Sekisui Kasei raised its full-year earnings outlook for fiscal 2027. Attention is focused on Kioxia HD's performance after its share price fell below the 200-day moving average, with a rebound expected.
Sekisui Kasei raised its full-year operating profit forecast for the fiscal year ending March 2027 from ¥3.1 billion to ¥5.3 billion, and its ordinary profit forecast from ¥2.6 billion to ¥4.4 billion. Earnings improvement is expected to continue in the second half, and the annual dividend will be increased from ¥17 to ¥25. Factors behind the revision include improved earnings quality through business portfolio restructuring, including the transfer of the European Proseat group's business. Sales volume growth, appropriate pricing, productivity gains and fixed-cost reductions have progressed more than expected.
Meanwhile, Kioxia HD's share price recently fell below the 200-day moving average on the 15th and has subsequently been capped by that moving average. With ¥11,380 emerging as a near-term bottom on the 23rd and the stock rebounding the previous day to approach the 200-day moving average again, investors are expected to watch for an attempt to break above it. The 25-day moving average (¥15,980) and 75-day moving average (¥17,540) are also expected to attract increasing attention.
Attention is focused on the developments in these 2 stocks, namely earnings growth at Sekisui Kasei through structural reform and the formation of a short-term rebound in Kioxia HD's share price.