Shin-Etsu Polymer (7970) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales were ¥64,325 million, up 14.4% YoY; operating profit rose 31.6% to ¥9,354 million and net income increased 11.2% to ¥6,095 million.

• Growth was supported by strong semiconductor-related demand, AI-server applications, and automotive and high-value-added products; all segments increased sales and operating profit YoY.

Financial highlights

• Gross profit increased to ¥20,309 million from ¥17,283 million; SG&A rose to ¥10,955 million from ¥10,173 million.

• Ordinary profit was ¥9,132 million, up 26.0% YoY; profit before income taxes was ¥9,090 million, versus ¥7,256 million.

• Comprehensive income was ¥8,250 million, including a ¥1,867 million foreign-currency translation gain, versus ¥2,277 million and a ¥3,245 million translation loss a year earlier.

• Operating cash flow was ¥8,664 million; investing and financing cash outflows were ¥4,735 million and ¥2,669 million, respectively; ending cash and cash equivalents were ¥48,841 million.

Outlook and guidance

• FY2027 forecast: net sales ¥127,000 million, operating profit ¥18,200 million, ordinary profit ¥18,000 million, net income ¥11,800 million and EPS ¥146.82; forecasts were revised upward.

• FY2027 dividend forecast was raised to ¥72 per share, comprising ¥36 interim and ¥36 year-end.

• FY2027 segment forecasts: Precision Molding Products sales ¥68,200 million and operating profit ¥13,300 million; Housing & Living Materials sales ¥23,000 million and operating profit ¥2,600 million.

• Electronic Devices forecast sales of ¥25,300 million and operating profit of ¥1,600 million; Others forecast sales of ¥10,500 million and operating profit of ¥700 million.