MK Seiko (5906) investor relations material

Executive summary

• H1 FY2027 revenue fell 6.7% YoY to ¥13,213m; operating income declined 33.8% to ¥816m and net income attributable to owners fell 35.2% to ¥811m.

• Delayed purchases and project timing, alongside inflation, weighed on results; recovery in auto-equipment sales and recognition of delayed large orders are expected from Q3 onward.

Financial highlights

• Revenue was ¥13,213m, down ¥954m YoY; gross profit was ¥4,586m, down ¥408m, as cost of sales declined less than revenue.

• Operating income was ¥816m, down 33.8%; ordinary income was ¥926m, down 29.8%; net income attributable to owners was ¥811m, down 35.2%.

• Interim EPS was ¥58.18, versus ¥88.20 in the prior-year period; comprehensive income was ¥961m, down 29.2%.

Outlook and guidance

• FY2027 forecast unchanged: revenue ¥30,000m (+0.7% YoY), operating income ¥2,200m (-19.2%), ordinary income ¥2,300m (-21.3%), net income ¥1,500m (-36.3%) and EPS ¥107.65.

• Higher production costs from raw-material sourcing difficulties, energy prices amid Middle East tensions and chronic labor shortages weigh on the full-year earnings outlook.

• Mobility & Services sales are expected to recover from Q3 as subsidy-related purchasing resumes; delayed signage and housing-project sales are also scheduled for later periods.