Suncorporation's Q2 sees mixed results, shifts focus to wellness

Suncorporation reported its financial results for the second quarter (interim) of the fiscal year ending March 2026, showing net sales of JPY4,701 million, an 18.9% decrease year-on-year. This decline was primarily attributed to reduced shipments in the entertainment-related business and a slowdown in 3G to 4G migration demand in the IT-related business. Operating loss expanded to JPY(144) million due to the net sales decline.

However, the company saw substantial growth in profitability, with ordinary profit increasing to JPY2,186 million and profit attributable to owners of parent rising to JPY4,442 million. These increases were driven by equity method investment profit and a gain on change in equity from Cellebrite. Suncorporation is focusing on information technology and entertainment, aiming for JPY50 billion in sales and a 15% operating profit margin.

A new Wellness Business segment has been established, securing domestic distribution rights for MyWaves Technologies' sleep quality improvement products. Sun Digital Health, Inc., a wholly owned subsidiary, will handle sales, with an initial operating loss of JPY(11) million for H1 FY3/26. The company maintains its FY3/26 full-year forecasts, anticipating net sales of JPY16,247 million, an operating profit of JPY1,385 million, and an ordinary profit of JPY6,191 million.