Plant work offsets a thin heat-treatment half
Chugai Ro Co., Ltd. (TSE: 1964) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 30, 2026 under Japanese GAAP. Plant segment sales rose 47.4% to ¥7,804 million as heating furnaces for non-ferrous metals and process equipment for steelmakers in Japan and abroad progressed, and its operating profit rose 228.4% to ¥1,207 million. Heat-treatment sales fell 12.9% to ¥6,834 million because of a smaller backlog after weak orders last year, and the segment swung to a ¥242 million loss from a ¥125 million profit. The Development segment's loss widened to ¥330 million from ¥180 million. Orders were mixed: heat treatment rose 13.2% to ¥8,254 million on furnaces for semiconductor-related materials, while plant orders slipped 3.3% to ¥8,456 million. From this period, costs of the GX project previously booked in Development are allocated to each segment.
Restructuring charge and revised forecast
Ordinary profit rose 187.8% to ¥751 million, but a ¥350 million extraordinary charge for a business restructuring provision, against a ¥1,284 million gain on securities sales a year earlier, cut net profit to ¥285 million, or ¥40.50 per share against ¥145.31. Chugai Ro revised its FY3/2027 forecast in a separate release on the same day; it now expects net sales of ¥40,300 million (+7.9%), operating profit of ¥3,620 million (+25.7%), ordinary profit of ¥3,720 million and net profit of ¥2,787 million, down 40.3%. The year-end dividend plan of ¥180 is unchanged. As a subsequent event, the board decided on September 30 to sell three cross-shareholdings, expecting a gain of about ¥700 million in the third quarter. Total assets fell to ¥47,416 million on lower cash, and the equity ratio rose to 62.8%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 16,055 | 14,769 | +8.7% |
| Operating profit (¥ million) | 637 | 163 | +291.2% |
| Ordinary profit (¥ million) | 751 | 261 | +187.8% |
| Net profit attrib. to owners of parent (¥ million) | 285 | 1,055 | -72.9% |
| Comprehensive income (¥ million) | 898 | 1,227 | -26.8% |
| EPS (¥) | 40.50 | 145.31 | -72.1% |
| Heat treatment — orders received (¥ million) | 8,254 | — | +13.2% |
| Heat treatment — revenue (¥ million) | 6,834 | — | -12.9% |
| Heat treatment — segment profit (¥ million) | -242 | 125 | profit to loss |
| Plant — orders received (¥ million) | 8,456 | — | -3.3% |
| Plant — revenue (¥ million) | 7,804 | — | +47.4% |
| Plant — segment profit (¥ million) | 1,207 | — | +228.4% |
| Development — revenue (¥ million) | 473 | — | -33.3% |
| Development — segment profit (¥ million) | -330 | -180 | loss widened |
| Total assets (¥ million) | 47,416 | 51,282 | -7.5% |
| Net assets (¥ million) | 30,028 | 31,481 | -4.6% |
| Equity ratio | 62.8% | 60.8% | +2.0 pt |
| FY3/2027 guidance — revenue (¥ million) | 40,300 | — | +7.9% |
| FY3/2027 guidance — operating profit (¥ million) | 3,620 | — | +25.7% |
| FY3/2027 guidance — ordinary profit (¥ million) | 3,720 | — | +19.6% |
| FY3/2027 guidance — net profit (¥ million) | 2,787 | — | -40.3% |
| Annual dividend per share (¥) | 180.00 | 166.00 | +8.4% |
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.