Toppan shares surge 14% despite FY outlook cut as electronics segment shines

Investing.com -- Toppan shares jumped 14% on Friday as investors focused on strong quarterly performance in its electronics business, looking past a downward revision to full-year operating profit guidance.

The company reduced its fiscal year operating profit forecast from 79 billion yen to 70 billion yen, which appears significantly below the 97.5 billion yen consensus. However, this gap may be partly explained by some analyst estimates not yet accounting for the removal of Toppan’s recently IPOed photomask business, Tekscend.

The outlook reduction also reflects higher than anticipated one-off costs related to the Sonoco acquisition and an expected revision to the information communication segment.

Market attention is now shifting to Toppan’s remaining electronics business (excluding photomask operations), where existing FC-BGA production is operating at full capacity while new production lines are ramping up smoothly. The segment’s operating profit increased 50% quarter-over-quarter and is projected to grow another 60% quarter-over-quarter in the third quarter.

The strong performance in the electronics segment appears to be offsetting concerns about the reduced full-year guidance, particularly against Friday’s weak broader market backdrop.

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