Tomen Devices Nearly Quadruples Q1 Sales to ¥395.6 Billion on Memory Price Surge, Triples Dividend Plan to ¥1,640

Tomen Devices Corporation (TSE: 2737), a Tokyo-based distributor of semiconductors and electronic devices, reported consolidated results for the first quarter of the fiscal year ending March 2027 — the three months from April 1 to June 30, 2026 — under Japanese GAAP. Net sales rose 286.4% to ¥395,578 million, operating profit jumped to ¥22,282 million from ¥1,846 million, ordinary profit to ¥19,741 million from ¥1,709 million and quarterly net profit attributable to owners of the parent to ¥14,520 million from ¥1,270 million. Basic earnings per share came to ¥2,135.06 against ¥186.76 a year earlier; no diluted figure was reported. Because every profit line grew by more than 1,000%, the company left the year-on-year percentage columns blank in its own tables. Comprehensive income was ¥14,947 million against ¥396 million.

Memory prices, servers and cars behind a 3.9-fold jump in sales

Tomen Devices said the increase came mainly from higher sales into server and storage applications and into automotive, and that memory prices continued to rise through the quarter. It described an electronics market still led by AI-related demand, with automotive adding a second leg as more sophisticated autonomous-driving and advanced driver-assistance systems push the share of leading-edge semiconductors in each vehicle steadily higher. The comparison is also flattered by a weak base: a year earlier, first-quarter sales had slipped 0.5% and operating profit had fallen 44.0%. On the wider backdrop the company was more guarded, citing trade-friction concerns tied to U.S. policy, currency volatility, resource-price spikes stemming from Middle East tensions and supply-chain disruption as sources of continuing uncertainty.

Overseas supplies two-thirds of sales, Japan the larger share of profit

The group reports two segments. External sales in Japan rose to ¥132,595 million from ¥27,340 million — a 4.9-fold increase — while overseas external sales rose to ¥262,983 million from ¥75,046 million, or 3.5 times. Overseas therefore accounts for about 66% of external sales. Segment profit told a different story: Japan contributed ¥12,782 million against ¥654 million a year earlier and overseas ¥9,583 million against ¥1,252 million, so the domestic business — half the size on revenue — generated the larger share of earnings. Combined segment profit of ¥22,366 million, less ¥83 million of adjustments, produced the reported operating profit of ¥22,282 million.

Margin more than triples, but interest and currency losses take a slice

Gross profit rose to ¥23,783 million from ¥2,833 million, lifting the gross margin to 6.0% from 2.8% — the arithmetic of rising memory prices moving through a distribution book. Selling, general and administrative expenses grew to ¥1,500 million from ¥986 million, an increase of about 52% against a 286% rise in sales, so the operating margin widened to 5.6% from 1.8%. Below the operating line the picture was less flattering: net non-operating charges of ¥2,542 million, against ¥138 million a year earlier, held ordinary profit to 88.6% of operating profit. Interest expense rose to ¥1,216 million from ¥343 million as short-term borrowings expanded, the company booked a ¥1,088 million foreign-exchange loss where it had recorded a ¥349 million gain last year, and losses on the sale of receivables came to ¥289 million from ¥159 million. Income taxes of ¥5,221 million equated to an effective rate of about 26%. Depreciation for the quarter was ¥72 million, up from ¥47 million.

Working capital drives an 18% larger balance sheet

Total assets stood at ¥407,849 million at June 30, up 18.2% from ¥344,957 million at the March 2026 year-end, almost entirely through working capital: notes and accounts receivable rose to ¥159,025 million from ¥102,724 million and merchandise inventory to ¥225,431 million from ¥221,518 million, while cash and deposits edged up to ¥10,112 million from ¥7,829 million. Liabilities rose 18.1% to ¥337,337 million as accounts payable climbed to ¥166,419 million from ¥105,783 million and short-term borrowings to ¥141,078 million from ¥118,569 million, partly offset by a fall in advances received to ¥16,957 million from ¥50,036 million. Net assets rose 19.0% to ¥70,512 million, with retained earnings at ¥60,759 million against ¥49,912 million despite the dividend payment. The equity ratio was 17.3%, barely changed from 17.2% at the year-end, and net assets per share reached ¥10,368.26 from ¥8,710.38. No quarterly cash-flow statement was prepared.

Guidance lifted to ¥1.4 trillion and the dividend tripled to ¥1,640

Alongside the quarterly report Tomen Devices revised the full-year forecast it had issued on April 24, 2026, saying memory prices had run above its original assumptions on the back of expanding demand for generative-AI products. Full-year net sales are now guided to ¥1,400,000 million (+120.9%), operating profit to ¥48,900 million (+160.3%), ordinary profit to ¥40,800 million (+206.2%), net profit to ¥30,000 million (+199.5%) and EPS to ¥4,411.22. The first quarter alone already covers 28.3% of the sales plan but 45.6% of the operating-profit plan and 48.4% of the net-profit plan — a front-loaded shape the company effectively acknowledged, saying that from the second quarter onward it expects uncertainty over securing volume and a pause in memory price increases. The dividend was raised at the same time: Tomen Devices plans no interim payment and a year-end dividend of ¥1,640.00 per share, against ¥540.00 paid for the year ended March 2026 — three times the prior year and equal to roughly 37% of forecast EPS. The company prepared no supplementary explanatory material and held no results briefing, and the quarterly consolidated financial statements were not reviewed by a certified public accountant or auditing firm.

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.