Nichiden Raises FY2027 Earnings Forecast on AI Chip Demand Surge

Nichiden (TSE:9902) has raised its fiscal 2027 earnings and dividend guidance, citing stronger-than-expected demand from semiconductor and advanced chip manufacturing sectors driven by generative AI investment expansion.

ItemBeforeAfterChangeChange %
H1 RevenueJPY 74.5bnJPY 80.5bnJPY 6.0bn8.1%
H1 Operating ProfitJPY 3.15bnJPY 4.2bnJPY 1.05bn33.3%
H1 Ordinary IncomeJPY 3.42bnJPY 4.5bnJPY 1.08bn31.6%
H1 Net ProfitJPY 2.37bnJPY 3.2bnJPY 830M35.0%
H1 EPSJPY 80.23/shareJPY 109.51/shareJPY 29.28/share36.5%
Full-Year RevenueJPY 150.0bnJPY 160.0bnJPY 10.0bn6.7%
Full-Year Operating ProfitJPY 7.3bnJPY 8.4bnJPY 1.1bn15.1%
Full-Year Ordinary IncomeJPY 7.8bnJPY 9.0bnJPY 1.2bn15.4%
Full-Year Net ProfitJPY 5.5bnJPY 6.1bnJPY 600M10.9%
Full-Year EPSJPY 186.20/shareJPY 208.76/shareJPY 22.56/share12.1%
Interim DividendJPY 50.00/shareJPY 60.00/shareJPY 10.00/share—
Year-end DividendJPY 50.00/shareJPY 60.00/shareJPY 10.00/share—
Annual DividendJPY 100.00/shareJPY 120.00/shareJPY 20.00/share20.0%

The company attributed the upward revision to first-quarter orders exceeding initial forecasts from semiconductor equipment and data center-related sectors. Nichiden expects this momentum to persist through the second half, supported by robust demand in China’s electronics and semiconductor manufacturing industries, though it flagged supply chain delays, raw material price volatility, and geopolitical risks as downside factors.

The 20% dividend increase reflects Nichiden’s commitment to a payout ratio target of 50% or higher, aligning shareholder returns with accelerating profit growth. The H1 profit guidance jumped 35%, signaling substantial operational leverage from AI-driven capital expenditure cycles.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.