, the decrease of ¥2,370mn in inventory write-downs in manufacturing cost of sales will drive a strong recovery in OP.</li><li>Although capex is set to decline -31.9% YoY to ¥3,600mn (mainly for equipment being installed in the new Phenitec Kagoshima Fab clean room), having peaked out last term, depreciation will increase +27.7% YoY to ¥3,000mn as the new clean room has started operations. </li></ul>

While current underlying demand has yet to show signs of a strong recovery, progress has been made in inventory adjustments in the distribution supply chain, and TOREX expects a recovery in sales from the 2H of 2024, and the top priority for this term is strengthening sales expansion initiatives.Regarding the initial FY25/3 consolidated OP forecast, in addition to a contribution of ¥1,150mn from the +8.7% YoY increase in net sales, the decrease of ¥2,370mn in inventory write-downs in manufacturing cost of sales will drive a strong recovery in OP.Although capex is set to decline -31.9% YoY to ¥3,600mn (mainly for equipment being installed in the new Phenitec Kagoshima Fab clean room), having peaked out last term, depreciation will increase +27.7% YoY to ¥3,000mn as the new clean room has started operations. 

4Q Follow-Up - Torex Semiconductor (6616 JP)