Nihon Seimitsu Co., Ltd. Revises Earnings Forecast — Net Profit Surges 240%

Nihon Seimitsu Co., Ltd. Revises Earnings Forecast — Net Profit Surges 240%

Nihon Seimitsu Co., Ltd. (TSE:7771) has raised its full-year earnings guidance for the fiscal year ending March 2026, driven by stronger-than-expected revenue and substantial foreign exchange gains.

The company now projects revenue of JPY 7.89 billion, up JPY 895 million or 12.8% from its prior forecast. The upward revision reflects stronger operational performance across its business segments. Additionally, Nihon Seimitsu expects to record JPY 227.4 million in foreign exchange gains (non-operating income) stemming from currency translation adjustments on foreign-currency-denominated receivables held by overseas subsidiaries. This non-operating item significantly boosts ordinary income (keijo rieki), the Japan-specific profit metric that includes operating profit plus financial income and expenses.

The revisions substantially improve bottom-line profitability. Net profit attributable to parent company shareholders is now forecast at JPY 350 million, more than triple the prior estimate of JPY 103 million. Earnings per share (EPS) is projected to reach JPY 15.82 per share, compared to the earlier guidance of JPY 4.68 per share. International investors should note that ordinary income in Japan differs materially from operating income and can be significantly affected by financial items such as foreign exchange movements. The substantial upward revision underscores the impact of currency fluctuations on consolidated results and highlights the importance of monitoring non-operating items when evaluating Japanese company earnings.

Source: Original filing (TDnet) | 日本語版

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