Toyo Denki Seizo (6505) on Oct. 14 raised its operating profit forecast for the fiscal year ending May 2027 by 46.2% to ¥3.8 billion from ¥2.6 billion, lifted its annual dividend forecast to ¥138 from ¥116 and authorized a share buyback of up to ¥300 million.
The company kept its full-year sales forecast at ¥42.5 billion and now sees earnings per share of ¥343.57, versus ¥288.16 previously. For the first half ending Nov. 30, it raised its sales forecast to ¥19.5 billion from ¥18.5 billion and its net profit forecast to ¥1.3 billion from ¥800 million.
| Item | Previous | Revised |
|---|---|---|
| FY operating profit | ¥2.6 billion | ¥3.8 billion |
| FY net profit | ¥2.6 billion | ¥3.1 billion |
| H1 operating profit | ¥550 million | ¥1.7 billion |
| Annual dividend | ¥116 | ¥138 |
The company said sales recognition of high-margin projects, mainly in its transportation business, progressed in the first quarter, while price optimization and cost reduction improved profitability. Although some sales were pulled forward into the first quarter, it expects the profitability measures to continue.
First-quarter results for June-August showed sales up 24.0% to ¥10,426 million, operating profit up 191.6% to ¥1,073 million and net profit up 88.2% to ¥875 million. Transportation segment sales rose 31.5% to ¥8,023 million.
The interim and year-end dividend forecasts were each raised to ¥69 from ¥58. The company's policy targets a payout ratio of 40% or more, with a floor of 3.0% dividend on equity (DOE). The buyback covers up to 150,000 shares, or 1.5% of shares outstanding excluding treasury stock, through market purchases on the Tokyo Stock Exchange.
Next steps: The buyback period runs from Oct. 15, 2026 to May 31, 2027.
| Hikari Tsushin, Inc. | |
| Offer price | ¥1,000 per common share |
| M&A / TOB | 1 |
| Guidance | 0 |
| Buybacks | 0 |
| Dividends | 0 |
| Capital | 0 |
| Earnings | 0 |
| People | 0 |
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