Tokyo Seimitsu (7729) Q2 2027 earnings summary

Executive summary

• 1H orders, sales and all profit measures reached fiscal-half records; orders rose 72.3% to ¥138,960 million, led by semiconductor equipment demand for HPC, Generative AI and HBM.

• FY2027/3 forecasts were raised to ¥192,000 million in sales and ¥45,000 million in operating profit; both are expected to meet MTP quantitative targets.

• Demand outlook remains strong, with equipment markets expected to expand through at least CY2028; component procurement risks remain under close watch.

Financial highlights

• 1H sales were ¥92,399 million, up 19.9% YoY; gross profit was ¥39,503 million versus ¥31,190 million.

• 1H operating profit rose 38.2% to ¥20,341 million; operating margin was 22.0%, up 2.9 points.

• 1H recurring profit rose to ¥21,146 million from ¥14,978 million; net profit attributable to owners rose to ¥15,489 million from ¥9,612 million.

• 2Q sales reached a quarterly record of ¥55.7B, up 21% YoY; operating profit was ¥14.4B, up 42%, with a 25.9% margin.

Outlook and guidance

• FY2027/3 forecasts: sales ¥192,000 million, operating profit ¥45,000 million, recurring profit ¥45,500 million and parent-attributable net profit ¥32,000 million.

• FY2027/3 SPE sales are forecast at ¥150.5B, up 18% YoY; Metrology sales at ¥41.5B, up 7%.

• SPE orders are expected to remain very strong in 2H, with FY orders forecast at ~¥220.0B, up 80% YoY; Metrology FY orders are expected to rise 10% YoY despite seasonal 2H decline.

• Forecast assumes ¥150/US$; stated FX impact is minimal due to the high ratio of yen-based business.