TOKAI (9729) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached a record ¥82,111mn (+3.9% YoY); operating profit rose 11.5% to ¥4,920mn and parent-attributable profit rose 10.2% to ¥3,351mn.

• Full-year operating and ordinary profit forecasts were raised from expected YoY declines to growth; the FY3/28 operating profit target of ¥9.5bn is expected to be achieved a year early.

Financial highlights

• H1 net sales were ¥82,111mn versus ¥79,026mn; gross profit was ¥20,460mn versus ¥19,023mn.

• Operating profit was ¥4,920mn versus ¥4,410mn; ordinary profit was ¥5,170mn versus ¥4,674mn.

• Parent-attributable profit was ¥3,351mn versus ¥3,040mn; basic EPS was ¥108.50 versus ¥89.89, and comprehensive income was ¥4,148mn versus ¥3,946mn.

Outlook and guidance

• Revised FY2027 forecasts: net sales ¥167,980mn (+5.2% YoY), operating profit ¥10,286mn (+9.6%), ordinary profit ¥10,716mn (+6.1%), parent-attributable profit ¥6,866mn (+13.1%); full-year basic EPS forecast is ¥222.25.

• Forecast operating profit increased ¥1,301mn and ordinary profit ¥1,278mn versus initial forecasts; the results forecast was unchanged from the latest announcement.

• FY2027 dividend forecast is ¥89 per share, comprising ¥40 at the second-quarter end and ¥49 at fiscal year-end; this is ¥9 above initial guidance and ¥21 higher YoY.

• The FY3/28 operating profit target of ¥9.5bn is expected to be met one year early; a revised target is planned after review.