MEC (4971 JP) reported FY25 (Dec year-end) OP of ¥5,748mil (+26.0% YoY) on sales of ¥20,947mil (+14.9% YoY), surpassing the firm’s guidance of OP of ¥5,500mil (+20.5% YoY) on sales of ¥20,300mil (+11.3% YoY). Chemicals sales rose +15.6% YoY to ¥20,211mil while chemical sales volume also gained +13.4% YoY to 47,717ton. The gross profit margin [GPM] improved to 62.0% (+1.1ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101, and a change in sales mix due to decline in machinery sales. FY26 Outlook: MEC guides for FY26 1H from OP of ¥3,000mil (22.9+% YoY) on sales of ¥10,800mil (+15.1% YoY) and FY26 OP of ¥6,500mil (+13.1% YoY) on sales of ¥22,500mil (+7.4% YoY). While the CZ-8101 will continue to contribute to FY26 earnings, the growth of the more advanced CZ-8201 and CZ-8401 packages is also expected to drive growth.
