Dai Nippon Printing (7912) Q2 2027 earnings summary

Executive summary

• H1 sales rose 3.3% YoY to ¥762.8bn and operating income increased 18.4% to ¥55.253bn.

• Ordinary income rose 27.5% to ¥66.297bn; net income attributable to parent shareholders fell 20.3% to ¥47.395bn, mainly on lower investment-security gains.

• Full-year forecasts were revised upward to sales of ¥1,564.0bn and operating income of ¥113.0bn.

Financial highlights

• H1 comprehensive income was ¥93.179bn, up 226.9% YoY.

• H1 capital expenditures were ¥26.6bn, 34.6% of the ¥77.0bn full-year plan; R&D expenditures were ¥19.7bn and depreciation ¥26.5bn.

• Segment income totaled ¥68.521bn before ¥13.267bn in adjustments, reconciling to operating income of ¥55.253bn.

Outlook and guidance

• Revised full-year forecasts: sales ¥1,564.0bn, operating income ¥113.0bn, ordinary income ¥134.0bn and net income ¥105.0bn; operating margin 7.2% and ROE 8.6%.

• Revised segment forecasts: Smart Communication sales/operating profit ¥732.0bn/¥38.0bn; Life and Healthcare ¥548.0bn/¥45.0bn; Electronics ¥286.0bn/¥58.0bn.

• H2 operating profit forecast is ¥57.7bn after ¥55.2bn in H1; full-year operating profit is ¥5.0bn above the previous forecast.

• Forecast includes a ¥2.0bn negative Middle East impact in Q3-Q4; assumed exchange rate changed from ¥150 to ¥157 per US$.

• Full-year forecast EPS is ¥247.34.