DISCO raised its interim dividend for the fiscal year ending March 2027 to ¥186. The article compares DISCO and Tokyo Seimitsu in terms of earnings power and minimum investment amount, and also covers DISCO's first-half results and Tokyo Seimitsu's results and dividend outlook.
On 22 October, DISCO raised its interim dividend from its previous forecast of ¥171 to ¥186. The comparison with Tokyo Seimitsu focuses on the two companies' earnings power, minimum investment amounts and shareholder returns. Their closing prices on 23 October were ¥49,290 for DISCO and ¥15,520 for Tokyo Seimitsu, putting the indicative amount required for 100 shares at approximately ¥4.93 million and ¥1.55 million, respectively.
For the first half of the fiscal year ending March 2027, DISCO reported revenue of ¥257.1 billion, up 32.1% year on year, operating profit of ¥116.6 billion, up 47.9%, and net income of ¥80.4 billion, up 43.7%. Its operating margin reached 45.4%. In addition to dicing saws and grinders, DISCO also supplies consumables such as grinding wheels, with demand generation after equipment is installed representing a key strength.
Tokyo Seimitsu reported first-quarter revenue of ¥36.7 billion and operating profit of ¥5.9 billion for April to June, with an operating margin of 16.1%. On 4 August, it raised its full-year revenue forecast to ¥189.0 billion and its operating profit forecast to ¥44.0 billion. Its annual dividend forecast is ¥304, comprising an interim dividend of ¥152 and a year-end dividend of ¥152.
DISCO is characterized by its high margins and strength in consumables, while Tokyo Seimitsu offers inspection equipment and precision measuring instruments in addition to processing equipment. The difference in minimum investment is approximately ¥3.38 million, with Tokyo Seimitsu requiring less than DISCO. Although both companies benefit from demand for AI semiconductors, attention is warranted regarding a slowdown in capital investment and trends in foreign exchange rates and the Chinese market.
Relevant investment considerations include DISCO's first-half earnings growth and dividend increase, as well as Tokyo Seimitsu's lower minimum investment amount and forecasts for full-year earnings growth and a higher dividend.