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Meidensha Corporation ( (JP:6508) ) has provided an update.
Meidensha Corporation will book significant extraordinary losses for the fiscal year ending March 2026, driven by deteriorating profitability at its Chinese subsidiary MEIDEN(HANGZHOU)DRIVE TECHNOLOGY CO., LTD., a production and sales hub for electric vehicle drive units. The company will recognize a ¥3,303 million impairment on the subsidiary’s fixed assets on a consolidated basis, reflecting reduced recoverable value.
On a non-consolidated basis, Meidensha will record a ¥4,249 million appraisal loss on shares in the affiliate, as well as an allowance for doubtful accounts of ¥1,690 million and a ¥1,984 million provision for loss on guarantees tied to loans to the Chinese unit. These latter non-consolidated charges will be eliminated in consolidated results, limiting the direct impact on group earnings but underscoring ongoing challenges in its EV drive business in China.
The most recent analyst rating on (JP:6508) stock is a Sell with a Yen5900.00 price target. To see the full list of analyst forecasts on Meidensha Corporation stock, see the JP:6508 Stock Forecast page.
More about Meidensha Corporation
Meidensha Corporation is a Japanese industrial manufacturer listed on the TSE Prime and NSE Premier markets, operating in the electrical and power systems sector. The company develops and supplies equipment and systems such as drive technologies and related components, including electric vehicle drive units, for domestic and overseas markets.
Average Trading Volume: 255,671
Technical Sentiment Signal: Buy
Current Market Cap: Yen431B
Find detailed analytics on 6508 stock on TipRanks’ Stock Analysis page.