Star Seeds shares extend sharp slide after FY Feb 2026 results miss forecast

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Mon Apr 20, 2026 10:40 am JST Catalyst

Star seeds Co., Ltd. <3083> continued to fall sharply. Following the market close on April 17, the company reported consolidated results for the fiscal year ended February 2026, with sales of 10.017 billion yen (up 96.0% year-on-year), operating profit of 199 million yen (reversing a 282 million yen loss), and net profit of 63 million yen (reversing a 530 million yen loss). Earnings significantly undershot previous forecasts of 510 million yen in operating profit and 300 million yen in net profit, weighing on the stock.

Star seeds is undergoing a major transition from apparel to AI infrastructure. The fiscal 2025 forecast relied on order and sales trends in its new grid-scale battery and GPU server businesses. However, while orders were secured, revenue for some projects was deferred to fiscal 2026. Meanwhile, the apparel segment failed to reach target profits due to reduced store traffic amid abnormal weather and rising prices. Consequently, while sales beat the 8.95 billion yen forecast, profits missed the mark.

For fiscal 2026, the company projects sales of 26.0 billion yen (up 2.6 times year-on-year), operating profit of 1.1 billion yen (up 5.5 times), and net profit of 500 million yen (up 7.9 times). Star seeds plans an annual dividend of 10 yen, unchanged from the previous year when it resumed payouts for the first time in 13 years.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.