Tokai Corp. raised its forecast for the year to March 2027 on 22 October, lifting operating profit to ¥10.29bn from ¥8.99bn, a 14.5% increase on its May guidance.
The May forecast had assumed operating and ordinary profit would fall from the previous year. The new numbers sit above last year's actual operating profit of ¥9.38bn, and the company says net profit attributable to owners of the parent should also reach a record. Sales are now forecast at ¥167.98bn, up from ¥165.4bn. Net profit is forecast at ¥6.87bn, with earnings per share of ¥222.25 against ¥198.08 before.
What drove the upgrade
Tokai points to the first half of the year. Prescription unit prices at its dispensing pharmacies, in both drug charges and technical fees, have run ahead of plan. In its eldercare business, the efficient use of rental materials is still paying off, as it did in the previous year. The company says this showed up especially in profit.
For the second half, Tokai expects the pharmacy strength to continue. It will also consolidate a company it brought into the group in July 2026 from the third quarter.
Dividend and medium-term target
The year-end dividend rises ¥9 to ¥49, lifting the annual payout to ¥89 from the earlier ¥80 forecast. The interim dividend stays at ¥40, and last year's total was ¥68. Tokai tied the increase to the policy it announced on 12 May: a payout-ratio guide raised from 35% to 40% and a progressive dividend, meaning the per-share payout is held or raised. The board is due to take up the interim dividend in November 2026, and the shareholder meeting is due to take up the year-end payment in June 2027.
Tokai also says the ¥9.5bn operating profit target for the year to March 2028, the last year of its medium-term plan, will be reached a year early. It plans to announce specific figures for that final year later. All of this is forecast, and the company cautions that actual results may differ. The notice gives no first-half results figures.