Nihon Dempa Kogyo Co., Ltd. Revises Earnings Forecast — Operating Profit Surges 78.6% for H1
Nihon Dempa Kogyo Co., Ltd. (TSE:6779) has raised its earnings guidance for the fiscal year ending March 2027, citing stronger-than-expected demand in AI data center and automotive segments alongside favorable currency movements.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 29.5bn | JPY 31.0bn | +5.1% |
| Operating Profit | JPY 1.40bn | JPY 2.50bn | +78.6% |
| 税引前利益 | JPY 900M | JPY 2.00bn | +122.2% |
| 中間利益 | JPY 700M | JPY 1.50bn | +114.3% |
| 親会社の所有者に | |||
| 帰属する中間利益 | JPY 700M | JPY 1.50bn | +114.3% |
| 基本的１株当 | |||
| たり中間利益 | JPY 30.41/share | JPY 65.42/share | +JPY 35.01/share |
For the full fiscal year, the company raised revenue guidance to JPY 62.5bn from JPY 60.6bn, while operating profit jumped to JPY 5.20bn from JPY 4.00bn. The company attributed the upward revision to robust demand for optical transceivers serving AI data centers and automotive applications, which exceeded initial projections. Additionally, the yen’s weakness—averaging 160.38 against the dollar in the first quarter versus the initial assumption of 150—provided currency tailwinds. Management now assumes 155 yen per dollar from the third quarter onward.
The revision underscores Nihon Dempa Kogyo’s exposure to secular growth drivers in AI infrastructure and electrified vehicles. The disproportionate lift in operating profit relative to revenue growth—operating profit rising 30% for the full year versus 3.1% revenue growth—reflects operational leverage and improved product mix. Earnings per share guidance for the full year climbed to JPY 139.56 from JPY 99.90, a 39.7% increase. Investors should monitor currency fluctuations and AI data center capex cycles as key variables for sustained outperformance.
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.