Toyo Engineering extends gains for third day, rebounding from lows on rare earth policy support and new CCS development

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Fri Apr 17, 2026 2:25 pm JST Catalyst

Toyo Engineering Corp <6330> extended its gains for a third consecutive session. The stock is filling a downward gap toward its 25-day moving average, which has acted as resistance following a saucer-bottom formation, as investors eye a potential breakout. With domestic rare earth security a priority for the Takaichi administration, the company's participation in mud mining operations off Minamitorishima fueled a significant rally from late last year through January.

Against this backdrop, Toyo announced on the 15th that it signed a memorandum of understanding with SLB OneSubsea, a global leader in subsea equipment, to explore collaboration in offshore carbon capture and storage (CCS) beneath the seabed. Regarding earnings, market participants anticipate a sharp recovery in the fiscal year ending March 2027 as losses from Brazilian thermal power projects dissipate and the benefits of selective order acceptance begin to materialize. This has triggered a wave of contrarian buying, with investors viewing current valuations as an opportune entry point.

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