Maruichi Steel Tube (5463) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 12.7% YoY to ¥135.9bn; operating profit increased 27.1% to ¥19.6bn and parent-attributable profit rose 23.5% to ¥13.2bn.

• Revised FY2027 forecasts: net sales ¥293.0bn, operating profit ¥41.7bn, ordinary profit ¥42.9bn and parent-attributable profit ¥28.3bn.

• Annual dividend forecast increased from ¥52 to ¥58 per share; forecast ROE of 8.04% exceeds the medium-term plan’s 8.0% target.

Financial highlights

• H1 net sales were ¥135.9bn versus ¥120.5bn a year earlier; gross profit increased to ¥30.1bn from ¥25.4bn and SG&A rose to ¥10.5bn from ¥10.0bn.

• Operating profit was ¥19.6bn versus ¥15.4bn; ordinary profit was ¥21.1bn versus ¥16.7bn.

• Parent-attributable profit was ¥13.2bn versus ¥10.7bn; comprehensive income reached ¥20.2bn versus ¥6.6bn.

Outlook and guidance

• FY2027 net sales forecast is ¥293.0bn, up 20.2% YoY; operating profit forecast is ¥41.7bn, up 30.1% and 13.0% above the initial ¥36.9bn plan.

• Ordinary profit forecast is ¥42.9bn, up 25.3%; parent-attributable profit is ¥28.3bn, up 6.1%, with basic EPS forecast at ¥129.18.

• Revised 2H operating profit plan is ¥22.1bn, including ¥8.4bn for North America; four U.S. companies are expected to exceed H1 results despite year-end service-center inventory adjustments.

• Maruichi Stainless Tube full-year operating profit forecast rose from ¥2.95bn to ¥3.5bn; MST-X is expected to post a ¥41m full-year operating loss.