NISSHA Co., Ltd. (7915) on Sept. 30 cut its forecast for the year ending December 2026 to a net loss of ¥6.2 billion from a ¥3.2 billion profit, after booking a ¥6,759 million goodwill impairment on USM, a company it bought in May and has decided to sell.
First-half revenue fell 1.0% from a year earlier to ¥96.0 billion, above the ¥94.0 billion forecast issued May 12. The company posted an operating loss of ¥4.5 billion, against a projected ¥1.8 billion profit, and a net loss attributable to owners of the parent of ¥5.5 billion, or ¥115.44 per share.
NISSHA acquired USM HEALTHCARE MEDICAL DEVICES FACTORY JOINT STOCK COMPANY on May 20, 2026, and on June 26 became aware of improper accounting at USM before the acquisition, centered on circular transactions. Judging the business to have no future, it decided to sell its USM shares and, after an IFRS impairment test, booked the goodwill impairment under other expenses. The company said ¥6,759 million is the maximum loss from the purchase and sale of USM, all recorded in the first half. A separate ¥6,133 million valuation loss on USM shares in the parent-only accounts is eliminated on consolidation.
| Item | Previous | Revised |
|---|---|---|
| Revenue | ¥198.0 billion | ¥195.0 billion |
| Operating profit | ¥7.0 billion | -¥3.3 billion |
| Net profit | ¥3.2 billion | -¥6.2 billion |
| EPS | ¥67.49 | -¥130.68 |
The revenue cut reflects tablet demand in the devices business that is no longer expected to improve in the second half. Beyond the impairment, profit was hurt by demand trends and production-related costs in the decoration field of industrial materials. The forecast assumes ¥155 to the dollar, versus ¥150 previously. The annual dividend forecast was kept at ¥50 per share, with ¥25 at the interim.
Next steps: NISSHA scheduled the filing of its semiannual securities report and a briefing for institutional investors for Sept. 30, 2026. The board will disclose the results of its review of the USM acquisition decision process, prevention measures, governance and accountability once concluded; no date was given.
| Hikari Tsushin, Inc. | |
| Offer price | ¥1,000 per common share |
| M&A / TOB | 1 |
| Guidance | 0 |
| Buybacks | 0 |
| Dividends | 0 |
| Capital | 0 |
| Earnings | 0 |
| People | 0 |
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