Shares in Toyota Motor Corp posted their biggest two-day gain since August on expectations of higher return on equity (RoE) following reports that the Japanese automaker plans to double its target.
Shares rose by another six percent in Tokyo early this morning European time, and in 48 hours that increase is as much as 11 percent. Shares rose on Wednesday after the Nikkei reported that Toyota plans to increase its RoE to 20 percent, citing an unidentified executive from the company.
The company then said that no specific goal or deadline for its achievement had been set, writes Bloomberg.
If the original insider’s statement is correct, “the company would have to increase earnings from the value chain, in order to further raise profit margins,” Morgan Stanley MUFG Securities analyst Shinji Kakyuchi wrote in the report. “We will also monitor whether Toyota, as part of a move to improve capital efficiency, will take funds from the sale of its equity stakes to further increase shareholder returns.”
Toyota shares have jumped more than 20 percent this year, outperforming the broader Topix index, as a weaker yen helped boost revenue in its home currency.
However, the latest report from the world’s biggest carmaker showed global sales fell in November as weak demand combined with a production halt at two plants.
Source:
Biznis.rs / Bloomberg
Photo: Autoblog.rs archive / Toyota
Source: autoblog.rs
