The Japanese chip equipment giant forecasts 87% operating profit growth and announces a ¥150 billion buyback after a sharp share-price decline.
Tokyo Electron (TSE: 8035) was one of the few Japanese semiconductor stocks to finish higher in Tokyo on Monday, November 2. Shares jumped 5.2% to ¥10,005, reversing Friday’s 5.2% decline following the company’s latest financial results.
The rebound comes after Tokyo Electron reported substantial growth in first-half revenue and earnings on October 30, raised its full-year profit outlook and announced a ¥150 billion share buyback. Despite the latest recovery, the stock remains well below its June peak.
Key points
Share price: +5.2% to ¥10,005 on November 2, following Friday’s 5.2% decline.
Revenue: +41.3% to ¥1.67 trillion in the six months ended September 30.
Operating profit: +67.2% to ¥506.78 billion.
FY2027 operating profit forecast: ¥1.17 trillion, an increase of 87.1%.
Share buyback: ¥150 billion, equivalent to approximately 1.1% of shares outstanding.
Dividend yield: 1.6%, with a forward P/E of approximately 28.
Analyst ratings: 7 strong buy, 15 buy and 2 hold, with no sell recommendations.
Tokyo Electron returns to gains after a difficult Friday
Tokyo Electron is one of Japan’s largest semiconductor equipment manufacturers, supplying machinery used in the production of advanced chips. Its competitors include American companies Applied Materials, Lam Research and KLA.
The company has been one of the Japanese stocks regularly covered by DividendJapan, particularly because of its exposure to semiconductor investment, its dividend history and its substantial share-price movements.