Tanaka Seimitsu Kogyo Co., Ltd. Raises Full-Year Profit Forecast 40% on Investment Gains

Tanaka Seimitsu Kogyo Co., Ltd. (TSE:7218) has revised upward its earnings guidance for the fiscal year ending March 2027, driven by stronger-than-expected investment securities gains and tax benefits from a subsidiary liquidation.

ItemBeforeAfterChange
RevenueJPY 44.8bnJPY 45.3bn+1.1%
Operating ProfitJPY 1.70bnJPY 1.80bn+5.9%
Ordinary IncomeJPY 1.80bnJPY 1.90bn+5.6%
親会社株主に帰属する当期純利益JPY 1.50bnJPY 2.10bn+40.0%
1株当たり当期純利益JPY 154.48/shareJPY 216.27/share+JPY 61.79/share

The precision parts manufacturer attributed the revision to three factors: investment securities disposal gains exceeding initial projections, tax relief from the completed liquidation of subsidiary TANAKA AUTO PARTS INDIA PRIVATE LIMITED, and updated foreign exchange assumptions (USD 156 per dollar, Thai baht 4.72 per dollar, Vietnamese dong 0.00585 per dollar). Revenue rose modestly to JPY 45.3bn from JPY 44.8bn, while operating profit (eigyo rieki) increased to JPY 1.80bn. Ordinary income (keijo rieki), a Japan-specific metric encompassing operating profit plus non-operating items, climbed to JPY 1.90bn.

Net profit attributable to parent company shareholders surged 40% to JPY 2.10bn, with earnings per share rising to JPY 216.27 from JPY 154.48. The company cautioned that the July 28 Kumamoto earthquake’s impact remains under assessment and is not reflected in current projections, leaving room for potential further adjustments. International investors should note that the substantial profit uplift stems primarily from non-operating gains rather than core business improvement, warranting close monitoring of operational trends.

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.