Leopalace21 Corp., a Japanese real estate company, surged the most in almost seven months after Toyo Keizai forecast earnings will surge in its quarterly corporate handbook.
Shares of the Tokyo-based company soared 32 percent to 124 yen in Tokyo at the close, the most since Nov. 22, 2010. It had the steepest increase in the Topix index, which fell 0.6 percent.
Net income for the full-year ending March 31, 2013, will increase to 8.5 billion yen ($106 million) and sales will surge to 510 billion yen, according to the quarterly “Kaisha Shikiho” published by Toyo Keizai today, which includes data and estimates for 3,618 Japan-listed companies. That compares with the reported 40.1 billion yen net loss and 484 billion yen sales for the year ended March.
“If the company’s results for next fiscal year are going to improve that much, the current share price is cheap,” said Tsutomu Yamada, a market analyst at Kabu.com Securities Co. in Tokyo. “We’ve only been hearing bad news about the company. People are buying the shares today on next year’s outlook.”