Worth reading
66In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
32.42
¥100 million (extraordinary loss)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationSecond quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥68,761 million+0.6%
Operating profit¥10,163 million+1.0%
Ordinary income¥10,291 million+1.2%
Net income¥3,652 million-47.3%
Operating profit margin14.8 %
Selling, general and administrative expenses¥8,387 million
Full-year earnings forecast
Net Sales
¥138,800 million
Operating profit
¥20,800 million
Ordinary income
¥21,000 million
Profit attributable to owners of the parent
¥11,000 million
EPS
142.47 yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Mixed (revenue and interim net profit fell short of the initial forecast, while operating profit and ordinary profit exceeded the initial forecast)Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Meitec's average billing rate and other factors¥2,005 million
- Meitec's number of deployed personnel¥-1,054 million
- Meitec's hours worked¥-743 million
- Meitec Fielders' average billing rate and other factors¥632 million
- Meitec Fielders' number of deployed personnel¥-155 million
- Meitec Fielders' hours worked¥-214 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Second-half utilization rate (Meitec)99 %
- Second-half utilization rate (Meitec Fielders)98.1 %
- Second-half hours worked (Meitec)8.43 h/day
- Second-half hours worked (Meitec Fielders)8.29 h/day
New initiatives
- Suspend use of the training and other facilities at the head office location and sell them promptly
- Plan to submit a proposal to amend the Articles of Incorporation at next year's annual general meeting of shareholders
- Comprehensively overhaul the sales support system and revamp the logic used to calculate monthly new orders
- Bring forward and expand opportunities to engage with students for April 2028 graduate recruitment
- Revise the annual target for mid-career hires at Meitec Fielders downward to 315 and expand opportunities to engage with prospective job changers
Key KPIsA metric the company considers important as a management benchmark.
- Meitec utilization rate97.4 %Year on year against the same period last year-0.4%
- Meitec hours worked8.15 h/dayYear on year against the same period last year-0.1%
- Number of Meitec engineer employees7,747 PeopleYear on year against the same period last year-177.0%
- Meitec Fielders utilization rate96.1 %Year on year against the same period last year+0.5%
- Meitec Fielders hours worked8.04 h/dayYear on year against the same period last year-0.1%
- Number of Meitec Fielders engineer employees4,405 PeopleYear on year against the same period last year-64.0%
- Meitec's revenue concentration ratio of its top 10 customers27.4 %Year on year against the same period last year+0.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average billing rate, number of deployed personnel, hours worked and utilization rate are disclosedSegment results
- Engineering Solutions businessNet Sales¥68,273 million (YoY +0.9%)Operating profit¥10,246 million (YoY +2.5%)
- Engineer Recruitment businessNet Sales¥489 million (YoY -26.3%)Operating profit¥117 million (YoY -49.6%)
Market Size / Share
- Meitec's average billing rate6,159 yen
- Meitec Fielders' average billing rate4,239 yen
- Engineer staffing market (estimated)4,000 yen
Number of employees
Meitec has 7,747 engineer employees and Meitec Fielders has 4,405. The number of new graduates offered positions for April 2027 is 243 at Meitec and 160 at Meitec Fielders.Annual Dividend
Annual dividend per share181 yen
Interim85 yen
End of period96 yen
Acquisition of treasury shares
The policy is to consider share repurchases when the PBR falls below 3x. No repurchases will be made this time because the PBR is above 3x. The specific repurchase limit is Not disclosed.| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | ¥68,761 million (YoY +0.6%) |
| Operating profit | ¥10,163 million (YoY +1.0%) |
| Ordinary income | ¥10,291 million (YoY +1.2%) |
| Net income | ¥3,652 million (YoY -47.3%) |
| Operating profit margin | 14.8 % |
| Selling, general and administrative expenses | ¥8,387 million |
| Full-year earnings forecast | Net Sales ¥138,800 million / Operating profit ¥20,800 million / Ordinary income ¥21,000 million / Profit attributable to owners of the parent ¥11,000 million / EPS 142.47 yen |
| Self-assessment against the plan | Mixed (revenue and interim net profit fell short of the initial forecast, while operating profit and ordinary profit exceeded the initial forecast) |
| Segment results | Segment Engineering Solutions business / Net Sales ¥68,273 million (YoY +0.9%) / Operating profit ¥10,246 million (YoY +2.5%), Segment Engineer Recruitment business / Net Sales ¥489 million (YoY -26.3%) / Operating profit ¥117 million (YoY -49.6%) |
| Breakdown of Factors Affecting the Change | Meitec's average billing rate and other factors ¥2,005 million, Meitec's number of deployed personnel ¥-1,054 million, Meitec's hours worked ¥-743 million, Meitec Fielders' average billing rate and other factors ¥632 million, Meitec Fielders' number of deployed personnel ¥-155 million, Meitec Fielders' hours worked ¥-214 million |
| Key KPIs | Indicator name Meitec utilization rate / Value 97.4 % / Year on year against the same period last year -0.4 %, Indicator name Meitec hours worked / Value 8.15 h/day / Year on year against the same period last year -0.13 h/day, Indicator name Number of Meitec engineer employees / Value 7,747 People / Year on year against the same period last year -177 People, Indicator name Meitec Fielders utilization rate / Value 96.1 % / Year on year against the same period last year 0.5 %, Indicator name Meitec Fielders hours worked / Value 8.04 h/day / Year on year against the same period last year -0.1 h/day, Indicator name Number of Meitec Fielders engineer employees / Value 4,405 People / Year on year against the same period last year -64 People, Indicator name Meitec's revenue concentration ratio of its top 10 customers / Value 27.4 % / Year on year against the same period last year 0.3 % |
| Unit price and quantity metrics | Average billing rate, number of deployed personnel, hours worked and utilization rate are disclosed |
| Number of employees | Meitec has 7,747 engineer employees and Meitec Fielders has 4,405. The number of new graduates offered positions for April 2027 is 243 at Meitec and 160 at Meitec Fielders. |
| Assumptions Underlying the Business Outlook | Item Second-half utilization rate (Meitec) / Value 99 %, Item Second-half utilization rate (Meitec Fielders) / Value 98.1 %, Item Second-half hours worked (Meitec) / Value 8.43 h/day, Item Second-half hours worked (Meitec Fielders) / Value 8.29 h/day |
| Annual Dividend | Annual dividend per share 181 yen / Interim 85 yen / End of period 96 yen |
| Acquisition of treasury shares | The policy is to consider share repurchases when the PBR falls below 3x. No repurchases will be made this time because the PBR is above 3x. The specific repurchase limit is Not disclosed. |
| Market Size / Share | Indicator Meitec's average billing rate / Value 6,159 yen, Indicator Meitec Fielders' average billing rate / Value 4,239 yen, Indicator Engineer staffing market (estimated) / Value 4,000 yen |
| New initiatives | Suspend use of the training and other facilities at the head office location and sell them promptly, Plan to submit a proposal to amend the Articles of Incorporation at next year's annual general meeting of shareholders, Comprehensively overhaul the sales support system and revamp the logic used to calculate monthly new orders, Bring forward and expand opportunities to engage with students for April 2028 graduate recruitment, Revise the annual target for mid-career hires at Meitec Fielders downward to 315 and expand opportunities to engage with prospective job changers |
Items this document does not state (11)
Gross Profit MarginResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioCapital expendituresOrders received and order backlogKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The revenue shortfall and downward revision to the full-year forecast were due to the stagnant number of engineer employees and lower hours worked, while the increase in and upward revision to operating profit resulted from appropriate control of selling, general and administrative expenses. The decline in and downward revision to interim net profit were mainly due to impairment losses on owned facilities.
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