Meiko Electronics (6787): FY2025 Results Summary — Higher Sales and Profits; New Mid-Term Plan Targets 460.0 Billion Yen in FY2028 Sales

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

Meiko Electronics Co., Ltd. (Securities Identification Code: 6787), a printed circuit board manufacturer, held its FY2025 Financial Results Briefing on May 21, 2026. Consolidated net sales for FY2025 were 240.6 billion yen (FY2024: 206.8 billion yen), operating income was 24.6 billion yen (FY2024: 19.1 billion yen), ordinary income was 26.5 billion yen (FY2024: 18.8 billion yen), and net income was 19.8 billion yen (FY2024: 14.9 billion yen). For FY2026, the company forecasts net sales of 320.0 billion yen and operating income of 38.0 billion yen. The briefing materials also present a Medium-term Business Plan covering FY2026 to FY2028 and the status of new factories in Vietnam.

Consolidated Results (FY2025 Actual)

In the PCB business, FY2025 net sales were 198.0 billion yen (FY2024: 170.6 billion yen) with operating income of 21.2 billion yen at a 10.7% margin (FY2024: 17.2 billion yen, 10.1%). In the EMS business, net sales were 42.6 billion yen (FY2024: 36.2 billion yen) with operating income of 3.4 billion yen at an 8.0% margin (FY2024: 1.9 billion yen, 5.2%). Total operating income was 24.6 billion yen with a 10.2% margin (FY2024: 19.1 billion yen, 9.2%). The average FX rate for FY2025 was 151.06 JPY/USD (FY2024: 152.57).

Item (billion yen)	FY2024 result	FY2025 result	FY2026 forecast
Net sales — PCB	170.6	198.0	254.0
Net sales — EMS	36.2	42.6	66.0
Net sales — Total	206.8	240.6	320.0
Operating income — PCB	17.2 (10.1%)	21.2 (10.7%)	33.4 (13.1%)
Operating income — EMS	1.9 (5.2%)	3.4 (8.0%)	4.6 (7.0%)
Operating income — Total	19.1 (9.2%)	24.6 (10.2%)	38.0 (11.9%)
Ordinary income	18.8 (9.1%)	26.5 (11.0%)	35.0 (10.9%)
Net income	14.9 (7.2%)	19.8 (8.2%)	27.0 (8.4%)
Average FX rate (JPY/USD)	152.57	151.06	150

Net Sales by Product Application

Within the circuit board business, automotive remained the largest application in FY2025 at 97.5 billion yen (FY2024: 90.4 billion yen). Satellite communication sales rose to 28.2 billion yen (FY2024: 16.5 billion yen), and AI server sales rose to 7.3 billion yen (FY2024: 4.2 billion yen). Smartphone-related sales were 29.4 billion yen (FY2024: 25.5 billion yen). In electronic equipment, EMS sales were 19.7 billion yen and ODM sales were 22.9 billion yen.

Application (billion yen)	FY2024 result	FY2025 result	FY2026 forecast
Automotive	90.4	97.5	100
Smartphones	25.5	29.4	37.0
Satellite communication	16.5	28.2	55.0
AI Server	4.2	7.3	17.0
Module	9.2	9.2	13.0
Package	1.0	2.0	3.0
Other PCB	23.8	24.4	29.0
EMS	18.5	19.7	25.0
ODM	17.7	22.9	31.0
Component	–	–	10.0

FY2026 Forecast

For FY2026, Meiko forecasts net sales of 320.0 billion yen, operating income of 38.0 billion yen (11.9% margin), ordinary income of 35.0 billion yen, and net income of 27.0 billion yen, assuming an average FX rate of 150 JPY/USD. By application, the forecast includes satellite communication sales of 55.0 billion yen and AI server sales of 17.0 billion yen. The FY2026 forecast also includes 10.0 billion yen of Component sales in the electronic equipment business.

Item (billion yen)	FY2026 forecast	FY2025 actual
Net sales	320.0	240.6
Operating income	38.0	24.6
Ordinary income	35.0	26.5
Net income	27.0	19.8
Average FX rate (JPY/USD)	150	151.06

Medium-Term Business Plan (FY2026–FY2028)

Reviewing the medium-term business plan formulated in 2022, cumulative investment for FY2022–FY2026 is 190 billion yen on a result/forecast basis versus 100 billion yen in the original plan (20 billion yen per year). Sales results/forecasts of 167, 180, 207, 241, and 320 billion yen for FY2022–FY2026 compare with mid-term plan figures of 170, 185, 205, 225, and 250 billion yen. Under the new mid-term plan, the company targets net sales of 460.0 billion yen and operating income of 65.0 billion yen (14.0% OP margin) in FY2028, with investment of 70.0 billion yen in each of FY2026, FY2027, and FY2028. The plan shows a sales CAGR of 24.1% and an operating income CAGR of 38.2% for 2025–2028.

Item (billion yen)	FY2025	FY2026	FY2027	FY2028
Net Sales	240.6	320.0	390.0	460.0
Operating Income	24.6	38.0	51.0	65.0
OP Margin (%)	10.2	12.0	13.0	14.0
Net Income	19.8	27.0	36.5	47.0
Investment	49.7	70.0	70.0	70.0
R&D	6.0	8.0	10.0	11.5
EBITDA	36.8	55.4	85.8	107.0
DPS (Yen)	115	160	200	260
Total dividends	3.1	4.3	5.4	7.0
Dividend payout ratio	15	15	15	15

New Factory Status

Vietnam Plant No. 4 began operations in July 2025 to supplement the production capacity of Plant No. 2, and mass production of PCBs for satellites and AI applications has commenced. Its total floor area is approximately 60,000 square meters (15,000 square meters x 4 floors), with capex raised from approximately 25 billion yen to approximately 45 billion yen; its business covers supplementation of Plant No. 2 (PCB) production, high layer count/HDI PCBs for satellites and AI, and memory module substrates.

In Phu Tho Province (formerly Hoa Binh Province), Meiko is launching the Hoa Binh Plant, a state-of-the-art factory for high-frequency/high-density HDI PCBs (SLP) in response to future growth in demand for AI devices, with capex of approximately 50 billion yen for Plant #1 (total floor area approximately 60,000 square meters). Also in Phu Tho Province, Allied Circuit Meiko Vietnam Co., Ltd., a joint venture with ACCL (ACCL 70%, Meiko 30%), will produce high-layer PCBs for AI servers, anticipating increased demand for AI servers in Southeast Asia. Quang Minh Plant #3 (Quang Minh Industrial Park, Hanoi; investment of approximately 40 billion yen; advanced high-density HDI PCB) held its groundbreaking ceremony on May 6, expanding capacity for the Vietnam PCB business and preparing for future high-end slim smartphones. The Yen Quang Plant (Amber Yen Quan Industrial Park, Phu Tho Province; investment of approximately 60 billion yen) is a highly automated satellite facility specializing in high-productivity, medium-to-high-layer HDI, primarily for satellite projects.

Shareholder Returns

Dividends per share were 115 yen for FY2025, and the mid-term plan shows DPS of 160 yen for FY2026, 200 yen for FY2027, and 260 yen for FY2028, with a dividend payout ratio of 15 in each year. Total dividends are shown as 3.1 billion yen for FY2025, rising to 7.0 billion yen in FY2028, and DOE of 2.1% in FY2025 rising to 3.1% in FY2028.

M&A in the Electronic Device Business

The materials present an M&A involving FCL COMPONENTS LIMITED, with the objective of strengthening the contract design and development business: (1) strengthening development capabilities by hiring approximately 150 skilled engineers, (2) acquisition of cutting-edge hardware and software technologies, such as wireless communication and sensors, and (3) expanding cross-selling and accelerating growth through the integration of both companies’ customer bases. The items for transfer cover the diversified business based in Iiyama City, Nagano Prefecture, with 573 employees.

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.