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Japan – Meitec full-year revenue increases 10.9%, solutions business sees rebound in overtime

17 May 2022

Meitec Corp. (9744:TYO), a Tokyo-based provider of engineering staffing, reported revenue rose 10.9% in its fiscal year ended March 31. The firm noted that while the economy is picking up, the outlook for it remains uncertain with an increase in new strains of Covid-19 being discovered in Japan.

(JPY millions) FY ended 31 March 2022 FY ended 31 March 2021 % change FY ended 31 March 2022 (USD millions)
Net sales                  107,140                    96,626 10.9%                                     879
Gross profit                    28,223                    24,422 15.6%                                     231
Gross margin 26.3% 25.3%    
Operating profit                    12,817                    10,234 25.2%                                     105
Profit                      9,240                      7,028 31.5%                                        76

Net sales in the company’s engineering solutions business rose 10.7% to JPY 105.7 billion (USD 866.9 million) amid an increase in the number of engineers assigned to clients and a rebound in overtime work. This segment accounts for 90% of the company’s total net sales.

Meanwhile, net sales in the Meitec Next Corp. engineering recruiting and placement business rose 25.8% to JPY 1.5 billion (USD 12.5 million).

Overall, net sales to Meitec’s top 10 clients rose 24.6% year over year during the fiscal year. Those top clients are Denso, Sony Semiconductor Solutions, Mitsubishi Heavy Industries, Panasonic, Nikon, Toyota Motor, Hitachi High-Tech, Subaru, Denso Ten and Terumo.

Guidance

Meitec forecasts revenue to rise 11.1% in the next fiscal year, which ends March 31, 2023.

Share price and market cap

Shares in Meitec closed up 0.75% on Monday in Tokyo to JPY 6,750 (JPY 52.18); they were 7.15% below their 52-week high, according to FT.com. The company had a market cap of JPY 177.03 billion (USD 1.37 billion).