Tamagawa Holdings has raised its full-year forecast for the year ending October 2026, but the upgrade needs reading in two parts. The company lifted revenue guidance to ¥6,950 million from ¥6,620 million and business profit to ¥820 million from ¥560 million. It also raised profit attributable to owners of the parent to ¥1,835 million from ¥730 million and doubled its planned year-end dividend to ¥10 per share from ¥5.
| Metric | Previous guide | Revised guide | Change |
|---|---|---|---|
| Revenue | ¥6,620m | ¥6,950m | +¥330m (5.0%) |
| Business profit | ¥560m | ¥820m | +¥260m (46.4%) |
| Profit attributable to owners of parent | ¥730m | ¥1,835m | +¥1,105m (151.4%) |
| Year-end dividend per share | ¥5.00 | ¥10.00 | +¥5.00 |
The operating upgrade
The cleaner part of the story sits in electronics and communications equipment. Tamagawa says its main products for social infrastructure are moving into mass production, it has won large orders in mobile infrastructure, and production has been running smoothly. Those factors underpin the ¥330 million increase in revenue guidance and the ¥260 million lift in business profit. One condition matters: the forecast assumes no major disruption in the supply of components and other materials.
Management also says the current year's business performance is now expected to exceed the ¥761 million operating-profit target in its medium-term plan for the year ending October 2028.
The bigger jump comes from mark to market
The more dramatic move is lower down the income statement. Under IFRS, which Tamagawa adopted from the first quarter, valuation gains on overseas shares held by an overseas subsidiary are recorded as financial income. The company highlighted its 125,802,352-share holding in Singapore-listed Addvalue Technologies, valued at ¥2,254 million at the end of April, up ¥1,178 million from the end of January. For the full-year forecast, Tamagawa says it used the April-end valuation level, less an amount equivalent to the effective tax rate, in calculating profit attributable to owners.
That makes the net-profit guide more exposed to market moves than the operating line. Tamagawa says the holding will be remeasured at each quarter-end, and it will revise guidance again if the swing is large enough under disclosure rules. It also warns that estimates related to tax accounting could change the final profit figure.
The half-year numbers show the mix
The interim results released the same day make that split hard to miss. Revenue for the six months to April 30 rose 45.3 percent to ¥3,742 million and operating profit increased to ¥751 million, but financial income was ¥1,595 million and profit attributable to owners reached ¥1,832 million.
So the operating business is improving, and not just on paper. But the eye-catching bottom-line upgrade, and the fatter dividend that came with it, still also reflects an April market valuation that can move again next quarter.