Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Holdings Corporation: The Results for the Second Quarter of the Fiscal Year March 2021 and Earnings Estimates for the Fiscal Year March 2021

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

TOKYO--()--Investment Bridge, one of Japan’s leading independent investor relations services companies, has released a “Bridge Report” on Ferrotec Holdings Corporation (JASDAQ: 6890) reviewing its earnings results for the second quarter of the fiscal year March 2021 and earnings estimates for the fiscal year March 2021

Report Highlights
*In the first half of the term ending March 2021, sales fell 0.6% year on year while operating income grew 9.7% year on year. While sales declined 25.8% year on year for the other business segment, particularly the photovoltaic business which is in a process of withdrawal, the sales of the semiconductor and other equipment-related business grew 5.9% year on year, thanks to the growth of material products used in semiconductor manufacturing processes such as jigs and consumable materials, and the growth of the cleaning business. Sales of the electronic device business for which thermo-electric modules are the mainstay, too, increased 1.8% year on year, as the growth of sales of 5G-related devices offset the decrease of sales of devices for automotive temperature control seats. On the profit front, gross profit increased, due partly to a decrease in photovoltaic cell-related sales, and SG&A costs decreased, thanks to cost cuts and the yen appreciation.

*The company’s full-year forecasts are unchanged, calling for sales and operating income to increase 4.1% and 8.1% year on year, respectively. Although earnings in the first half of the term exceeded the company’s estimates, its full-year forecasts are unchanged, due partly to the uncertain outlook amid the U.S.-China trade friction and the fact that the company is currently investigating the impact from subsidiary restructuring. There is no concern in any of its businesses. In the semiconductor and other equipment-related business, semiconductor materials and the cleaning business are expected to perform well in the second half, too. In the electronic device business, sales of devices for communication equipment are expected to remain at high levels, and the devices for automotive temperature control seats are showing signs of recovery. The term end dividend is planned to be 12 yen/share, and with the first half dividend of 12 yen/share, the annual dividend will be 24 yen/share.

*Ferrotec Holdings plans to push forward with its capital policy geared toward organizational restructuring and the improvement of its financial standing. Capital investments will be implemented with prioritization from the term ending March 2022 onward. It has already begun reorganization and preparations for listing of its Chinese subsidiary, and has started up a new business that has received funds from Chinese government-affiliated funds and private investment funds. The company has expanded its business with the growth of the semiconductor market and China’s policies to promote domestic production of high-tech products working as a tailwind. Meanwhile, the bloating of its balance sheet sparked concern over financial risk. Going forward, the company will aim for further growth and the enhancement of corporate value while securing a balance between business opportunities and finance.

To view the full report, please go to the website at the URL listed below.
https://www.bridge-salon.jp/report_bridge/archives/eng/6890/20210127.html

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.

Contacts

Kaoru Hosaka
Investment Bridge Co., Ltd.
+81-3-5225-3077

Release Summary

Bridge Report on Ferrotec Holdings Corporation: The results for the first half of the fiscal year March 2021

Contacts

Kaoru Hosaka
Investment Bridge Co., Ltd.
+81-3-5225-3077