Kaga Electronics Co (8154) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 net sales of ¥170.45 billion, up 23.4% year-over-year, with double-digit growth in all profit levels.

• Net income attributable to owners of parent rose 49.0% year-over-year to ¥6.87 billion, supported by strong electronic components, EMS business, and extraordinary gains.

• Comprehensive income surged 281.9% year-over-year to ¥11.38 billion, reflecting robust business performance and favorable currency effects.

• Operating income rose 30.5% year-over-year to ¥8.46 billion, aided by higher gross profit and efficient SG&A management.

• Strong performance in electronic components, driven by memory product sales, spot sales, and consolidation of Kyoei Sangyo.

Financial highlights

• Gross profit for Q1 was ¥22.81 billion, up 23.7% year-over-year, with gross margin steady at 13.4%.

• EPS for Q1 was ¥144.24, up 64.3% year-over-year.

• Exchange rate impact contributed ¥6.1 billion to net sales and ¥0.25 billion to operating income.

• Q1 operating margin improved to 5.0% from 4.7% a year ago.

• Ordinary income grew 42.0% year-over-year to ¥8.86 billion, aided by higher dividend income and lower FX losses.

Outlook and guidance

• FY2027 net sales forecast revised upward to ¥660.0 billion (+2.3% year-over-year), operating income to ¥30.0 billion (+7.8%), and net income to ¥22.0 billion (+10.0%).

• EPS forecast for the year is ¥461.61.

• Dividend forecast remains at ¥140 per share, pending further earnings forecast revisions.

• Impact from Shinko Shoji acquisition not yet included in guidance; further revision expected.