Sun-wa Technos Corporation (8137): FY2025 Results Summary — Sales and Profit Rise on AI-Related Capex Demand, Dividend Raised to 122 Yen

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Sun-wa Technos Corporation does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the most recent completed fiscal year as FY2025, while the company’s materials label the period as the fiscal year ended March 31, 2026 (FY3/2026). For FY3/2026, Sun-wa Technos reported consolidated net sales of 148.32 billion yen (6.3% increase year on year), ordinary profit of 4.77 billion yen (25.2% increase), operating profit of 4.05 billion yen (15.7% increase), and profit attributable to owners of parent of 3.26 billion yen (33.7% increase), achieving higher sales and profit. Demand from a range of industries remained firm, supported by rising AI-related capital investment, as the decline in capital investment amid soft market conditions and the backlog of order adjustments ran their course. For FY3/2027, the company forecasts further growth in sales and profit, including net sales of 173.00 billion yen (16.6% increase) and operating profit of 6.00 billion yen (47.8% increase).

Consolidated Results (Full Year)

On a quarterly basis, net sales recovered above 40.0 billion yen for the first time in 10 quarters. Orders received have exceeded net sales over the past year, and the order backlog has continued to recover.

Item	FY3/2026 Actual	Change (YoY)
Net sales	148.32 billion yen	6.3% increase
Ordinary profit	4.77 billion yen	25.2% increase
Operating profit	4.05 billion yen	15.7% increase
Profit attributable to owners of parent	3.26 billion yen	33.7% increase

Segment Results (by Region)

By region, firm growth in Japan led overall growth for the group. In Asia, orders received and the order backlog increased, showing signs of a turnaround. In Japan, sales increased for optical units for the automotive industry, liquid crystal displays for the social infrastructure industry (aircraft), motors for the mounter industry, and power conditioners for storage batteries for the solar power-related industry. In Asia, sales of motors and SCARA robots for the solar power-related industry declined in China, while sales of board computers and electronic components for the FA industry and electronic components for the semiconductor manufacturing equipment industry increased. In Europe and the Americas, sales of cables for the semiconductor manufacturing equipment industry increased in the United States.

Region	Net Sales (million yen)	Orders Received (million yen)	Segment Profit (million yen)	Order Backlog (million yen)
Japan	114,365 (12.4%)	111,005 (29.9%)	2,912 (34.0%)	40,113 (30.2%)
Asia	46,279 (△1.3%)	40,863 (0.8%)	1,012 (△10.0%)	13,104 (7.0%)
Europe and the Americas	6,437 (1.0%)	5,493 (△8.0%)	50 (8.7%)	2,013 (△12.8%)
Other	854 (△1.0%)	780 (△14.2%)	32 (192.1%)	275 (△15.0%)
Total	148,329 (6.3%)	158,142 (19.0%)	4,058 (15.7%)	55,506 (21.5%)

Results by Division

The Group revised its business classification effective this fiscal year, reorganizing operations into four divisions: Electronic Components, Control Devices, Industrial PC, and FA Solutions. From FY3/2025 to FY3/2026, sales in the Electronic Components division rose from 82,617 million yen to 89,146 million yen, sales in the Control Devices division declined from 34,834 million yen to 34,175 million yen, sales in the Industrial PC division rose from 7,964 million yen to 8,577 million yen, and sales in the FA Solutions division rose from 14,165 million yen to 16,429 million yen.

Division	FY3/2025 (million yen)	FY3/2026 (million yen)
Electronic Components	82,617	89,146
Control Devices	34,834	34,175
Industrial PC	7,964	8,577
FA Solutions	14,165	16,429

FY2026 Forecast

Although an uncertain environment is expected to continue amid factors such as U.S. tariff policy, U.S.-China relations, and heightened geopolitical risk, the company forecasts higher sales and profit, anticipating continued expansion of AI-related capital investment and of labor-saving and efficiency investment amid a worsening labor shortage.

Item	FY3/2027 Forecast	Change vs. FY3/2026 Actual
Net sales	173.00 billion yen	16.6% increase
Ordinary profit	6.20 billion yen	29.8% increase
Operating profit	6.00 billion yen	47.8% increase
Profit attributable to owners of parent	4.20 billion yen	28.6% increase

Shareholder Returns

Under its shareholder return policy, the company aims to pay continuous and stable dividends targeting a DOE (dividend on equity) of 4.0% or higher, while balancing active business development for sustainable growth and enhanced corporate value with financial soundness. For FY3/2026, because profit at each stage exceeded the plan, the year-end dividend was raised by 2 yen to 62 yen per share, bringing the annual dividend, combined with the 60 yen interim dividend, to 122 yen per share (DOE of 4.27%). For FY3/2027, the company forecasts a dividend of 130 yen per share (interim dividend of 65 yen plus year-end dividend of 65 yen, DOE of 4.38%). The shareholder benefit program was changed to a program that grants an electronic gift certificate (worth 2,000 yen to 20,000 yen) once a year, based on the number of shares held.

Item	FY3/2026 (Actual)	FY3/2027 (Forecast)
Interim dividend	60 yen	65 yen
Year-end dividend	62 yen	65 yen
Annual dividend	122 yen	130 yen
DOE (consolidated dividend on equity)	4.27%	4.38%

Medium-Term Plan / Topics

Under the 12th Medium-Term Business Plan, ‘SUN-WA Growth Plan 2027’ (FY2025-FY2027), the company has set management goal indicators (KGIs) of operating profit above 8.0 billion yen, ROE above 10.0%, and PBR above 1.0x. On capital allocation, it plans to invest approximately 10.0 billion yen in growth investment over the three years of the medium-term plan, and has already made M-Tec Co., Ltd. a group company (via share delivery) and made HTK Europe Limited a group company. To improve ROE, the company states it is working on improving inventory efficiency, more efficient use of cash and deposits, considering reductions in cross-shareholdings, and optimizing its capital structure.

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.