Taiyo Yuden's share price has been volatile over the past month, but on 5 August the company reported its 1Q results and revised its full-year forecast upward. In response, the full-year operating profit forecast was revised upward by an additional ¥15 billion.
Taiyo Yuden's share price has been highly volatile over the past month, falling approximately 11% from the previous day to close at ¥9,991 on 18 August. The stock reached a high level in mid-July, then plunged in late July before temporarily recovering following the upward revision.
For 1Q, revenue was ¥93.8 billion, operating profit was ¥4.8 billion, ordinary profit was ¥4.2 billion, and profit attributable to owners of the parent was ¥2.5 billion, turning profitable from a quarterly loss in the same period of the previous year. Foreign exchange gains were a positive factor, contributing to the relatively strong profit growth in 1Q.
The company raised the full-year forecast it announced on 8 May, revising revenue from ¥384.0 billion to ¥424.0 billion and operating profit from ¥30.0 billion to ¥45.0 billion. On 5 August, a further revision added ¥15.0 billion to operating profit, while the assumed exchange rate from 2Q onward was set at ¥160 to the US dollar.
The market is watching the increase in demand for information infrastructure and industrial equipment, as well as the impact of foreign exchange movements, while assessing the divergence between the share price movement and the revisions. The latest valuation indicators show that the PER remains high, and the share price is expected to remain highly volatile.