Kaga Electronics Co (8154) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached ¥376,921 million, up 30.4% YoY; operating income rose 45.5% to ¥18,980 million and profit attributable to owners of parent increased 29.8% to ¥19,515 million, all at first-half records.

• Strong electronics-component demand, including AI-related semiconductor demand, and Shinko Shoji consolidation supported growth; FY2027 earnings and dividend forecasts were raised, with MTMP 2027 targets expected one year early.

Financial highlights

• H1 gross profit rose 30.2% to ¥51,507 million; gross margin held at 13.7%, while operating margin improved 0.5 points to 5.0%.

• Q2 net sales were ¥206.5 billion, up 36.9% YoY and 21.1% QoQ; operating income was ¥10.5 billion, up 60.3% YoY and 24.3% QoQ.

• Q2 net income was ¥12.6 billion, up 21.3% YoY and 83.9% QoQ; EPS was ¥265.18 versus ¥207.91 a year earlier. H1 EPS was ¥409.43.

• H1 ordinary income rose 41.0% to ¥18,959 million; profit before income taxes increased 27.9% to ¥25,217 million, including bargain-purchase and investment-security-sale gains.

• Currency translation contributed ~¥13.0 billion to H1 net sales and ~¥0.6 billion to operating income.

Outlook and guidance

• FY2027 guidance rose to net sales ¥800,000 million, operating and ordinary income ¥36,000 million each, parent-attributable profit ¥32,000 million and EPS ¥671.28.

• Versus the prior September 25 outlook, guidance increased by ¥40,000 million in sales, ¥4,000 million in operating and ordinary income, and ¥3,000 million in parent-attributable profit.

• MTMP 2027 targets of ¥800 billion sales, ¥36 billion operating income and at least 12% ROE are expected to be reached one year early; forecast ROE is 16.3%.

• Forecast assumes ¥150 per US dollar; electronic-components sales are projected at ¥705.0 billion and segment income at ¥27.5 billion.