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Financial results presentation6999KOA CORPORATIONElectrical Equipment and Precision Instruments

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

In the fiscal year ending March 2026, revenue, operating income, ordinary income and net income increased significantly from the previous year. For the fiscal year ending March 2027, revenue and net income are expected to increase, while operating income and ordinary income are forecast to decline due to higher raw material costs and increased fixed costs. The company also outlined initiatives involving products for AI servers, a new plant and governance reform.

Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
81.7
¥100 million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥722.9 100 million+12.7%
Operating profit¥36.5 100 million+210.0%
Ordinary income¥52.2 100 million+320.1%
Net income¥39.5 100 million
Selling, general and administrative expenses¥182.25 100 million
Operating profit margin
Rate5.0%
Year on year against the same period last yearImproved from 1.8% in FY2024
Results for the three months of the current quarter
Net Sales¥19.20 billion (up 17.3% year on year)
Operating profit¥540 million (down 11.6% year on year)
Ordinary income¥1.14 billion (up 220.2% year on year)
Profit attributable to owners of parent for the quarter¥790 million (up ¥1.00 billion year on year)
Full-year earnings forecast
Net Sales¥77.40 billion
Operating profit¥2.83 billion
Ordinary income¥3.30 billion
Profit attributable to owners of the parent¥4.78 billion
ROE5.3%
Capital Expenditure¥4.1 billion
Annual Dividend¥39 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sales+¥1.7 billion
  • Foreign Exchange+¥700 million
  • Raw material price inflation−¥2.2 billion
  • Other+¥100 million
  • Fixed Costs-¥1.1 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign ExchangeUSD 1 = ¥157, EUR 1 = ¥184
Number of AI server racksApproximately 350,000 units/year
Number of chip resistors installedApproximately 360,000 units/rack
New initiatives
  • Proposals for new and in-development products for AI servers
  • Start-up of the new plant in Malaysia and development of a smart factory using MES
  • Set the annual dividend at ¥30 as a floor and target a consolidated payout ratio of around 30%
  • Governance reform using the Nomination and Compensation Committee
  • Transitioning the Board of Directors to a monitoring board and implementing ROIC-based management
Key KPIsA metric the company considers important as a management benchmark.
  • Bill-to-book ratio1.09 times
  • AI-related revenueapproximately 36
  • Forecast AI-related revenue+20% year on year
  • Server market CAGR (2024 to 2031)5.6 %
  • AI server market CAGR (2024 to 2031)18.8 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of server racksApproximately 350,000 units/year
  • Number of chip resistors installedApproximately 360,000 units/rack
  • Required number of chip resistorsApproximately 130 billion units/year
Medium-term management plan targets
Operating income for fiscal 2027¥7.40 billion
Operating margin for fiscal 20279.3%
Financial targets
ROE5.3% forecast for the fiscal year ending March 2027; 2027 target: Not disclosed
Market Size / Share
Server market CAGR5.6% (2024 to 2031)
AI server market CAGR18.8% (2024 to 2031)
Orders received and order backlog
Orders received¥21.0 billion
Order backlog¥13.7 billion
Number of employees
Number of Employees1,670 employees (non-consolidated, fiscal year ending March 2026)
Capital expenditures
¥59 100 million actual for the fiscal year ended March 2026
Annual Dividend
Fiscal year ending March 2026¥32 per share (interim ¥15, year-end ¥17)
Forecast for the fiscal year ending March 2027¥39 per share (interim ¥19.5, year-end ¥19.5)
Payout ratio
Targeting a consolidated payout ratio of around 30% (30.1% actual for the fiscal year ending March 2026)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥722.9 100 million (YoY +12.7%)
Operating profit¥36.5 100 million (YoY +210.0%)
Ordinary income¥52.2 100 million (YoY +320.1%)
Net income¥39.5 100 million
Operating profit marginRate 5.0% / Year on year against the same period last year Improved from 1.8% in FY2024
Selling, general and administrative expenses¥182.25 100 million
Results for the three months of the current quarterNet Sales ¥19.20 billion (up 17.3% year on year) / Operating profit ¥540 million (down 11.6% year on year) / Ordinary income ¥1.14 billion (up 220.2% year on year) / Profit attributable to owners of parent for the quarter ¥790 million (up ¥1.00 billion year on year)
Full-year earnings forecastNet Sales ¥77.40 billion / Operating profit ¥2.83 billion / Ordinary income ¥3.30 billion / Profit attributable to owners of the parent ¥4.78 billion / ROE 5.3% / Capital Expenditure ¥4.1 billion / Annual Dividend ¥39 per share
Breakdown of Factors Affecting the ChangeFactors Sales / Amount +¥1.7 billion, Factors Foreign Exchange / Amount +¥700 million, Factors Raw material price inflation / Amount −¥2.2 billion, Factors Other / Amount +¥100 million, Factors Fixed Costs / Amount -¥1.1 billion
Key KPIsIndicator name Bill-to-book ratio / Value 1.09 times / Year on year against the same period last year Not disclosed, Indicator name AI-related revenue / Value approximately 36 / Year on year against the same period last year Not disclosed, Indicator name Forecast AI-related revenue / Value +20% year on year / Year on year against the same period last year Not disclosed, Indicator name Server market CAGR (2024 to 2031) / Value 5.6 % / Year on year against the same period last year Not disclosed, Indicator name AI server market CAGR (2024 to 2031) / Value 18.8 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Number of server racks / Value Approximately 350,000 units/year, Indicator name Number of chip resistors installed / Value Approximately 360,000 units/rack, Indicator name Required number of chip resistors / Value Approximately 130 billion units/year
Number of employeesNumber of Employees 1,670 employees (non-consolidated, fiscal year ending March 2026) / Change during the period Not disclosed / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookForeign Exchange USD 1 = ¥157, EUR 1 = ¥184 / Number of AI server racks Approximately 350,000 units/year / Number of chip resistors installed Approximately 360,000 units/rack
Medium-term management plan targetsOperating income for fiscal 2027 ¥7.40 billion / Operating margin for fiscal 2027 9.3%
Financial targetsROE 5.3% forecast for the fiscal year ending March 2027; 2027 target: Not disclosed
Annual DividendFiscal year ending March 2026 ¥32 per share (interim ¥15, year-end ¥17) / Forecast for the fiscal year ending March 2027 ¥39 per share (interim ¥19.5, year-end ¥19.5)
Payout ratioTargeting a consolidated payout ratio of around 30% (30.1% actual for the fiscal year ending March 2026)
Capital expenditures¥59 100 million (actual for the fiscal year ended March 2026)
Orders received and order backlogOrders received ¥21.0 billion / Order backlog ¥13.7 billion
Market Size / ShareServer market CAGR 5.6% (2024 to 2031) / AI server market CAGR 18.8% (2024 to 2031) / Share Not disclosed
New initiativesProposals for new and in-development products for AI servers, Start-up of the new plant in Malaysia and development of a smart factory using MES, Set the annual dividend at ¥30 as a floor and target a consolidated payout ratio of around 30%, Governance reform using the Nomination and Compensation Committee, Transitioning the Board of Directors to a monitoring board and implementing ROIC-based management
Items this document does not state (8)
Gross Profit MarginProgress against full-year forecastSelf-assessment against the planSegment resultsNumber of stores and locationsRisk amount incorporated into the outlookAcquisition 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.

For the fiscal year ending March 2027, the company expects higher sales to Japan's automotive sector and to the AI server-related market in Asia. The decline in operating income is attributed to the time lag before price adjustments to offset soaring raw material prices take effect, higher selling expenses and increased fixed costs resulting from the start-up of the new plant in Malaysia. Compensation for the relocation of the plant in China will also be recorded as extraordinary income.

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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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | KOA CORPORATION (6999) timely disclosure | Komori