Juki Corporation

JUKI's share price has risen 13.8% over the past month, maintaining a profit in the first half of fiscal year ending December 2026 with operating income of 2.1 billion yen. The stock rose from 647 yen on August 5 to 763 yen by September 1, and has continued to trade at high levels since. First-half net sales were 43.8 billion yen, ordinary income was 800 million yen, and net income attributable to parent company shareholders was 400 million yen. Progress against full-year forecasts is 48.7% for net sales, 48.2% for operating income, 40.1% for ordinary income, and 32.9% for net income. The difference between operating income and ordinary income is due to an increase in interest expenses, which swelled to 1.8 billion yen in fiscal year ending December 2025. The company has been shifting its business model from "sales-oriented" to "profit-focused" since the second half of 2024, and moved out of an operating loss in fiscal year ending December 2025. Financially, its equity ratio is 26.8%, well below the machinery industry median of 67.3%, and its PBR is 0.65 times with ROE at 4.4%, both low. However, if profit margins improve, the thin equity base could act as a lever, potentially causing significant movement in these indicators.