Tokyo Seimitsu Co., Ltd

Jefferies named its top stock picks in Japan's semiconductor production equipment sector and raised price targets and earnings forecasts across its coverage, citing record orders and earnings growth driven by artificial intelligence and high-performance computing demand in logic semiconductors and advanced packaging. Tokyo Seimitsu saw its price target lifted to ¥24,000 from ¥23,000 on 25 times fiscal 2028 estimated earnings; the company posted first-quarter sales of ¥36.7 billion, up 19% year-over-year, operating profit of ¥5.9 billion, up 29%, and record first-quarter orders of ¥53.2 billion, up 102% year-over-year, while raising its first-half orders outlook to a 50% increase from 20% and lifting fiscal 2027 sales guidance to ¥189.0 billion, above its ¥185.0 billion medium-term goal. Rorze Corp kept its ¥6,000 price target on 25 times fiscal 2028 estimated earnings, with Jefferies raising its fiscal 2027 operating profit estimate to ¥44.0 billion from ¥42.0 billion and its fiscal 2028 estimate to ¥52.0 billion from ¥47.3 billion; Rorze reported first-quarter sales of ¥37.2 billion, up 12%, operating profit of ¥10.2 billion, up 21%, and semiconductor orders of ¥42.0 billion, 1.9 times the prior-year level and above the previous record of ¥34.0 billion, with a semiconductor-related equipment order backlog of ¥62.2 billion. Advantest had its price target raised to ¥41,000 from ¥38,500 on 35 times fiscal 2028 estimated earnings, reflecting a premium for high profitability; it delivered record first-quarter sales of ¥367.5 billion, up 39%, and operating profit of ¥190.0 billion, up 53%, and raised its 2026 SoC tester market outlook to $10.5-11.5 billion from $8.7-9.5 billion, with full-year fiscal 2027 guidance lifted to sales of ¥1.714 trillion, up 51%, and operating profit of ¥846.0 billion, up 69%.