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KYB Shares Surge on Surprise 3-for-1 Stock Split and 20% Share Buyback Cancellation

Thu Apr 9, 2026 10:03 am JST Catalyst

Shares of KYB Corp <7242> opened with a flood of buy orders, surging as much as \375 to hit \4,780. The auto parts maker ? a global leader in hydraulic shock absorbers and the world's top supplier of hydraulic cylinders for construction equipment ? attracted strong investor interest following two positive surprises announced after the market close on the 8th.

KYB revealed plans for a 3-for-1 stock split for shareholders of record as of the end of September. Additionally, the company announced the cancellation of 9,869,864 treasury shares ? representing a substantial 19.56% of its total shares outstanding ? effective June 29.

On the earnings front, KYB projects record operating profit of \36 billion for the fiscal year ending March 2026, marking a 59% year-on-year increase. While a notable profit decline is anticipated in the fiscal year ending March 2027 due to the absence of a one-time goodwill gain related to the acquisition of suspension spring maker Chita Kogyo, the market appears to have already priced in this temporary headwind.

Revenue is forecast to remain on an upward trajectory, with the benefits of expanding business operations expected to gradually support the bottom line. An attractive dividend yield exceeding 3%, combined with undemanding price-to-earnings (P/E) and price-to-book (P/B) valuations, is further fueling buying momentum.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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