Narasaki Sangyo (8085) Q2 2027 earnings summary

Executive summary

• H1 FY Mar-2027 revenue, operating profit, ordinary profit and interim net income reached record highs, led by strong electronics-related demand.

• Revenue rose 15.0% YoY and operating profit 128.7%; all four segments increased sales and segment profit.

• Results exceeded the revised forecast as demand in building equipment, semiconductors and generative-AI-related fields outperformed expectations.

Financial highlights

• H1 revenue was ¥61,510 million (+15.0% YoY), operating profit ¥2,108 million (+128.7%), ordinary profit ¥2,169 million (+111.4%) and net income ¥1,541 million (+139.4%).

• Gross profit was ¥6.798bn vs ¥5.786bn; EPS was ¥307.18 vs ¥126.31 and comprehensive income rose 143.2% to ¥2.380bn.

• Operating, ordinary and net margins were 3.4%, 3.5% and 2.5%, respectively, vs 1.7%, 1.9% and 1.2% a year earlier.

• Operating profit growth reflected ¥870 million from gross profit on sales changes, ¥143 million from gross-margin improvement and ¥174 million from lower SG&A.

Outlook and guidance

• FY Mar-2027 forecast: revenue ¥128,000 million (+6.4%), operating profit ¥4,000 million (+30.4%), ordinary profit ¥4,000 million (+26.2%), net income ¥2,800 million (+24.9%) and EPS ¥558.08.

• Forecast was raised from May 2026 levels: revenue by 2%, operating and ordinary profit by 14%, and net income by 12%; it was unchanged from the Nov. 4 update.

• Full-year demand is expected to remain strong in semiconductors and generative AI; forecast margins are 3.1% for operating and ordinary profit and 2.2% for net income.

• FY dividend forecast increased ¥20 to ¥160 per share; targets include six consecutive annual increases and a payout ratio of at least 30%.