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Stanley Electric Co., Ltd (6923:JP) (OTC:STAEF) announced a share buyback program capped at ¥80 billion or 35 million shares on Monday, representing 23.47% of total issued shares excluding treasury stock. The automotive lighting manufacturer revealed this record repurchase plan following the June 10 market close, marking the largest buyback in company history and significantly exceeding its ¥30 billion campaign from fiscal year 2025.
The company stated the buyback aims to enhance shareholder returns and improve capital efficiency, including lowering its capital adequacy ratio to 65%. Some shares will be purchased through an off-the-counter share repurchase transaction known as ToSTNeT-3, according to the announcement.
Stanley Electric simultaneously released its fiscal year 2026 guidance, projecting sales of ¥480 billion, a 6% year-over-year decrease, and operating profit of ¥41.2 billion, down 16% with an operating profit margin of 8.6%. The company indicated these forecasts incorporate potential impacts from U.S. tariffs and yen appreciation risks.
Citi maintained its Buy rating on Stanley Electric with a price target of ¥3,100.00 following the announcement. The firm’s analyst noted the company’s stance has become "more defined" with this aggressive share repurchase program.
The Japanese auto parts supplier, which specializes in lighting equipment and electronic components for vehicles, has positioned this buyback as a strategic move to optimize its capital structure while returning value to shareholders amid challenging market conditions.
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