Kaga Electronics Co (8154) investor relations material

Executive summary

• Net sales reached ¥658.9 billion, up 20.3% year-over-year, and net income rose 82.0% to ¥31.1 billion, both setting record highs for the first time in three years.

• All business segments showed robust performance, with significant contributions from spot sales and the consolidation of Kyoei Sangyo from Q2.

• Extraordinary income included a ¥7.7 billion gain on bargain purchase and a ¥1.6 billion gain on sale of investment securities.

• Major M&A and capital strategies executed, including the acquisition of Kyoei Sangyo and a historic share repurchase and cancellation.

Financial highlights

• Operating income increased 17.9% year-over-year to ¥27.8 billion, driven by higher gross profit despite increased SG&A expenses.

• EPS rose to ¥627.71, up 93.1% year-over-year, and ROE improved by 7.0 points to 17.8%.

• Annual dividend increased by ¥30 to ¥140 per share.

• Comprehensive income jumped 81.8% to ¥37.7 billion.

• Total assets grew to ¥403.7 billion, up ¥98.0 billion from the prior year.

Outlook and guidance

• FY2027/3 net sales are forecast at ¥645.0 billion, down 2.1% due to the absence of one-off items, but underlying growth is expected to continue.

• Operating income is projected to rise 2.4% to ¥28.5 billion, while net income is expected to decline 35.7% to ¥20.0 billion due to the absence of extraordinary income.

• Dividend guidance is maintained at ¥140 per share, with a payout ratio of 33.4%.