Mitsui High-tec Q2 FY2027: Record profit lifts full-year forecast on EV demand

Mitsui High-tec delivered JPY 130.67 billion in revenue, a 20.6% year-on-year increase, driven by the expansion of the electric vehicle market and recovery in semiconductor demand. Operating profit surged to JPY 11.81 billion, with profit margins showing significant improvement compared to the prior period.

Net income attributable to parent shareholders reached JPY 9.943 billion, up 137.3% from the previous year, pushing earnings per share to a record high of JPY 54.41. While current profit rose 122.8% to JPY 13.3 billion partly due to foreign exchange gains on financial assets, core operating revenue also expanded markedly.

Based on this strong performance, Mitsui High-tec raised its full-year consolidated forecasts. Full-year revenue is now projected at JPY 272 billion, a 24.6% increase, while operating profit is expected to hit JPY 19.5 billion, up 54.1%. This confirms the company will record its highest earnings for three consecutive terms.

Mitsui High-tec's core business segments showed broad-based growth.

The Electrical Components segment, central to electric vehicle operations, saw revenue rise 16.1% to JPY 89.889 billion and operating profit jump 68.9% to JPY 8.992 billion. Demand for drive and generator motor cores for EVs and hybrid vehicles remains strong, serving as the primary engine for group revenue growth.

The Electronic Components segment reported double-digit growth in both top and bottom lines. Revenue increased 34.8% to JPY 38.749 billion, while operating profit surged 133.3% to JPY 3.683 billion. This performance was supported by rising demand for automotive and consumer electronics products, amplified by the weak yen.

The Molds and Machine Tools segment is also recovering. Revenue grew 22.6% to JPY 6.359 billion as orders for motor core molds increased. Operating profit skyrocketed 562.7% to JPY 341 million. The fact that all segments are profitable and growing indicates the group is on a healthy growth trajectory.

The company maintains a solid financial stance with total assets expanding to JPY 267.32 billion and equity attributable to owners of the parent reaching JPY 124.89 billion. The equity ratio stands at a stable 46.6% as of the mid-term end.

Regarding dividends, the annual full-year dividend is set at JPY 19, an increase of JPY 1 from the previous year. A mid-term dividend of JPY 6 is fixed for the second quarter, with a final payment of JPY 13 expected. This policy balances shareholder returns with internal reserves for future growth investment.

Operating cash flow is expected to remain robust. However, because the company holds financial assets sensitive to currency fluctuations, continued attention to exchange rates is necessary. Overall, the financial base continues to strengthen.

Mitsui High-tec highlights several external risks, including uncertainty in U.S. economic policy, slowing growth in China, and geopolitical tensions in the Middle East. These factors could lead to volatility in exchange rates and rising raw material costs.

On the business side, while the electric vehicle market is growing, expansion rates vary by region. The company must also monitor whether legacy semiconductor recovery trends continue. Since movements in the Chinese market directly impact automotive demand, sensitivity to supply and demand balance changes is critical.

To mitigate these risks, Mitsui High-tec continues to strengthen its global supply chain and improve production efficiency. ==Strengthening the global supply chain== remains a key ongoing priority.

The company has significantly raised its full-year consolidated estimates for the fiscal year ending January 2027, based on strong mid-term results and upgraded forecasts for electric vehicle demand.

Revenue is expected to significantly exceed the prior year's actuals, while operating profit should reach approximately 1.5 times last year's level. This sharp increase in operating profit suggests successful price pass-through and efficiency improvements in EV components. The ==significant upward revision of full-year forecasts== is likely to trigger a positive market reaction.