Techno Horizon <6629> remained locked at its daily limit after a gap-up start. After hitting a year-to-date low of 831 yen on April 3, the stock has rebounded sharply, underscoring its status as a momentum play. The company has been expanding in the robotics sector under the Taitech brand, achieving strong results with AI-powered high-speed X-ray inspection equipment. Positioned as a "dark horse" in the physical AI sector?which drove a major rally late last year?the stock is showing signs of regaining that upward momentum. Physical AI represents the real-world implementation of intelligence through the fusion of AI and robotics. The high-spec computing, information processing, and reasoning capabilities of AI are moving beyond two-dimensional space into three-dimensional entities that act. Proprietary optical and sensing technologies place the company at the center of this integration. Fundamentals are robust, with GIGA School projects expected to drive operating profit for the fiscal year ending March 2026 to 1.5 billion yen, a fourfold increase year-on-year. Double-digit profit growth is also anticipated for the following year ending March 2027. After hitting a peak of 1,541 yen on Dec. 24 and a rebound high of 1,489 yen on Jan. 26, the stock faced selling pressure, partly due to short selling. However, strong earnings momentum is refocusing attention on fundamentals, while a broader rally in robot-related stocks has triggered short-covering on accumulated positions.

Asahi Diamond Industrial <6140> saw a surge in buying interest, breaking out from consolidation around the 1,200 yen level. As a leading specialist in diamond tools, the company is seeing high demand from both the automotive and semiconductor sectors. Amid the expansion of generative AI markets, robust semiconductor-related demand has pushed operating profit above initial projections. After the market close on the 16th, the company raised its operating profit guidance for the fiscal year ending March 2026 to 2,417 million yen from the previous 2.3 billion yen. This represents a 4.6% year-on-year increase, turning an expected decline into growth and acting as a primary catalyst for the current rally.

Data Applications <3848> surged toward its daily limit during the session. Following the market close on the 16th, the company announced an update to its medium-term financial policy through the fiscal year ending March 2028. The introduction of a 100% total return ratio target was well-received by investors as a sign of aggressive shareholder returns. The company also raised its dividend on equity (DOE) target range to 3.5%-5.0% from the previous 3.5% level and added a policy to actively consider share buybacks.

*This article may contain unverified information. Stock transactions should be conducted at your own risk and judgment.

Source: MINKABU PRESS

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