ツガミ raised its interim sales and operating profit forecasts. While Chinese demand is making a significant contribution, the assessment of the full-year outlook will depend on profitability in the second half.
On 20 October 2026, ツガミ announced a revision to its interim earnings forecasts, raising both sales and operating profit. Its share price has entered a correction phase from past highs, reflecting its high dependence on Chinese demand and the impact of foreign-exchange movements.
The business is centered on operations in China and India, with sales to Chinese customers and sales from its local operations making a particularly significant contribution to earnings. In India, the company is bringing a new plant online and expanding production capacity, while also planning to increase production capacity in China.
The interim upward revision implies a larger increase in operating profit than in sales, with sales raised to ¥81.2 billion, operating profit to ¥25.2 billion and interim net income attributable to owners of the parent to ¥12.3 billion. Profit for July-September is expected to increase substantially year on year, although attention is said to be warranted regarding the impact of the year-end dividend, exchange-rate movements and delays in cash conversion.
The focus going forward will be the second-half profit plan, profitability in China and the content of any revision to the full-year plan at the time of the earnings announcement. Whether the company can maintain year-on-year profit growth in the second half will be the dividing point in the stock's valuation.