Marubun’s interim results showed that demand for automotive semiconductors exceeded market expectations, prompting an increase in its full-year earnings forecast and dividend forecast. NDK, which develops and manufactures crystal devices in-house, is reported to stand out for its strengths in the automotive and space sectors.
Marubun’s interim results announced on 30 October showed that demand for automotive semiconductors exceeded expectations, leading to increases in its full-year earnings forecast and dividend forecast. There were also reports that the stock was bought up to near the daily price limit at the start of the following week, indicating a strong market reaction to the results.
Behind the results are the strengths of NDK, which grows and manufactures crystal devices in-house, starting with the raw material of synthetic quartz. NDK is described as distinctive in its ability to meet demand for automotive semiconductors and space-related components through a vertically integrated production system.
NDK’s system of producing everything in-house, from materials to finished products, is considered the foundation supporting the strict quality requirements of automotive applications and the reliability required in the space environment. Meanwhile, some view the short-term share-price adjustment as having been influenced by the company’s status as an AI-related stock, making future real demand, including inventory trends and the start of mass production for AI data centres, a focus of attention.
Ahead of the interim results announcement, points of interest identified for the future include the breakdown of sales by application, inventory levels, the impact of foreign exchange movements and the concentration of customers by region. The 9 November earnings announcement is expected to provide an opportunity to reassess the sustainability of growth by sector and progress in recovering investment.