Meter demand firm at home and abroad
Aichi Tokei Denki Co., Ltd. (TSE: 7723) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 2, 2026 under Japanese GAAP. Sales of gas meters and related equipment rose 7.8% to ¥14,745 million: household LP gas meters held up in a replacement-demand recovery even as products for its Aichi Cloud data service declined, while city gas sales grew on the shift to smart meters in Japan and exports led by Taiwan. Water meters and equipment rose 7.6% to ¥11,427 million on public-sector demand and higher proceeds from scrap meters, offsetting lower exports to North America and China. Industrial sensors and systems grew 17.3% to ¥1,476 million, while instrumentation slipped 2.2% to ¥1,888 million.
Defect costs drive the profit drop
A less favourable product mix, higher prices for materials and parts, and the additional defect-countermeasure costs booked in the first quarter cut operating profit to ¥229 million from ¥1,636 million. Ordinary profit fell 76.9% to ¥451 million and net profit 74.8% to ¥360 million, or ¥23.50 per share. The company kept its FY3/2027 forecast of net sales of ¥60,480 million, operating profit of ¥3,730 million (-20.8%), ordinary profit of ¥4,070 million and net profit of ¥3,570 million, and its annual dividend forecast of ¥120 (¥60 interim, ¥60 year-end), up from ¥113. The equity ratio rose to 77.0%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 29,572 | 27,523 | +7.4% |
| Operating profit (¥ million) | 229 | 1,636 | -86.0% |
| Ordinary profit (¥ million) | 451 | 1,957 | -76.9% |
| Net profit attrib. to owners of parent (¥ million) | 360 | 1,432 | -74.8% |
| Comprehensive income (¥ million) | 683 | 2,149 | -68.2% |
| EPS (¥) | 23.50 | 93.08 | -74.8% |
| Gas meters & equipment — revenue (¥ million) | 14,745 | — | +7.8% |
| Water meters & equipment — revenue (¥ million) | 11,427 | — | +7.6% |
| Total assets (¥ million) | 67,897 | 70,284 | -3.4% |
| Net assets (¥ million) | 52,271 | 52,583 | -0.6% |
| Equity ratio | 77.0% | 74.8% | +2.2 pt |
| FY3/2027 guidance — revenue (¥ million) | 60,480 | — | +2.3% |
| FY3/2027 guidance — operating profit (¥ million) | 3,730 | — | -20.8% |
| FY3/2027 guidance — ordinary profit (¥ million) | 4,070 | — | -21.9% |
| FY3/2027 guidance — net profit (¥ million) | 3,570 | — | -25.7% |
| Annual dividend per share (¥) | 120.00 | 113.00 | +6.2% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.