Earnings announcements by companies listed on the Tokyo Stock Exchange are reaching their peak, with net profit for the current fiscal year expected to increase 14.7% from the previous fiscal year. An analysis indicates that AI and semiconductor demand, together with the weaker yen, will provide a tailwind for manufacturers.
SMBC Nikko Securities has reportedly compiled earnings materials through the 6th from 715 Tokyo Stock Exchange-listed companies with March year-ends. The data provides a view of first-quarter earnings results through June this year.
During the three-month period covered by the tally, electrical equipment, including semiconductors, and transportation machinery, including automobiles, posted earnings growth of more than 90% year on year. Strong AI and semiconductor demand and the weaker yen pushed up profits.
Land transportation and air transportation, by contrast, reported lower earnings, reportedly affected by higher energy and materials prices resulting from the situation in the Middle East.
For the full-year earnings outlook through next March, net profit is expected to increase 14.7%, while manufacturing is expected to post earnings growth of slightly more than 46%.
SMBC Nikko Securities analyzed that the trends seen in these first-quarter results are likely to continue broadly throughout the year, and said that demand related to AI and semiconductors and the weaker yen are expected to boost overall earnings.