Notice Concerning Differences Between Previous Forecasts and Actual Results for the Second Quarter (Interim) of Fiscal Year Ending March 2027 and Revision of Full-Year Consolidated Earnings Forecast

Key Points of Forecast Revisions and Differences

Sanei Ltd. disclosed the differences between its second-quarter results for the fiscal year ending March 2027 and its previous forecasts and has downwardly revised its full-year consolidated earnings forecasts. Net sales were impacted by a downturn in the housing market and rising raw material costs, resulting in operating income, ordinary income, and net income attributable to owners of parent all falling short of prior forecasts. In particular, interim net income per share declined sharply to 38.27 yen. The full-year forecast has likewise been revised downward, with sustained high raw material and procurement prices and delayed penetration of sales price revisions cited as factors suppressing profits.

Outlook and Impact for Investors

While the company states that strong performance of water-related products centered on the IENI series continues, the ongoing weakness in housing demand and high raw material costs are expected to continue pressuring profit margins. The company plans to mitigate downside risks by accelerating the implementation of price revisions, strengthening cost control, and reinforcing product lines. Investors should be aware of the downside risk to full-year profit forecasts.