MISUMI Group raises guidance; further upside seen with stock eyeing 5,000 yen

MISUMI Group Inc. <9962> revised up its full-year consolidated earnings forecast alongside its first-quarter (April-June) results, and expectations for further upside remain strong, with its share price poised to target the 5,000 yen level.

At its first-quarter earnings release on the 31st, MISUMI Group raised its full-year guidance, lifting net sales to 532 billion yen from 491.5 billion yen (up 20.5% year-on-year), operating profit to 67 billion yen from 55 billion yen (up 40.7%), and net profit to 44.8 billion yen from 37.4 billion yen (up 10.7%). The revision reflected solid demand in Asia and China for data center and semiconductor investment. Faster-than-expected gains from the company's digital model initiatives - including Fictiv, Economy Series, D-JIT, and meviy - also contributed.

Although the full-year forecast was revised upward, the adjustment primarily incorporated first-half outperformance. Given expanding demand driven by data center and semiconductor investment, analysts widely expect the company to beat its revised guidance at fiscal year-end. While some market participants raised concerns over a potential U.S. import ban on new Chinese-made optical transceivers, production would likely shift from China to other Asian nations if restrictions are implemented, preserving high-end business opportunities and limiting the earnings impact. Some research firms project full-year operating profit exceeding 72 billion yen.

Source: MINKABU PRESS

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