Recovery of Demand in China Is Slower Than Expected, but Rich Dividends Support Casio’s Shares

Casio Computer has cut full-year operating income guidance for fiscal 2022 (ending March 2023) from JPY 27 billion to JPY 24 billion, primarily as a result of the outlook for lower watch sales in China. The company had expected the reduced restrictions to occur in the second half of this fiscal year, but the recovery seems to be much slower than anticipated. In addition, downward sales revision in the system equipment segment has contributed to the operating income cut. On the other hand, Casio’s full-year revenue guidance is slightly raised to JPY 275 billion from JPY 270 billion due to the weaker Japanese yen, but unlike other consumer electronics companies, the impact of the currency movement on Casio’s profits is limited.