KITOKU SHINRYO, Ordinary Profit Forecast for the Fiscal Year Revised Upward by 90%, Raises Record High Profit Forecast

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Thu Aug 7, 2025 3:30 pm JST Earnings

2700 KITOKU SHINRYO CO., LTD. 【J-GAAP】

Earnings Report

KITOKU SHINRYO CO., LTD. <2700> [TSE Std] announced its financial results after the market closed on August 7th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending December 2025 (January to June) surged 4.6 times that of the same period last year, reaching 5.35 billion yen.

In addition, the full-year forecast for consolidated ordinary profit has been revised upward 90.2%, from the previous forecast of 4.10 billion yen to 7.80 billion yen (compared to 2.48 billion yen in the previous period), increasing the growth rate from 65.0% to 3.1 times, further surpassing the previous forecast of record-high profits for three consecutive terms.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the July to December period (second half) is expected to expand 86.2% from the same period last year, reaching 2.44 billion yen.

In light of the strong performance, the company has significantly increased its planned annual dividend for the current fiscal year from the original plan of 70 yen to 150 yen (compared to 130 yen before the 5-for-1 forward stock split in the previous period).

In the most recent three-month period, from April to June (2Q), the consolidated ordinary profit surged 4.7 times that of the same period last year, reaching 3.49 billion yen. The operating profit margin drastically improved from 2.2% in the same period last year to 7.2%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Jan - Jun, 2023	56,833	1,359	1,430	980	121.0	66.4	Aug 4, 2023	J-GAAP
Jan - Jun, 2024	59,190	1,059	1,172	831	102.6	47.2	Aug 6, 2024	J-GAAP
Jan - Jun, 2025	84,015	5,257	5,355	3,703	453.4	68.7	Aug 7, 2025	J-GAAP
YoY	+41.9%	+396.4%	+356.9%	+345.6%	+342.1%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jan - Jun, 2025 Guidance	ー	ー	ー	ー	－	10	Apr 21, 2025	J-GAAP
Jan - Jun, 2025 Results	84,015	5,257	5,355	3,703	453.4	20	Aug 7, 2025	J-GAAP
Revision Rate	－	－	－	－	－

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2025 Prev	165,000	4,000	4,100	2,800	342.3	30	May 8, 2025	J-GAAP
Dec, 2025 New	177,000	7,700	7,800	5,400	660.2	70	Aug 7, 2025	J-GAAP
Revision Rate	+7.3%	+92.5%	+90.2%	+92.9%	+92.9%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024	59,808	1,318	1,313	892	109.8	20	Feb 14, 2025	J-GAAP
Jul - Dec, 2025 Guidance	92,985	2,443	2,445	1,697	207.5	50	Aug 7, 2025	J-GAAP
YoY	+55.5%	+85.4%	+86.2%	+90.2%	+88.9%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2023	114,835	2,061	2,153	1,478	182.5	16	Feb 15, 2024	J-GAAP
Dec, 2024	118,998	2,377	2,485	1,723	212.1	26	Feb 14, 2025	J-GAAP
Dec, 2025 Guidance	177,000	7,700	7,800	5,400	660.2	70	Aug 7, 2025	J-GAAP
YoY	+48.7%	+223.9%	+213.9%	+213.4%	+211.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Apr - Jun, 2024	29,229	645	740	492	60.7	2.2	Aug 6, 2024	J-GAAP
Jul - Sep, 2024	27,854	610	575	404	49.8	2.2	Nov 7, 2024	J-GAAP
Oct - Dec, 2024	31,954	708	738	488	60.1	2.2	Feb 14, 2025	J-GAAP
Jan - Mar, 2025	36,871	1,853	1,863	1,290	158.0	5.0	May 8, 2025	J-GAAP
Apr - Jun, 2025	47,144	3,404	3,492	2,413	295.4	7.2	Aug 7, 2025	J-GAAP
YoY	+61.3%	+427.8%	+371.9%	+390.4%	+386.5%