Daily Brief Japan: Crasus Chemical, Fast Retailing, Applied Co Ltd, Ryobi Ltd, Morita Holdings, TSE Tokyo Price Index TOPIX, Migalo Holdings, Sanki Service, Shionogi & Co and more

• Back in February 2024, Resonac Holdings (4004 JP) announced it would start an assessment of a partial spinoff of its petrochemicals division, Crasus Chemical (646A JP). 
• Resonac updated in July 2026. In August the Board resolved to deliver 80+% of shares to Resonac investors. Today the TSE approved. Crasus starts trading on Resonac ex-rights day 29-September.
• The “center” value should be determined in about a week to ten days. The estimate of asset distribution right now is 0.09 per Resonac share. There will be index effects.

• Fast Retailing (9983 JP) earnings are one month away. The stock has corrected nearly 22% from its peak in early July. Our model just signaled a high probability LONG entry.
• The broad sentiment on the stock is bullish/outperform, based on upgraded full-year FY2026 guidance, high-margin international expansion and robust domestic same-store sales. 
• There is currently no catalyst to suggest an imminent restart of the rally but our model has flagged the stock as excessively oversold: a rally could start this week.

• Applied Co is a small cap regional Japanese PC retailer and IT provider with surprisingly good execution that’s moving into higher margin local AI deployments (HPC) and IT services.

• Company-wide return on equity was 17.6% in FY26 despite carrying more than half its market cap in net cash.

• FY23 and FY24 were historically bad years with 12.3% RoE while FY2016-FY2022 bounced around 17-20%. This is incredible for such an over capitalized business.

• Excluding the impact of higher raw material costs and yen depreciation, Ryobi’s net sales for H1 FY12/26 were roughly flat YoY. OP fell 25.4% YoY due to surging raw material prices and delayed price pass- through.
• However, raw material prices have recently begun to stabilize, and profitability is projected to improve as the benefits of price adjustments take full effect in H2 FY12/26.
• Backed by a solid outlook for new product rollouts in the Japanese and Thai markets, the company revised its FY guidance for Die Castings. 

• Morita Holdings is Japan’s dominant fire-truck manufacturer, holding roughly 57-60% of the domestic market and close to 90% of the aerial ladder-truck segment

• Founded in 1907 by Shōsaku Morita as a fire-pump maker and built into a nationwide-service, certification-protected niche monopoly against a much smaller #2 competitor, Nikki Co.

• The moat is genuine and multi-decade — safety certification, a product-liability track record, and nationwide parts/service infrastructure a new entrant couldn’t replicate in thirty years.

• A more direct way to resolve management challenges is to address the structural issue of trading liquidity being significantly lower than market capitalization and thereby attract attention of global investors.
• Companies should strive to resolve cross-shareholdings promptly. Prompt elimination of parent-subsidiary listings—in the broad sense—will lead to improved profitability for both the parent company and its affiliates.
• This structural issue is the reason why companies that wish to continue operating based on traditional values are still able to hold a majority of voting rights.

• On August 6, MIGALO HOLDINGS Inc. (hereafter, the Company) announced its Q1 FY2027 (April–June) earnings results.
• Net sales increased 4.0% YoY to JPY 14,840 mn, and operating profit decreased 0.2% YoY to JPY 973 mn.
• Across the Group, fixed costs increased as the Company strengthened its growth foundation—primarily through personnel investments.

Key points (machine generated)

• SANKI SERVICE CORPORATION reported record-high financial results for FY5/26, with net sales up 17.5% to ¥24,253 million.
• The company faced challenges from rising labor costs and changes in customer trading terms despite strong demand for equipment upgrades.
• SANKI plans a management integration with Shin Maint Holdings effective December 1, 2026, to enhance its operational foundation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• Sanki Service achieved record sales of 24,253 million yen for the fiscal year ending May 2026, a 17.5% increase from the previous year.
• The company provides total maintenance services, operating a 24/7 call center for facilities like offices, hotels, and hospitals.
• Sanki Service announced a management integration with Shin Maintenance Holdings to enhance its service offerings and operational capabilities.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Shionogi & Co (4507 JP) announced Q1FY27 result, with revenue and all profit categories achieving record-high for the first quarter, driven by existing businesses and integration effects from acquired businesses.
• Progress rate of key parameters of Q1FY27 against H1FY27 guidance is strong, thereby enhancing our conviction on the company meeting guidance.
• Addition of growth drivers in multiple QOL diseases that are not affected by fluctuations in infectious disease outbreaks, together with contributions from acquired products should lead to accelerated profitable growth.