Takasago Thermal Engineering (1969) investor relations material

Executive summary

• H1 revenue fell 6.6% YoY to ¥181.710bn; gross margin rose 0.7pt to 22.1%, while orders increased 35.8% to a record ¥296.259bn.

• FY ending March 2027 forecasts were raised to ¥470bn revenue, ¥60bn operating profit, ¥63bn ordinary profit and ¥40bn profit attributable to owners of parent.

Financial highlights

• Gross profit was ¥40.163bn, down 9.5% YoY; SG&A rose to ¥22.062bn from ¥19.717bn.

• Operating profit fell 26.7% to ¥18.101bn, ordinary profit declined 24.4% to ¥19.728bn and profit attributable to owners of parent fell 42.8% to ¥11.559bn.

• EPS was ¥88.31 versus ¥153.77; results included a ¥3.127bn gain on sale of investment securities, compared with a ¥4.899bn valuation loss in the prior-year period.

• Operating cash flow increased to ¥47.528bn from ¥23.094bn YoY; cash and cash equivalents were ¥50.075bn at period-end.

Outlook and guidance

• FY ending March 2027 forecasts: revenue ¥470bn, operating profit ¥60bn, ordinary profit ¥63bn and parent-attributable profit ¥40bn; gross profit forecast ¥108.5bn and gross margin 23.1%.

• Full-year orders forecast was raised to ¥620bn from ¥520bn; carry-forward projects forecast increased to ¥561.574bn from ¥491.574bn.

• Full-year EPS forecast is ¥305.60; the annual dividend forecast is ¥123 per share.

• Orders are expected to exceed ¥600bn for the first time, supported by semiconductor and data center demand and expanded construction capacity.