Group 1 - The company, Tokyo Electron, plans to invest 300 billion yen in research and development to achieve maximum growth in the future [1]

Core Viewpoint - Tokyo Electron has indicated that the impact of U.S. tariffs has not been reflected in its forecasts [1] Group 1 - The company has not accounted for the potential effects of U.S. tariffs in its financial predictions [1] - This oversight may lead to discrepancies between actual performance and market expectations [1] - The company is likely to face challenges in adjusting its strategies to mitigate tariff impacts [1]

一起来看下日韩股市的最新情况及资讯。 日韩股市低开 4月22日早间，日韩股市低开，日经225指数低开0.5%，随后短线拉升翻红。 个股方面，电子及金融股多数下跌，三菱日联金融集团、东京电子、三井住友金融集团等纷纷走低。 日本经济再生大臣赤泽亮正表示，与石破茂首相的立场相同，即在与美国的关税谈判中，不会为保护汽车产业而在农业方面作出妥协。 此外，韩国KOSIP指数跌0.37%，报2479.32点。 | 首尔综合指数 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 指 HQ.KOSPI | | | | | | | | 2479.32 -9.10 -0.37% | | | | | | | | 04-22 08:25:00 | | | | | | | | 今开 2481.18 | | | 最高 2484.99 | | | | | 昨收 2488.42 | | | 最低 2476.14 | | | | | 分时 | 日K | 園K | 月K | 室K | 更多, ◎ | | | 均价:2481.93 最新:2479.32 -9.10 -0.37% ...

Core Viewpoint - Tokyo Electron Ltd. (TOELY) has shown a downtrend recently, losing 8.3% over the past week, but a hammer chart pattern suggests a potential trend reversal due to increased buying interest [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottom formation, suggesting that selling pressure may be exhausting [2][5]. - This pattern occurs when a stock opens lower, makes a new low, but then finds support and closes near its opening price, indicating that bulls may be gaining control [4][5]. - Hammer candles can appear on various timeframes and are used by both short-term and long-term investors [5]. Fundamental Analysis - There is rising optimism among Wall Street analysts regarding TOELY's future earnings, which supports the potential for a trend reversal [2][7]. - The consensus EPS estimate for the current year has increased by 0.8% over the last 30 days, indicating analysts' agreement on improved earnings potential [8]. - TOELY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [9].

Financial Data and Key Metrics Changes - In Q1 2025, net sales reached JPY 555.0 billion, a 1.4% increase from the previous quarter [5] - Gross profit was JPY 264.0 billion, reflecting a 3.1% increase, with a gross profit margin of 47.6%, up by 0.8 percentage points [6] - Operating income increased by 14.1% to JPY 165.7 billion, with an operating margin of 29.9%, up by 3.4 percentage points [7] - Net income attributable to owners of the parent was JPY 126.1 billion, a 1.0% increase from the previous quarter [8] - Total assets were JPY 2.4955 trillion, with cash and cash equivalents declining by JPY 34.0 billion to JPY 438.5 billion [12] - The equity ratio stood at 70.3%, with net assets increasing by JPY 12.8 billion to JPY 1.773 trillion [14] Business Line Data and Key Metrics Changes - Sales to non-memory customers accounted for 72%, while DRAM and non-volatile memory accounted for 26% and 2% respectively, indicating a decline in DRAM and non-volatile memory sales [9] - Field solution sales were JPY 118.1 billion, a decline of JPY 1.2 billion, primarily due to decreased used equipment and modification sales [11] Market Data and Key Metrics Changes - Net sales composition showed an increase in Taiwan's proportion, along with growth in North America and China compared to the previous quarter [10] - The WFE market is expected to grow in 2025, driven by strong demand for AI servers and recovery in DRAM and NAND investments [19][26] Company Strategy and Development Direction - The company aims to capture future growth opportunities by investing JPY 253 billion in R&D for fiscal 2025, with expectations for record highs in net sales and profit margins [28] - The focus is on advanced packaging and testing technologies, with new product releases aimed at meeting the growing demand in these areas [23][24] Management's Comments on Operating Environment and Future Outlook - The management noted that while some customers are adjusting their investment plans, the overall WFE market is recovering, particularly in AI-related devices [17][19] - The company anticipates double-digit growth in the WFE market for calendar 2025, driven by increased investments in advanced memory and logic [19][26] Other Important Information - The company completed a share repurchase of JPY 79.9 billion, reflecting its commitment to returning value to shareholders [16] - The total return amount for the fiscal year is expected to reach JPY 319.8 billion, a record high [30] Q&A Session Summary Question: Regarding the SPE new equipment sales forecast - The company indicated that AI-related devices are driving growth, with some customers shifting from logic to memory production due to space limitations [36][38] Question: Factors for upward revision in financial estimates - The management highlighted that customer investment plans have been pulled forward, particularly for logic and AI, contributing to the positive outlook [44] Question: Insights on the China market forecast - The company expects the proportion of sales from China to decrease, despite ongoing investments, as advanced area investments are anticipated to grow [58][96] Question: Updates on cryogenic etching technology - The evaluation of cryogenic etching technology is progressing well, with expectations to secure production orders in the near future [51][53] Question: Trends in the WFE market for 2025 - The company expects significant investment growth in DRAM and advanced logic, particularly for AI servers and industrial applications [56][60] Question: Clarification on gross profit margin improvements - The management explained that improvements in product mix and the absence of inventory loss contributed to the high gross profit margin in Q1 [64][70]

Financial Data and Key Metrics Changes - The company reported operating income of JPY456.2 billion, a decline of 26.1% year-on-year, with an operating profit margin of 24.9%, down 3.1 percentage points due to continued investment in future growth, particularly in R&D [5][9] - Net sales were JPY1,830.5 billion, a decrease of 17.1% year-on-year, attributed to a slowdown in customers' capital investment [8][10] - Net income attributable to owners of parents was JPY363.9 billion, down 22.8% year-on-year [10] - Gross profit was JPY256.1 billion, an increase of 15.3%, with a gross profit margin of 46.8%, down 1.1% due to strategic changes and inventory costs [12] Business Line Data and Key Metrics Changes - DRAM accounted for 27% of sales, with both sales and proportion increasing due to active investment by Chinese customers [15] - Non-volatile memory sales and proportion declined due to low capital investments from customers [15] - Sales to non-memory customers accounted for 66% of total sales, while non-volatile memory accounted for 7% [45] Market Data and Key Metrics Changes - The proportion of sales in China exceeded 40% in fiscal 2024, driven by strong investment in mature nodes, despite adjustments in leading-edge node investments [14] - The WFE market is expected to achieve double-digit growth in 2025, driven by demand for AI-related devices [21][84] Company Strategy and Development Direction - The company plans to invest JPY1.5 trillion in R&D and JPY700 billion in capital expenditures over the next five years to maximize growth potential [24] - The focus is on developing technologies for next-generation products and enhancing resources both domestically and internationally [23] - The company aims to expand its market share in high-value-added areas and is actively investing in R&D to capitalize on future opportunities [53] Management's Comments on Operating Environment and Future Outlook - Management noted that while leading-edge chip makers have suppressed investment, there is a pull-forward in investment for mature nodes, leading to an upward revision of financial estimates during the fiscal year [19] - The company expects a recovery in capital investment for NAND and advanced logic/foundry driven by AI server demand, with an annual growth rate of 31% anticipated [21] - Management expressed confidence in achieving a gross profit margin of 47% in the second half of fiscal 2025, driven by high-value-added products [72] Other Important Information - The Board of Directors approved a share repurchase program of up to JPY80 billion, reflecting a comprehensive assessment of various factors [27][101] - The company has set a target year of 2040 for achieving net zero emissions, advancing its mid-term environmental goals [20] Q&A Session Summary Question: What is the outlook for the WFE market? - Management expects double-digit growth in the WFE market next year, with no changes in their perspective despite previous reductions in leading-edge chip maker investments [31] Question: How does the company view the situation in China? - Management indicated that they cannot comment on export control regulations but noted that they will follow government decisions and do not see a decreasing trend in investment in China [70][112] Question: What are the reasons for the expected increase in NAND sales in the second half of the fiscal year? - The company anticipates increased sales to NAND customers based on shared long-term production plans, with significant orders already received [126] Question: What is the strategy regarding R&D expenses? - The company plans to maintain flexibility in R&D investments, focusing on high-value-added products and not setting an upper limit on the R&D-to-sales ratio [109][111] Question: What is the timeline for hybrid bonding technology? - Management expects hybrid bonding technology to start gaining traction within two to three years, with backside power delivery networks potentially following in three to four years [140]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Investors might want to bet on Tokyo Electron Ltd. (TOELY) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a chang ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Tokyo Electron Limited (OTCPK:TOELF) Q4 2023 Earnings Conference Call May 11, 2023 3:00 AM ET Company Participants Koichi Yatsuda - Vice President of Investor Relations Hiroshi Kawamoto - Vice President & General Manager, Finance Unit Toshiki Kawai - Representative Director, President & Chief Executive Officer Conference Call Participants Masahiro Shibano - Citigroup Global Markets Japan Mikio Hirakawa - BofA Securities Japan Shuhei Nakamura - Goldman Sachs Masahiko Ishino - Tokai Tokyo Research Institute T ...