Ohmura Shigyo Co.,Ltd. Revises Earnings Forecast — Net Profit Up 49%

Ohmura Shigyo Co.,Ltd. Revises Earnings Forecast — Net Profit Up 49%

Ohmura Shigyo Co.,Ltd. (TSE:3953) has revised its earnings forecast for the fiscal year ending March 2026, projecting a significant 49% surge in net profit despite a modest revenue decline driven by raw material cost pressures.

The company attributed the revision to rising raw material and resource costs that will compress revenue to JPY 5.95bn from the prior forecast of JPY 6.14bn. However, management expects to offset margin pressure through appropriate product pricing adjustments and strengthened engagement with existing customers alongside new client acquisition. The substantial net profit improvement of JPY 120M reflects an additional deferred tax asset recognition of JPY 127M, which will reduce the company’s tax burden in the period.

For international investors, the revision underscores a margin-expansion strategy despite top-line headwinds. While revenue declines 3.1%, operating profit remains essentially flat and ordinary income (keijo rieki)—a Japan-specific metric capturing non-operating financial items—rises 2.9%. The outsized net profit gain reflects tax optimization rather than operational leverage, with earnings per share climbing to JPY 102.75/share from JPY 68.82/share. The forecast suggests management confidence in pricing power and cost discipline amid inflationary pressures.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.