Nichiha (7943) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥68,285m, down 3.9% YoY; operating profit was ¥3,470m, down 0.7%, while net income attributable to owners rose 50.1% to ¥3,703m.

• FY2027 revenue guidance remains ¥141,000m; operating profit guidance is ¥7,700m, down 17.7% YoY and 19.8% from the initial forecast.

Financial highlights

• H1 gross profit was ¥24,839m, down from ¥24,961m; gross margin increased to 36.4% from 35.1%.

• H1 ordinary profit declined 5.9% to ¥3,482m; profit before tax was ¥4,885m versus ¥3,469m, and attributable net profit was ¥3,703m versus ¥2,467m.

• H1 operating margin was 5.1%, up from 4.9%; net income margin was 5.4%, versus 3.5%.

• Comprehensive income was ¥4,496m, compared with a loss of ¥487m in the prior-year half.

• Operating cash flow was ¥545m versus ¥3,232m; investing and financing cash flows were negative ¥1,960m and ¥1,898m, respectively.

Outlook and guidance

• FY2027 guidance: revenue ¥141,000m, down 1.9%; operating profit ¥7,700m, down 17.7%; ordinary profit ¥7,900m, down 22.9%.

• Attributable net income guidance is ¥6,600m, up 165.4% YoY and down 17.5% from the initial forecast; basic EPS is ¥199.82.

• Revised assumptions: housing starts down 0.3% YoY and industry siding sales down 1.3%, versus an initial siding-sales assumption of down 4.5%.

• Full-year dividend forecast remains ¥121 per share.