Interim Financial Results Briefing Materials for the Fiscal Year Ending March 2027 | THE HANSHIN DIESEL WORKS,LTD. (6018) timely disclosure

Worth reading

51Recurring

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

1446

Millions of yen (year-on-year increase in revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentation materialsFY2027/3 interim period15 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥8,156 million+21.6%

Operating profit¥451 million+46.1%

Ordinary income¥504 million+39.1%

Net income¥409 million+60.3%

Full-year earnings forecast

Net Sales

¥17,200 million

Operating profit

¥900 million

Ordinary income

¥1,000 million

Net income for the current fiscal year

¥730 million

Earnings per share

¥224.97

What the company explained in this material

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Revenue is expected to increase 22.6%, based on an increase in shipments of main engines. Higher material and equipment costs are expected due to surging copper prices, but the specific assumptions have not been disclosed.

New initiatives

Expansion of the Harima New Assembly Plant
Expand the scope of use of the new production control system and consider introducing a scheduler
Introduction of chamfering robots
Plan to introduce casting-finishing robots
Start development of a common-rail system for ammonia and hydrogen combustion
AI-based detection of signs of abnormalities in an advanced ship safety management system
Establishment of a Compensation Committee

Key KPIsA metric the company considers important as a management benchmark.

Main engine sales volume33 Machines
Main engine orders received¥6,263 million
Main engine orders42 Machines
Main engine order backlog¥13,166 million
Main engine order backlog71 Machines
IR meetings15 contracts
Year on year against the same period last year5 cases in the same period of the previous year
Number of employees307 People

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Main engines

Unit sales

33 Machines

Net Sales

¥5,099 million

Orders

Units ordered

42 Machines

Order value

¥6,263 million

Segment results

Main engines

Net Sales

¥5,099 million

Year-on-year sales (%)28.7

Parts and repair work (excluding CMR)

Net Sales

¥2,712 million

CMR

Net Sales

¥344 million

Year-on-year sales (%)22.9

Medium-term management plan targets

Final yearFiscal year ending March 2028

Net Sales

¥185 100 million

Operating Margin

8 %

ROE

7.4 %

New target for the fiscal year ending March 2027

Net Sales

¥172 100 million

Operating Margin

6 %

ROE

5.2 %

Financial targets

ROE

Target

Fiscal year ending March 20263.5

Fiscal year ending March 20275.2

Fiscal year ending March 20287.4

Actual results

Fiscal year ending March 20264.8

PBR

TargetMaintain at 1x or above

Actual results1.17 x

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

The impact of the worsening situation in the Middle East has not been incorporated into the earnings forecast because it is difficult to estimate reasonably. The amount is Not disclosed.

Market Size / Share

Domestic cargo transport share of coastal shipping38 % tonne-kilometre basis

Share of industrial basic materials transport80 % tonne-kilometre basis

Unit 2%

Company shareTop market share for many years in diesel engines for domestic shipping

Orders received and order backlog

Orders received

¥6,263 million

Order backlog

¥13,166 million

Number of stores and locations

Number at period-end3 Factory

Number of employees

Number of Employees307 People

Capital expenditures

¥47.8 100 million total investment for 2025–2030

Annual Dividend

Annual dividend per share¥91

Breakdown

Interim35

End of period56

Payout ratio

Rate40 %

DOE1.5 %

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	FY2027/3 interim period
Net Sales	¥8,156 million (YoY +21.6%)
Operating profit	¥451 million (YoY +46.1%)
Ordinary income	¥504 million (YoY +39.1%)
Net income	¥409 million (YoY +60.3%)
Full-year earnings forecast	Net Sales ¥17,200 million / Operating profit ¥900 million / Ordinary income ¥1,000 million / Net income for the current fiscal year ¥730 million / Earnings per share ¥224.97
Segment results	Main engines Net Sales ¥5,099 million / Profit Not disclosed / Year-on-year sales (%) 28.7 / Parts and repair work (excluding CMR) Net Sales ¥2,712 million / Profit Not disclosed / Year on year against the same period last year Not disclosed / CMR Net Sales ¥344 million / Profit Not disclosed / Year-on-year sales (%) 22.9
Key KPIs	Indicator name Main engine sales volume / Value 33 Machines / Year on year against the same period last year Not disclosed, Indicator name Main engine orders received / Value ¥6,263 million / Year on year against the same period last year Not disclosed, Indicator name Main engine orders / Value 42 Machines / Year on year against the same period last year Not disclosed, Indicator name Main engine order backlog / Value ¥13,166 million / Year on year against the same period last year Not disclosed, Indicator name Main engine order backlog / Value 71 Machines / Year on year against the same period last year Not disclosed, Indicator name IR meetings / Value 15 contracts / Year on year against the same period last year 5 cases in the same period of the previous year, Indicator name Number of employees / Value 307 People / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Main engines Unit sales 33 Machines / Net Sales ¥5,099 million / Orders Units ordered 42 Machines / Order value ¥6,263 million
Number of stores and locations	Number at period-end 3 Factory / Number of store openings and closures during the period Not disclosed
Number of employees	Number of Employees 307 People / Change during the period Not disclosed / Hiring plan Not disclosed
Assumptions Underlying the Business Outlook	Revenue is expected to increase 22.6%, based on an increase in shipments of main engines. Higher material and equipment costs are expected due to surging copper prices, but the specific assumptions have not been disclosed.
Risk amount incorporated into the outlook	The impact of the worsening situation in the Middle East has not been incorporated into the earnings forecast because it is difficult to estimate reasonably. The amount is Not disclosed.
Medium-term management plan targets	Final year Fiscal year ending March 2028 / Net Sales ¥185 100 million / Operating Margin 8 % / ROE 7.4 % / New target for the fiscal year ending March 2027 Net Sales ¥172 100 million / Operating Margin 6 % / ROE 5.2 %
Financial targets	ROE Target Fiscal year ending March 2026 3.5 / Fiscal year ending March 2027 5.2 / Fiscal year ending March 2028 7.4 / Actual results Fiscal year ending March 2026 4.8 / PBR Target Maintain at 1x or above / Actual results 1.17 x
Annual Dividend	Annual dividend per share ¥91 / Breakdown Interim 35 / End of period 56
Payout ratio	Rate 40 % / DOE 1.5 %
Capital expenditures	¥47.8 100 million (total investment for 2025–2030)
Orders received and order backlog	Orders received ¥6,263 million / Order backlog ¥13,166 million
Market Size / Share	Domestic cargo transport share of coastal shipping 38 % (tonne-kilometre basis) / Share of industrial basic materials transport 80 % (tonne-kilometre basis) / Unit 2 % / Company share Top market share for many years in diesel engines for domestic shipping
New initiatives	Expansion of the Harima New Assembly Plant, Expand the scope of use of the new production control system and consider introducing a scheduler, Introduction of chamfering robots, Plan to introduce casting-finishing robots, Start development of a common-rail system for ammonia and hydrogen combustion, AI-based detection of signs of abnormalities in an advanced ship safety management system, Establishment of a Compensation Committee

Items this document does not state (9)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeAcquisition of treasury sharesKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Price pass-through reflecting past surges in material prices continued for main engines, while provisions for order losses also declined. Sales volumes of components increased. On the other hand, higher labour costs resulting from increased hiring and improved employee compensation, higher amortisation expenses associated with the renewal of core systems, and rising material procurement costs weighed on profit.

How to read this page

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