Taiyo Yuden's shares plunged 11.5% from the previous day to 9,991 yen on August 18, even after the company raised its full-year earnings forecast for the fiscal year ending March 2027. On August 5, the company announced first-quarter results and an upward revision to its full-year forecast, raising revenue from 384 billion yen to 424 billion yen and operating profit from 30 billion yen to 45 billion yen. Operating profit is now expected to rise 125.0% from the previous fiscal year. First-quarter operating profit was 4.8 billion yen, up 53.3% year on year, but the stock fell more than 10% the day after that announcement as well, marking two sharp declines around the upward revision. The market has priced in relatively high valuations of 43.54 times earnings and 3.53 times book value, and trading is reacting more to future demand and price outlooks than to the strong recent results.
Taiyo Yuden Co., Ltd.Despite raising FY2027 operating profit forecast by 125%, shares plunged 11.5% due to high valuations and market focus on future demand/price outlooks rather than strong results.
