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Financial Results Presentation7943NICHIHA CORPORATIONConstruction and Materials

Fiscal Year Ending March 2027 Second-Quarter Results Presentation Materials (Preliminary Version)

In the first half of the fiscal year ending March 2027, net sales and operating income fell below the year-earlier period, while net income attributable to owners of the parent increased. The full-year forecast for net sales was unchanged, while the operating income forecast was revised downward from ¥9.6 billion to ¥7.7 billion, the ordinary income forecast from ¥9.8 billion to ¥7.9 billion, and the net income forecast from ¥8.0 billion to ¥6.6 billion.

Worth reading
53Recurring
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
1900
¥ million (downward revision to full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFiscal year ending March 2027, second quarter (first half)9 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales68,285 Millions of yen-3.9%
Operating profit3,470 Millions of yen-0.7%
Ordinary income3,482 Millions of yen-5.9%
Net income3,703 Millions of yen+50.1%
Gross Profit Margin36.4
Operating profit margin5.1
Full-year earnings forecast
Net Sales
141,000 Millions of yen
Operating profit
7,700 Millions of yen
Ordinary income
7,900 Millions of yen
Profit attributable to owners of the parent
6,600 Millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Domestic business operating profit
Sales factor+¥780 million
Change in inventory (manufacturing fixed costs)-¥130 million
Energy and materials prices-¥0.90 billion
Logistics Costs-¥160 million
Change in fixed costs-¥180 million
Total-¥590 million
U.S. business operating income
Sales factor+US$0.6 million
Change in inventory (manufacturing fixed costs)+US$4.3 million
Energy and materials prices-US$0.4 million
Logistics Costs-US$0.9 million
Change in fixed costs-US$3.6 million
Total-US$0.0 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
New housing startsDown 0.3% year on year (initial forecast) / Revised market assumption: not stated
Industry-wide siding sales volume23,400 thousand tsubo, down 4.5% year on year (initial forecast) / 24,180 thousand tsubo, down 1.3% year on year (revised)
Exchange rate for US$1¥155.00 (initial forecast) / ¥160.00 (revised) per US$1
Exchange rate per yuan¥22.00 (initial forecast) / ¥23.00 (revised) per RMB1
New initiatives
  • Pay a ¥7 commemorative dividend marking the 70th anniversary of the company's founding and set the annual dividend forecast for the fiscal year ending March 2027 at ¥121
Key KPIsA metric the company considers important as a management benchmark.
  • Domestic new housing starts379 thousand households
    Year on year against the same period last year+11.3%
  • Industry-wide siding sales volume11,999 thousand tsubo
    Year on year against the same period last year-0.8%
  • The Company's fiber cement siding sales volume7,020 thousand tsubo
    Year on year against the same period last year-0.7%
  • Industry share58.5 %
    Year on year against the same period last year+0.1%
  • U.S. ABI (September)50.9
  • U.S. housing starts (September)1,221 Thousand units, seasonally adjusted annual rate
Segment results
Exterior materials business
Net Sales
63,596 Millions of yen-4.2%
Domestic
Net Sales
50,993 Millions of yen+1.4%
Operating profit
1,897 Millions of yen-23.9%
United States
Net Sales
11,383 Millions of yen-24.2%
Operating profit
1,222 Millions of yen+186.8%
China
Net Sales
2,092 Millions of yen+13.2%
Operating profit
118 Millions of yen-11.0%
Market Size / Share
Domestic new housing starts379 thousand units (first half of the fiscal year ending March 2027)
Industry-wide siding sales volume11,999 thousand tsubo (first half of the fiscal year ending March 2027)
Industry share58.5% (first half of the fiscal year ending March 2027)
Capital expenditures
35.6 Billion yen actual for the first half of the fiscal year ending March 2027) / ¥6.25 billion (full-year plan
Annual Dividend
¥121 /share
Interim Dividend¥64 (regular dividend: ¥57 + commemorative dividend: ¥7)
Year-end dividend¥57
Payout ratio
60.6 %
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFiscal year ending March 2027, second quarter (first half)
Net Sales68,285 Millions of yen (YoY -3.9%)
Operating profit3,470 Millions of yen (YoY -0.7%)
Ordinary income3,482 Millions of yen (YoY -5.9%)
Net income3,703 Millions of yen (YoY +50.1%)
Gross Profit Margin36.4
Operating profit margin5.1
Full-year earnings forecastNet Sales 141,000 Millions of yen / Operating profit 7,700 Millions of yen / Ordinary income 7,900 Millions of yen / Profit attributable to owners of the parent 6,600 Millions of yen
Segment resultsExterior materials business Net Sales 63,596 Millions of yen (YoY -4.2%) / Domestic Net Sales 50,993 Millions of yen (YoY +1.4%) / Operating profit 1,897 Millions of yen (YoY -23.9%) / United States Net Sales 11,383 Millions of yen (YoY -24.2%) / Operating profit 1,222 Millions of yen (YoY +186.8%) / China Net Sales 2,092 Millions of yen (YoY +13.2%) / Operating profit 118 Millions of yen (YoY -11.0%)
Breakdown of Factors Affecting the ChangeDomestic business operating profit Sales factor +¥780 million / Change in inventory (manufacturing fixed costs) -¥130 million / Energy and materials prices -¥0.90 billion / Logistics Costs -¥160 million / Change in fixed costs -¥180 million / Total -¥590 million / U.S. business operating income Sales factor +US$0.6 million / Change in inventory (manufacturing fixed costs) +US$4.3 million / Energy and materials prices -US$0.4 million / Logistics Costs -US$0.9 million / Change in fixed costs -US$3.6 million / Total -US$0.0 million
Key KPIsIndicator name Domestic new housing starts / Value 379 thousand households / Year on year against the same period last year 11.3 thousand households, Indicator name Industry-wide siding sales volume / Value 11,999 thousand tsubo / Year on year against the same period last year -0.8 thousand tsubo, Indicator name The Company's fiber cement siding sales volume / Value 7,020 thousand tsubo / Year on year against the same period last year -0.7 thousand tsubo, Indicator name Industry share / Value 58.5 % / Year on year against the same period last year 0.1 %, Indicator name U.S. ABI (September) / Value 50.9 / Year on year against the same period last year Not disclosed, Indicator name U.S. housing starts (September) / Value 1,221 Thousand units, seasonally adjusted annual rate / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookNew housing starts Down 0.3% year on year (initial forecast) / Revised market assumption: not stated / Industry-wide siding sales volume 23,400 thousand tsubo, down 4.5% year on year (initial forecast) / 24,180 thousand tsubo, down 1.3% year on year (revised) / Exchange rate for US$1 ¥155.00 (initial forecast) / ¥160.00 (revised) per US$1 / Exchange rate per yuan ¥22.00 (initial forecast) / ¥23.00 (revised) per RMB1
Annual Dividend¥121 /share
Payout ratio60.6 %
Capital expenditures35.6 Billion yen (actual for the first half of the fiscal year ending March 2027) / ¥6.25 billion (full-year plan)
Market Size / ShareDomestic new housing starts 379 thousand units (first half of the fiscal year ending March 2027) / Industry-wide siding sales volume 11,999 thousand tsubo (first half of the fiscal year ending March 2027) / Industry share 58.5% (first half of the fiscal year ending March 2027)
New initiativesPay a ¥7 commemorative dividend marking the 70th anniversary of the company's founding and set the annual dividend forecast for the fiscal year ending March 2027 at ¥121
Items this document does not state (13)
Selling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesOrders received and order backlogKey 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.

In the domestic business, energy and material prices, logistics costs, fixed costs and changes in inventory reduced operating income. In the U.S. business, changes in inventory increased earnings, while logistics costs, fixed costs and other expenses reduced earnings. As reasons for revising the full-year forecast, the domestic operating income forecast was reduced from ¥5.2 billion to ¥3.5 billion and the U.S. forecast from ¥3.69 billion to ¥3.45 billion, while the China forecast was increased from ¥320 million to ¥345 million.

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Fiscal Year Ending March 2027 Second-Quarter Results Presentation Materials (Preliminary Version) | NICHIHA CORPORATION (7943) timely disclosure | Komori