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Japan – Revenue rises 10% at engineering staffing provider Meitec

01 February 2022

Meitec Corp. (9744:TYO), a Tokyo-based provider of engineering staffing, reported 27 January that revenue rose 10.4% in the nine months ended 31 December. The firm’s fiscal year ends 31 March.

The company noted increased investment in technology at its manufacturing clients.

(JPY millions) Nine months to 31 Dec. 2021 Nine months to 31 Dec. 2020 % change Nine months to 31 Dec. 2021 (USD millions)
Net sales                    78,936                    71,487 10.4%                                     686
Gross profit                    20,856                    18,027 15.7%                                     181
Gross margin 26.4% 25.2%    
Operating profit                      9,562                      7,546 26.7%                                        83
Profit                      6,492                      5,016 29.4%                                        56

It also reported the number of engineers assigned to clients increased and working hours increased year over year because of a rebound in overtime work.

Guidance

Meitec forecast revenue would be up 10.7% in this fiscal year ending 31 March compared to the last. Total revenue is expected to be JPY 107.00 billion (USD 928.3 million).

Share price and market cap

Shares in Meitec closed up 4.54% in Tokyo on Monday to JPY 6,680 (USD 57.96); they were 8.12% below their 52-week high, according to FT.com. The company had a market cap of JPY 182.75 billion (USD 1.59 billion).