Taiyo Yuden (6976-JP), a major Japanese manufacturer of MLCCs, announced after the market close on Wednesday (3rd) that its consolidated operating profit for the first quarter of fiscal 2022 (until March 2023) fell by 13.2% to 13.1 billion yen. , the stock price fell sharply in early trading on Thursday (4th).
Before the deadline, Taiyo Yuden’s share price was temporarily quoted at 4,440 yen per share at 11:18 am on Thursday (4th) Japan time, down 5.53% or 260 yen from the previous trading day.
Key data of the consolidated financial report for the first quarter of 2022 based on Japanese accounting standards: Revenue reported a decrease of 2.5% to 81.7 billion yen. Operating profit fell 13.2% to 13.1 billion yen on the year. Current benefit reported an increase of 13.4% to 17.2 billion yen. Net profit attributable to shareholders of the company decreased by 5.6% year-on-year to 12.2 billion yen. Key figures of revenue performance by product: Capacitor products including MLCCs reported an annual increase of 2.6% to 54.5 billion yen. Inductance components reported an increase of 3.2% to 11.7 billion yen. Composite devices reported a decrease of 34.5% to 9.1 billion yen. Others (including aluminum electrolytic capacitors, power storage devices, etc.) reported an increase of 18.7% to 6.2 billion yen. Key data for the 2022 full-year financial forecast based on Japanese accounting standards: Revenue is forecast to increase by 10.1% year-on-year to 385 billion yen. Operating profit is forecast to increase 2.6% y/y to 70 billion yen. Current benefit forecasts are down 4.4% y/y to 69 billion yen. Net profit attributable to shareholders of the company is forecast to drop 11.7% yoy to 48 billion yen. All financial estimates remain unchanged from the original forecast, which is the same as the number announced on May 10, 2022.
Affected by China’s zero-clearing policy and other countries’ closures, Taiyo Yuden’s performance in the first quarter of the fiscal year was poor. Morgan Stanley MUFG Securities on Wednesday (3rd) lowered its target price on Taiyo Yuden shares to 4,900 yen per share from 5,300 yen per share; analysts at the securities firm raised in a report on Wednesday. However, expectations for Taiyo Yuden’s performance have declined due to reduced demand for computers, PCs and Chinese smartphones, and it is believed that a short-term stock price decline is inevitable.