An upward revision of earnings forecasts is a major trigger for stock price increases. Therefore, this time, I would like to introduce stocks that I would like to pay particular attention to among the stocks that have recently revised their earnings forecasts upward.

RIZAP Group ＜2928＞

On April 23, the RIZAP Group (2829) revised its earnings forecast for the fiscal year ending March 24 upward. Operating profit was revised from the previous forecast of -1.8 billion yen to -750 million yen to 200 million yen. As for the ChocoZap business, which we are focusing on, we have achieved profitability on a monthly basis since November last year, and quarterly operating income has shown a significant improvement.

After quarterly operating income for the fiscal year ending March 24 was 2.86 billion yen for the first quarter, 3.08 billion yen for the second quarter, and 1.17 billion yen for the third quarter, profit is expected to expand significantly to 4 billion yen to 4.9 billion yen for the fourth quarter.

The medium-term management plan includes operating income of 30 billion yen for the fiscal year ending 26/3 and 40 billion yen for the fiscal year ending 27/3, but it seems that the feasibility of achieving this plan has increased considerably due to the current upward revisions.

Mizuno ＜8022＞

Mizuno is a major sporting goods company, and it is used for various sports, including baseball and golf. On February 8, the operating profit forecast for the fiscal year ending March 24 was revised upward from 15 billion yen to 16.5 billion yen, and the year-end dividend for the fiscal year ending March 31 was revised upward from 35 yen to 85 yen. Sales are expected to exceed the full-year results of the previous year, which was a record high. As for profit, sales of competitive sports products with high added value, such as football and indoor shoes, which we are focusing on, have expanded globally, sales in owned EC and Asia have grown, and sales have been strong in South America, etc., where we are developing license businesses, etc., so it is expected that each profit below operating income will exceed previous expectations. The company's stock price was around 4,400 yen before announcing the upward revision of this earnings forecast, but it rose to a level of over 7,700 yen on 4/15.

BOOKOFF GHD ＜9278＞

On April 11, BOOKOFF GHD revised its earnings forecast for the fiscal year ending 24/5 upward from 106 billion yen to 111 billion yen, and operating income from 2.6 billion yen to 3.2 billion yen. As sales of trading cards, hobbies, apparel, precious metals, watches, branded bags, home appliances, mobile phones, etc. surpassed the same period last year in the main “domestic bookoff business,” cumulative sales for the 3rd quarter increased 8.1% from the same period last year to 73.1 billion yen, and segment profit increased 18.7 billion yen from the same period last year.

The reuse market will expand for 13 consecutive years until 2022, and there is also an estimate that the market size will expand to 4 trillion yen in 30 years compared to about 2.9 trillion yen in 2022. In order to capture these expanding needs, the company has a policy of handling a wide range of products such as books, music/video/game software, trading cards, hobbies, precious metals, watches, and branded bags at bookoff stores to meet needs. Furthermore, the “premium service business” provides a variety of services, such as store expansion into department stores, door-to-door purchases, and comprehensive jewelry-related services to high-income groups above the upper mass class that cannot be fully reached at bookoff stores.

Through these, we have set a target of 130 billion yen in sales by the fiscal year ending 28/5, and of 4.5 billion yen or more in terms of ordinary profit, which greatly exceeds the record high.

Stock prices rose 6.9% on 4/15, two days after the upward correction, and the upward trend continued thereafter.