SAXA sharply reverses after four-day gain on 52% operating profit decline forecast for March 2027

SAXA, Inc. <6675> shares sharply reversed on Monday after a four-day winning streak. Following Friday's close, the company announced its previously undisclosed consolidated earnings forecast for the fiscal year ending March 2027. The forecast projects net sales of 47.50 billion yen (up 7.7% year-on-year), operating profit of 1.00 billion yen (down 52.1%), and net profit of 16.50 billion yen (up 12.0-fold), prompting selling pressure due to the projected sharp drop in operating profit. While the consolidation of NEUTEC as a subsidiary in March will offset the decline in existing operations and drive revenue growth, SAXA expects operating profit to decrease due to rising material costs and higher labor expenses.

Concurrently, the company disclosed its medium-term management plan running from the fiscal year ending March 2027 through the fiscal year ending March 2030. The plan targets an operating profit of 5.00 billion yen for the fiscal year ending March 2030, compared with 2.09 billion yen for the fiscal year ended March 2026, and a return on equity (ROE) of 8.0%, up from 4.3%. The fiscal year ending March 2027 is positioned as a business structure transformation period aimed at strengthening its management foundation. Alongside this structural transformation, SAXA announced a next-career support program, a plan to divest aging factories, and the start of construction on a new factory to relocate its production functions. Regarding its dividend policy, from the fiscal years ending March 2028 to March 2030, the firm will adopt whichever is higher: a dividend on equity (DOE) ratio of 4.00% or a total payout ratio of 100.00% based on net profit, excluding extraordinary gains and losses and adjusted for tax burdens.

Additionally, SAXA and its subsidiary System K announced they have entered into a basic agreement with Safie Inc. <4375> for a strategic business alliance in the video solutions sector.

Source: MINKABU PRESS

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