SMC's FY3/26 results and FY3/27 guidance were in line with expectations, supported by strong AI capex demand and a ¥50 bn buyback. However, sentiment was dampened by the deferral of mid-term capital policy and profitability strategy announcements.
Key Takeaways
- 1.FY3/26 operating profits of ¥190.6 bn and FY3/27 guidance of ¥219.0 bn were broadly in line with market expectations.
- 2.The company announced a ¥50 bn share buyback, bringing the total shareholder return ratio to approximately 66.6%.
- 3.Announcements on capital policy and medium-to-long-term strategy were unexpectedly deferred to a future date under new management.
Table of Contents
- Results surprises
- Capital policy and medium-term profitability outlook announcements deferred
- Our view
- Price Target Risks and Methodology - SMC (6273.T)
- Disclosure Appendix
- Price target and rating history chart(s)
- Regulatory disclosures
- Ratings, coverage universe and related definitions
- Global product; distributing entities
- General disclosures
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Authors
Yuichiro IsayamaTakeru AdachiTakato Enoki
Securities
SMC
Themes
AI and Semiconductor Capex RecoveryShareholder Returns and Capital AllocationManagement Transition and Strategic Deferral
Regions
Asia PacificNorth AmericaEuropeJapanChinaUnited States