T.RAD Co., Ltd.
Summary of Q&A from the Fiscal Year Ending March 2027 Second Quarter Earnings Presentation
Utilization of China bases and expansion of local production, impact of raw material price fluctuations and outlook for profitability recovery, short-term factors including U.S. tariff refunds, consideration of future share buybacks, and dividend policy. The second half is expected to see stabilization of material costs, increased sales, and potential expansion of AI-related cooling technology business.
Key Figures
- DOE 5% or more, Payout Ratio 50% or more, target progressive dividends
- Second half sales increase approx. 6,000 million yen, planning operating profit margin of 6.1%
- U.S. second half sales approx. 20,500 million yen, outlook versus first half 23,800 million yen
AI要約
Performance and Raw Material Cost Trends
In Q1 there was a one-time gain of approximately 600 million yen from inventory valuation of materials, and in Q2 the material cost ratio improved by about 1.1 percentage points compared with Q1. Although raw material prices such as aluminum, copper, and resins rose due to Middle East-related factors, the company has accelerated material-price slide mechanisms with trading partners. In the second half, profitability is expected to improve due to stabilization of material cost ratios and increased sales.
Profitability by Segment and Region and Outlook
Japan's operating profit margin declined in the second quarter due to recognition of stock-based compensation-related expenses. For the second half, the company plans for approximately 6,000 million yen increase in sales, incorporation of stabilized material costs, and improvements in fixed costs including personnel expenses, targeting an operating profit margin of 6.1%. In the U.S., after a temporary profit contribution from IEEPA tariff refunds, the company assumes cost increases in the second half and targets 0.3%.
T.RAD Co., Ltd.
Company overview · Stock price · Financial data · All IR
