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Earnings Presentation6458SINKO INDUSTRIES LTD.Machinery

Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending March 2027

For the first half of the fiscal year ending March 2027, higher revenue and profit from the domestic business offset the decline in the Asian business, but consolidated revenue and profit decreased. First-half results, however, exceeded the initial plan, and the full-year earnings forecast was left unchanged.

Worth reading
74In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-295
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings summarySecond quarter of FY2027/312 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥25,805 million-0.3%
Operating profit¥3,281 million-8.2%
Ordinary income¥3,756 million-3.3%
Net income¥2,608 million-0.1%
Selling, general and administrative expenses¥6,643 million
Gross Profit Margin
Rate38.5%
Year-on-year change (points)+1.4 percentage points
Operating profit margin
Rate12.7%
Year-on-year change (points)-1.1 percentage points
Results for the three months of the current quarter
Net Sales
¥14,360 million
Gross profit
¥5,500 million
Operating profit
¥2,106 million
Operating profit margin14.7%
Full-year earnings forecast
Net Sales
¥63,000 million
Operating profit
¥10,000 million
Ordinary income
¥10,600 million
Net income
¥7,200 million
Japan sales
¥56,000 million
Asia revenue
¥7,000 million
Investment amount
¥4,000 million
Depreciation and amortization
¥2,300 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Project pipeline build-up progressSecond-quarter end: 105%; full-year forecast: 100%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half revenue and profit finished above plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue factors¥348 million
  • Gross margin factors¥-28 million
  • Selling, general and administrative expense factor¥-615 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Domestic air-conditioning equipment shipments are expected to peak from the third quarter onward
  • Domestic orders have secured sufficient volume against the full-year plan
  • Some raw materials are becoming more difficult to procure and rising in price
New initiatives
  • Raised the cumulative revenue target for the long-term earnings plan “Smile Plan” for data centers from ¥50 billion to ¥80 billion
  • Launched an air-conditioning unit designed to address heat stress
  • Plans to establish a new in-house training facility, “SINKO Academy”
  • Plans to establish a new dedicated plant for data centers and individual air-conditioning systems within the Okayama Plant
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received (consolidated)¥24,426 million
  • Order backlog (consolidated)¥36,320 million
  • Data center revenue (SINKO Industries standalone)¥2,515 million
    Year on year against the same period last year+9.9%
  • Large-building revenue (SINKO Industries standalone)¥3,427 million
    Year on year against the same period last year+17.5%
  • Industrial revenue (SINKO Industries standalone)¥5,069 million
    Year on year against the same period last year+12.6%
Segment results
  • Japan
    Net Sales¥23,440 million
    Year-on-year sales+4.2%
    Operating profit¥3,585 million
    Year-on-year operating profit+1.5%
  • Asia
    Net Sales¥2,400 million
    Year-on-year sales-29.9%
    Operating profit¥-316 million
    Operating profit for the same period of the previous year¥32 million
Medium-term management plan targets
Net Sales
¥60,000 million
Operating profit
¥10,000 million
Target fiscal yearFinal year of move.2027
Comparison with actual results and forecastsThe forecast for the fiscal year ending March 2027 is revenue of ¥63 billion and operating profit of ¥10 billion
Orders received and order backlog
Orders received
Japan¥23,642 million
Asia¥784 million
Consolidated total¥24,426 million
Order backlog
Consolidated¥36,320 million
Capital expenditures
¥4,000 million
Annual Dividend
Annual dividend per share¥50
Interim
¥20
End of period
¥30
Payout ratio
Rate46.6 %
Total payout ratio
56.4 %
Acquisition of treasury shares
Maximum acquisition amount¥10,000 million
Amount acquired¥9,300 million
Acquired as ofBy the end of March 2026
Remaining amountApproximately ¥700 million
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings summary
Fiscal Period CoveredSecond quarter of FY2027/3
Net Sales¥25,805 million (YoY -0.3%)
Operating profit¥3,281 million (YoY -8.2%)
Ordinary income¥3,756 million (YoY -3.3%)
Net income¥2,608 million (YoY -0.1%)
Gross Profit MarginRate 38.5% / Year-on-year change (points) +1.4 percentage points
Operating profit marginRate 12.7% / Year-on-year change (points) -1.1 percentage points
Selling, general and administrative expenses¥6,643 million
Results for the three months of the current quarterNet Sales ¥14,360 million / Gross profit ¥5,500 million / Operating profit ¥2,106 million / Operating profit margin 14.7%
Full-year earnings forecastNet Sales ¥63,000 million / Operating profit ¥10,000 million / Ordinary income ¥10,600 million / Net income ¥7,200 million / Japan sales ¥56,000 million / Asia revenue ¥7,000 million / Investment amount ¥4,000 million / Depreciation and amortization ¥2,300 million
Progress against full-year forecastProject pipeline build-up progress Second-quarter end: 105%; full-year forecast: 100%
Self-assessment against the planFirst-half revenue and profit finished above plan
Segment resultsSegment Japan / Net Sales ¥23,440 million / Year-on-year sales +4.2% / Operating profit ¥3,585 million / Year-on-year operating profit +1.5%, Segment Asia / Net Sales ¥2,400 million / Year-on-year sales -29.9% / Operating profit ¥-316 million / Operating profit for the same period of the previous year ¥32 million
Breakdown of Factors Affecting the ChangeFactors Revenue factors / Amount ¥348 million, Factors Gross margin factors / Amount ¥-28 million, Factors Selling, general and administrative expense factor / Amount ¥-615 million
Key KPIsIndicator name Orders received (consolidated) / Value ¥24,426 million / Year on year against the same period last year Not disclosed, Indicator name Order backlog (consolidated) / Value ¥36,320 million / Year on year against the same period last year Not disclosed, Indicator name Data center revenue (SINKO Industries standalone) / Value ¥2,515 million / Year on year against the same period last year +9.9%, Indicator name Large-building revenue (SINKO Industries standalone) / Value ¥3,427 million / Year on year against the same period last year +17.5%, Indicator name Industrial revenue (SINKO Industries standalone) / Value ¥5,069 million / Year on year against the same period last year +12.6%
Assumptions Underlying the Business OutlookDomestic air-conditioning equipment shipments are expected to peak from the third quarter onward, Domestic orders have secured sufficient volume against the full-year plan, Some raw materials are becoming more difficult to procure and rising in price
Medium-term management plan targetsNet Sales ¥60,000 million / Operating profit ¥10,000 million / Target fiscal year Final year of move.2027 / Comparison with actual results and forecasts The forecast for the fiscal year ending March 2027 is revenue of ¥63 billion and operating profit of ¥10 billion
Annual DividendAnnual dividend per share ¥50 / Interim ¥20 / End of period ¥30
Payout ratioRate 46.6 % / Total payout ratio 56.4 %
Acquisition of treasury sharesMaximum acquisition amount ¥10,000 million / Amount acquired ¥9,300 million / Acquired as of By the end of March 2026 / Remaining amount Approximately ¥700 million
Capital expenditures¥4,000 million
Orders received and order backlogOrders received Japan ¥23,642 million / Asia ¥784 million / Consolidated total ¥24,426 million / Order backlog Consolidated ¥36,320 million
New initiativesRaised the cumulative revenue target for the long-term earnings plan “Smile Plan” for data centers from ¥50 billion to ¥80 billion, Launched an air-conditioning unit designed to address heat stress, Plans to establish a new in-house training facility, “SINKO Academy”, Plans to establish a new dedicated plant for data centers and individual air-conditioning systems within the Okayama Plant
Items this document does not state (7)
Unit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsMarket Size / ShareKey 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.

Domestic air-conditioning equipment sales, construction and services performed well, but lower revenue from the Asian business, higher SG&A expenses including personnel and logistics costs, and a challenging price-focused business environment weighed on profit.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending March 2027 | SINKO INDUSTRIES LTD. (6458) timely disclosure | Komori