SWCC Corporation (5805) Investor update summary

FY2026 forecasts and financial outlook

• Net sales projected to rise 17% YoY to ¥325.0 billion, with operating profit up 4.3% to ¥28.5 billion.

• Ordinary profit expected to increase 6.8% YoY to ¥27.9 billion, while profit attributable to owners is forecast to decrease 1.8% YoY to ¥18.5 billion.

• Dividend per share to increase by ¥27 to ¥250, with a payout ratio of 40%.

• ROIC forecasted at 13.8%, up 0.3 points YoY.

• Copper price assumption raised to ¥2,100/kg for FY2026.

Business environment and growth drivers

• Global economic uncertainty persists, with supply chain disruptions easing since June.

• Power grid strengthening, renewable energy, and data center-related businesses remain robust.

• Overseas communication and semiconductor businesses are expanding rapidly, driven by AI and data center demand.

• Construction and mobility segments face challenges from material costs and slow BEV adoption.

Power infrastructure business strategy

• Data center market and demand for high-voltage power solutions are growing rapidly.

• Market share in the 66kV segment is approximately 90%, with new 154kV products targeting HSDC projects.

• Comprehensive solutions for cable replacement and electric arc furnace transitions in the steel industry.

• Capital investment plan of ¥10 billion for FY26F-30F to support growth and innovation.