Worth reading
58In 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
-6
¥100 millionWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Earnings presentation materialsSecond quarter (interim period) of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥875.9 100 million
Operating profit¥26.1 100 million
Ordinary income¥23.2 100 million
Net income¥18.8 100 million
Selling, general and administrative expenses¥63.9 100 million
Full-year earnings forecast
Net Sales
¥1,860 100 million
Gross profit
¥193 100 million
Selling, general and administrative expenses
¥130 100 million
Operating profit
¥63 100 million
Ordinary income
¥58 100 million
Net income
¥44 100 million
ROE
9.6 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in gross profit¥1.4 100 million
- Increase in SG&A expenses¥-7.2 100 million
- Improvement in non-operating income and expenses¥0.2 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Full-year exchange rate (US$1)¥145
New initiatives
- Organizational restructuring to strengthen sales expansion capabilities
- Preparing to establish a base in India
- Establishment of a division dedicated to expanding the EMS business
- Development of SiC modules, motors and AI camera solutions for automotive applications
- Begin initiatives in the physical AI field
- Accelerating initiatives involving AI agents
Key KPIsA metric the company considers important as a management benchmark.
- ROE9.6 %
- D/E ratio0.29 x
- Equity ratio56.7 %Year on year against the same period last year+6.2 percentage points
- CCC101 DaysYear on year against the same period last yearImproved from 103 days at the end of September 2025
Segment results
Device Business
Net Sales
¥770.7 100 million-1.1%
Segment profit
¥12 100 million-16.7%
Solutions business
Net Sales
¥105.2 100 million+7.0%
Segment profit
¥11.2 100 million-24.3%
Medium-term management plan targets
Plan nameV76 Medium-Term Management Plan
Period CoveredFiscal years ending March 2025 to March 2027
Target fiscal yearFiscal year ending March 2027
ROE8% or higher
Ordinary income¥5 billion or more
Net income for the current fiscal year¥3.5 billion or more
Comparison with actual results and forecasts
Forecast ROE for the fiscal year ending March 20279.6%
Forecast ordinary profit for the fiscal year ending March 2027¥5.80 billion
Forecast net income for the fiscal year ending March 2027¥4.40 billion
Financial targets
Equity ratio target40% or more
Actual as of the end of September 202656.7%
ROE target8% or higher
Forecast ROE for the fiscal year ending March 20279.6%
Debt-to-equity ratio0.29x
Annual Dividend
Annual dividend amount¥170 /share
Interim¥40 /share
End of period¥130 /share
Payout ratio
Consolidated payout ratio47.7 %
Total payout ratioUndetermined
Acquisition of treasury shares
Undetermined| Item | Details |
|---|---|
| Document type | Earnings presentation materials |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥875.9 100 million |
| Operating profit | ¥26.1 100 million |
| Ordinary income | ¥23.2 100 million |
| Net income | ¥18.8 100 million |
| Selling, general and administrative expenses | ¥63.9 100 million |
| Full-year earnings forecast | Net Sales ¥1,860 100 million / Gross profit ¥193 100 million / Selling, general and administrative expenses ¥130 100 million / Operating profit ¥63 100 million / Ordinary income ¥58 100 million / Net income ¥44 100 million / ROE 9.6 % |
| Segment results | Device Business Net Sales ¥770.7 100 million (YoY -1.1%) / Segment profit ¥12 100 million (YoY -16.7%) / Solutions business Net Sales ¥105.2 100 million (YoY +7.0%) / Segment profit ¥11.2 100 million (YoY -24.3%) |
| Breakdown of Factors Affecting the Change | Factors Increase in gross profit / Amount ¥1.4 100 million, Factors Increase in SG&A expenses / Amount ¥-7.2 100 million, Factors Improvement in non-operating income and expenses / Amount ¥0.2 100 million |
| Key KPIs | Indicator name ROE / Value 9.6 % / Year on year against the same period last year Not disclosed, Indicator name D/E ratio / Value 0.29 x / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 56.7 % / Year on year against the same period last year +6.2 percentage points, Indicator name CCC / Value 101 Days / Year on year against the same period last year Improved from 103 days at the end of September 2025 |
| Assumptions Underlying the Business Outlook | Item Full-year exchange rate (US$1) / Value ¥145 |
| Medium-term management plan targets | Plan name V76 Medium-Term Management Plan / Period Covered Fiscal years ending March 2025 to March 2027 / Target fiscal year Fiscal year ending March 2027 / ROE 8% or higher / Ordinary income ¥5 billion or more / Net income for the current fiscal year ¥3.5 billion or more / Comparison with actual results and forecasts Forecast ROE for the fiscal year ending March 2027 9.6% / Forecast ordinary profit for the fiscal year ending March 2027 ¥5.80 billion / Forecast net income for the fiscal year ending March 2027 ¥4.40 billion |
| Financial targets | Equity ratio target 40% or more / Actual as of the end of September 2026 56.7% / ROE target 8% or higher / Forecast ROE for the fiscal year ending March 2027 9.6% / Debt-to-equity ratio 0.29x |
| Annual Dividend | Annual dividend amount ¥170 /share / Interim ¥40 /share / End of period ¥130 /share |
| Payout ratio | Consolidated payout ratio 47.7 % / Total payout ratio Undetermined |
| Acquisition of treasury shares | Undetermined |
| New initiatives | Organizational restructuring to strengthen sales expansion capabilities, Preparing to establish a base in India, Establishment of a division dedicated to expanding the EMS business, Development of SiC modules, motors and AI camera solutions for automotive applications, Begin initiatives in the physical AI field, Accelerating initiatives involving AI agents |
Items this document does not state (13)
Gross Profit MarginOperating profit marginResults 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 outlookCapital expendituresOrders received and order backlogMarket 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.In the interim period, selling, general and administrative expenses increased by approximately ¥720 million due to higher investment in human capital and depreciation associated with the redevelopment of headquarters, while gross profit improved by approximately ¥140 million and non-operating income and expenses improved by approximately ¥20 million. As a result, ordinary income decreased by approximately ¥600 million. For the full year, profit is expected to decline due to higher investment in human capital, outsourcing expenses and headquarters redevelopment costs, as well as the reactionary decline following the large public-sector projects recorded in the previous fiscal year.
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