SWCC Corporation (5805) Q2 2027 earnings summary

Executive summary

• Six-month net sales rose 24.2% YoY to ¥160,050 million and operating profit increased 53.6% to ¥17,901 million, both record first-half results.

• Profit attributable to owners of parent more than doubled YoY to ¥14,918 million; semiconductor-related performance exceeded forecast.

• FY2027 forecasts were revised upward, targeting record net sales and profit.

Financial highlights

• Six-month ordinary profit rose 53.7% YoY to ¥17,371 million; comprehensive income increased 126.4% to ¥16,746 million.

• Operating margin was 11.2%, versus 9.0% a year earlier; excluding goodwill amortization, margin was 11.7%, versus 9.7%.

• Six-month sales increased ¥31.2B YoY: growth businesses +¥10.1B, cash cow businesses +¥0.7B, renewal and challenge businesses +¥20.3B, and copper-price impact +¥1.7B.

• Operating profit increased ¥6.2B YoY, supported by temporary gains from rising copper prices and profit expansion in growth businesses.

Outlook and guidance

• FY2027 forecasts: net sales ¥333,000 million, operating profit ¥36,000 million, ordinary profit ¥35,000 million and profit attributable to owners of parent ¥23,000 million.

• Forecast YoY growth: net sales 19.9%, operating profit 31.8%, ordinary profit 33.9% and attributable profit 22.1%; basic EPS is ¥155.20 after the stock split.

• FY2027 ROIC forecast is 17.3%, up 3.7 points YoY; the cash dividend forecast was unchanged.

• Strong domestic power infrastructure, data-center and semiconductor demand is expected to continue; growth-business capacity investments are planned to contribute from H2.