Daily Brief Japan: Toyota Motor Corp Spon Adr, Terumo Corp, TSE Tokyo Price Index TOPIX and more

In today’s briefing:

Toyota Motor Corporation: Is It Finally Making The Much-Awaited Shift Towards EVs & HEVs? – Major Drivers
Terumo Corp (4543 JP): Q4 Result Beats Guidance; Double-Digit Profit Growth to Continue in FY25
Investors Are Looking for Solutions to Challenges, Not Simply Improved Communication with Investors

Toyota Motor Corporation: Is It Finally Making The Much-Awaited Shift Towards EVs & HEVs? – Major Drivers

Toyota Motor Corporation recently concluded its fiscal year ended March 2024 with notable financial results and established expectations for the upcoming fiscal year.
The company’s actual operating income reached a record JPY 5.35 trillion, significantly bolstered by support and cooperation from various stakeholders, including employees, suppliers, and dealers.
This substantial figure reflects the company’s commitment to region and product-based management over many years.

Terumo Corp (4543 JP) reported 18% revenue growth in Q4FY24, driven by C&V and TBCT businesses. With the steady progress in profit improvement measures, operating profit rose 45%.
For FY25, the company expects revenue of ¥980B (up 6% YoY), operating profit of ¥165B (up 18% YoY), and net profit of ¥122B (up 15% YoY).
The company remains cautious and provided a conservative FY25 guidance. Improvement in any its assumptions provides room for upward revision of the guidance.

While communication with investors is an important tool, “TSE’s request” should be the starting point for solving management issues, as it gave managers the opportunity to think about strategy themselves.
Since many Japanese companies have management issues, it is not surprising that more activist investors believe that investment opportunities can be created by encouraging companies to solve these issues.
Even if a company can convince activist investors through shareholder relations, it will only buy time, and investors/shareholders are looking to increase corporate value by solving problems.

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