KOKUSAI ELECTRIC

MSCI is adding Kokusai Electric to the MSCI Japan Index and removing Seibu Holdings and JFE Holdings. The changes take effect at the close of trading on August 31. After the announcement, Kokusai’s stock rose about 6% and Seibu fell roughly 4.1%, as index inclusions and deletions can affect demand from passive funds. » More on de.investing.com

KOKUSAI ELECTRIC reported record first-quarter sales of JPY 75.4 billion (+46% year-on-year) and orders received of around JPY 140 billion. Adjusted operating profit rose to JPY 17.4 billion and the gross margin was 40.7%. Management raised the sales forecast for the fiscal year to JPY 340 billion and increased profit and dividend targets. Despite the strong figures, the stock fell 3.11%, reflecting already high expectations and valuation considerations. » More on de.investing.com

Kokusai Electric reported a 7% drop in Q3 sales to ¥55.9 billion and a 19% decline in adjusted operating profit to ¥11.3 billion; EPS came in slightly below analysts’ estimates. Falling equipment sales, notably in the DRAM business in China, were partly offset by an increase in service revenue, whose share of sales rose to 44% (prior year 30%). The balance sheet remains solid (equity ratio 60.4%), free cash flow was positive and net debt fell to ¥8.1 billion. Management reaffirmed full-year forecasts (sales ¥230 billion, adjusted operating profit ¥44.4 billion, dividend ¥36) and is focusing on higher value added and a 20% sales target for the next fiscal year. » More on de.investing.com