COSEL’s first-quarter results announced on 18 September showed sales up 54.0% year on year, while operating profit returned to profitability. Orders for semiconductor manufacturing equipment more than quadrupled from the same period last year, heightening interest in the power supply and power electronics sectors as AI investment spreads through the industry.
COSEL, a Toyama-based power supply manufacturer, reported first-quarter sales of ¥7.8 billion, up 54.0% year on year, in results released on 18 September. Operating profit returned to profitability, and the full-year forecast was raised to ¥2.3 billion. Trading volume surged, and buying continued after the earnings announcement.
The main driver of orders was demand from semiconductor manufacturing equipment customers. First-quarter orders totaled approximately ¥3.5 billion, more than quadrupling from approximately ¥800 million in the same period last year. The equipment manufacturers that are its customers are increasing investment to expand memory production for generative AI, and the resulting growth in demand for power supply components is spreading to the equipment side of the industry.
COSEL also expects price increases to contribute from the second quarter. The sale of its Swedish subsidiary Powerbox has been completed, improving its earnings profile. The company increased its annual dividend to ¥60, implying an estimated dividend yield of approximately 4%; it has also been explained that 100 shares can be purchased for approximately ¥150,000.
Against a backdrop of accelerating AI investment, the power supply and power electronics markets are expected to expand. The sector is positioned as being at the forefront of power supply, amid rising data center electricity demand cited in IEA data and increasing GPU power consumption.