Smartvalue, Net Income Forecast for the Fiscal Year Loss Widened in Downward Revision

Smartvalue Co.,Ltd. <9417> [TSE Std] announced its financial results after the market closed on February 13th (15:30). The consolidated net loss for the cumulative second quarter of the fiscal year ending June 2026 (July to December) expanded to a loss of 0.62 billion yen (compared to a loss of 0.18 billion yen in the same period last year), further increasing the deficit beyond the forecast of a loss of 0.33 billion yen.

In addition, the full-year forecast for consolidated net income/loss has been revised downward from an expected loss of 0.06 billion yen to a loss of 0.78 billion yen (compared to a profit of 0.91 billion yen in the previous period), indicating an expansion in the loss margin.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated net income/loss for the January to June period (second half) is expected to turn into a loss of 0.16 billion yen (compared to a profit of 1.10 billion yen in the same period last year).

In the most recent three-month period, from October to December (2Q), the consolidated net loss expanded to a loss of 0.38 billion yen (compared to a loss of 0.08 billion yen in the same period last year). However, the operating profit/loss margin drastically improved from -4.7% in the same period last year to 1.2%.

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