Indoor electrical and HVAC work widen the margin
Chudenko Corporation (TSE: 1941), the electrical and facilities-works contractor for which the Chugoku Electric Power group accounts for 23.5% of non-consolidated revenue, reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 30, 2026 under Japanese GAAP. Net sales rose 11.1% to ¥106,376 million, operating profit 24.7% to ¥13,197 million, ordinary profit 26.4% to ¥13,846 million and profit attributable to owners of the parent 20.3% to ¥8,771 million. Earnings per share were ¥165.67 against ¥134.64. The company says indoor electrical and air-conditioning and plumbing works grew while information and telecommunications and distribution line works declined, and credits the profit gain to higher sales, stricter cost management, more efficient construction and company-wide cost reduction.
Gross profit rose 15.2% to ¥22,039 million, lifting the gross margin to 20.7% from 20.0%, while selling, general and administrative expenses rose only 3.5% to ¥8,842 million; the operating margin widened to 12.4% from 11.1%. The loss on equity-method investments narrowed to ¥618 million from ¥682 million. Extraordinary losses of ¥170 million included a ¥93 million write-down of shares in affiliates, and income taxes of ¥4,874 million left profit at ¥8,811 million before non-controlling interests. Comprehensive income nearly doubled to ¥20,568 million (+99.5%), mainly on an ¥11,732 million rise in the valuation difference on available-for-sale securities.
Orders up 30.4% and a 35.4% larger backlog at the parent
The parent company's own revenue rose 11.9% to ¥85,155 million and its operating profit 28.0% to ¥12,794 million. Its orders received rose 30.4% to ¥142,752 million: air-conditioning and plumbing orders jumped 70.4% to ¥46,332 million, indoor electrical orders rose 18.2% to ¥69,479 million and transmission, substation and underground line orders 70.5% to ¥7,804 million, while distribution line orders slipped 1.4% to ¥15,010 million. Orders from the Chugoku Electric Power group rose 23.6% to ¥25,216 million and those from general customers 31.9% to ¥117,535 million. The backlog at September 30 stood at ¥249,580 million, up 35.4% from ¥184,320 million a year earlier.
Total assets rose to ¥327,488 million from ¥317,819 million at March 31, 2026, as cash and deposits rose ¥15,472 million and investment securities ¥9,336 million while receivables on completed contracts fell ¥18,821 million. Liabilities fell ¥7,259 million to ¥62,736 million, chiefly on lower trade payables and income taxes payable. Net assets rose to ¥264,752 million, and the equity ratio to 79.7% from 76.9%.
Forecast and dividend raised; up to ¥31,975 million for a buyback
Chudenko raised its FY3/2027 forecast, first published on April 28, 2026: net sales to ¥257,000 million (+12.8%) from ¥245,000 million, operating profit to ¥31,000 million (+18.4%) from ¥27,000 million, ordinary profit to ¥34,300 million (+24.8%) from ¥29,500 million and profit attributable to owners to ¥22,800 million (+23.4%) from ¥19,700 million, or ¥430.55 per share before the effect of the buyback. It expects higher sales in indoor electrical and distribution line works and continued cost reduction, and raised its non-consolidated orders forecast to ¥227,000 million from ¥210,000 million. After paying an interim dividend of ¥70 (¥65 a year earlier), it raised its year-end dividend forecast to ¥80 from ¥70, for an annual ¥150 against ¥135.
On October 30 the board also resolved to buy back its own shares by tender offer to improve capital efficiency and enhance shareholder returns: up to 6,930,100 shares for up to ¥31,975 million between November 2, 2026 and January 31, 2027. The tender offer itself covers up to 6,930,000 shares at ¥4,614 per share and runs from November 2 to December 1, 2026, with settlement starting December 23, 2026. The half-year financial statements were not reviewed by an auditor.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 106,376 | 95,754 | +11.1% |
| Gross profit (¥ million) | 22,039 | 19,124 | +15.2% |
| Gross margin | 20.7% | 20.0% | +0.7 pt |
| SG&A expenses (¥ million) | 8,842 | 8,541 | +3.5% |
| Operating profit (¥ million) | 13,197 | 10,582 | +24.7% |
| Operating margin | 12.4% | 11.1% | +1.3 pt |
| Ordinary profit (¥ million) | 13,846 | 10,955 | +26.4% |
| Net profit attrib. to owners of parent (¥ million) | 8,771 | 7,290 | +20.3% |
| Comprehensive income (¥ million) | 20,568 | 10,312 | +99.5% |
| EPS (¥) | 165.67 | 134.64 | +23.0% |
| Orders received, non-consolidated (¥ million) | 142,752 | 109,514 | +30.4% |
| Order backlog at September 30, non-consolidated, year on year (¥ million) | 249,580 | 184,320 | +35.4% |
| Total assets (¥ million) | 327,488 | 317,819 | +3.0% |
| Total liabilities (¥ million) | 62,736 | 69,995 | −10.4% |
| Net assets (¥ million) | 264,752 | 247,823 | +6.8% |
| Equity attrib. to owners of parent (¥ million) | 261,066 | 244,246 | +6.9% |
| Equity ratio | 79.7% | 76.9% | +2.8 pt |
| FY3/2027 guidance — revenue (¥ million) | 257,000 | — | +12.8% |
| FY3/2027 guidance — operating profit (¥ million) | 31,000 | — | +18.4% |
| FY3/2027 guidance — ordinary profit (¥ million) | 34,300 | — | +24.8% |
| FY3/2027 guidance — net profit (¥ million) | 22,800 | — | +23.4% |
| FY3/2027 guidance — EPS (¥) | 430.55 | — | — |
| Annual dividend per share (¥) | 150.00 | 135.00 | +11.1% |
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.