Hirose Electric (6806) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 25.6% YoY to ¥128,098m; operating profit increased 40.4% to ¥28,725m, with a 22.4% margin.

• Orders through 2Q reached ¥1,496 hundred million, up 40.9% YoY.

• Strong demand for industrial connectors, communications infrastructure and semiconductor inspection products supported growth across regions.

Financial highlights

• Profit before tax rose 33.8% YoY to ¥29,576m; net profit attributable to owners increased 15.3% to ¥17,905m.

• Gross profit was ¥74,444m versus ¥59,109m a year earlier; sales increased ¥260.7 hundred million YoY.

• COGS ratio deteriorated 0.2 points to 58.1%, while the SGA ratio improved 2.6 points to 19.2%.

• Total comprehensive income increased 34.7% YoY to ¥29,600m, including ¥11,695m of other comprehensive income after tax.

Outlook and guidance

• FY2027 forecast unchanged: revenue ¥250,000m, operating profit ¥50,000m, profit before tax ¥53,000m and attributable profit ¥35,000m.

• Forecast growth rates are 18.3% for revenue, 16.3% for operating profit, 13.7% for profit before tax and 5.6% for attributable profit.

• Forecast basic EPS is ¥1,069.63; annual dividend forecast is ¥520 per share, comprising ¥260 at 2Q and ¥260 at year-end.

• Full-year forecast margins: operating profit 20.0%, profit before tax 21.2% and net profit 14.0%; forecast ROE is 9.4% and payout ratio 48.6%.