Koito Takes ¥20 Billion Impairment on LiDAR and China as Sales Beat Forecasts

Koito Manufacturing Co ( (JP:7276) ) just unveiled an update.

Koito Manufacturing will book extraordinary impairment losses of ¥14.3 billion on its LiDAR business and ¥5.7 billion on China operations for the year ended March 31, 2026, after order cancellations in automotive LiDAR and a profitability decline linked to production transfers in China. The company plans to pivot its LiDAR focus toward infrastructure-related applications such as construction and agricultural machinery, while restructuring production to match regional demand and improve profitability, even as net sales, operating profit, and ordinary profit all exceeded prior forecasts.

Despite beating projections with net sales of ¥947.6 billion and stronger operating and ordinary profits, Koito’s profit attributable to owners of the parent dropped sharply below guidance due to the newly recorded impairments. Management aims to tightly control development expenses and fixed costs, emphasizing investment efficiency and capital recoverability, which could support longer-term profitability and competitiveness in both LiDAR and Chinese operations despite near-term earnings pressure.

The most recent analyst rating on (JP:7276) stock is a Sell with a Yen2400.00 price target. To see the full list of analyst forecasts on Koito Manufacturing Co stock, see the JP:7276 Stock Forecast page.

More about Koito Manufacturing Co

Koito Manufacturing Co., Ltd. is a Japan-based automotive lighting supplier listed on the Tokyo Stock Exchange Prime Market under code 7276. The company develops and manufactures lighting systems and related components, with a growing focus on advanced technologies such as LiDAR for ADAS and autonomous driving, and serves global automakers and commercial vehicle manufacturers.

Average Trading Volume: 937,141

Technical Sentiment Signal: Buy

Current Market Cap: Yen743.3B

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