Worth reading
92Important
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
400
¥100 million (increase from the previous full-year revenue forecast)Wording
Definitive
How definitive the wording is.Contents of this document
Financial Results PresentationSecond quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales376,921 Millions of yen+30.4%
Operating profit18,980 Millions of yen+45.5%
Ordinary income18,959 Millions of yen+41.0%
Net income19,515 Millions of yen+29.8%
Selling, general and administrative expenses32,526 Million yen; SG&A-to-revenue ratio 8.6%
Operating profit margin5.0%, up 0.5 percentage points year on year.
Results for the three months of the current quarterJuly–September standalone: revenue ¥206,470 million (up 36.9% year on year), operating profit ¥10,520 million (up 60.3%), ordinary profit ¥10,094 million (up 40.2%), and net profit attributable to owners of the parent ¥12,641 million (up 21.3%).
Full-year earnings forecastRevenue ¥800,000 million, operating profit ¥36,000 million, ordinary profit ¥36,000 million, net profit attributable to owners of the parent ¥32,000 million, EPS ¥671.28, and annual dividend ¥180 per share.
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。Cumulative: revenue 49.6%, operating profit 59.3%, ordinary profit 59.2%, and interim net profit attributable to owners of the parent 67.3%. By segment: electronic components revenue 51.1% and segment profit 69.4%; information equipment revenue 41.6% and profit 33.2%; software revenue 40.2% and profit 51.4%; other revenue 33.8% and profit 22.1%.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q2 results significantly exceeded the internal plan for both revenue and profit.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue: electronic components +¥92.3 billion, spot sales +¥6.1 billion, Shinko Shoji +¥31.2 billion, Kyoei Sangyo (Q1) +¥17.1 billion, information equipment +¥2.3 billion, software -¥0.2 billion, other -¥6.4 billion, foreign exchange impact +¥13.0 billion. Operating profit: gross profit +¥11.9 billion, sales volume +¥4.7 billion, sales mix +¥0.6 billion, spot sales +¥0.6 billion, Shinko Shoji +¥3.4 billion, Kyoei Sangyo (Q1) +¥2.6 billion, personnel expenses -¥4.2 billion, packaging and freight -¥0.3 billion, SG&A -¥6.0 billion.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate ¥150.00/US$. Other numerical assumptions for volume, raw material prices, interest rates and other items: Not disclosed.New initiatives
Consolidation of Shinko Shoji, absorption-type merger of Excel by Kaga Devices, voluntary segment disclosure in line with the medium-term management plan, increase in the target dividend payout ratio to 30%–40%, and introduction of a 4% DOE target.Key KPIsA metric the company considers important as a management benchmark.
EPS ¥409.43 (up 39.3% year on year), exchange rate ¥159.37/US$, ROE 16.3% (full-year forecast), consolidated dividend payout ratio 26.8% (34.3% excluding gains on bargain purchase and other items), DOE 5.2% (5.3% excluding those items), D/E ratio 0.49x, and net D/E ratio -0.04x.Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volume +¥4.7 billion, sales mix +¥0.6 billion. Metrics such as customer numbers and average spend per customer: Not disclosed.Segment results
Electronic components: revenue ¥340,128 million (up 37.3% year on year), segment profit ¥16,314 million (up 81.9%). Information equipment: ¥23,907 million (up 10.8%), ¥1,662 million (up 2.8%). Software: ¥1,405 million (down 16.3%), ¥257 million (up 55.4%). Other: ¥11,479 million (down 35.9%), ¥664 million (down 68.7%).Medium-term management plan targets
Management targets under the “Medium-Term Management Plan 2027”: revenue of ¥800 billion and operating profit of ¥36 billion. Achievement is expected one year ahead of schedule.Financial targets
Full-year ROE forecast 16.3%. ROE and other financial targets under the medium-term plan: Not disclosed.Annual Dividend
Annual dividend of ¥180 per share (interim ¥80, year-end ¥100).Payout ratio
26.8%. Excluding approximately ¥7 billion in gains on bargain purchase and other items, 34.3%. DOE 5.2%, or 5.3% excluding those items.Acquisition of treasury shares
The company referred to a policy of conducting purchases flexibly, but the purchase limit, number of shares and period were not disclosed.Gross profit
¥51,507 million; gross profit margin 13.7%, up 30.2% year on year. No change in percentage points from the prior-year period was disclosed.| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | 376,921 Millions of yen (YoY +30.4%) |
| Operating profit | 18,980 Millions of yen (YoY +45.5%) |
| Ordinary income | 18,959 Millions of yen (YoY +41.0%) |
| Net income | 19,515 Millions of yen (YoY +29.8%) |
| Gross profit | ¥51,507 million; gross profit margin 13.7%, up 30.2% year on year. No change in percentage points from the prior-year period was disclosed. |
| Operating profit margin | 5.0%, up 0.5 percentage points year on year. |
| Selling, general and administrative expenses | 32,526 Million yen; SG&A-to-revenue ratio 8.6% |
| Results for the three months of the current quarter | July–September standalone: revenue ¥206,470 million (up 36.9% year on year), operating profit ¥10,520 million (up 60.3%), ordinary profit ¥10,094 million (up 40.2%), and net profit attributable to owners of the parent ¥12,641 million (up 21.3%). |
| Full-year earnings forecast | Revenue ¥800,000 million, operating profit ¥36,000 million, ordinary profit ¥36,000 million, net profit attributable to owners of the parent ¥32,000 million, EPS ¥671.28, and annual dividend ¥180 per share. |
| Progress against full-year forecast | Cumulative: revenue 49.6%, operating profit 59.3%, ordinary profit 59.2%, and interim net profit attributable to owners of the parent 67.3%. By segment: electronic components revenue 51.1% and segment profit 69.4%; information equipment revenue 41.6% and profit 33.2%; software revenue 40.2% and profit 51.4%; other revenue 33.8% and profit 22.1%. |
| Self-assessment against the plan | Q2 results significantly exceeded the internal plan for both revenue and profit. |
| Segment results | Electronic components: revenue ¥340,128 million (up 37.3% year on year), segment profit ¥16,314 million (up 81.9%). Information equipment: ¥23,907 million (up 10.8%), ¥1,662 million (up 2.8%). Software: ¥1,405 million (down 16.3%), ¥257 million (up 55.4%). Other: ¥11,479 million (down 35.9%), ¥664 million (down 68.7%). |
| Breakdown of Factors Affecting the Change | Revenue: electronic components +¥92.3 billion, spot sales +¥6.1 billion, Shinko Shoji +¥31.2 billion, Kyoei Sangyo (Q1) +¥17.1 billion, information equipment +¥2.3 billion, software -¥0.2 billion, other -¥6.4 billion, foreign exchange impact +¥13.0 billion. Operating profit: gross profit +¥11.9 billion, sales volume +¥4.7 billion, sales mix +¥0.6 billion, spot sales +¥0.6 billion, Shinko Shoji +¥3.4 billion, Kyoei Sangyo (Q1) +¥2.6 billion, personnel expenses -¥4.2 billion, packaging and freight -¥0.3 billion, SG&A -¥6.0 billion. |
| Key KPIs | EPS ¥409.43 (up 39.3% year on year), exchange rate ¥159.37/US$, ROE 16.3% (full-year forecast), consolidated dividend payout ratio 26.8% (34.3% excluding gains on bargain purchase and other items), DOE 5.2% (5.3% excluding those items), D/E ratio 0.49x, and net D/E ratio -0.04x. |
| Unit price and quantity metrics | Sales volume +¥4.7 billion, sales mix +¥0.6 billion. Metrics such as customer numbers and average spend per customer: Not disclosed. |
| Assumptions Underlying the Business Outlook | Exchange rate ¥150.00/US$. Other numerical assumptions for volume, raw material prices, interest rates and other items: Not disclosed. |
| Medium-term management plan targets | Management targets under the “Medium-Term Management Plan 2027”: revenue of ¥800 billion and operating profit of ¥36 billion. Achievement is expected one year ahead of schedule. |
| Financial targets | Full-year ROE forecast 16.3%. ROE and other financial targets under the medium-term plan: Not disclosed. |
| Annual Dividend | Annual dividend of ¥180 per share (interim ¥80, year-end ¥100). |
| Payout ratio | 26.8%. Excluding approximately ¥7 billion in gains on bargain purchase and other items, 34.3%. DOE 5.2%, or 5.3% excluding those items. |
| Acquisition of treasury shares | The company referred to a policy of conducting purchases flexibly, but the purchase limit, number of shares and period were not disclosed. |
| New initiatives | Consolidation of Shinko Shoji, absorption-type merger of Excel by Kaga Devices, voluntary segment disclosure in line with the medium-term management plan, increase in the target dividend payout ratio to 30%–40%, and introduction of a 4% DOE target. |
Items this document does not state (7)
Number 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.The company attributed the upward revision to Q2 results significantly exceeding its internal plan for both revenue and profit. Factors behind the increase in revenue included expanding semiconductor demand, price increases caused by supply and demand tightness, higher sales of memory semiconductors and other products, the consolidation of Shinko Shoji, and contributions from power product sales in the information equipment business.
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