Tokai Senko K.K. (TSE:3577) revised its earnings forecast for the fiscal year ending March 2026, citing weaker-than-expected order intake in its domestic dyeing and processing business.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | 13,800 | 13,800 | 0 |
| Operating Profit | 200 | 160 | △40 / △20.0% |
| Ordinary Income | △40 | △20.0 | △20 / △50.0% |
| Net Profit | 150 | 200 | △50 / △33.3% |
| EPS | 47.52 | 63.36 | △15.84 / △33.3% |
The company attributed the downward revision in operating profit primarily to a decline in government and public institution uniform orders for the next fiscal period. This reduction in order intake led to lower-than-expected profitability.
The revision reflects a mix of challenges and opportunities, as the company anticipates a higher net profit due to the inclusion of a special gain from the sale of investment securities amounting to JPY 8.6bn. Investors should monitor the sustainability of this special gain and the company’s ability to recover from the order decline in the coming quarters.