Cosel (TSE: 6905), a maker of switching power supplies, now expects full-year operating profit of ¥2.3bn for the year to May 2027, up 72% from the ¥1.3bn it forecast in June. Full-year sales guidance rose 10% to ¥31.8bn, and net profit attributable to owners was raised 62% to ¥2.6bn, with per-share earnings climbing to ¥63.21 from a prior estimate of ¥38.99.
| Metric | Previous Forecast | Revised Forecast | Change |
|---|---|---|---|
| Sales | ¥28.9bn | ¥31.8bn | +10.1% |
| Operating profit | ¥1.3bn | ¥2.3bn | +72.3% |
| Ordinary profit | ¥1.5bn | ¥2.4bn | +55.9% |
| Net profit attributable to owners | ¥1.6bn | ¥2.6bn | +62.1% |
| Earnings per share | ¥38.99 | ¥63.21 | - |
The upgrade follows a first quarter that swung the company from loss to profit. Sales rose 54% year on year to ¥7.8bn, and Cosel moved from an operating loss of ¥389mn a year earlier to an operating profit of ¥545mn. Net profit reached ¥661mn, versus a ¥68mn loss in the same quarter last year. Part of that swing reflects a one-off ¥355mn gain on the sale of Swedish subsidiary Powerbox International AB, whose share transfer closed on September 1. Orders jumped 155% to ¥13.0bn.
Cosel attributes the turnaround to demand tied to generative AI: customers are buying more of its power units for semiconductor manufacturing equipment, a category the company says has stayed strong on robust AI-related demand. Customers in factory-automation markets are also working through inventory built up in earlier quarters, supporting a broader demand recovery, alongside price increases taken this year and sales from newly launched products.
Not every region benefited equally. Cosel's results briefing shows sales in Japan, Asia and North America all improving alongside the AI-linked order book, while its European segment's loss widened as demand there stayed weak.
The company flagged a risk to its own supply chain: rapid growth in semiconductor-equipment demand has raised concerns about supply of some components, including memory chips and printed circuit boards, and Cosel says that is adding uncertainty about the market outlook.
Cosel left its currency assumptions unchanged for the rest of the year, budgeting at ¥155.00 to the dollar and ¥182.50 to the euro, the same rates used in its June forecast. That keeps the profit increase tied to operating performance rather than a currency tailwind.
The figures describe one mid-sized components supplier riding a specific pocket of AI-related capital spending, not a broader verdict on the semiconductor cycle: Cosel's own briefing expects order growth to settle after the first-quarter surge, which included customers placing advance orders, and its European business remains in loss.