Teikoku (6333) investor relations material

Executive summary

• Q1 FY2027 net sales rose 2.1% YoY to ¥6.361bn; operating profit fell 27.8% to ¥835m as gross margin declined and SG&A increased.

• Orders reached a quarterly record of ¥8.849bn, up 26.6% YoY; backlog was ¥16.925bn, up 4.0%.

• Profit attributable to owners of parent fell 37.4% to ¥603m; comprehensive income rose 745.2% to ¥1.081bn, driven by gains in other comprehensive income.

• FY2027 guidance and shareholder-return policy were unchanged.

Financial highlights

• Gross profit fell 7.7% to ¥2.652bn; gross margin declined to 41.7% from 46.1%.

• SG&A increased to ¥1.816bn from ¥1.714bn; operating margin fell to 13.1% from 18.6%.

• Ordinary profit declined 22.3% to ¥930m; basic EPS fell to ¥39.38 from ¥58.06.

• Net income comparison includes ¥312m of prior-year securities-sale gains; current-period extraordinary income was ¥413m, mainly from investment-security sales.

• Net margin was 9.5%, down from 15.5%; equity-to-asset ratio was 77.2%.

Outlook and guidance

• FY2027 forecast: revenue ¥31.010bn, up 6.6%; operating profit ¥5.020bn, up 0.7%; ordinary profit ¥5.230bn, down 3.9%; net income ¥3.750bn, down 13.6%.

• Revenue outlook reflects high backlog, gradual US recovery, H1 production recovery at the Chinese subsidiary, and yen depreciation; SG&A growth tempers operating profit gains.

• Forecast exchange rates: US$1=¥155, CNY1=¥22.5, €1=¥180, KRW1=¥0.1, INR1=¥1.7.

• FY2027 annual dividend forecast remained ¥132 per share.