Kyoei Security Service Co. (7058) on Oct. 22 swung its full-year forecast to a net loss of ¥600 million from a previously projected ¥700 million profit, after booking a ¥1,602 million extraordinary loss for director retirement benefits.
The charge relates to a founder's merit payment for retiring directors approved at the company's 42nd annual shareholders' meeting held the same day, with the board subsequently setting the specific amount under company criteria. The company is also introducing a system to pay retirement benefits to departing directors under its officers' retirement benefit rules. The ¥1,602 million will be recorded as a provision for directors' retirement benefits in the fiscal year ending July 2027 (Aug. 1, 2026-July 31, 2027).
Operating and ordinary profit forecasts were both lowered 14.5% to ¥1.0 billion from ¥1.17 billion. The company cited ¥135 million in share-based compensation expenses tied to a disposal of treasury shares as restricted stock compensation, also announced that day, and a ¥23 million provision for directors' retirement benefits under the new system. The sales forecast was unchanged at ¥13.0 billion.
| Item | Previous | Revised |
|---|---|---|
| Net sales | ¥13.0 billion | ¥13.0 billion |
| Operating profit | ¥1.17 billion | ¥1.0 billion |
| Ordinary profit | ¥1.17 billion | ¥1.0 billion |
| Net profit attributable to owners of parent | ¥700 million | -¥600 million |
| EPS | ¥483.65 | -¥403.16 |
The previous forecast was announced on Sept. 11, 2026. The year-end dividend forecast for the fiscal year ending July 2027 was unchanged. In the previous fiscal year ended July 2026, a 16-month period, the company posted net sales of ¥15,346 million and net profit of ¥694 million.
| 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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