KOA's first-half sales reached a record high for a half-year period as demand for resistors from the automotive and AI-related equipment sectors expanded. The company also raised its full-year earnings outlook.
KOA's first-half results for FY2026 showed sales of ¥43.63 billion, exceeding the same period a year earlier and setting a new record for a half-year period. Orders were particularly strong for thick-film products for the automotive sector, products for distributors in China and products for AI-related equipment in Asia. Operating profit improved significantly year on year, while net profit was ¥5.82 billion. The company recorded ¥3.1 billion in compensation for the relocation of a consolidated subsidiary in China as extraordinary income, while also incurring ¥750 million in an impairment loss on deferred tax assets.
By product, region and application, resistor sales increased across all applications, including automotive, growing 10%. By region, Asia made the largest contribution, followed by Japan. North America was flat, while Europe saw a smaller decline due to the impact of the stronger yen. By application, automotive sales rose sharply, and sales to the industrial equipment and AI-related equipment sectors also increased, while safety components and other products declined.
The revised full-year outlook calls for sales of ¥91.5 billion, operating profit of ¥8.31 billion, ordinary profit of ¥8.56 billion and net profit of ¥9.66 billion. Sales are expected to increase by approximately ¥4.2 billion in the second half, with operating profit projected at ¥4.57 billion and the operating margin expected to improve to 9.5%. ROE is expected to be 10.5%. The assumed exchange rates are ¥159 to the US dollar and ¥183 to the euro.
Expansion in growth markets and efforts to strengthen production capacity are also progressing. In response to growing demand for AI-related equipment, the company plans to increase production of miniature thick-film chip resistors in Japan and China, and eventually at a new plant in Malaysia. Capital expenditure was ¥1.2 billion in the first half of FY2026, but in anticipation of increased shipments from 2027 onward, the company plans annual capital expenditure of ¥4.1 billion and depreciation of ¥7.2 billion.