Cars and factories up, phones down
Japan Aviation Electronics Industry, Limited (TSE: 6807) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 28, 2026 under Japanese GAAP. From this period the interface-solutions business has been folded into the connector segment. Sales to the automotive market rose 17.3% to ¥65,542 million on steady demand, and sales to industrial and infrastructure customers jumped 50.7% to ¥20,690 million as AI-related demand lifted semiconductor-equipment orders. Sales of mobile-device parts fell 13.8% to ¥28,885 million as smartphone sales stayed weak. The connector segment grew sales 11.0% to ¥112,405 million but its profit fell 40.0% to ¥3,894 million, while the aerospace segment grew sales 21.0% to ¥10,835 million and more than doubled its profit to ¥1,848 million.
Costs outrun price increases
The company pursued price adjustments, faster product development and in-house production to raise plant utilisation, but rising prices for gold, copper and domestically sourced parts, plus energy, logistics and personnel costs, outweighed them. Earnings per share were ¥20.62 against ¥46.23 and comprehensive income fell 78.3% to ¥865 million. Total assets rose 0.5% to ¥233,406 million as receivables and inventories grew; cash and deposits fell ¥10,753 million to ¥37,746 million after capital spending on new-product lines, debt repayment and dividends. Net assets were ¥143,270 million and the equity ratio was 61.3% against 62.1%.
Revised forecast and lower dividend
The revised FY3/2027 forecast calls for net sales of ¥255,000 million (+11.9%), operating profit of ¥10,500 million (+17.5%), ordinary profit of ¥7,800 million (−5.4%) and net profit of ¥5,000 million (−29.3%), for earnings per share of ¥74.13; the forecast implies a much stronger second half. The company paid an interim dividend of ¥25 against ¥30 and plans ¥25 at year end, for an annual ¥50 against ¥60, unchanged from its previous plan.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 123,564 | 110,441 | +11.9% |
| Operating profit (¥ million) | 3,279 | 4,760 | -31.1% |
| Ordinary profit (¥ million) | 2,181 | 4,736 | -53.9% |
| Net profit attrib. to owners of parent (¥ million) | 1,390 | 3,116 | -55.4% |
| Comprehensive income (¥ million) | 865 | 3,983 | -78.3% |
| EPS (¥) | 20.62 | 46.23 | -55.4% |
| Connectors — revenue (¥ million) | 112,405 | 101,249 | +11.0% |
| Connectors — segment profit (¥ million) | 3,894 | 6,486 | -40.0% |
| Aerospace — revenue (¥ million) | 10,835 | 8,955 | +21.0% |
| Aerospace — segment profit (¥ million) | 1,848 | 787 | +134.8% |
| Sales — mobile devices (¥ million) | 28,885 | 33,526 | -13.8% |
| Sales — automotive (¥ million) | 65,542 | 55,873 | +17.3% |
| Sales — industrial & infrastructure (¥ million) | 20,690 | 13,727 | +50.7% |
| Total assets (¥ million) | 233,406 | 232,142 | +0.5% |
| Net assets (¥ million) | 143,270 | 144,362 | -0.8% |
| Equity ratio | 61.3% | 62.1% | -0.8 pt |
| FY3/2027 guidance — revenue (¥ million) | 255,000 | — | +11.9% |
| FY3/2027 guidance — operating profit (¥ million) | 10,500 | — | +17.5% |
| FY3/2027 guidance — ordinary profit (¥ million) | 7,800 | — | -5.4% |
| FY3/2027 guidance — net profit (¥ million) | 5,000 | — | -29.3% |
| Annual dividend per share (¥) | 50.00 | 60.00 | -16.7% |
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.