Daiseki (9793) Q2 2027 earnings summary

Executive summary

• H1 FY Feb 2027 set records for net sales at ¥37,492mn (+3.8% YoY), operating profit at ¥8,345mn (+12.0%) and parent-attributable profit at ¥5,805mn (+23.1%).

• Eco Solution and MCR exceeded forecasts, offsetting a sharp shortfall at System Kikou; consolidated operating profit was 0.2% above forecast.

• Results benefited from soil remediation and lead recycling, while some tank-washing projects shifted to H2.

Financial highlights

• Gross profit rose 8.3% YoY to ¥12,914mn; SG&A was ¥4,568mn versus ¥4,474mn a year earlier.

• Ordinary profit increased 13.4% to ¥8,657mn; parent-attributable profit rose 23.1% to ¥5,805mn.

• Comprehensive income was ¥6,276mn, up 21.1% YoY; basic EPS was ¥122.77 versus ¥99.07.

• Cash and cash equivalents were ¥19,863mn at Aug. 31, 2026; H1 operating, investing and financing cash flows were ¥6,425mn, -¥2,088mn and -¥2,774mn.

Outlook and guidance

• FY Feb 2027 forecasts remain unchanged: net sales ¥74,200mn, operating profit ¥16,800mn, ordinary profit ¥17,000mn and parent-attributable profit ¥11,200mn.

• H1 progress against the full-year sales, operating profit, ordinary profit and parent-attributable profit forecasts was 50.5%, 49.6%, 50.9% and 51.8%, respectively.

• FY Feb 2027 forecast EPS is ¥236.83; annual dividend is ¥86 per share, comprising ¥43 interim and ¥43 year-end, versus ¥76 in FY2026.

• VISION2030 targets FY Feb 2031 sales of ¥150.0bn, operating profit of ¥25.0bn and ROE of 15%; FY Feb 2029 plans call for ¥83.0bn sales and ¥19.0bn operating profit.

• Semiconductor and electronics wastewater volume is expected to rise in H2; System Kikou expects delayed projects to catch up mainly in Q3 and a slight full-year surplus in Q4.