On 14 May 2025, Shinwa, which mainly manufactures, sells and constructs scaffolding equipment for the use in the fields of construction work, released its FY03/2025 results. It has been revealed that the Company saw surging revenue and earnings as expected in initial Company forecasts. This is largely due to the acquisition of the YAGUMI Group, one of the leading operators to construct scaffolding equipment in Japan, as a subsidiary in April 2024. It appears that the impact was substantial for earnings in particular. The said subsidiary’s operations to construct scaffolding equipment carry gross profit margin higher in the first place, when compared with that of the existing operations to manufacture and sell scaffolding equipment. Meanwhile, FY03/2026 Company forecasts look being based on conservative assumptions. We are to attend the Company’s results briefing to be held on Thursday, 29 May, while planning to interview with the management so that we should be able to update our Company Report to release afresh.

On 15 April 2025, INTERLIFE HOLDINGS, running operations of interior finish work as well as design and construction of sound & lighting facilities, held its results briefing for FY02/2025. It has been revealed that the Company is to potentially see a significant earnings growth from a long-term perspective. The Company is to see a swing in its performance from FY02/2025 to FY02/2026 due to concentration of sales for large-sized projects and restructuring, while we estimate CAGR of almost 40% in operating profit from a long-term perspective, based on the Company’s suggestions. For the actual results of FY02/2025, sales and earnings have just surged, driven by projects related to the Osaka Expo and steady progress in work to complete large-sized projects related to urban redevelopment. Meanwhile, there is an aspect that sales were concentrated far more than initially planned and thus a correction is inevitable for FY02/2026 to immediately follow. Still, the level of operating profit will roughly triple, compared with the actual results of FY02/2024, i.e., the stage immediately prior to the concentration of sales. We are to have an interview with the management to obtain further details in order to update our Company Report and release it afresh.

NORITZ, running operations mainly to manufacture and sell gas water heaters & oil-fired boilers both in Japan and foreign countries, is working on measures to achieve a significant cost reduction during the period of the midterm management plan V-Plan 26 (FY12/2024 to FY12/2026). The impact was rather limited in earnings for FY12/2024, the first year of the plan, while the Company is calling for cost reduction of cumulative ¥3,000m throughout the three-year period of the midterm management plan V-Plan 26, which is to be achieved by realization of smart manufacturing scheme through the establishment of a robust infrastructure of manufacturing system and an increase in the rate of in-house production. The Company is calling for prospective sales of \210,000m, operating profit \4,500m and operating profit margin of 2.1% for FY12/2026, the final year of the plan. Based on a simple comparison, it would appear the Company’s earnings are to be driven mostly by the cost reduction. In the actual results for FY12/2024, the Company was inevitably suffering from a decline in earnings due mainly to sluggishness of market conditions in China, but a recovery in earnings is to begin and persist for FY12/2025 and thereafter, having hit the bottom for FY12/2024. The Company suggests CAGR of 1.9% in sales and 37.1% in operating profit for FY12/2026, when setting the actual results for FY12/2024 as the point of origin.