Axell was poised for a limit-up open and sharply raised its earnings and dividend forecasts. First-half operating profit was raised from the previous forecast of ¥970 million to ¥1.33 billion, while the full-year forecast was raised from ¥1.2 billion to ¥2.29 billion. The annual dividend forecast was also raised from ¥41 to ¥79.
Axell was poised for a limit-up open, drawing attention to its share price. The company formally announced an upward revision to its earnings forecast the previous day.
First-half operating profit is expected to rise from the previous forecast of ¥970 million to ¥1.33 billion, an increase of approximately 16% year on year, while the full-year profit forecast was also sharply raised from ¥1.2 billion to ¥2.29 billion. The revisions are based on an upgraded sales outlook for products including graphics LSIs and memory modules for pachinko and pachislot machines, with sales expected to exceed the plan.
Although first-quarter results showed a decline in profit, the annual dividend was raised from the previous plan of ¥41 to ¥79 following the improved earnings outlook. Market conditions are expected to remain supportive, with buy indications continuing.
The strengthening of the product lineup and improved sales appear to have led to the upward revision in the earnings forecast, although attention will be required on developments ahead and the release of additional financial information.