Punch Industry(6165): FY2026 Q1 Earning Update
Chinese business is good. Japanese business still needs a wait for a turnaround.
*I’ve already published stock analysis report for Punch Industry(6165). If you’re interested, please check it out.
Punch Industry announced FY2026 Q1 earning update in 2025/08/08. (Link)
Sales/Operating Profit grew YoY. Overseas market is well, especially for China. Because Chinese auto markers increase their production, mold component demand is solid in China. Looking to the Japanese market, demand of auto markers decreases, due to the tariff uncertainty in Q1.
*Revenue by regions. (Link)
Add comments to Japanese business. Punch Industry is restructuring the factory in Japan. This activity brings the one-off retirement expenses and the hiring the new member expense. They try Japanese factory to get more orders for customized mold components(*not standardized one). Customized order process needs a communication with customers, but currently, building the sales team is not ready yet. To turnaroud Japanese business, alliance with Misumi(9962) will also contribute it. Although there is no news for it in this earning update, we need to monitor it.
*Operating profit guidance. SG&A for Japanese business will increase in FY2026, which puts pressure on profit.
Based on the good Chinese business, Punch Industry revised the guidance/dividend(18.12→18.16 yen/share). Expanding Asia market and turnaroud Japanese business, I think there is upside for Punch Industry. I hold on it.
*Link
It’s still Net-Net. Dividend 4.3%.
