Valqua (7995) investor relations material

Executive summary

• Net sales for 1Q FY3/2027 rose 23.2% year-over-year to ¥17,191 million, with gross profit up 25.3% to ¥7,551 million and operating profit up 61.1% to ¥2,902 million.

• Profit attributable to owners of parent surged 160% year-over-year to ¥3,280 million, and EPS increased to ¥186.18.

• Orders received totaled ¥19,296 million, with an order backlog of ¥14,915 million at quarter-end, reflecting robust demand, especially in the tech market.

• The company is in the final year of its medium-term management plan, focusing on strengthening product capabilities and R&D for digital solutions.

Financial highlights

• Gross profit margin improved to 43.9% and operating profit margin to 16.9% in 1Q FY3/2027.

• Comprehensive income surged to ¥3,982 million, up 833.5% year-over-year.

• Cash flows from operating activities reached ¥3,454 million, while free cash flow was positive at ¥1,801 million.

• Total assets increased to ¥86,676 million, with net assets at ¥56,105 million.

• Shareholders' equity ratio improved to 64.7% from 64.1% at the previous fiscal year-end.

Outlook and guidance

• Full-year FY3/2027 net sales forecast revised upward to ¥69.0 billion (+17.8% YoY), with operating profit expected at ¥11.0 billion (+54.9% YoY), and profit attributable to owners of parent at ¥8.7 billion (+69.6% YoY).

• Gross profit margin projected at 43.8% and operating profit margin at 15.9% for the year.

• Tech market sales forecast raised by ¥2.5 billion, reflecting strong demand.

• Six-month forecast also raised, with all profit figures expected to exceed previous guidance due to strong tech market demand.

• Forecasts account for higher energy, raw material, and logistics costs, but exclude potential geopolitical impacts from the Strait of Hormuz.