Shindengen Electric Manufacturing (6844): FY2025 Results Summary — Return to Net Profit on Power Device Turnaround

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Shindengen Electric Mfg. Co., Ltd. (Stock Code: 6844) held its FY2025 Financial Results Briefing on May 20, 2026, covering the fiscal year ended March 31, 2026. Net sales rose 7.6% year on year to ¥113,836 million, and operating profit jumped to ¥3,848 million from ¥128 million a year earlier, lifting the operating margin from 0.1% to 3.4%. Ordinary profit came to ¥4,577 million, turning around from a loss of ¥(523) million, and profit attributable to owners of parent returned to the black at ¥5,655 million from a loss of ¥(2,436) million. The company attributed the improvement to revenue growth, the structural reform of the Power Device Business carried out in the previous fiscal year, a foreign exchange gain, and extraordinary income from the sale of investment securities.

Consolidated Results (Full-Year Actual)

All segments performed solidly, resulting in revenue growth. In addition to the revenue growth effect, the structural reform of the Power Device Business carried out in the previous fiscal year contributed to results. Ordinary profit improved from the previous fiscal year, which recorded a foreign exchange loss, due in part to the recording of a foreign exchange gain in the current fiscal year. Net income turned to a profit from the previous fiscal year, which recorded the costs of the structural reform of the Power Device Business, due in part to the recording of extraordinary income from the sale of investment securities. The non-consolidated volume rate was ¥149.80/USD, compared with ¥153.04/USD in FY2024.

Item (Million yen)	FY2024	FY2025	YoY
Net sales	105,830	113,836	+7.6%
Operating profit	128	3,848	+2890.7%
Operating margin	0.1%	3.4%	+3.3pt.
Ordinary profit	(523)	4,577	—
Profit attributable to owners of parent	(2,436)	5,655	—

Segment Results

In the Power Device segment, in addition to the continued strong performance of the core automotive segment, revenue grew due to the contribution of Kyocera products acquired through M&A, and results turned to a profit from the previous fiscal year’s loss on the revenue growth effect, the accompanying capacity utilization gain, and the structural reform effect. In the Power Unit segment, sales of two-wheel products were driven by India and Indonesia, and products for four-wheel and general-purpose applications also increased, but profit decreased due to the impact of Asian currency depreciation and increased costs associated with the concentrated deployment of resources. In Power Systems & Solutions, rectifiers for communication infrastructure increased on higher customer demand, but profit declined from the previous fiscal year, which had recorded a one-time gain from the reversal of product warranty allowances.

Segment (Million yen)	Item	FY2024	FY2025	YoY
Power Device	Net sales	31,098	33,490	+7.7%
Power Device	Operating profit	(2,247)	2,533	—
Power Unit	Net sales	67,681	72,806	+7.6%
Power Unit	Operating profit	4,979	3,847	(22.7%)
Power Systems & Solutions	Net sales	6,897	7,410	+7.4%
Power Systems & Solutions	Operating profit	2,011	1,209	(39.9%)

Within the Power Unit segment’s two-wheel net sales by country, India posted the largest growth at +18.1%, followed by Thailand at +13.8% and Indonesia at +6.8%, while Vietnam edged down 0.3%. FY2025 capital expenditures increased 11.7% year on year to ¥5,771 million to expand production capacity in India, depreciation was ¥5,584 million (+3.8%), and R&D expenses were ¥5,203 million (down 10.6%).

FY2026 Forecast

For FY2026 (the fiscal year ending March 31, 2027), net sales are expected to increase, including through the consolidation of the Kyocera Corporation Power Device Business acquired through M&A, with core two-wheel products performing steadily, centered on India and ASEAN. Ordinary profit and net income are expected to decrease due to the disappearance of non-operating income such as foreign exchange gains and extraordinary income from the sale of investment securities that existed in the previous fiscal year. The assumed exchange rate is ¥152.00/USD. The company describes this as a critical juncture for achieving the final-year targets of the Medium Term Business Plan and realizing Long-Term Vision 2030.

Item (Million yen)	FY2026 Forecast	FY2025 (Actual)	YoY
Net sales	121,200	113,836	+6.5%
Operating profit	4,000	3,848	+3.9%
Ordinary profit	3,900	4,577	(14.8%)
Profit attributable to owners of parent	2,700	5,655	(52.3%)

Capital expenditure will be increased to expand production capacity in the India market and develop new products in the Power Device Business: the FY2026 plan calls for CAPEX of ¥10,300 million (+78.5% year on year), depreciation of ¥5,900 million (+5.6%), and R&D expenses of ¥5,800 million (+11.5%).

Shareholder Returns

The annual dividend per share for FY2025 (the fiscal year ended March 31, 2026) was ¥100, up from ¥65 for the fiscal year ended March 31, 2025, which reflected the structural reforms of the Electronic Device business. For the fiscal year ending March 31, 2027, the company forecasts an annual dividend of ¥100 per share. The company notes that it executed a reverse stock split at a ratio of one share for every 10 shares of common stock, effective October 1, 2017, and dividend amounts for prior periods have been converted to the post-reverse-split basis.

Fiscal year	2025/3	2026/3	2027/3 (Forecast)
Annual dividend per share (yen)	65	100	100

Medium-Term Plan / Topics

FY2025 was the first year of the 17th Medium Term Business Plan, whose policy is “moving into a growth stage by establishing a solid business foundation and improving capital efficiency.” Against initial forecasts of net sales of 108.3 billion yen, operating profit of 2.4 billion yen, and an operating profit margin of 2.2%, results came in at 113.8 billion yen, 3.8 billion yen, and 3.4%, respectively. First-year initiatives included strengthening management control with an awareness of cost of capital, constructing Plant II at Shindengen India, establishing a sales function in India, and acquiring all shares of a newly established company that succeeded the Power Device Business of Kyocera Corporation.

India is positioned as the top-priority market: India surpassed ASEAN countries in the revenue share of two-wheel Power Unit products to become the top country, accounting for approximately 30% of two-wheel product revenue by region for the fiscal year ending March 31, 2026. Plant II is proceeding as planned toward the start of operations in April 2027, and Shindengen India’s net sales (¥13,928 million in the fiscal year ended March 31, 2025) are expected to expand to 1.5 to 2 times their current level by around 2030. In the Power Device Business, Hadano Shindengen Co., Ltd. became a subsidiary in January 2026 through the business integration with Kyocera Corporation’s Power Device Business; the production layout will be optimized, with the Tsukuba Factory to be closed and equipment relocated to existing plants, scheduled for completion by around June 2027, with relocation costs expected in the fiscal year ending March 31, 2028.

Under the revised 17th Medium Term Business Plan, the 2027 management target for consolidated net sales was revised from ¥120 billion to ¥130 billion due to the consolidation of the Kyocera Corporation Power Device Business, alongside targets of a 5.0% operating margin and 6.0% ROE, with three-year cumulative capital expenditures of ¥30.0 billion and three-year cumulative research and development expenses of ¥14.5 billion.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.