Kanto Denka Kogyo (4047) Q1 2027 earnings summary

Executive summary

• Net sales for the first quarter rose 30.6% year-on-year to ¥19.7B, driven by higher volumes and price revisions in specialty gases for semiconductors and strong performance in the Fine Chemicals Division.

• Operating profit increased 410.7% year-on-year to ¥3.9B, with ordinary profit up 515.5% to ¥4.5B and profit attributable to owners of parent up 509.3% to ¥3.2B.

• All divisions except Facilities posted year-on-year sales growth; Facilities Division saw a decline due to reduced contract work.

• Production of WF6 maintained by diversifying tungsten procurement sources.

Financial highlights

• Net sales rose from ¥15.1B to ¥19.7B, a 30.6% increase year-over-year.

• Operating profit grew from ¥0.7B to ¥3.9B, up 410.7% year-over-year.

• Ordinary profit and profit before income both increased from ¥0.7B to ¥4.5B, up over 500%.

• Basic EPS increased from ¥9.24 to ¥56.41.

• Comprehensive income reached ¥4.3B, compared to a loss of ¥335M in the prior year.

Outlook and guidance

• Full-year net sales forecast revised to ¥95B, up 45.3% year-on-year.

• Full-year operating profit projected at ¥11.3B, up 106.2% year-on-year.

• Profit attributable to owners of parent forecast at ¥7.6B, up 100.8% year-on-year.

• Basic earnings per share for the year forecast at ¥132.51.

• Full-year earnings forecast is under review due to raw material and fuel price fluctuations; projections from Q2 onward remain unchanged.