Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Holdings Corporation: The Company Continues to Expect Strong Growth in FY3/18

TOKYO–(BUSINESS WIRE)–Investment Bridge, one of Japan’s leading IR services companies, has
issued a “Bridge Report” on Ferrotec
Holdings Corporation (JASDAQ: 6890) reviewing its earnings results
for the fiscal year March 2017 and its earnings estimates for the fiscal
year March 2018.

Report Highlights

• In fiscal year March 2017, Sales and operating income rose by 6.3% and
  41.1% year-on-year respectively.
• Ferrotec’s earnings estimates call for sales and operating income to
  rise by 12.4% and 26.8% year-on-year respectively during fiscal year
  March 2018.

Ferrotec
Holdings Corporation manufactures and sells silicon single and
multiple crystal manufacturing equipment and other products in the
photovoltaic related products segment, semiconductor manufacturing
equipment, flat panel display (FPD) manufacturing equipment parts,
semiconductor materials, and various thermoelectric temperature
controllers widely used in personal computers, cellular telephones, and
devices using liquid crystal and plasma technologies.

During fiscal year March 2017, sales and operating income rose by 6.3%
and 41.1% year-on-year. Increases in profitability of the Equipment
Related and electronic device businesses, and an improvement in the
profitability of the photovoltaic related business allowed operating
income to rise by a large margin. Also, an increase in earnings form
equity accounting method allowed ordinary income to rise by 48.5%
year-on-year. With regard to sales, the consolidation of the industrial
use cleaning equipment manufacturer and sales company Asahi Seisakusho
Co., Ltd. yielded a large contribution. Yearend dividend payment was
raised by ¥6 including a ¥2 per share commemorative dividend to
celebrate the implementation of a holding company structure, bringing
the anticipated yearend dividend payment to ¥12 per share and the full
year dividend to ¥18 (A ¥8 increase from the previous term).

Ferrotec’s estimates call for 12.4% and 26.8% year-on-year increases in
sales and operating income during fiscal year March 2018. And while
sales of photovoltaic related business are expected to decline by 20.1%
year-on-year due to restructuring efforts, strong demand for various
products responding to increases in capital investments is expected to
allow sales of the Equipment Related business to rise by 27.9%
year-on-year, and sales of the electronic device business are expected
to rise by 6.5% based on an assumption of slowing automobile sales in
North America. Economies of scale and automation are expected to allow
operating income margin to improve a step further, and operating income
to continue to grow. Dividend is expected to be raised by ¥2 to ¥20 per
share (¥10 dividends at both the interim and yearend).

Demand for data center memory equipment and smartphone application
semiconductors are growing. Expansion in IoT applications for industrial
machinery and the appearance of self-driving cars are expected to
contribute to strong long term growth in semiconductor demand. At the
same time, Ferrotec boasts of similar levels of manufacturing and
marketing as local companies in China and should therefore fully benefit
from the Chinese Government’s “Made in China Plan”.

To view the full report, please go to the website at the URL listed
below.
http://www.bridge-salon.jp/report_bridge/archives/eng/6890/20170726.html

About Bridge Report:
Bridge Report is produced by Investment
Bridge Co., Ltd. and provides accurate and objective information
about the earnings, business strategies, and other information of
publicly traded Japanese companies. Investment Bridge was founded in
August 2000 and is one of Japan’s leading independent IR support
services companies. Investment Bridge specializes in providing various
solutions to Japan’s publicly traded companies with the goal of
expanding our clients’ shareholder base and liquidity through increased
recognition and understanding of companies.

Contacts

Investment Bridge Co., Ltd.
Kaoru Hosaka, +81-3-5225-3077