On Tuesday, JPMorgan maintained its Neutral rating on Hirose Electric (6806:JP) (OTC: HRSEF), with a stock price target set at JPY17,500.00. The firm's analyst pointed out that Hirose Electric's operating profit guidance for the fiscal year 2024 is projected at JPY 36.0 billion, marking a 6% year-over-year increase. This figure aligns with both JPMorgan's estimate and the Bloomberg consensus.
The analyst noted that the revenue guidance, which is based on the company's foreign exchange rate assumptions of JPY 143/$ and JPY 155/€, anticipates a revenue split of 47% in the first half and 53% in the second half of the fiscal year.
This suggests an expected recovery in the latter part of FY2024. The company's announcement of its earnings also included a change in its shareholder return policy, shifting from a dividend payout ratio of 50% to a dividend on equity (DOE) of 5%. The goal of this change is to aim for more stable dividend growth.
The assessment provided by JPMorgan reflects a view that the financial results and guidance offered by Hirose Electric are reassuring. Still, the analyst also mentioned that the increase in share price leading up to the earnings release contributed to the neutral perspective.
Hirose Electric is expected to hold a financial results briefing on May 8, which could provide further insights into the company's performance and strategic direction. The market will be looking forward to any additional details that may emerge from this briefing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.