ShinMaywa Industries (7224) Q2 2027 earnings summary

Executive summary

• H1 orders and net sales reached interim-period records; operating profit rose YoY, exceeded the internal plan and was the second-highest on record.

• Full-year forecasts for orders, net sales, operating profit and ordinary profit were raised based on interim results and the outlook.

Financial highlights

• H1 orders were ¥156,392 million, up 8.8% YoY; net sales were ¥134,524 million, up 9.4%; backlog reached ¥383,902 million, up 13.5%.

• Operating profit rose 40.0% to ¥6,410 million, ordinary profit rose 62.4% to ¥6,498 million, and profit attributable to owners of parent rose 53.6% to ¥4,285 million.

• Basic EPS was ¥64.77 versus ¥42.20; gross profit was ¥22,379 million versus ¥19,607 million.

Outlook and guidance

• FY2027 forecasts: orders ¥344.0bn, net sales ¥312.0bn, operating profit ¥17.5bn and ordinary profit ¥16.0bn; respective increases to prior guidance were ¥14.0bn, ¥2.0bn, ¥0.5bn and ¥0.5bn.

• Profit attributable to owners of parent is forecast at ¥10.5bn, down 8.8% YoY; forecast EPS is ¥158.65 versus ¥158.75 previously.

• Forecast backlog is ¥392.8bn, up 8.9% YoY; the assumed exchange rate is ¥150 per US dollar from November, with each ¥1 depreciation estimated to raise operating profit by ¥40 million.