Tokai Senko K.K. Raises Full-Year Net Profit Forecast 66.7%
Tokai Senko K.K. (TSE:3577) has revised upward its earnings guidance for the fiscal year ending March 2027, driven by foreign exchange gains at overseas subsidiaries and one-time investment gains.
| Item | Before | After | Change | Change % |
|---|---|---|---|---|
| H1 FY2027 | ||||
| Revenue | 6,900M | 6,900M | — | 0.0% |
| Operating Profit | 70M | 70M | — | 0.0% |
| Ordinary Income | △80M | 50M | +130M | — |
| Net Profit | 120M | 180M | +60M | 50.0% |
| EPS | △25.34 | 15.84 | +41.18 | — |
| Full Year FY2027 | ||||
| Revenue | 14,500M | 14,500M | — | 0.0% |
| Operating Profit | 450M | 450M | — | 0.0% |
| Ordinary Income | 600M | 650M | +50M | 8.3% |
| Net Profit | 150M | 250M | +100M | 66.7% |
| EPS | 47.52 | 79.20 | +31.68 | — |
The company cited foreign exchange gains at overseas subsidiaries boosting ordinary income (keijo rieki), a Japan-specific profit metric that includes non-operating items. Additionally, Tokai Senko expects to record JPY 110M in investment securities sale gains as extraordinary income, partially offset by JPY 72M in business restructuring costs. These one-time items drove the substantial upward revision to net profit across both the interim and full-year periods.
The revision signals improved financial performance despite flat operating profit guidance, reflecting gains from financial activities rather than core operations. Full-year net profit is now projected at JPY 250M, with earnings per share rising to JPY 79.20/share from the prior forecast of JPY 47.52/share. Investors should note that the improvement relies significantly on non-recurring items and favorable currency movements, which may not persist in future periods.
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.