Many leading Japanese companies have posted higher net profits in the six-month period through September. This comes as coronavirus vaccine rollouts have progressed, helping to normalize economic activities globally.
SMBC Nikko Securities examined half-year results announced on November 15 or earlier by 1,453 companies listed on the first section of the Tokyo Stock Exchange.
The study shows that more than 72 percent, or 1,052 of the firms, improved their bottom lines in the April-September period from the corresponding quarters of last year. Their business year ends in March.
Also, 434 companies revised upward their net profit outlooks for the full year through next March.
That's about 2.5 times the number of businesses that revised downward.
The total net profits forecast by all firms for the full year surpassed levels seen before the coronavirus pandemic. It is the largest amount since comparable data became available in the fiscal year ending in March 2005.
SMBC Nikko Securities equity strategist Yasuda Hikaru says bottlenecks in parts supply chains for manufacturers are expected to ease gradually.
But he says business environments for land and air transport sectors still have a long way to go before returning to normal.