By Kosaku Narioka
Shares of Ai Holdings, a Japanese security-equipment company, surged on Monday following its projection of a 13% increase in operating profit for the current fiscal year. The company also announced a payout-ratio goal of at least 50%.
The shares saw a recent surge of 8.4% to 2,385 yen after reaching a high of 9.0% earlier.
During the previous fiscal year ending on June 30, Ai Holdings reported a net profit growth of 6.5% to Y8.24 billion ($56.7 million) due to higher earnings from its security-equipment business. However, revenue declined by 1.4% to Y46.40 billion due to the divestment of certain card businesses. Sales were further affected by a shortage of chips and an economic slowdown in the U.S. and Europe, impacting the business of cutting plotters and label-printing systems.
For the new fiscal year that began in July, Ai Holdings expects revenue to increase by 14% to Y53.00 billion, and operating profit to rise by 13% to Y10.70 billion.
In addition, the company plans to return at least half of its earnings to shareholders annually. It expects a dividend per share of Y90.00 for this fiscal year, compared to Y80.00 in the previous fiscal year. Previously, Ai Holdings did not have a specific numeric payout goal.
Our Latest News
Schroders reports a decline in pretax profit for H1 2023 due to negative market performance, resulting in a decrease in assets under management. Revenue increas...
Structure Therapeutics Inc. experiences surge in ADRs after positive trial results and $300M private placement financing. Plans for phase 2b study for weight-lo...
U.S. stock futures remain stable as investors anticipate a speech by Federal Reserve Chair Jerome Powell. The market experienced a downturn on Thursday.