Taiyo Nippon Sanso’s (TNSC) new medium-term business plan was announced on 25th March and financial analysts Nomura Securities Co. has revised its earnings estimate for the company accordingly, also predicting a positive long term outlook for the Japanese group.
Domestic demand for industrial gas is expanding steadily and while Nomura believes the short-term outlook for the company’s overseas operations appears ‘harsh’, it expects strong growth to resume – driven by electronics-related businesses and the company’s overseas operations.
The company anticipates average annual operating profit growth of 6% for TNSC, compared with a sector average of 4%, and while it takes ‘a rather conservative outlook
on TNSC’s short-term earnings and prospects for achieving the targets set forth in its
medium-term plan’, Nomura also notes that ‘we retain our positive stance on the company’s strategies for long term growth’.
Aiming to become a global operator, TNSC’s new medium-term business plan outlines the group’s vision for future potential growth and its target of increasing its global market share to 10%, from around 6% at present. The company also intends to invest heavily in expanding operations overseas where strong growth is anticipated, while also moving upstream to supply manufacturers with scarce resources such as helium.
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