Topy industries beats profit forecasts, divests China unit, boosts shareholder benefits

Topy Industries Limited reported consolidated operating results for the first half of the fiscal year ending March 31, 2026, which exceeded forecasts. Net sales reached 142,998 million yen, with operating profit at 3,256 million yen, ordinary profit at 3,390 million yen, and profit attributable to owners of parent at 2,483 million yen. These figures represent significant increases over previous forecasts and the prior fiscal year, driven by structural innovation and sustainable selling prices in the Automotive & Industrial Machinery Components Segment. Full-year earnings forecasts remain unchanged.

In a strategic move to restructure its steel wheel business in China, Topy Industries will transfer all equity interest in Ring-Techs Guangzhou Co., Ltd. to a domestic Chinese company. This aims to improve profitability under the "TOPY Active & Challenge 2027" Medium-term Management Plan, addressing declining market share of Japanese automobile manufacturers in China. The transfer is scheduled for February 12, 2026, with a minor expected impact on consolidated financial performance.

The company also announced an enhancement to its shareholder benefits program. For shareholders holding 1,000 or more shares, original catalog gifts will be replaced with 3,000 yen QUO CARDS. Additionally, long-term shareholders (three or more years continuous holding) will receive supplementary QUO CARDS ranging from 500 yen to 2,000 yen, depending on the number of shares held, effective March 31, 2026.