Stocks on the move (midday) = NPC Inc, BIKE O, and Suruga Bank

NPC Incorporated <6255> - Extended gains for a third straight session as upward momentum strengthened. NPC announced after market close on Sep 30 that, based on preliminary consolidated earnings for the fiscal year ended Aug 2026, operating profit came in above its prior forecast of 760 million yen at about 846 million yen (down 52.3% year-on-year). Net sales fell short of an earlier projection of 8.014 billion yen to about 5.811 billion yen (down 36.9% year-on-year), as inspections for some equipment on a large domestic project scheduled for Q4 revenue recognition were not completed. However, high-margin relocation and modification projects, combined with a significant reduction in material costs - which account for a large portion of costs in projects involving new technologies and developmental elements - boosted operating profit.

BIKE O & COMPANY Ltd. <3377> - Rose for a fourth straight session, hitting a new year-to-date high. After market close on Sep 30, BIKE O & COMPANY raised its consolidated earnings forecast for the fiscal year ending Nov 2026, lifting net sales to 38.8 billion yen from 38.7 billion yen (up 0.6% year-on-year), operating profit to 860 million yen from 710 million yen (up 47.0% year-on-year), and net profit to 750 million yen from 570 million yen (2.3 times the prior-year level), drawing positive market reaction. Additionally, securing steady customer touchpoints through marketing initiatives and efforts to strengthen sales management and improve sales processes are expected to stabilize the procurement base. A continued firm auction market environment also facilitated procurement of high-quality vehicles. On the sales side, BIKE O maintained appropriate inventory levels while driving sales, with wholesale unit sales expected to trend toward recovery. Under firm auction market conditions, per-unit vehicle selling prices and average gross profit are also expected to remain elevated, boosting profitability.

Suruga Bank Ltd. <8358> - Hit a new all-time high for the first time in about 1.5 months. After market close on Sep 30, Suruga Bank raised its consolidated earnings forecast for the fiscal year ending Mar 2027, lifting net profit to 44 billion yen from 32 billion yen (up 26.7% year-on-year). The revision marks a turnaround from an earlier projected profit decline to a year-on-year increase, with Suruga Bank on track to post record-high profit for the first time in 10 fiscal years. The dividend forecast was also raised to 80 yen per share from 60 yen (compared with 60 yen in the prior fiscal year), drawing positive market reaction. The favorable outcome reflects steady progress in new loan originations and the pricing-in of rising interest rates, expected to result in above-forecast first-half performance. The revision also takes into account strong earnings momentum alongside the outlook for the financial and economic environment and future earnings trends.

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Source: MINKABU PRESS

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