Japan Micronics’ share price fell to the ¥14,000 range in mid-October. Although HBM demand remains firm, the view is gaining ground that investors should not rush into new purchases until the company’s next earnings report confirms that its profit plan is on track.
Japan Micronics’ share price stood at ¥14,410 as of 9:07 a.m. on 15 October 2026, below the intraday low of ¥14,690 on 6 October. In the past, the share price had sought a floor with the September lows of ¥13,790 and ¥13,170 serving as reference prices.
While demand for HBM inspection is supporting business performance, new purchases after the sharp decline are being deferred as the share price continues to set new lows, with investors expected to make decisions after confirming that the profit plan was achieved in the November earnings report. The valuation indicator has declined, with the forward P/E ratio based on the 14 October closing price at around 25x.
The increase in HBM production is expected to drive up demand for inspection, supporting earnings from the core business centered on probe cards. Revenue in the first half of FY2026 was ¥49.206 billion, while operating profit was ¥15.557 billion, a substantial increase year on year.
As investment in production expansion increases, the company plans capital expenditure of ¥21 billion in 2026 and additional investment of ¥24.1 billion over 2027–2028. Higher depreciation and amortization and increased research and development expenses are expected to mean that future profitability will depend on the combination of equipment utilization and sales.
As a gauge of the downside for the shares, the extent to which the full-year plan is achieved, compared with cumulative third-quarter results in November of revenue of ¥74.2 billion and operating profit of ¥22.4 billion, will be a factor affecting the share price valuation.
In summary, the view was that new purchases after the sharp decline should be considered only after confirming that the profit plan has been achieved, that buying should not be decided solely on the shares reaching previous lows, and that profitability after shipments are brought forward and the maintenance of the full-year plan should be given priority.