A selection of 20 large-cap stocks was screened for companies whose gross margins exceed their five-year averages. The list focuses on AI- and semiconductor-related stocks and SaaS companies whose gross margins are also expected to improve this fiscal year.
As declines in the Nikkei 225 and TOPIX continue, earnings announcements from companies listed on the Tokyo Stock Exchange Prime Market with fiscal years ending in March have largely been completed. A screening based on gross margins was conducted. The selection criteria were 20 stocks whose latest-period gross margins exceed their five-year averages, whose forecast gross margins for the current fiscal year are expected to exceed the latest-period margins, and whose year-on-year improvement is substantial.
The list includes many AI- and semiconductor-related stocks, including KIOXIA Holdings Corporation (285A), Ibiden (4062) and Fujikura (5803). Their improving gross margins are inferred to be supported by strong demand and global trends.
Domestic SaaS stocks RAKUS (3923) and Money Forward (3994) also made the list. Price increases accompanying advances in AI and improvements in cost ratios are viewed as factors contributing to higher gross margins.
Among the stocks in focus, HOYA (7741) reported year-on-year growth in sales of ¥154.8 billion and segment profit of ¥30.0 billion in its Life Care business, which may also have contributed to the improvement in its gross margin. This is seen as a market environment in which an investment perspective focused on fundamentals may once again attract attention.