Meiji Electric Industries Co (3388) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥32,176m, down 12.4% YoY; operating profit was ¥987m, down 40.0%, and profit attributable to owners was ¥846m, down 35.2%.

• Comprehensive income rose 33.5% YoY to ¥1,993m.

Financial highlights

• Ordinary profit was ¥1,166m, down 35.7% YoY; profit before income taxes was ¥1,167m versus ¥1,829m.

• Gross profit was ¥5,436m versus ¥5,898m a year earlier; SG&A increased to ¥4,448m from ¥4,253m.

• Operating margin was 3.1%, down 1.4 percentage points YoY; gross margin rose to 16.9% from 16.1%.

• Ordinary profit fell ¥648m: lower sales reduced profit by ¥658m and higher SG&A by ¥195m, partly offset by a ¥270m gross-margin benefit.

Outlook and guidance

• FY2027 forecast: revenue ¥77,000m, operating profit ¥3,530m, ordinary profit ¥3,868m and parent-attributable profit ¥2,730m.

• Revenue is forecast up 0.8% YoY but 8.3% below the initial forecast; operating profit is forecast down 3.8% YoY and 13.3% versus the initial forecast.

• Forecast ordinary profit is down 5.4% YoY; parent-attributable profit is down 4.0% YoY and 10.8% versus the initial forecast; basic EPS is ¥215.70.

• Forecast operating margin is 4.6%, down 0.2 percentage points YoY; gross margin is 16.6%, up 0.4 points, and ROE is 7.1%, down 0.8 points.

• Forecasts rely on currently available information and assumptions; actual results may differ substantially.