Taiyo Holdings was driven by its electronics business, reporting higher revenue and higher profit in the first half. It has consequently revised its full-year forecast upward and also recorded an extraordinary gain.
According to Taiyo HD's briefing on its financial results for the second quarter of the fiscal year ending March 2027, the electronics business drove overall performance, with consolidated net sales of approximately ¥78.4 billion, up 16% from the same period a year earlier. The strong performance of the electronics business, supported by foreign exchange effects and the impact of passing on higher prices, underpinned growth across the company. The company also indicated its intention to revise its full-year forecast upward, with first-half results leading to an improved outlook for the second half.
On a consolidated basis, operating profit was approximately ¥22.2 billion, up 46% from the same period a year earlier, while ordinary profit was approximately ¥22.7 billion, up 56%. The company also recorded a gain on the sale of investment securities as an extraordinary gain. By segment, the electronics business achieved a high profit margin, while the pharmaceuticals business declined due to fluctuations in demand. Overall, however, the company expects to achieve its full-year targets. It was reported that the gain on the sale of investment securities contributed to results as an extraordinary factor related to the company's shareholdings.
The extraordinary gain resulted from the sale of shares in 四国化成ホールディングス. The sale amount was approximately ¥2.9 billion, involving 1.49 million shares, and a gain of approximately ¥2.052 billion was recorded as a gain on the sale of investment securities. The announced full-year forecast reflects the upside in the electronics business and profit recorded in the second quarter, while the company intends to leave unchanged its previous outlook for the second half announced on 31 July. In addition, following the policy announced on 9 October to target the launch of the tender offer around late November, attention is focused on the status of the procedures going forward.
The delay in launching the tender offer is attributed to the incomplete China procedures related to competition law and the incomplete Japan procedures under investment regulation laws. The procedures of the tender offeror, KJ005株式会社, are under way, and the future schedule is expected to be affected by the status of reviews under the relevant laws and regulations. At present, progress under competition law in China and procedures under investment regulation laws in Japan are the primary causes of delay, and the company has been informed that the launch of the tender offer is currently targeted for around late November.