Retrofit work carries sales
Nihon Dengi Co., Ltd. (TSE: 1723) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 4, 2026. Sales growth came mainly from large retrofit projects at factories and offices in the air-conditioning instrumentation business, and a better gross margin let operating profit outpace sales, rising 9.9% to ¥4,549 million. Ordinary profit grew 12.8% to ¥4,846 million and profit attributable to owners of the parent rose 11.2% to ¥3,300 million.
In air-conditioning instrumentation, segment sales rose 4.4% to ¥17,403 million and segment profit 5.6% to ¥6,524 million. New-build sales fell 18.8% to ¥6,298 million as factory and hospital projects from a year earlier were not repeated, while retrofit sales climbed 24.7% to ¥11,105 million. Segment orders grew 19.2% to ¥30,689 million, with new-build orders up 36.2% on research facilities and factories. The industrial systems segment raised sales 17.5% to ¥2,354 million and profit 15.6% to ¥433 million.
A fourth-quarter-weighted year
The company noted that completions and handovers are concentrated in its fourth quarter, so first-half sales are seasonally light. It kept its FY3/2027 forecast of net sales of ¥51,500 million (+11.1%), operating profit of ¥12,500 million and attributable profit of ¥8,700 million. Following the 4-for-1 stock split of April 1, 2026, it paid an interim dividend of ¥20 and plans ¥56 for the year, against a split-adjusted ¥40 for FY3/2026. The equity ratio rose to 81.3%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 19,758 | 18,668 | +5.8% |
| Operating profit (¥ million) | 4,549 | 4,140 | +9.9% |
| Ordinary profit (¥ million) | 4,846 | 4,297 | +12.8% |
| Net profit attrib. to owners of parent (¥ million) | 3,300 | 2,968 | +11.2% |
| Comprehensive income (¥ million) | 3,645 | 4,009 | -9.1% |
| EPS (¥) | 51.78 | 46.59 | +11.1% |
| Orders received (¥ million) | 33,303 | — | +18.6% |
| Order backlog (¥ million) | 42,707 | — | +33.6% |
| Air-conditioning instrumentation — revenue (¥ million) | 17,403 | — | +4.4% |
| Air-conditioning instrumentation — segment profit (¥ million) | 6,524 | — | +5.6% |
| Industrial systems — revenue (¥ million) | 2,354 | — | +17.5% |
| Industrial systems — segment profit (¥ million) | 433 | — | +15.6% |
| Total assets (¥ million) | 60,162 | 61,099 | -1.5% |
| Net assets (¥ million) | 48,926 | 46,857 | +4.4% |
| Equity ratio | 81.3% | 76.7% | +4.6 pt |
| FY3/2027 guidance — revenue (¥ million) | 51,500 | — | +11.1% |
| FY3/2027 guidance — operating profit (¥ million) | 12,500 | — | +5.7% |
| FY3/2027 guidance — net profit (¥ million) | 8,700 | — | +3.0% |
| Annual dividend per share (¥) | 56.00 | 40.00 | +40.0% |
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.