Oki Electric Industry (6703) Q2 2027 earnings summary

Executive summary

• 1H net sales rose 5.2% YoY to ¥188.643bn, while operating and ordinary results shifted to losses; net loss attributable to owners was ¥3.516bn.

• Full-year sales and operating-profit forecasts were raised by ¥60.0bn and ¥3.0bn, mainly reflecting the automated-equipment joint venture that began operations October 1.

Financial highlights

• Gross profit declined to ¥40.019bn from ¥43.496bn; operating loss was ¥989m and ordinary loss ¥1.809bn, versus profits of ¥1.207bn and ¥853m.

• Parent-attributable net loss was ¥3.516bn versus income of ¥587m; basic EPS was -¥40.51 versus ¥6.77.

• Extraordinary income included ¥7.293bn from investment-security sales; extraordinary losses included ¥10.143bn in extra retirement payments.

• Operating cash flow was ¥13.674bn versus ¥3.114bn a year earlier; cash and equivalents were ¥39.718bn at period-end.

Outlook and guidance

• Full-year net sales forecast increased to ¥500.0bn from ¥440.0bn; operating profit to ¥25.0bn from ¥22.0bn; ordinary profit to ¥23.0bn from ¥22.0bn.

• Forecast parent-attributable profit is ¥18.0bn, operating margin 5.0%, ROE 10.0%, and basic EPS ¥207.38.

• Annual dividend forecast remains ¥65 per share; first- and second-quarter dividends were ¥0 per share.

• Financial & Payments Solutions full-year forecasts rose to ¥207.0bn sales and ¥14.0bn operating profit, including ¥60.0bn of integrated automated-equipment business sales.