Sanken Electric: F3/26 Results: Neutral, Targeting an Operating Profit in F3/27 Though Faces Difficult 2H Hurdles

研报英文原文证据摘录

Sanken Electric: F3/26 Results: Neutral, Targeting an Operating Profit in F3/27 Though Faces Difficult 2H Hurdles

Update

May 13, 2026 01:35 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MSanken Electric (6707) | Japan Yoshihito Hasegawa

Equity Analyst

F3/26 Results: Neutral, Yoshihito.Hasegawa@morganstanleymufg.com +81 3 6836-8910

Sanken Electric (6707.T, 6707 JP)

Mid Small Cap/Manufacturer | JapanTargeting an Operating Profit in

Stock Rating Underweight

Industry View In-Line

Price target ¥6,000F3/27 Though Faces Difficult 2H Shr price, close (May 13, 2026) ¥8,687

Mkt cap, curr, basic (bn) ¥182.1

Avg daily trading value (bn) ¥1.1Hurdles

Reaction to earnings

Unchanged In-line Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

F3/26 results (vs. guidance) were ¥80.2bn in sales (¥78.8bn) and a ¥4.73bn

operating loss (¥6.0bn loss). Sales were down 34% YoY, and the operating loss

widened by ¥940mn.

4Q results (vs. 3Q) were ¥21.0bn in sales (¥18.1bn) and a ¥3.81bn operating loss

(¥830mn loss). The operating loss widened on decline in plant operating rates

related to output adjustments.

F3/27 guidance (1H, 2H) targets ¥86.5bn in sales (¥39.3bn, ¥47.2bn) and ¥1.4bn in

OP (¥2.4bn loss, ¥3.8bn profit).

The F3/27 guidance projects an 8% YoY rise in sales and ¥6.1bn increase in

operating income. While it expects a 1H loss on output adjustments continuing

from F3/26, it forecasts a 2H profit driven by cutbacks in fixed costs, improved

productivity, and lower variable costs.

Sanken expects fixed-cost cutbacks throughout F3/27 at Ishikawa Sanken and

from 2H at Yamagata Sanken. It targets revisions to material usage from gold to