Tamagawa Holdings Lifts Full-Year Profit Forecast 151% on Infrastructure Demand

Tamagawa Holdings Lifts Full-Year Profit Forecast 151% on Infrastructure Demand

Tamagawa Holdings Co., Ltd. (TSE:6838) has raised its earnings and dividend guidance for the fiscal year ending October 2026, citing strong demand in its electronics and communications equipment business alongside a significant unrealized gain on foreign equity holdings.

The company attributed the upward revision primarily to accelerating production volumes in its core electronics and communications equipment segment, which supplies social infrastructure and mobile network operators. Tamagawa said it has transitioned key products into mass-production phases and secured large orders, with manufacturing proceeding smoothly despite earlier supply-chain concerns. Additionally, the company will recognize a JPY 2.25bn unrealized gain on its stake in Singapore-listed Addvalue Technologies Ltd. (125.8 million shares) as financial revenue under IFRS accounting standards adopted for consolidated reporting. After applying tax effects, this valuation gain substantially boosts net profit attributable to parent shareholders.

The company has also doubled its year-end dividend forecast to JPY 10.00/share from JPY 5.00/share. Investors should note that the valuation gain on the foreign equity holding is subject to quarterly mark-to-market revaluation, creating potential earnings volatility tied to share price movements. The operating profit improvement, however, reflects underlying business momentum in infrastructure-related demand, which may provide more sustainable earnings support going forward.

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.