Taiyo Yuden significantly raised its full-year operating profit forecast to ¥45 billion following its first-quarter results for the fiscal year ending March 2027. The revision reflects stronger-than-expected progress in increasing the capacitance and unit counts of MLCCs for AI servers, while the company also disclosed an opportunity loss caused by logistics disruptions.
Taiyo Yuden announced its first-quarter results for the fiscal year ending March 2027, reporting revenue of ¥93.897 billion and operating profit of ¥4.818 billion. Revenue increased 10.7% year on year and operating profit rose 53.3%. Foreign exchange movements during the quarter also contributed to higher revenue and operating profit, reflecting the yen's depreciation.
By product, capacitors recorded double-digit growth, with demand expanding across a broad range of applications, including AI servers. Orders received rose markedly from the previous quarter, while the BB ratio remained high at 1.72. CFO Fukuda attributed the sharp increase in orders to strong AI-related demand and higher inventory levels.
The company substantially raised its full-year forecast, increasing its operating profit forecast by ¥15 billion to ¥45 billion, up 125% year on year, and revising its revenue forecast to ¥424 billion. The main factors were stronger-than-expected increases in the capacitance and unit counts of MLCCs for AI servers, together with persistently high orders for information equipment.
Taiyo Yuden decided to bring forward the start of construction of its new plant in Malaysia and raised capital expenditure to ¥42 billion. The company described this as a strategic investment in response to the sharp increase in demand relative to the initial plan and said the decision was made with medium- to long-term growth in mind. It also noted that the impact of exchange-rate movements could become more apparent from the second quarter onward, depending on currency trends.