Several stocks announced earnings and revisions to their full-year outlooks in the afternoon-session comments. The developments and market reactions for Sumitomo Bakelite, Axial Retailing, ITO HAM YONEKYU, Mitsui & Co., Kioxia Holdings and Chiyoda Corporation were reported.
Sumitomo Bakelite announced consolidated operating profit of ¥25.99 billion for the first half of the fiscal year ending March 2027 on an IFRS basis, up 57.9% year on year, and left its full-year forecast unchanged at ¥50.00 billion, up 40.9% from the previous fiscal year. Profitability improved on increased semiconductor demand, higher sales volumes and the passing through of higher prices, although profit growth in the second quarter was viewed as having slowed from the first quarter. The stock showed sell-side indications in the afternoon session.
Axial Retailing reported consolidated operating profit of ¥6.43 billion for the first half of the fiscal year ending March 2027, up 9.2% year on year. The full-year forecast was unchanged at ¥11.70 billion. Revenue increased as a result of improvements in sales methods, responses to low-price competition and better planning and management using generative AI, while the gross profit margin also improved. Higher overhead costs were offset by increased revenue. The stock showed buy-side indications in the afternoon session.
ITO HAM YONEKYU HOLDINGS INC. reported consolidated operating profit of ¥11.56 billion for the first half of the fiscal year ending March 2027, down 12.1% year on year. The decline in domestic sales volumes and higher raw material costs weighed on results, and although the overseas business remained solid, overall profit declined. The share price continued to fall in the afternoon session.
Mitsui & Co. revised upward its full-year consolidated net profit forecast for the fiscal year ending March 2027 from the previous ¥920.0 billion to ¥1.050 trillion. First-half net profit was ¥574.9 billion, up 35.7% year on year, reflecting higher gross profit in the energy, chemicals, mobility, digital and infrastructure businesses, among others, and an increase in equity-method investment gains. The market consensus was ¥1.0172 trillion.
Chiyoda Corporation showed buy-side indications in the afternoon session and revised upward its full-year operating profit forecast for the fiscal year ending March 2027 from the previous ¥10.0 billion to ¥26.5 billion. First-half operating profit was ¥16.1 billion, up 3.3% year on year, reflecting steady progress on multiple projects in Japan and overseas and the recognition of additional revenue from overseas projects. Buy-side indications continued in the afternoon session.
Iwai Cosmo Securities raised its target price for Kioxia Holdings from ¥45,000 to ¥45,100. July-September quarterly earnings set a new record high, and the company reaffirmed data-center demand against a backdrop of an expanding inference market driven by the spread of AI agents. The October-December quarter is expected to be affected by the reversal of shipments brought forward and by product mix.