IDEC sharply raised its full-year operating profit forecast to ¥9.4 billion. The outlook for sales and profit improved against a backdrop of increased capital investment related to AI, sending the share price sharply higher.
Shares of control equipment maker IDEC surged in Tokyo trading on the 5th, rising as much as ¥350 from the previous Friday to ¥4,170 and setting a record high since listing. The move came after the company raised its full-year consolidated earnings forecasts after trading ended the previous Friday.
The revised full-year forecasts are sales of ¥85.0 billion, up 16.5% year on year, and operating profit of ¥9.4 billion, up 53.7%. The operating profit forecast was raised by ¥2.2 billion from the previous forecast of ¥7.2 billion. The ordinary profit forecast was also raised to ¥8.95 billion.
The upward revision reflects growing demand for capital investment, particularly in AI and digital-related fields. Demand for semiconductors, robotics and machine tools remained firm, led by Japan and China. Sales forecasts for the HMI business and the safety and explosion-proof business were also raised.
There is no change to the dividend forecast, with ¥65 per share planned for both the interim and year-end dividends, for an annual total of ¥130.