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
European Stocks Show Positive Climbs
European stocks show positive climbs, with top performers surging and notable decliners weakening. Currency and commodity movements along with yield changes are...
The Debate on Proprietary vs. Open Source Language Models
A key debate in the world of artificial intelligence revolves around whether large language models should be proprietary or open source. The AI Alliance, formed...
Freshpet Sees Surge in Shares
Shares of Freshpet have surged after exceeding analyst expectations, with the company raising its full-year guidance for sales and earnings. Strong third-quarte...