Shinwa (7607) investor relations material

Executive summary

• FY2026 revenue rose 1.6% to ¥87.512bn; operating income fell 1.9% to ¥4.448bn and net income fell 1.3% to ¥3.269bn.

• Growth in the Americas and Asia Pacific was offset by lower Japan sales and sharply lower segment profit in the Americas and China; rising personnel and administrative costs weighed on earnings.

Financial highlights

• Gross profit rose 2.7% to ¥14.238bn, while SG&A increased to ¥9.789bn from ¥9.329bn; gross margin improved 0.2 percentage points to 16.3%.

• Ordinary income fell 2.2% to ¥4.703bn; net income attributable to owners was ¥3.269bn and EPS was ¥243.80 versus ¥247.22.

• Metal joining sales rose 20.8% to ¥37.0bn; industrial machinery sales fell 20.6% to ¥21.485bn and FA systems sales fell 4.9% to ¥21.216bn.

• Comprehensive income increased to ¥5.532bn from ¥3.050bn, supported by ¥2.262bn of other comprehensive income, including foreign-currency translation gains.

Outlook and guidance

• FY2027 forecast: revenue ¥88.0bn (+0.6%), operating income ¥4.53bn (+1.8%), ordinary income ¥4.73bn (+0.6%) and net income ¥3.28bn (+0.3%).

• FY2027 first-half forecast: sales ¥45.0bn (+0.5%), operating profit ¥2.3bn (-21.1%), ordinary profit ¥2.4bn (-20.3%) and parent-attributable profit ¥1.66bn (-19.2%).

• Hybrid-vehicle investment, factory automation and labor-saving demand, and Asia-Pacific growth are expected to support results; deferred or reduced domestic electrification investment is a headwind.

• Raw-material and personnel cost inflation and Kasugai No. 2 start-up costs are expected to constrain operating-income growth.

• The FY2027–FY2029 plan targets stronger automotive business, growth in semiconductor, aerospace, food and beverage, and healthcare markets, and expansion in the Global South.