Nippon Investment Bespoke Research UK Ltd

Nippon Investment Bespoke Research UK

We provide sponsored research reports on up to 15 Japanese listed companies that have no coverage by sell side analysts or are very thinly covered.

Equity Bottom-Up

HIRANO TECSEED Co (Kinzoku) / Equity Bottom-Up

<ul><li>Hirano Tecseed (hereinafter HT) reported FY25 1H OP of ¥1,209mil (+18.0% YoY) on sales of ¥18,157mil (-25.5% YoY), generating an OPM of 6.7% – a significant improvement from FY24 1H’s OPM of 4.2%.</li><li>Given the successful passing through of cost increases to customers in the C&LM segment, FY25 1H earnings overshot company guidance which had been revised up with the release of its Q1 results from an OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to an OP of ¥1,000mil (-2.4 YoY) on unchanged sales.</li><li>Full-year FY25 guidance remains unchanged [OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY)] as HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariffs and shifts in global EV market.</li></ul>

Hirano Tecseed (hereinafter HT) reported FY25 1H OP of ¥1,209mil (+18.0% YoY) on sales of ¥18,157mil (-25.5% YoY), generating an OPM of 6.7% – a significant improvement from FY24 1H’s OPM of 4.2%.Given the successful passing through of cost increases to customers in the C&LM segment, FY25 1H earnings overshot company guidance which had been revised up with the release of its Q1 results from an OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to an OP of ¥1,000mil (-2.4 YoY) on unchanged sales.Full-year FY25 guidance remains unchanged [OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY)] as HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariffs and shifts in global EV market.

HIRANO TECSEED (6245 JP): RESEARCH UPDATE