Aichi Tokei Denki Co., Ltd. Revises Earnings Forecast — Profit Down 23–25%
Aichi Tokei Denki Co., Ltd. (TSE:7723) has downwardly revised its earnings forecast for the fiscal year ending March 2027, citing warranty costs related to a defect in LP gas meter components.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 60.5bn | JPY 60.5bn | +0.0% |
| Operating Profit | JPY 4.96bn | JPY 3.73bn | -24.8% |
| Ordinary Income | JPY 5.32bn | JPY 4.07bn | -23.5% |
| Net Profit | JPY 4.61bn | JPY 3.57bn | -22.6% |
| EPS | JPY 300.49/share | JPY 232.70/share | -22.6% |
The company identified a battery voltage decline issue in certain LP gas meter components that triggers erroneous warning displays. While no safety hazards such as gas leaks have been detected, Aichi Tokei Denki has decided to conduct a full pre-expiration replacement of all affected commercial LP gas meters. The company has increased provisions for product warranty costs, recorded under selling, general and administrative expenses, to cover the remediation program.
Revenue remains unchanged at JPY 60.5bn, reflecting stable demand. However, operating profit (eigyo rieki) declines JPY 1.23bn to JPY 3.73bn, ordinary income (keijo rieki) falls JPY 1.25bn to JPY 4.07bn, and net profit drops JPY 1.04bn to JPY 3.57bn. Earnings per share contract to JPY 232.70 from JPY 300.49. The company has maintained its dividend forecast unchanged, signaling confidence in underlying business fundamentals despite near-term profit headwinds. International investors should note that ordinary income, a Japan-specific metric, encompasses operating profit plus non-operating items and differs from IFRS operating income.
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.