Fujikura announced a substantial upward revision, driven by a major data center project in Asia. Against sales of approximately ¥300 billion, the profit margin is estimated at nearly 40%, with operating profit expected to reach roughly ¥120 billion.
During this earnings season, Fujikura, a wire and cable stock, announced a substantial upward revision, drawing attention to the high quality of its earnings even as the overall market remained unstable. The yen has remained weak, while geopolitical risks have also had an impact.
The project cited as the backdrop is for data centers in Asia, and media reports put its size at around ¥300 billion in sales. Fujikura's annual sales last year were approximately ¥1.2 trillion, making the project equivalent to around 20% of sales.
The project's high profitability is seen as a factor supporting this growth, with margins expected to be high in Asia, where the project is not affected by tariffs. The overall operating margin is viewed as being in the low 30% range, but the project is estimated to carry a profit margin of nearly 40%.
Attention is focused on how the quality of the upside in profit will affect future earnings. Assuming sales of ¥300 billion and a 40% profit margin, operating profit would be approximately ¥120 billion, with roughly ¥100 billion-plus expected to be recognized in each of the first and second halves.