TOKYO ELECTRON LTD (OTCMKTS:TOELY) enjoyed a nice day yesterday as it closed at the end of the last trading session with a gain of 3.08%. The volume of the day at 115,000 was higher than the daily average of 58,000 but these two numbers just indicate the illiquid nature of the stock. If only the price action is taken, the stock is rallying hard and as it has just broken above considerable supply area in the band of $13.50-$14.00, more upside can be expected in the short term. The projection of the previous rise, as shown on the chart, gives us a target around $15.
TOKYO ELECTRON LTD (OTCMKTS:TOELY) stated that global economy during the first six months of the current fiscal witnessed gradual recovery despite poor economic growth in emerging nations, particularly China. The Japanese economy showed signs of a modest recovery.
The highlights
In the electronics industry, the main area of the Tokyo Electron business operations, in spite of some measures including inventory adjustments in the semiconductors segment against a poor economic growth in China and weak demand for PCs, demand for electronic parts used in servers for data centers and high performance Smartphones remained strong. .
Under such set up, the Group’s consolidated results for the first half of the fiscal year were encouraging. The net sales surged 15.9% YOY to 340,951 million yen while operating income jumped more than 103% YOY to 61,250 million yen. The ordinary income recorded growth of 96.3% YOY as it came at 62,384 million yen. Net income attributable to parent owners stood at 41,376 million yen, a jump of 106.7% YOY.
Overview
Tokyo Electron reported that as of 1Q of the current fiscal, the Photovoltaic Panel Production Equipment segment, from which company reported its intention to pull out, was no longer material as predetermined in the Accounting Standard for Disclosures. Hence, it has been eliminated from the reportable divisions and included in “Others.”
The net sales in semiconductor production equipment remained strong, largely due to remarkable capital investment in facilities highlighting strong demand for servers and launch of new Smartphones. In the same period, net sales to external clients in this division for the first six months of the current fiscal were 316,987 million yen, a growth of 16.3% YOY. Net sales in the FPD production equipment segment stood at 18,275 million a yen, a decline of 4% YOY. Others Net sales jumped over 117% to 5,687 million yen in the first six months of current fiscal.
