Morita Raises Revenue Forecast to 2,260,000 Million Yen After First-Half Profit Growth of 48.9%

Key Facts

Morita Manufacturing on October 30 reported results for the six months ended September 30, 2026, with revenue of 1,090,764 million yen, up 20.8% year over year, under International Financial Reporting Standards. Operating profit rose 48.9% to 245,907 million yen, while profit attributable to owners of the parent increased 40.6% to 186,152 million yen. The company said revenue growth came mainly from capacitor sales across a wide range of applications, particularly data centers, and higher revenue from electromagnetic interference filters and related power supply units. The weaker yen also contributed, with its average annual exchange rate declining by 13.33 yen per dollar, according to the company. The announcement was accompanied by an increase in its forecast for the fiscal year ending March 31, 2027, as demand for computing and data center components accelerated.

Growth extended across the company’s segments, with capacitor revenue rising 33.1% to 605,583 million yen in the first half of fiscal 2026. Revenue from computer applications, which include computing-related components, increased 61.2% to 235,110 million yen. Morita attributed the increase in capacitors to demand across a range of applications, with data centers a major contributor, and said growth in computer applications also came mainly from data centers. The results reflect the expanding impact of demand for computing infrastructure across the company’s sales, rather than its being confined to a single component category. At the same time, the company said factory utilization improved as production increased, supporting earnings. It added that the weaker yen boosted operating profit, despite higher fixed costs and lower product selling prices.

Basic earnings per share were 102.43 yen and diluted earnings per share were 102.40 yen for the six months, compared with 71.77 yen for each in the same period a year earlier. The figures show earnings per share rising alongside the company’s profit, while the results were prepared under international standards, not U.S. accounting principles as stated in the previous draft. For dividends, Morita set an interim dividend of 35 yen per share for the year ending March 31, 2027, compared with 30 yen in the previous year. The company kept its forecast for total annual dividends at 70 yen per share. The higher interim dividend comes as the company reports profit growth and raises its financial targets for the current year.

Morita raised its revenue forecast for the fiscal year ending March 31, 2027, to 2,260,000 million yen and its operating profit forecast to 520,000 million yen. It also updated its forecast for profit attributable to owners of the parent to 396,000 million yen and basic earnings per share to 218.80 yen. The previous forecasts, announced by the company on July 31, 2026, put revenue at 2,110.0 billion yen, operating profit at 430.0 billion yen and profit attributable to owners of the parent at 338.0 billion yen. The update therefore covered revenue, operating profit, net profit and earnings per share, following first-half results that showed year-over-year growth in revenue and profit. The company links the improved performance to growth in data center component sales, better factory utilization and the impact of the weaker yen, while fixed-cost and selling-price pressures persist.

Morita shares in Tokyo fell 9.52% to 6,234 yen on October 30, according to Investing.com coverage, amid a broader selloff in Japanese technology stocks. The report said concerns about the profitability of artificial intelligence investments weighed on equities, while Reuters reported that the Nikkei fell as much as 3% during the session amid concerns about the sustainability of spending tied to the AI boom. Reuters quoted a Nomura analyst as saying investor concerns about the profitability of AI investments were weighing on stocks. The Associated Press also recorded a 2.3% drop in the Nikkei in afternoon trading that day, to 63,155.94 points. In EL7 data, Morita’s U.S. depositary shares, traded under the ticker MRAAY, closed at $21.71 on October 29, after closing at $21.50 on October 28 and $19.84 on October 23; this record does not link the U.S. share movement to a reaction to the results announcement.

Looking ahead, Morita listed the announcement of its third-quarter fiscal 2026 results for February 2, 2027, at 2:00 p.m. Japan time. The company said the date is tentative and subject to change. Earlier, Reuters reported that the Bank of Japan would announce its monetary policy decision on Friday, with expectations broadly pointing to interest rates remaining unchanged. It said investors would watch for signals from the bank on the possibility of a rate increase at its December meeting. The anticipation comes on a day when Japanese technology stocks fell amid concerns over the viability of AI investments, alongside Morita’s announcement of growth in its data center-related business and higher annual forecasts.