Honyaku Center (2483) Q2 2027 earnings summary

Executive summary

• H1 FY Mar-2027 revenue fell 9.5% YoY to ¥4,837m; operating profit fell 58.0% to ¥145m as translation orders declined, despite lower production costs and improved gross margin rate.

• Net income attributable to owners fell 62.4% YoY to ¥89.7m; full-year guidance was revised to revenue ¥10,000m and net income ¥320m.

Financial highlights

• H1 revenue ¥4,837m, gross profit ¥2,377m, operating profit ¥145m, ordinary profit ¥158m and net income ¥89.7m; prior-year figures were ¥5,345m, ¥2,535m, ¥347m, ¥367m and ¥239m, respectively.

• Gross profit rate improved as translation production costs declined substantially through workflow efficiencies, but lower translation sales reduced gross profit.

• Comprehensive income was ¥86m vs ¥238m YoY; EPS was ¥26.71 vs ¥71.36.

Outlook and guidance

• FY Mar-2027 guidance: revenue ¥10,000m (-8.0%), operating profit ¥480m (-31.9%), ordinary profit ¥500m (-33.2%), net income ¥320m (-30.7%) and EPS ¥95.21; forecast revised on Nov. 10.

• FY dividend forecast remained ¥140/share, comprising ¥0 interim and ¥140 year-end; the prior FY annual dividend was also ¥140/share.