Nishikawa Rubber (5161) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 7.8% to ¥61.829bn and operating profit increased 1.7% to ¥4.046bn; net income attributable to owners fell 24.8% to ¥3.226bn.

• Japan and North America growth, yen depreciation and Mexico cost improvements supported results; East Asia recorded an operating loss and Southeast Asia profit declined.

Financial highlights

• H1 revenue increased ¥4.479bn YoY; gross profit rose to ¥11.485bn from ¥10.722bn, while SG&A increased to ¥7.439bn from ¥6.742bn.

• Operating profit rose ¥66m to ¥4.046bn, with operating margin of 6.5% versus 6.9%; ordinary profit increased ¥174m to ¥4.911bn.

• Net income attributable to owners fell ¥1.062bn to ¥3.226bn; the prior-year period included a ¥1.139bn tax benefit following a finalized tax lawsuit.

• Comprehensive income rose to ¥6.291bn from ¥5.643bn, supported by securities valuation gains and foreign currency translation adjustments.

Outlook and guidance

• FY2027 revenue forecast remains ¥118.0bn; operating profit was cut ¥1.0bn to ¥6.5bn, ordinary profit ¥0.6bn to ¥8.0bn and net income ¥0.7bn to ¥5.8bn.

• Forecast EPS is ¥159.95; the assumed USD/JPY rate is ¥154.

• FY2027 dividend forecast is ¥186 per share, comprising ¥93 interim and ¥93 year-end; the stated DOE target is ~8%.

• Revisions reflect cautious demand assumptions for major customers in China and Thailand and higher raw-material prices; H2 priorities include technology development, productivity and group-wide efficiency.