Nippon Light Metal Holdings Company (5703) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 rose 21.3% year-over-year to 166.3 billion yen, with operating profit up 102.8% to 10.6 billion yen and profit attributable to owners of parent up 190.3% to 6.2 billion yen.

• First quarter ordinary profit reached 9.9 billion yen, up 133% year-over-year, driven by strong demand for secondary alloy ingots, thick aluminum sheets for semiconductors, and favorable aluminum ingot prices.

• Comprehensive income surged to 9.4 billion yen, a 540.5% increase year-over-year.

• Revised full-year forecasts project 31.0 billion yen in ordinary profit (previously 25.0 billion yen) and 690.0 billion yen in net sales.

• Interim and annual dividend forecasts were raised to 50 yen and 110 yen per share, respectively.

Financial highlights

• Gross profit increased from 23.5 billion yen to 30.5 billion yen year-over-year.

• Net profit per share (basic) rose to 100.05 yen from 34.51 yen year-over-year.

• Inventories and borrowings increased due to higher aluminum ingot prices; total assets rose to 567.8 billion yen.

• Equity ratio remained stable at 44.6%.

• All major segments except fabricated products posted significant profit growth; fabricated products saw a decline due to supply chain disruptions.

Outlook and guidance

• Full-year net sales forecast maintained at 690.0 billion yen, with operating profit revised up to 33.0 billion yen.

• Profit attributable to owners of parent for the full year is forecast at 17.0 billion yen, with net profit per share at 275.98 yen.

• Dividend per share forecast increased by 30 yen to 110 yen, with a total payout ratio target of approximately 40%.

• Profit growth expected to continue, supported by strong demand in key segments and sales price revisions, though gains from aluminum ingot price differentials are expected to subside in the second half.

• Forecasts assume no further gains from aluminum ingot price differentials in the second half.