Asahi Yukizai : IR Updating of the “Message from the President” in the Investor Relations section
October 30, 2023
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Report on the Business Performance and Business Activities in the Second Quarter of the Fiscal Year Ending March 2024.
I would like to express my sincere appreciation for our shareholders' continued patronage. Asahi Yukizai Corporation released today our business results as well as the summary of business performance by business segment on a consolidated basis in the second quarter of the fiscal year ending March 2024. We would like to report its summary as follows:
Kazuya Nakano
President
ASAHI YUKIZAI CORPORATION
1. Consolidated Business Performance for the Second Quarter of the Fiscal Year Ending March 2024
1)
Business Environment in the Second Quarter Cumulative Period
Regarding, in the first place, the Valve and Piping Systems Business Segment, domestic capital investment related to primary products remained to be strong as a whole. Overseas, demand for construction of semiconductor-related factories continued growing, meanwhile demand continued declining since the second half of the preceding fiscal year in the markets for semiconductor-manufacturing equipment which are related to Dymatrix products.
Secondly, in the Resin Business Segment, the market for semiconductor devices which are in relation to electronic material products continued stagnant since the second half of the preceding fiscal year, resulting in a slowdown in demand. Concerning the markets related to foundry products, the number of cars manufactured in Japan surpassed that of the preceding year, thanks to the decreasing difficulties in procuring parts supplied from overseas and to the adverse effects of the shortage of semiconductors being gradually declining. Domestic construction starts, which have connection with the foaming material products, also increased over the preceding year.
2)
Consolidated Business Performance
Sales as well as profits of all types posted increases, due to such factors as the increase in sales to the electronics-related industry centering at semiconductors.
Sales
43.84 billion yen
An increase of 7.91 billion yen year-on-year (up 22.0%)
Operating profit
8.29 billion yen
An increase of 2.95 billion yen year-on-year (up 55.3%)
Ordinary profit
8.56 billion yen
An increase of 2.72 billion yen year-on-year (up 46.6%)
Net profit for the quarter attributable to owners of parent
5.47 billion yen
An increase of 1.66 billion yen year-on-year (up 43.5%)
2. Summary of Business Activities by Business Segment
1)
Valve and Piping Systems Business Segment
● Promotion of sales activities in which we endeavored to be helpful to our customers by developing the products about which we pursued solution of the corrosion problems and the functionality of plastic piping materials.
Sales of primary products including thermoplastic valves continued to be strong supported by the large-scale construction projects related to semiconductors.
Overseas, demand continued to be strong in the U.S. and China, mainly in relation to the capital investment for construction of factories by the electronics-related industries centering at semiconductors.
The engineering business that makes use of the thermoplastic piping materials and others also remained strong.
As a result, the segment saw an increase in sales over the preceding fiscal year.
● Contribution to the increase in sophistication of semiconductors through development of miniature precision valves that correspond to the increasing sophistication of the semiconductor manufacturing process.
Sales of Dymatrix products to be used in semiconductor-manufacturing equipment were adversely affected by the continuously stagnant demand in Korea along with the slowed investment in China resulting from the friction between America and China.
As a result, sales posted a decrease from the preceding year.
In the face of the adverse effects of increased personnel expenses and higher raw material costs, profits turned out to be greater than in the preceding year, due to the favorable effects of the yen's depreciation in addition to the increase in sales mainly in overseas.
Sales
29.74 billion yen
Up 30.5% year-on-year
Operating profit
7.63 billion yen
Up 51.1% year-on-year
Operating profit margin
25.7%
2)
Resin Business Segment
● Endeavors to be helpful to our customers by making proposals concerning products most suitable for diversified casting processes, in relation to the manufacturing of castings which are necessary for automobiles, construction machines and others.
We aggressively made proposals to our customers which should lead to the improvement of product quality and the increase in productivity, along with the improvement of work environment by reducing the smell for existing customers. We also carried out aggressive sales activity for new customers.
Segmental sales continued to be strong as the number of automobiles produced was increasing.
As a result, sales posted an increase over the preceding year.
● Provision of safety and security to our customers by, in addition to the easiness of application of the foaming material products, endeavoring to further raise the quality of products after being sprayed.
With regard to the spot foaming heat insulation materials, we concentrated energy on the sales activity aiming at increasing acceptance of our products in the customers' planning regarding heat-insulation construction for commercial buildings, condominiums, and others.
With regard to the materials used in civil engineering work, we engaged in the sales activity in which we made proposals concerning the products most suitable for respective construction sites.
As a result, sales posted an increase over the preceding year.
● Pursuance of development of the low-metal refinement technology, which is needed in manufacturing the most advanced semiconductors to be used in semiconductor devices, to contribute to the increase of sophistication of semiconductors.
The electronics material product sales were adversely affected by the stagnant demand for semiconductor devices and the inventory adjustment carried out by purchasing parties.
As a result, sales posted a decrease from the preceding year.
The electronics material products proved to be less profitable than in the preceding year; however, profits derived from foundry product and foaming material product sales increased: Profits from the overall resin business were greater than in the preceding year.
Sales
10.73 billion yen
Up 11.1% year-on-year
Operating profit
0.66 billion yen
Up 199.6% year-on-year
Operating profit margin
6.2%
3)
Water Treatment & Natural Resources Development Business Segment
● Implementation of designing and construction of water treatment facilities to meet our customers' needs as well as water regeneration systems which are intended to efficiently use water resources.
In both the government-office and private construction projects, the number of construction completes increased and construction was making steady progress.
As a result, sales posted an increase over the preceding year.
● Contribution to the efficient use of resources by excavating steam wells for geothermal power generation as well as engaging in construction for development of thermal springs.
Although thermal spring development projects, which had been postponed, made steady progress, projects of geothermal power excavation were delayed.
As a result, sales posted a decrease from the preceding year.
● Provision of services for stable operation of facilities and equipment, as well as the chemicals for water treatment.
In the maintenance service section, maintenance/management as well as repairing projects made progresses as scheduled.
In the environmental chemical business, an increase was posted in the volume of products shipped.
As a result, sales posted an increase over the preceding year.
Due to the increases in sales derived from government-office and private construction and thermal spring construction projects in the water treatment business as well as those derived from the environmental chemical business, profits were greater than in the preceding year.
Sales
3.37 billion yen
Down 3.4% year-on-year
Operating profit
30 million yen
Up 20.6% year-on-year
Operating profit margin
0.8%
It is our intention that we will continue endeavoring to create added value by concentrating our energy in promoting digital transformation in our operation and in fostering human resources, aiming at sustainable growth of the Asahi Yukizai group.
We would highly appreciate it if our shareholders continue to believe in the growth of Asahi Yukizai group in the future and extend a continuous support and guidance to us.
Asahi Yukizai Corporation published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2023 20:39:17 UTC.
ASAHI YUKIZAI CORPORATION is a Japan-based company mainly engaged in the development, manufacture and sale of industrial resin and plumbing equipment products. The Company operates its business through three business segments. The Pipe System segment is involved in the manufacture and sale of piping materials made of synthetic resin such as vinyl chloride, as well as the design and construction of piping works. The Resin segment manufactures and sells casting resins, resin coated sand for castings, resins for general industrial use, resins for foam materials, resins and derivatives for electronic materials, and resin molding materials. The Water Treatment & Resource Development segment is involved in the design, construction, maintenance and management of water treatment facilities, as well as the design and construction of drilling wells.