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Shochiku shares plunge as weak fiscal 2027 profit outlook weighs

Tue Apr 14, 2026 3:03 pm JST Catalyst

Shochiku <9601> shares plunged in afternoon trading on April 14, after the company projected a 58.0% drop in net profit for the fiscal year ending February 2027. Despite a slight revenue increase forecast to 100 billion yen, the sharp decline in projected profit to 2.2 billion yen triggered a wave of disappointed selling. The company also announced a lower year-end dividend of 30 yen per share, down from 40 yen in the previous fiscal year.

The fiscal 2027 outlook incorporates several one-time items, including a 4.5 billion yen extraordinary gain from a property sale in Hakata. However, this will be offset by a 2.4 billion yen impairment loss related to the demolition of the Osaka Shochikuza Building and a 2.0 billion yen provision for theater closures. Performances at the historic Osaka Shochikuza are scheduled to conclude this May.

For the fiscal year ended February 2026, Shochiku reported a strong turnaround with a net profit of 5.236 billion yen, recovering from a loss in the prior year. While the film and theater divisions saw significant growth in the past year, investors focused on the projected earnings slump and the impact of structural reforms for the year ahead.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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