8061.T

• Core Financial Results for the Second Quarter

  • Total transaction value: 132.55 billion yen; Revenue: 51.83 billion yen; Operating profit: 3.26 billion yen; Interim net profit: 3.12 billion yen
  • Market capitalization as of end-September reached 73.1 billion yen, with a PBR of 1.45x, both showing significant increases over the past six months
  • Cash flow from investing activities was negative 3.01 billion yen, driven by the share acquisition of Tokyo Sangyo in April 2025; the ratio of policy-held shares to consolidated net assets remains below the 20% target
  • Net profit decreased 1.9 billion yen YoY due to the reversal of prior period negative goodwill, lower gains from policy-held share sales, and a 489 million yen special loss for litigation-related loss provisions

• Long-Term Growth Strategy

  • Medium-term management plan targets 6.6 billion yen operating profit for the current fiscal year, and 7.0 billion yen for the final year of the plan next fiscal year, achievable via 6% annual organic growth across core segments
  • Long-term vision targets 12 billion yen operating profit (double the current fiscal year target) by FY2030, combining organic growth with non-organic growth via M&A and business investment
  • Asahi Sanac, a leading manufacturer of coating, forging and cleaning machinery headquartered in Aichi Prefecture, will be acquired as a subsidiary with transaction completion scheduled for December 1, 2025. The acquisition will leverage existing cooperative relationships to expand overseas sales in Thailand, Germany and other markets and capture synergies

• Stakeholder and IR Initiatives

  • A 1:3 stock split was implemented on October 1, 2025 to lower per-unit investment cost, expand the investor base, and improve accessibility for retail investors; a year-end dividend of 37 yen per share is forecast post-split
  • Total IR interviews reached 68 as of end-September, well above the prior year pace; feedback is shared directly with the board and management team and incorporated into strategy
  • Compared to two years prior, total shareholders have increased approximately 30% to over 13,600, and average daily trading volume has tripled; the company is actively working to increase trading turnover and free-float market capitalization to remain in the TOPIX index ahead of the August 2026 review date

• Key Business Updates

  • Nuclear power business has favorable tailwinds from government policy: the 7th Basic Energy Plan maximizes nuclear power utilization as a decarbonized power source, and the GX Decarbonized Power Source Act extending plant operating life by 20 years went into effect in June 2025. In addition to routine 13-month inspections, demand is expected for large-scale equipment upgrades at aging plants and projects related to dry storage facilities for spent nuclear fuel
  • Following the share acquisition of Tokyo Sangyo in April 2025, the company has begun discussions via planning department working groups to explore collaboration, with the goal of evaluating synergies from the two firms' similar business models, while building cooperation based on mutual respect. The company will promptly disclose any material developments

• Full-year consolidated guidance maintained at opening forecast: revenue of 105 billion yen, operating profit of 6.6 billion yen, ordinary profit of 7.15 billion yen, net income attributable to parent shareholders of 6.05 billion yen
• Segment guidance is unchanged from the opening forecast, with segment profit calculation updated this fiscal year to include equity method investment gains/losses in addition to operating profit
• Energy business forecasts a year-over-year profit decline due to the reversal of large prior period second quarter projects, while Product business forecasts a slight profit decrease
• Industrial Machinery business previously forecast profit growth from order backlog delivery, but second quarter results exceeded forecast, so full-year guidance is currently under review
• Management notes the company has a historical trend of higher second half performance, and is currently refining forecast accuracy with an update expected once internal review is complete

1. Energy Business: Revenue increased 12.4% year-over-year. Segment profit decreased 39.8% YoY, which adjusts to a 5.7% decrease when excluding the impact of prior period negative goodwill. 2. Industrial Machinery Business: Revenue increased 52.2% YoY. Segment profit has returned to positive profitability since Q4 of the prior fiscal year and is on a recovery trend. The segment has already achieved its full-year segment profit target in the first half, so full-year guidance is currently under review. Order backlog decreased by approximately 0.1 billion yen from the end of the prior period due to progress on delivering large projects. 3. Product Business: Revenue decreased 5.3% YoY, while segment profit increased 11.4% YoY. Overall consolidated order backlog increased 31.9% YoY and 8.3% from the end of the prior period, showing steady growth.

• A 489 million yen litigation-related loss provision was recorded as a special loss in the first half
• Achievement of TOPIX retention requirements depends on continued growth in trading turnover and free-float market capitalization, and requires sustained effort ahead of the August 2026 benchmark date
• Potential synergies from collaboration with Tokyo Sangyo and the acquisition of Asahi Sanac are still under evaluation, with no final conclusions reached as of the call
• Discussions with Tokyo Sangyo are dependent on the counterparty, so no firm timeline for a final decision can be provided

Q: The analyst asks which growth areas Seika Sangyo plans to prioritize by 2030 as part of non-organic initiatives like the Asahi Sanac acquisition, after confirming the purchase values Asahi Sanac's coating business. / A: Management states there is no strict separation between organic and non-organic growth. Future M&A and investment will focus on machinery-focused businesses adjacent to Seika Sangyo's existing operations. The company will actively pursue growth-accretive investments in this area, using leverage while maintaining a sound financial base.

Q: What is the expected 2030 profit contribution of Asahi Sanac to the company's 12 billion yen long-term operating profit target? / A: Asahi Sanac currently generates approximately 1.5 to 1.7 billion yen in annual operating profit, and has a stable, low-volatility business model well-aligned with Seika Sangyo's operations. The deal completes in December 2025, and management will work with Asahi Sanac to set specific long-term targets, leveraging Seika's existing overseas joint venture experience in Germany and Thailand to drive additional growth via synergies.

Q: When will discussions on collaboration with Tokyo Sangyo conclude, and what synergies are expected from the partnership? / A: Tokyo Sangyo has a similar business model focused on Mitsubishi Heavy Industries agency work in the energy sector, which aligns well with Seika Sangyo. Expected benefits include expanded product portfolio, cross-selling opportunities, overhead efficiency gains for overlapping back-office functions, and expanded human capital. No fixed timeline for a conclusion is set; management is prioritizing thorough, constructive discussion aligned with the 2030 long-term vision, and will disclose any material developments appropriately.

Q: Given that Industrial Machinery hit its full-year profit target in the first half and Asahi Sanac will be consolidated from December, won't full-year operating profit come in well above the current 6.6 billion yen forecast, and could the medium-term plan be updated if it hits the 7 billion yen target early? / A: Management confirms Industrial Machinery is performing very well and the result is under review, and that no details on Asahi Sanac's full-year contribution can be shared yet. The company maintains the current forecast at the interim stage, notes it has a historical second-half weighted profit pattern, and will update guidance once internal review is complete. No details on potential medium-term plan changes can be shared currently, but appropriate disclosures will be made in a timely manner if changes are required.