Shinwa (7607) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 net sales rose 6.1% YoY to ¥44.771bn; operating income increased 27.2% to ¥2.913bn and net income rose 23.8% to ¥2.053bn.

• Profit growth reflected improved gross margin, price pass-through, gradual manufacturing cost reductions and Smart Factory Innovation growth.

Financial highlights

• Gross profit rose 11.7% YoY to ¥7.613bn; gross margin expanded to 17.0% from 16.1%.

• Ordinary profit rose 22.2% to ¥3.012bn; basic EPS increased to ¥153.14 from ¥123.86.

• Comprehensive income increased 123.1% YoY to ¥3.796bn.

• Total assets declined to ¥72.235bn from ¥74.409bn; liabilities fell ¥5.0bn to ¥25.7bn and net assets rose to ¥46.534bn from ¥43.609bn.

• Cash and cash equivalents declined ¥4.927bn to ¥23.858bn at period-end.

Outlook and guidance

• FY2026 forecast unchanged: net sales ¥87.0bn, operating income ¥4.3bn, ordinary profit ¥4.5bn and net income ¥3.1bn.

• Q2 achieved 51.5% of the full-year sales plan, 67.8% of the operating profit plan and 66.2% of the net income plan.

• FY2026 overseas sales-by-destination plan is ¥29.0bn; Q2 reached ¥12.643bn, or 43.6% of plan.

• Annual dividend forecast remains ¥124 per share.