Central Security Patrols Co (9740) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached a semiannual record ¥40,586m, up 4.8% YoY; operating profit rose 10.0% and ordinary profit rose 9.1%.

• Profit attributable to owners of parent fell 41.9% to ¥986m, as litigation and contract-cancellation losses outweighed insurance claim income.

Financial highlights

• Revenue was ¥40,586m, up ¥1,845m YoY; operating profit was ¥2,787m, up ¥254m, and ordinary profit was ¥2,867m, up ¥239m.

• Net income attributable to owners of the parent was ¥986m versus ¥1,698m; EPS was ¥70.44 versus ¥117.41.

• Revenue, operating profit and ordinary profit exceeded the interim forecast; net income was below forecast amid litigation-related items.

• Extraordinary items included ¥400m insurance claim income, ¥948m litigation loss and ¥464m contract cancellation loss.

Outlook and guidance

• FY2027 forecast: net sales ¥80,000m, operating profit ¥3,900m, ordinary profit ¥4,000m and parent profit ¥1,800m; the forecast was revised.

• FY2027 annual dividend forecast is ¥81 per share, comprising ¥40 interim and ¥41 year-end; forecast-basis DOE is 2.7%.

• FY2030 mid-term plan targets ¥80,000m revenue and a 6.0% operating margin.

• Priorities include higher security pricing, optimized staffing and technology, and growth in higher-margin machine security and equipment installation.