In November, Ferrotec raised its full-year forecast and disclosed the completion of a new plant by its Malaysian subsidiary, among a series of new developments. The share price, however, plunged after surging, while trading volume also expanded sharply.
In the revision to its full-year earnings forecast announced on 2 November, Ferrotec raised its ordinary profit forecast by 20% and increased its net income forecast to ¥48 billion. The revision was viewed as a factor affecting the share price immediately afterward and was reflected in its price movements.
According to the latest earnings summary, first-quarter revenue was ¥182.4 billion, operating profit was ¥28.1 billion and net income was ¥21.5 billion. The figures were attributed to strong demand for generative AI-related investment and growing demand for thermoelectric modules for AI data centers.
On 30 October, the company disclosed the completion of its Malaysian subsidiary's Kulim No. 2 Plant. The additional disclosure was made in close succession to the earnings revision as a development strengthening its supply capacity against a backdrop of expanding semiconductor-related demand.
The company also made a correction disclosure on 2 November regarding the change to specified subsidiary status associated with the acquisition of shares in an equity-method company. Information on its capital and business structure was disclosed on the same day as the earnings revision.
Trading volume surged to 6,568,200 shares on 4 November, and the closing price rose to ¥7,951. The stock then continued to fall, reaching ¥6,576 on 5 November and ¥6,087 on 6 November, in unstable trading that saw activity concentrated over the most recent 5 trading days.