Why did Daido Steel stock rally this year?

The rally reflects optimism about heavy rare-earth–free magnets amid tighter China export controls and supply-chain diversification. Investors are also pricing optionality in EV and industrial motors. Momentum and technical breakouts helped push shares to an 18-year high. The bull case now needs confirmed orders and margin signs to sustain the move.

How do China export controls affect Daido Steel?

Tighter export controls raise perceived risk for rare-earth supply, lifting the strategic value of alternatives. If Daido Steel can scale magnets that use less heavy rare-earths, it could win share and pricing power. The opportunity is material, but timing and production economics will decide how fast it benefits earnings.

Is Daido Steel’s valuation stretched after the spike?

At ¥2,220, the stock trades around 15.74 times earnings and 0.99 times book, with a 2.16% dividend yield. Those levels are not extreme if magnet growth materializes. Without faster profit growth, multiples could cap near-term upside. Clear order intake and improved margins would support re-rating from here.

What levels should traders and investors watch now?

Near-term resistance is around ¥2,249 to ¥2,276, with support near ¥2,073 and then ¥1,865. RSI at 65 and ADX at 46 show a strong trend with moderate overbought risk. Using ATR near ¥81 for stops can help manage pullbacks while staying engaged if the uptrend continues.

Global Market Insights

5471.T Stock Today, February 25: Rare-Earth Magnet Hype vs Profit Slide

ByHuzaifa Zahoor February 25, 2026February 25, 2026

Daido Steel stock is in focus after shares of 5471.T surged to an 18-year high on optimism around rare earth magnets that avoid heavy rare-earths. The latest price is ¥2,220, up 37.5% year to date, with a 1-year gain of 85.5%. The move reflects a perceived hedge against China export controls. Still, guidance for FY Mar-2026 points to flat revenue and an 8.6% operating profit decline amid softer Japan auto demand. The next earnings date is 24 April 2026, keeping catalysts near.