Mitsui High-Tec revises full-year forecast down after profit decline

For the six months ended July 31, 2025, Mitsui High-Tec reported net sales of JPY 108,334 million, a 4.2% increase year-on-year, but operating profit decreased by 19.2% to JPY 6,347 million. This decline was primarily attributed to upfront investment costs in the Electrical Parts Business and higher company-wide management reinforcement costs. Ordinary profit fell by 36.6% to JPY 5,978 million, impacted by foreign exchange losses on financial assets, leading to a 40.8% decrease in net profit attributable to owners of parent to JPY 4,189 million.

Following these trends, Mitsui High-Tec revised its full-year consolidated earnings forecast for the fiscal year ending January 31, 2026. The company now expects net sales of JPY 216,000 million (down from JPY 230,000 million), operating profit of JPY 11,000 million (down from JPY 13,000 million), and net profit attributable to owners of parent of JPY 7,000 million (down from JPY 9,000 million). This revision is mainly due to anticipated lower sales and operating income in the Electrical Parts Business, reflecting declines in raw material prices and rescheduled mass production for certain products.

Despite the earnings forecast revision, the company maintains its dividend forecast of JPY 18 per share for the fiscal year, with an interim dividend of JPY 6 and a year-end dividend of JPY 12. The company also disclosed a change in its depreciation method from the declining-balance method to the straight-line method, effective from the current fiscal year, which increased operating profit, ordinary profit, and profit before income taxes by JPY 764 million for the six months ended July 31, 2025.