Nippon Seiki's strong H1 performance driven by motorcycle sales

Nippon Seiki Co., Ltd. announced a strong first-half performance for the fiscal year ending March 2026, with sales revenue increasing by JPY 3,795 million (+2.5%) to JPY 156,242 million and operating profit surging by JPY 1,802 million (+52.3%) to JPY 5,247 million. This growth was largely attributed to increased sales of motorcycle instruments in ASEAN and India, offsetting declines in four-wheel vehicle instruments due to market changes in China and reduced Head-up Display (HUD) production in Europe and the United States. The company maintained its full-year forecast, projecting JPY 320,000 million in sales revenue and JPY 11,300 million in operating profit, with an interim dividend of JPY 40 and a planned year-end dividend of JPY 40.

Despite challenges from US tariffs and a one-time payment of JPY 740 million to European customers impacting HUD profitability, the company anticipates recovery through continued price negotiations and cost reduction efforts. New product development in HUD for EVs and small cars is underway, with HUD sales for the fiscal year currently projected at JPY 57,000 million, down from an initial JPY 64,000 million. Additionally, Nippon Seiki is expanding into software UI consulting and implementing smart factory initiatives in India, ASEAN, and Brazil to strengthen price competitiveness and production capacity for TFT LCDs in the growing motorcycle market.

The company is also formulating a new medium-term management plan (FY2028-FY2030) aiming for an 8% ROE by March 2030, alongside a total return ratio of 80% to shareholders. This includes a JPY 2,000 million share buyback and an JPY 80 dividend per share for the current fiscal year.