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TSI HOLDINGS attracts investors with dividend yield exceeding 5.5%
TSI HOLDINGS CO., LTD. <3608> entered a correction phase after reaching its highest level in approximately 28 years and 9 months on April 21, but this should be viewed as a buying opportunity. The major apparel company has increased its year-end dividend forecast for the fiscal year ending February 2027 by 30 yen to 70 yen, bringing the dividend yield to over 5.5% and enhancing its investment appeal.
For the current fiscal year, the company forecasts consolidated sales of 200 billion yen (up 19.7% year-on-year) and operating profit of 7.5 billion yen (up 73.4% year-on-year). While the operating profit target was lowered from the initial mid-term management plan goal of 10 billion yen, the company expects earnings contributions from two companies that joined the group through M&A in the previous period and the realization of effects from profit structure reforms.
Waterfront, which joined the group in December last year, sells umbrellas. According to the Japan Weather Association, this year may see heat levels approaching the record-breaking temperatures of recent years. Furthermore, on April 10, the earnings announcement date, TSI HOLDINGS disclosed that it signed a basic agreement to acquire Toyo Enterprise (Sumida-ku, Tokyo), which produces sukajan jackets, and its product sales company as subsidiaries. Expectations are high for earnings contributions from the expanded sales of parasols and sukajan jackets.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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