Kamei (8037) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached ¥292,996 million, up 9.2% YoY; operating profit rose 38.3% to ¥9,832 million, both record highs and above revised forecasts.

• Energy led growth and profit gains; all other segments recorded lower operating profit YoY.

Financial highlights

• Gross profit was ¥51,928 million, up from ¥46,850 million; SG&A rose to ¥42,095 million from ¥39,738 million.

• Ordinary profit rose 36.5% to ¥10,482 million; profit attributable to owners of parent increased 42.4% to ¥6,758 million.

• Operating margin improved to 3.4% from 2.7%; ordinary profit margin increased to 3.6% from 2.9%.

• Revenue and operating profit exceeded revised forecasts by 3.5% and 3.3%; net income exceeded forecast by 4.3%.

• Basic EPS was ¥220.82 versus ¥155.12; operating cash flow increased to ¥28,049 million from ¥13,319 million.

Outlook and guidance

• FY2027 forecast unchanged: net sales ¥624,910 million (+7.2%), operating profit ¥17,890 million (+5.4%), ordinary profit ¥19,570 million (+4.9%) and parent-attributable profit ¥12,050 million (+1.3%).

• Forecasts call for record revenue, operating profit, ordinary profit and net income; revenue is expected to exceed ¥600bn and net income ¥12bn for the first time.

• Current performance and H2 outlook remained consistent with the August forecast; assumptions include Dubai crude at $100/bbl and ¥160/$ exchange rate.

• Full-year segment revenue forecasts: Energy +9.9%, Construction +17.0%, Overseas Trade +4.1%, Automotive +2.0% and Food +0.4% YoY.

• Annual dividend forecast remains ¥136/share, including ¥68 for H1; 12 consecutive annual increases are expected.