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Onamba Shares Surge Past \2,000 Milestone, Boosted by Strong Earnings, Dividend Hike, and AI Data Center Demand
Shares of Onamba <5816> surged over 11% intraday, reaching a new all-time high and breaking through the \2,000 mark for the first time. The company, which specializes in wire harnesses for consumer applications, saw its operating profit rise 19% to a record high in the fiscal year ended December 2025. This strong momentum is expected to continue, with operating profit projected to increase by 4% to \2.7 billion for the fiscal year ending December 2026, marking another record-breaking year.
Amid the global boom in AI data center construction, Onamba has announced its full-scale entry into the market for data center power supply cables. This move has fueled expectations for future business expansion and driven a recent surge in investor interest. Within the data center sector, the company is positioned to provide not only power supply solutions but also wiring solutions for advanced water-cooling systems.
Despite the stock's ongoing rally to record highs, its valuation remains attractive, trading at a P/E ratio of around 12x and a P/B ratio of approximately 0.8x. For fiscal 2026, the company plans to pay an annual dividend of \70 per share, a substantial increase of \29 from the previous year. This brings the current dividend yield to approximately 3.5%, creating a favorable environment for further stock appreciation.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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