Meito Co., Ltd. Revises Earnings Forecast — Net Profit Nearly Doubles
Meito Co., Ltd. (TSE:2207) has raised its earnings guidance for the fiscal year ending March 2027, driven by accelerated sales of its investment portfolio.
| Item | Before | After | Change | Change % |
|---|---|---|---|---|
| Revenue | 30,500M | 30,500M | 0 | 0.0% |
| Operating Profit | 1,800M | 1,800M | 0 | 0.0% |
| Ordinary Income | 3,000M | 5,000M | 2,000M | 66.7% |
| Net Profit | 2,100M | 4,600M | 2,500M | 119.0% |
| EPS | JPY 128.81/share | JPY 282.17/share | JPY 153.36/share | 119.0% |
The company is intensifying efforts to reduce its investment securities portfolio to improve asset efficiency. Meito plans to recognize approximately JPY 2.0bn in annual non-operating gains from sales of pure investment holdings. In the first quarter, the company recorded JPY 0.4bn in non-operating income from such sales. The second quarter is expected to yield approximately JPY 1.6bn in extraordinary gains from the sale of non-pure-investment securities. These realized results have been incorporated into consolidated earnings guidance, with ordinary income (keijo rieki) and net profit now projected to exceed previous forecasts.
The upward revision reflects a strategic shift toward portfolio optimization. Proceeds from securities sales will be allocated to growth investments and shareholder returns, positioning asset reduction as a key driver of corporate value enhancement. The revision demonstrates management’s commitment to improving capital efficiency while maintaining flat core operating performance.
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.