Tokai Carbon shares surge to year-to-date high on raised full-year earnings forecast and dividend

TOKAI CARBON CO., LTD. <5301> rebounded sharply, reaching a new year-to-date high. After the close on the 13th, the company raised its full-year earnings forecast alongside first-quarter results. Revenue guidance was raised to 370 billion yen from 346.7 billion yen, up 14.6% year-on-year, operating profit to 28 billion yen from 26 billion yen, up 8.3%, and net profit to 12 billion yen from 10.6 billion yen, down 40.2%. The annual dividend forecast was also revised upward by 10 yen to 40 yen, attracting buying interest. The company anticipates expanded sales in fine carbon and industrial furnaces driven by semiconductor market growth, alongside replacement demand for aluminum smelting furnaces triggered by Middle East conflicts.

Simultaneously, TOKAI CARBON announced a new shareholder return policy. Shifting from a 30% payout ratio target, it will now pay the higher of either a 40% consolidated payout ratio or a 5% adjusted dividend on equity (DOE). The company also stated it will flexibly implement share buybacks to maintain a high total return ratio. Additionally, TOKAI CARBON disclosed plans to reduce strategic shareholdings to approximately 3% of consolidated net assets by the end of fiscal 2028, down from 10% at the end of fiscal 2025.

At 10:00 a.m. today, the company announced it executed a buyback of 11,217,000 shares, or 5.25% of total issued shares excluding treasury stock. The total acquisition was 14,999,916,600 yen, conducted through the Tokyo Stock Exchange's off-exchange trading system (ToSTNeT-3).

Source: MINKABU PRESS

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