Ahead of the November earnings season, 20 stocks considered potential candidates for upward revisions were selected, focusing on those with exceptionally high first-quarter progress rates.
With the earnings announcement season approaching, interim results for companies with fiscal years ending in March will gain momentum from late October. In particular, cases are increasing in which first-quarter ordinary profit accounts for most of the full-year plan and substantially exceeds the five-year average, making stocks with high progress rates a focus for potential upward revisions at the interim results stage. Based on Kabutan's compilation, the article lists stocks to monitor as of late September, focusing on those known as the "Takamatsu Construction Group type," where the gap from the usual pattern is exceptionally large.
As the first example, Daisue Construction had a first-quarter progress rate of 37.2%, compared with a five-year average of 17.6%. It raised its full-year ordinary profit forecast to ¥6.94 billion, and its share price responded the day after it also announced an increased dividend. Although the revised second-half outlook is below the previous year's actual result, room remains for an upside surprise. The company is therefore cited as a leading example of the Takamatsu Construction Group type.
Takamatsu Construction Group's first-quarter ordinary profit accounted for 27.3% of its full-year plan, standing out at approximately three times the five-year average of 9.1%. At the time of its first-quarter results, the IFIS consensus was approximately 5% above the company's plan, which it had raised in May from its initial forecast. The company has a record of increasing its full-year dividend, and is viewed as having room for another revision this fiscal year.
Naikai Zosen, a shipbuilder based in the Setouchi region, had a first-quarter progress rate of 87.4%, with its full-year plan achievement rate also high at 87.4%. The figure is notable even compared with results from previous years, reportedly reflecting the revenue benefit from foreign-currency-denominated projects due to the weaker yen. All of these stocks are cited as items to monitor before the interim results.