Update on Initiatives to Implement Management Practices Focused on Capital Costs and Share Prices

Earnings Overview

In the first quarter of the fiscal year ending January 2027, Ishii Hyoki recorded net sales of JPY 4,049 million (YoY +12.3%), operating profit of JPY 367 million (+98.8%), ordinary profit of JPY 376 million (+94.1%), and net income attributable to owners of parent of JPY 266 million (+63.8%). In the electronic equipment manufacturing equipment segment, sales increased due to expanded AI-related demand, and in the display-related segment, sales of consumables increased. Conversely, printing products for automotive applications in the display-related area faced production adjustments and declined. There is no change to the full-year forecast. There is no recent revision to the dividend forecast.

Outlook and Implications for Investors

Despite solid profit growth on a first-quarter basis, market conditions remain laden with uncertainty in energy and raw material costs due to geopolitical tensions in the Middle East. Attention is also required on slower growth in the Chinese market and exchange rate risk. By segment, the sustainability of AI-related demand will be key, and earnings upside potential will depend on future demand trends. The full-year forecast remains unchanged. The company is evaluated as being on a path of stable growth.