【Kandenko】2027 Q1 Financial Results｜Sales ¥158 billion (YoY △4.5%)

Financial Performance Overview

In the first quarter of fiscal year 2027, Kandenko achieved sales of ¥158 billion (△4.5%), operating profit of ¥19.7 billion (+12.8%), and net income attributable to owners of the parent of ¥13.1 billion (+4.2%). Completed construction volume was approximately ¥158 billion, a YoY decrease of △4.5%, but operating profit increased, indicating an improvement in profit margins. Assets are approximately ¥598 billion, with an equity ratio of 64.5%, demonstrating stable financial health. The consolidated financial position remains strong.

Outlook and Investor Implications

Kandenko has not revised its earnings forecast for this period and maintains a steady growth trend. Despite a slight decrease in sales, profit margins continue to improve, supported by effective cost management and efficiency improvements. The company plans to continue its conservative management without changes to the forecast. Its asset quality is good, and the high level of the equity ratio is maintained. Investors can feel assured given the stable financial base. Dividend payout is undecided, but stable dividends are likely in the future. Continued focus will be on steady progress in infrastructure-related businesses and profitability improvements through efficiency.

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In the medium to long term, the company is expected to maintain a proactive stance on shareholder returns and business expansion, supported by its stable business model and sound financials. This can be viewed as a solid investment decision, with emphasis on prudent management and stable financial health.