Export Boom Due to Yen Weakness Amid Product Price Increases
11.23 Million Units Sold Last Year, World No.1 for 4 Consecutive Years
Annual Performance Forecast Significantly Upward Revised
Japan's Toyota Motor Corporation's market capitalization has surpassed Samsung Electronics for the first time in seven and a half years, according to a report by Nihon Keizai Shimbun (Nikkei) on the 16th. With this, Toyota has risen to the second-largest market capitalization in Asia, following TSMC.
On the previous day in the Tokyo stock market, Toyota's stock price closed at 3,382 yen (approximately 29,980 KRW), down 0.1% from the previous session. Samsung Electronics' closing price fell 1.35% to 73,000 KRW. Based on the previous day's closing prices, Toyota's market capitalization was 55.1772 trillion yen (approximately 490 trillion KRW), about 54 trillion KRW more than Samsung Electronics (approximately 436 trillion KRW for common shares).
The factors enabling Toyota to surpass Samsung Electronics' market capitalization are attributed to price increases of products due to improved vehicle performance and an export boom fueled by the weak yen. Last year, Toyota sold 11.23 million new cars worldwide, securing the top spot in global sales for the fourth consecutive year.
Additionally, Toyota significantly raised its earnings forecast for the 2023 fiscal year (April 2023 to March 2024). Toyota projected consolidated sales to increase by 16% from the previous year to 43 trillion yen (approximately 377 trillion KRW), and revised its operating profit forecast from 4.5 trillion yen to 4.9 trillion yen (approximately 41 trillion KRW), an 80% increase compared to last year. Net profit is expected to reach 4.5 trillion yen (approximately 39 trillion KRW), an 84% growth from the previous year.
Kota Yuzawa of Goldman Sachs Securities analyzed, "Considering Toyota's strong performance and future profit growth, we have raised the target stock price to 3,600 yen," adding, "Toyota's pride, the hybrid model, will support sustainable growth."
Meanwhile, attention is also focused on whether the Nikkei 225, Japan's representative stock index, will continue its rally and reach a record high. The Nikkei index surpassed the 38,100 mark during the previous day's session, setting a new 34-year high. It is now close to the all-time high of 38,915 recorded at the end of 1989.
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