TOYO CORPORATION Revises Down FY2026 Earnings by 50%
TOYO CORPORATION (TSE:445A0) has downwardly revised its earnings forecast for the fiscal year ending March 2026, citing a reassessment of inventory accounting treatment that will increase cost of sales.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 2.62bn | JPY 2.62bn | +0.0% |
| Operating Profit | JPY 136M | JPY 102M | -25.0% |
| Ordinary Income | JPY 73M | JPY 38M | -47.9% |
| Net Profit | JPY 44M | JPY 22M | -50.0% |
| EPS | JPY 24.99/share | JPY 12.44/share | -50.2% |
The company conducted a more rigorous review of inventory asset accounting following its previous guidance announcement. Management determined that certain real estate-related costs previously capitalized as inventory should instead be recognized as cost of sales in the current period under appropriate accounting treatment. This reclassification increases cost of sales, reducing operating profit by JPY 34M to JPY 102M, ordinary income (keijo rieki) by JPY 35M to JPY 38M, and net profit by JPY 22M to JPY 22M.
The revision reflects a significant deterioration in profitability despite flat revenue guidance at JPY 2.62bn. Operating margin compresses to 3.9% from the previously forecast 5.2%, while net profit margin halves to 0.8%. Earnings per share decline 50.2% to JPY 12.44/share. The accounting adjustment suggests internal control weaknesses in the initial forecast process and may raise questions among investors regarding the reliability of management guidance and financial reporting rigor.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.