QPS Holdings: Revisions to 26/5 guidance and points to watch

Research evidence excerpt

QPS Holdings: Revisions to 26/5 guidance and points to watch

Global Markets Research

2 July 2026QPS Holdings

464A.T 464A JP / EQUITY: JAPAN TELECOMMUNICATIONS

RatingRevisions to 26/5 guidance and points to watch Buy

Target price JPY 3,729Quick Note

Closing price

1 July 2026 JPY 1,908Revisions to 26/5 guidance unlikely to affect medium-term earnings

QPS Holdings revised its 26/5 guidance on 1 July, lowering guidance for sales by (Note: Quick Note reports are not a

¥200mn, from ¥4.0bn to ¥3.8bn, raising guidance for operating losses by ¥400mn, from a vehicle for changes to ratings, target

loss of ¥1.2bn to a loss of ¥800mn, and raising guidance for recurring profits by ¥500mn, prices, or earnings forecasts)

from ¥0.6bn to ¥1.1bn. However, as discussed below, we do not think these revisions

imply any impact on medium-term earnings. The upward revision at the operating level

reflects changes to plans for development and research projects and progress with R&D

that is eligible for subsidies. The company also expects to book some revenue from Space Research Analysts

Strategy Fund subsidies, booked as nonoperating income, in 26/5 instead of 27/5 as

Japan telecommunicationspreviously envisioned.

Daisaku Masuno, CFA - NSC

Focusing on on-board computing and optical communications trials daisaku.masuno@nomura.com

QPS Holdings has won a proof-of-concept project from the Ministry of Defense worth a +81 3 6703 1180

total of ¥7.9bn, and in 28/5 it plans an initial trial of a prototype satellite for the advanced

demonstration of common core technologies needed for utilizing space, as well as a test

launch of the satellite, and it plans to carry out trials in orbit by March 2029. The trial is set

to involve on-board processing of data obtained from small satellites and data