[Summary]
Based on the financial results disclosed on May 14, 2026, we selected 10 stocks to focus on across sales growth, operating profit growth, profit margin, financial stability, operating cash flow, and business themes.
The 10 stocks to watch this time are Seiko Giken, FUJI, Lux, Fujikura, BuySell Technologies, Trial Holdings, Techno Ryowa, Japan Electronic Materials, Nexon, and PKSHA Technology.
There are three main features.
- Strengths related to AI, data centers, and semiconductors
- Revenue leverage of SaaS/AI software companies
- Actual demand growth for retail, reuse, and equipment construction
However, strong financial results do not necessarily mean that stock prices will continue to rise. You need to check market expectations, next year's plans, stock price levels, backlog of orders, inventory, exchange rates, and extraordinary gains and losses.
This article is a summary of "confirmation candidates" based on the financial results released on the same day, and is not a recommendation to buy or sell individual stocks.
Selection policy
In this selection, we focused on operating income growth and the profitability of the core business, rather than simply the size of net income.
In particular, we confirmed the following:
- Are sales or sales revenue growing?
- Is operating profit increasing?
- Is the operating profit margin high or improving?
- Are the equity ratio and operating cash flow reasonable?
- Is the business theme likely to attract attention in the market from the next day?
On the other hand, we carefully handle industries such as financial stocks where it is difficult to compare normal operating profits, stocks whose final profits have changed significantly due to extraordinary gains and losses, and stocks that require unit confirmation of company plans.
10 stocks to watch
| Company name | Code | Fiscal year end | Reason for attention | Points to note | Details |
|---|---|---|---|---|---|
| [Seiko Giken | 6834](/securities/6834/quarterly/2026-05-14-6834-2026Q4.html) | Full year ending March 2026 | Sales increased by 50.6%, operating income increased by 174.5%. With an operating profit margin of 25.7% and an equity ratio of 81.2%, the company has strong growth and financial strength. | Forecasts for the next period require individual confirmation. I would like to see the investment cycle, overseas sales, and exchange rates for optical communications and precision parts. | Details |
| FUJI｜6134 | Full year ending March 2026 | Sales increased by 41.8%, operating income increased by 112.5%. The operating profit margin was 16.2%, the equity ratio was 83.5%, and the recovery in electronic component mounting machines was noticeable. | Affected by the capital investment cycle. We would like to confirm the continuity of investment by semiconductor and electronic component manufacturers. | Details | |
| [Lux | 3923](/securities/3923/quarterly/2026-05-14-3923-2026Q4.html) | Full year ending March 2026 | Sales increased by 23.3%, operating income increased by 70.2%. With an operating profit margin of 28.8% and an operating CF of 13.391 billion yen, SaaS is on the verge of recovering profits. | Next fiscal year, the focus will be on the balance between investment and profit growth. I want to check advertising costs, personnel costs, and cancellation rates. | Details |
| [Fujikura | 5803](/securities/5803/quarterly/2026-05-14-5803-2026Q4.html) | Full year ending March 2026 | Sales increased by 20.7%, operating income increased by 39.2%. It has a strong theme related to AI data centers, electric power, and optical communication infrastructure. | It's easy to get ahead of expectations. Confirmed growth in data center applications, profitability of optical-related products, and investment burden. | Details |
| BuySell Technologies｜7685 | 1Q of the fiscal year ending December 2026 | Sales increased by 37.0%, operating income increased by 97.3%. Achieved high profit growth from 1Q by incorporating the expansion of the reuse market. | Profit is influenced by purchasing quality, advertising costs, appraisers, and inventory turnover. I would also like to see quarterly changes. | Details | |
| [Trial Holdings | 141A](/securities/141A/quarterly/2026-05-14-141A-2026Q3.html) | 3Q of June 2026 | Sales increased by 67.3%, operating income increased by 122.8%. Progress against the full-year operating profit plan is 77.2%, making it a strong presence as a retail growth stock. | Low-price retail focuses on store opening costs, logistics costs, personnel costs, and gross profit margin. Capital efficiency is also confirmed as the equity ratio is not high. | Details |
| [Techno Ryowa | 1965](/securities/1965/quarterly/2026-05-14-1965-2026Q4.html) | Full year ending March 2026 | Sales increased by 17.2%, operating income increased by 63.7%. With an operating profit margin of 16.0% and operating CF of 12.147 billion yen, it is clear that the profitability of equipment construction has improved. | Profits in air conditioning and equipment construction tend to fluctuate due to labor shortages, material prices, and construction schedule management. The focus is on maintaining order profitability. | Details |
| [Japan Electronic Materials | 6855](/securities/6855/quarterly/2026-05-14-6855-2026Q4.html) | Full year ending March 2026 | Sales increased by 23.2%, operating income increased by 58.1%. The operating profit margin was 24.7% and the equity ratio was 76.7%, demonstrating the company's strength in semiconductor testing. | Orders tend to fluctuate due to fluctuations in semiconductor market conditions, memory/logic investment, and customer inventory adjustments. | Details |
| [Nexon | 3659](/securities/3659/quarterly/2026-05-14-3659-2026Q1.html) | 1Q of December 2026 | Sales increased by 33.6%, operating income increased by 39.8%, and net income increased by 114.2%. The earning power of major titles and existing IP stands out. | Games fluctuate every quarter due to title launches, regional charges, exchange rates, and development costs. I want to check the continuation rate. | Details |
| PKSHA Technology｜3993 | 2Q of September 2026 | Sales increased by 85.8%, operating income increased by 50.8%. Incorporating demand for AI solutions, progress toward full-year operating profit plan was 63.5%. | Net income decreased compared to the same period last year. I would like to separately check the continuity of M&A, investment, unrealized gains and losses, and AI demand. | Details |
Performance Summary
It will be easier to organize the 10 companies this time by dividing them into AI/semiconductor infrastructure type, software type, actual demand growth type, and equipment construction type.
| Company name | Code | Sales | Operating profit | Profitability/finance | View |
|---|---|---|---|---|---|
| Seiko Giken | 6834 | 30.087 billion yen, 50.6% increase | 7.733 billion yen, 174.5% increase | Operating profit margin 25.7%, equity ratio 81.2% | Highly profitable growth in optical communications and precision parts stands out. |
| FUJI | 6134 | 180.642 billion yen, 41.8% increase | 29.282 billion yen, 112.5% increase | Operating profit margin 16.2%, equity ratio 83.5% | Reflecting recovery in investment in electronic component mounting machines. |
| Lux | 3923 | 60.286 billion yen, 23.3% increase | 17.345 billion yen, 70.2% increase | Operating profit margin 28.8%, operating CF 13.391 billion yen | High SaaS growth and profit collection are compatible. |
| Fujikura | 5803 | 1,182.358 billion yen, 20.7% increase | 188.707 billion yen, 39.2% increase | Operating profit margin 16.0%, operating CF 132.905 billion yen | A representative company related to AI data centers and optical communications. |
| BuySell | 7685 | 32.057 billion yen, 37.0% increase | 5.472 billion yen, 97.3% increase | Equity ratio 39.1% | Focus is on expanding the reuse market and operational efficiency. |
| Trial HD | 141A | 1,036.63 billion yen, 67.3% increase | 52,192 million yen, 122.8% increase | Full-year operating income progress 77.2% | Phase to see the growth potential of store openings, DX, and low-price retail. |
| Techno Ryowa | 1965 | 98.681 billion yen, 17.2% increase | 15.760 billion yen, 63.7% increase | Operating profit margin 16.0%, equity ratio 65.7% | Strong improvement in profitability of equipment construction. |
| Japan Electronic Materials | 6855 | 29.366 billion yen, 23.2% increase | 7.249 billion yen, 58.1% increase | Operating profit margin 24.7%, equity ratio 76.7% | High profitability in semiconductor inspection related business shines. |
| Nexon | 3659 | 152.234 billion yen, 33.6% increase | 58.163 billion yen, 39.8% increase | Operating profit margin equivalent to 38.2% | Game IP has strong earning power. |
| PKSHA | 3993 | 18.712 billion yen, 85.8% increase | 4.253 billion yen, 50.8% increase | Full-year operating income progress 63.5% | Growth stock that captures AI implementation demand. |
Performance evaluation
1. AI and semiconductor infrastructure remain strong
Fujikura, Seiko Giken, FUJI, and Japan Electronic Materials all posted strong numbers in areas close to AI infrastructure and semiconductor investment.
Fujikura in particular has strong sales as well as financial strength, with operating income increasing by 39.2% and operating cash flow of 132.905 billion yen.
Seiko Giken and Nippon Electronic Materials have operating profit margins in the 20% range, which stands out not only for their growth rates but also for their high profitability.
FUJI had a strong recovery in electronic component mounting machines, resulting in a leveraged financial result with sales up 41.8% and operating income up 112.5%.
2. SaaS/AI software is in the profit recovery phase
Lux's sales increased by 23.3% and operating income increased by 70.2%, which is a very easy-to-read financial result for a SaaS company.
Despite spending on advertising and personnel expenses, the operating profit margin has increased to 28.8%, giving the impression that the company is entering the profit recovery phase after investing in growth.
PKSHA has strength as an AI theme, with sales increasing by 85.8% and operating profit increasing by 50.8%.
However, since net income has decreased compared to the same period last year, it is necessary to look at the improvement in operating income and the difference in final income separately.
3. Trial and BuySell stand out in the actual demand system
Trial Holdings is experiencing scale expansion and profit growth at the same time, with sales increasing by 67.3% and operating income increasing by 122.8%.
While low-priced retailing tends to be seen as a defensive strategy, the investment in opening new stores, logistics, and personnel costs are also large, so the focus going forward will be not only on sales growth but also on maintaining profit margins.
BuySell has capitalized on the growth of the reuse market, increasing operating income by 97.3% from 1Q.
The next thing to check is whether the purchase/sales turnover rate, advertising costs, and productivity of appraisers are continuously improving.
4. Techno Ryowa is strong in equipment construction
Techno Ryowa's sales increased by 17.2%, operating income increased by 63.7%, and operating profit margin increased by 16.0%.
Equipment construction-related businesses tend to receive tailwinds from data centers, air conditioning, factory investment, and urban infrastructure renewal, but profits are affected by construction delays, material costs, and labor shortages.
The company had a positive operating cash flow of 12.147 billion yen, and the quality of profits was relatively easy to check.
Send-off/Runner Candidate
There are some stocks that I didn't include in this 10 stocks, but I would like to check out as runners-up.
| Company name | Code | How to read |
|---|---|---|
| F&M | 4771 | Sales increased by 21.9%, operating income increased by 42.0%. We see stable growth as a support service for small and medium-sized businesses. |
| Nakanishi | 7716 | Sales increased by 21.3%, operating income increased by 23.6%. Profitability in the dental and medical fields is strong, but unit confirmation of company plans is required. |
| NJS | 2325 | Sales increased by 20.1% and operating income increased by 25.3% in 1Q. There is a sense of stability in relation to water infrastructure. |
| RIZAP Group | 2928 | Operating income has increased significantly, but we would like to further confirm the sustainability and financial aspects of the structural reforms. |
| ENEOS | 5020 | Operating income improved significantly. However, it is necessary to look at the impact on resources and inventory separately. |
Points to check after tomorrow
The first thing to look at is whether the stock price reaction is overheated relative to the strength of the financial results.
Even if the financial results are strong, if the market has already priced them in, the reaction from the next day onwards may be limited.
Next is the premise of company planning.
In this financial results, there are some stocks whose full-year forecast figures require individual confirmation. In particular, regarding semiconductors and capital investment, our outlook changes depending on order backlog, customer investment, exchange rates, and product mix.
Lastly, there is consistency between operating income and cash flow.
Even if operating income is increasing, if accounts receivable and inventory increase too much, there will be a financial burden. Stocks such as Fujikura, Lacus, and Techno Ryowa, where operating CF can also be confirmed, have financial statements that make it easy to see the quality of profits.
Summary
In the financial results for May 14, 2026, strong numbers were seen in AI/data center/semiconductor-related, SaaS/AI software, low-price retail, reuse, and equipment construction.
Particularly notable were the infrastructure/semiconductor-related growth of Fujikura, Seiko Giken, FUJI, and Japan Electronic Materials, as well as the software growth of Lux and PKSHA.
On the other hand, the stronger the numbers, the higher the market expectations tend to be, so from the next day onwards, it is important to look at not only the financial results, but also the degree to which stock prices have been factored in, next year's plans, orders and sales trends, and operating cash flows.
Source
This article is based on each company's financial results disclosed on May 14, 2026, and is based on a cross-sectional comparison of business results, company forecasts, financial stability, and operating cash flows.