HIKARI TSUSHIN (9435) Q2 2027 earnings summary

Executive summary

• 1H FY27/3 revenue reached ¥420,970m (+16.4% YoY) and operating profit ¥65,702m (+14.1%), both records; recurring operating profit was ¥95.4B (+3%).

• Parent profit declined 4.0% to ¥67,522m and profit before tax fell 1.2% to ¥87,168m; excluding FX gains and losses, profit before tax was a record ¥90.0B, up 1%.

• Customer-contract growth supported recurring operating profit; ¥2.8B of FX losses weighed on reported profit before tax.

Financial highlights

• EBITDA rose 13% YoY to ¥74.5B; operating cash flow was negative ¥25.1B, mainly due to higher trade receivables.

• Dividend and interest income on a cash-flow basis rose 8% to ¥34.0B; equity-method investment profit increased 18% to ¥10.4B.

• Gross profit was ¥190,165m versus ¥179,122m YoY; total comprehensive income declined 3.2% to ¥157,387m.

Outlook and guidance

• FY27/3 forecasts: revenue ¥775.0B, recurring operating profit ¥201.5B, operating profit ¥130.0B, profit before tax ¥177.5B and net profit ¥120.0B; 1H progress was 47%–56%.

• Profit before tax excluding FX gains and losses is forecast at ¥179.7B, with 50% 1H progress; operating profit excluding one-time gains and losses is forecast at ¥130.0B, with 49% progress.

• FY27/3 annual dividend forecast rose to a record ¥815 per share; the forecast implies a 16th consecutive annual increase and 24th consecutive year without a reduction.

• FY27/3 basic EPS forecast is ¥2,734.35; revenue and operating profit forecasts are unchanged, with forecast YoY changes of +5.5% and +11.4%, respectively.