November 8, 2021 | |
Company name: | Shinwa Co., Ltd. |
Representative: | Kurio Noritake |
President and Representative Director | |
Stock exchange listing: | First Section of Tokyo Stock Exchange and |
Nagoya Stock Exchange (Code number: 3447) | |
Contact: | Mitsuyoshi Hirasawa |
Executive Officer and General Manager of | |
Administration Headquarters | |
(Tel: +81-584-66-4436) |
Notice Regarding Revisions to Financial Results Forecasts (IFRS) and Dividend Forecasts
Shinwa Co., Ltd. (the "Company") announced today that, in light of its recent business performance and other factors, it has revised its consolidated financial results forecasts and dividend forecasts that were announced on May 13, 2021.
1. Revisions to consolidated financial results forecasts for the first six months of the fiscal year ending March 31, 2022 (April 1, 2021 to September 30, 2021)
Revenue | Operating | Profit before | Profit attributable | Basic earnings | |||||||||
to owners of | |||||||||||||
profit | tax | per share | |||||||||||
parent | |||||||||||||
Million yen | Million yen | Million yen | Million yen | Yen | |||||||||
Previous forecast (A) | 7,182 | 799 | 763 | 521 | 36.94 | ||||||||
Revised forecast (B) | 8,231 | 1,252 | 1,217 | 846 | 61.19 | ||||||||
Increase/decrease (B-A) | 1,049 | 453 | 454 | 325 | |||||||||
% change (%) | 14.6 | 56.7 | 59.5 | 62.4 | |||||||||
(Reference) Results for the | |||||||||||||
first six months of the | |||||||||||||
previous fiscal year (The | 6,381 | 745 | 711 | 483 | 34.33 | ||||||||
first six months of the year | |||||||||||||
ended March 31, 2021) |
2. Revisions to consolidated financial results forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)
Revenue | Operating | Profit before | Profit attributable | Basic earnings | ||||||||||
to owners of | ||||||||||||||
profit | tax | per share | ||||||||||||
parent | ||||||||||||||
Million yen | Million yen | Million yen | Million yen | Yen | ||||||||||
Previous forecast (A) | 15,000 | 1,700 | 1,629 | 1,128 | 80.00 | |||||||||
Revised forecast (B) | 16,000 | 2,050 | 1,977 | 1,372 | 100.00 | |||||||||
Increase/decrease (B-A) | 1,000 | 350 | 348 | 244 | ||||||||||
% change (%) | 6.7 | 20.6 | 21.4 | 21.6 | ||||||||||
(Reference) Results | for the | |||||||||||||
previous fiscal year | (Fiscal | 13,885 | 1,853 | 1,784 | 1,231 | 87.42 | ||||||||
year ended March 31, 2021) |
3.Reasons for the revision
During the first six months of the fiscal year ending March 31, 2022, revenue in the Scaffolding Equipment Division was firm primarily for the Company's mainstay wedge binding type scaffolding and next generation scaffolding, backed by a largely private sector-driven recovery in the construction industry, to which the Company supplies the majority of its products. Meanwhile, in the Logistics Equipment Division, demand for transportation equipment and large warehousing-related products increased in line with the recovery trend in the economy and business activities. Reflecting these circumstances, the Company's Logistics Equipment business remained solid, with repeated projects growing and new projects acquired, resulting in a significant increase in revenue.
In terms of profit, demand for high value-added products such as safety measure equipment continued and sales of scaffolding equipment recovered, while in the Logistics Equipment Division large warehousing-related projects for major e-commerce companies contributed significantly to the improvement in profitability. At the same time, the Company has taken measures to revise sales prices, reduce costs and curb expenditures in light of the fact that the price of steel, one of the major raw materials for our products, has been rising by a greater margin than expected.
In light of the above, the Company now expects revenue, operating profit, profit before tax, and profit attributable to owners of parent to outperform the forecasts for the first six months of the fiscal year announced on May 13, 2021.
With regard to consolidated financial results for the fiscal year ending March 31, 2022, although revenue is expected to remain steady from the third quarter onward, the Company has revised its full-year financial results forecasts as described in 2. above, taking into account factors such as the higher-than-initially-expected price of steel, one of the major raw materials for our products.
4.Revision to dividend forecasts
Based on its basic policy to make returns to our shareholders in accordance with operating results while at the same time retaining internal reserves that may be necessary to achieve stable business growth and respond to changes in the business environment in the future, the Company aims for a consolidated dividend payout ratio of 40% or higher.
Given these revisions to the financial results forecasts, the Company has decided to increase its annual dividend by 8 yen per share (25%) from the previous dividend forecasts to make it 40.0 yen per share.
Annual dividends (yen) | |||
2nd quarter-end | Year-end | Total | |
Previous forecast | 0.0 | 32.0 | 32.0 |
Revised forecast | 0.0 | 40.0 | 40.0 |
Results for the current | ― | ||
fiscal year | |||
Results for the previous | |||
fiscal year (Fiscal year | 0.0 | 35.0 円 | 35.0 |
ended March 31, 2021) |
Note: The above financial results forecasts and dividends forecasts were prepared based on information available at the time of the announcement of this document. The actual results, therefore, may differ from these forecasts due to a variety of future factors.
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Shinwa Co. Ltd. published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2021 09:17:05 UTC.