Shares of Watts (2735.T), which operates 100-yen shops in Japan, reached a year-to-date high on August 19 after the company raised its fiscal year ending August 2026 net profit and dividend forecasts. The stock rose as much as ¥23 from the previous day to ¥708 before closing at ¥700, up ¥15. Watts lifted its full-year consolidated net profit forecast from ¥900 million to ¥1 billion, representing 14.9% year-on-year growth. The revision mainly reflects expected gains from selling its consolidated Peruvian subsidiary, Watts Peru S.A.C., including lower losses and corporate taxes linked to the transaction and profits from reversing foreign currency translation adjustments. Revenue and operating profit forecasts were unchanged, indicating that the upgrade was driven primarily by one-time factors rather than stronger core operations. The company also raised its year-end dividend forecast from ¥12.50 to ¥15.50 per share, including increases to both the ordinary dividend and special dividend. Total projected annual dividends now stand at ¥23 per share, equal to the previous year's actual payout. The higher shareholder returns attracted buying interest, particularly from retail investors, although some market participants remain uncertain how far the rally can continue without an improvement in underlying earnings power. Watts has faced periods of share-price weakness amid intensifying competition among 100-yen shops and higher raw material costs, making the dividend increase a signal of stronger commitment to shareholder returns.