Awa Paper & Technological Company, Inc. (TSE:3896) has revised its earnings forecast for the fiscal year ending March 2026, showing a notable increase in net profit.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 18.5bn | JPY 18.4bn | -0.5% |
| Operating Profit | JPY 40M | JPY 40M | +0.0% |
| Ordinary Income | △170 | △120 | — |
| Net Profit | JPY 270M | JPY 660M | +144.4% |
| EPS | JPY 27.03/share | JPY 66.03/share | +JPY 39.00/share |
The revision is based on the confirmation of a grant under the Tokushima Prefecture corporate location assistance program for the new Komatsu Island plant, which will be recognized as a special gain in the fourth quarter of the fiscal year. Revenue is expected to decline slightly due to reduced automotive-related materials from consolidated subsidiaries. Operating profit remains unchanged, primarily due to lower sales offset by reduced retirement benefit costs. Ordinary income improved due to reduced losses from investment vehicle operations. Net profit surged due to the grant, despite potential impacts from impairment losses and revaluation of deferred tax assets.
The upward revision highlights the significant impact of the grant on net profit, causing a sharp rise in EPS. Investors should monitor the recognition of the grant and its long-term implications for the company’s financial position.