Inaba Denki: Raises FY2027 profit outlook to ¥37bn, sales to ¥470bn

Inaba Denki raised its forecasts for sales, operating profit, ordinary profit and net income attributable to owners of the parent for the year ending March 2027. Each revised forecast is above both the previous forecast and the prior-year result.

Inaba Denki said the revised forecasts represent increases of 7.8% for sales, 12.5% for operating profit, 13.4% for ordinary profit and 13.9% for net income compared with its previous outlook. Forecast earnings per share were also raised to ¥240.53 from ¥211.13, above the prior-year result of ¥208.49.

The increase in profit forecasts exceeds the sales revision. Revised operating profit is set to top the prior-year result, but Inaba Denki said the upgrade reflects first-half performance and that it will need to assess demand trends carefully.

In the first half, demand increased across all segments amid concerns over materials supply, among other factors, and group performance exceeded Inaba Denki's initial expectations. The company also said it worked to maintain stable supply.

• Demand trends: Demand increased amid concerns over materials supply, including those linked to the situation in the Middle East.
• Scope: The increase was seen across all segments, not just in a particular segment.
• Company response: Inaba Denki worked to maintain stable supply, and first-half performance exceeded its initial expectations.

Inaba Denki cited first-half performance as the reason for revising its full-year forecast. It did not say that higher demand would necessarily continue, and indicated it would carefully monitor demand trends ahead.

Inaba Denki raised its profit forecasts as well as its sales outlook. Operating profit's increase over the previous forecast exceeds the sales increase, reflecting progress that has surpassed expectations on the earnings side as well.

The revised forecasts are based on information currently available to Inaba Denki and assumptions it considers reasonable. The company cautioned that actual results could differ materially for various reasons, making the sustainability of demand a key point to watch.