KOA Q1 Net Profit Nearly Quadruples as AI and Auto Demand Lift Revenue 24%; Annual Dividend Almost Doubled to ¥63

KOA Corporation (TSE: 6999), a Nagano-based maker of resistors and other electronic components, reported consolidated results for the first quarter of the fiscal year ending March 31, 2027 under Japanese GAAP. Revenue rose 23.9% year on year to ¥20,880 million, operating profit jumped 70.2% to ¥851 million, ordinary profit surged 148.0% to ¥1,315 million, and net profit attributable to owners of the parent climbed 288.4% to ¥1,629 million — nearly quadrupling. Basic earnings per share were ¥43.88, up from ¥11.30 a year earlier.

AI, autos and an industrial recovery

Demand across KOA's end markets was broadly favourable. Sales to AI-related equipment expanded, automotive demand stayed firm on the back of vehicle electrification and the spread of advanced driver-assistance systems (ADAS), and industrial-equipment demand — long weighed down by inventory adjustment — continued to recover. Distributor demand also grew, and a weaker yen added a further tailwind. Higher raw-material prices weighed on costs but were more than offset by the larger sales base. The company is in phase two of its 2030 Vision, the 2027 medium-term plan, under which it targets profit growth and efficiency gains centred on ROIC-based management.

Tax gain from German unit liquidation

The outsized bottom-line gain reflects a one-off item: following the resolution to dissolve and liquidate German subsidiary VIA electronic GmbH, KOA booked a ¥745 million deferred-tax credit, lifting net profit well beyond the operating-level improvement. Ordinary profit also benefited from foreign-exchange effects.

Orders up 38%, backlog up 51%

Order intake points to continued momentum: group orders rose 37.6% to ¥24,572 million and the order backlog stood 50.8% higher at ¥17,356 million, with all four regions — Japan, Asia, the Americas and Europe — posting double-digit order growth. By segment, external sales were ¥6,489 million in Japan, ¥7,027 million in Asia, ¥3,418 million in the Americas and ¥3,944 million in Europe. Japan swung to a segment profit of ¥854 million from a small loss a year earlier, while Asia slipped to a ¥129 million loss.

Guidance raised, dividend nearly doubled

KOA revised its full-year forecast upward from the guidance issued on April 24. It now expects revenue of ¥87,300 million (+20.8%), operating profit of ¥5,360 million (+47.0%), ordinary profit of ¥6,040 million (+15.6%) and net profit of ¥7,740 million (+95.9%), with EPS of ¥208.42. The planned annual dividend was raised to ¥63.00 per share (¥31.50 interim plus ¥31.50 year-end), nearly double the prior year's ¥32.00. The balance sheet remains solid, with total assets of ¥151,184 million and an equity ratio of 60.2%, up from 58.4% at the previous fiscal year-end.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.