KEIWA Incorporated Revises FY2026 Earnings Down 35.5% on Memory Shortage
KEIWA Incorporated (TSE:4251) has cut its full-year consolidated earnings forecast for the fiscal year ending December 2026, citing persistent memory chip shortages and rising energy costs.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 23.2bn | JPY 20.9bn | -10.1% |
| Operating Profit | JPY 4.40bn | JPY 2.84bn | -35.5% |
| Ordinary Income | JPY 4.41bn | JPY 2.97bn | -32.7% |
| Net Profit | JPY 3.05bn | JPY 2.06bn | -32.7% |
| EPS | JPY 165.06/share | JPY 111.14/share | JPY -53.92/share |
The company expects memory supply constraints to weigh on notebook PC sales through the second half of 2026. Additionally, geopolitical tensions in the Middle East are driving crude oil prices higher, pressuring both cost of goods sold and selling, general and administrative expenses. KEIWA also revised its second-half average foreign exchange assumption to 157 yen per dollar from 150 yen, reflecting yen weakness.
The downward revision signals deteriorating profitability despite modest revenue decline. Operating profit contracted 35.5% while revenue fell only 10.1%, indicating margin compression from input cost inflation. The company maintained its dividend forecast unchanged, suggesting confidence in cash generation despite near-term earnings headwinds. However, the sharp profit reduction underscores vulnerability to semiconductor supply dynamics and commodity price volatility—key risks for investors monitoring the company’s exposure to cyclical PC demand and energy-dependent cost structures.
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.