Japan

In today’s briefing:

[Japan Buybacks] ShinEtsu Chem (4063) – How the FCSR Works
Many Companies in Japan Are Still Hesitant to Hire the Talent They Need
Moresco (5018 Jp) – True Value Is Tested in Times of Adversity
Asahi Intecc (7747 JP): Medical Division Drives 9M Result; FY25 Guidance Raised; Buyback Announced
Macnica Holdings (3132 JP) – Lingering Weakness in Semiconductors…

[Japan Buybacks] ShinEtsu Chem (4063) – How the FCSR Works

Late April, Shin Etsu Chemical (4063 JP) announced a huge ¥500bn 200mm shares (10.2%) buyback. That was never ever going to happen. That needed a ¥2500 share price, not ¥4300+.
But it was big, and started in late May. Today, they announced how. It is a “Japan ASR”, the Nomura version, this time with an interesting twist.
In response to a couple of reader questions today, I provide a brief overview of how these things work.

Many Companies in Japan Are Still Hesitant to Hire the Talent They Need

By Aki Matsumoto

Given the rapid aging of Japan’s population, if the current composition of the board of directors continues, the number of directors will further age in the future.
A board that embraces diverse age range is likely to embrace people with diverse backgrounds and skillsets, and a diverse board composition is likely to have positive impact on management.
In Japan, with strong peer pressure, CEOs controlling human resources, % independent directors and female board members in 40% and 15%, many companies are hesitant to hire talent they need.

Moresco (5018 Jp) – True Value Is Tested in Times of Adversity

By Sessa Investment Research

In FY2025/2, MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company”) reported net sales of JPY 34,374 mn (+7.8% YoY), driven by increased sales volumes in Japan and overseas, as well as revision to selling prices.
Operating profit rose by only 13.6% YoY due to higher R&D expenses, while ordinary profit remained flat, weighed down by a decrease in foreign exchange gains and profits from equity-method investments.
Profit attributable to owners of parent (hereinafter, net profit) fell by 21.1% YoY owing to a deterioration in extraordinary gains and losses.

Asahi Intecc (7747 JP): Medical Division Drives 9M Result; FY25 Guidance Raised; Buyback Announced

Asahi Intecc (7747 JP) announced 9MFY25 result, with double-digit growth across all key parameters. Revenue increased 14% YoY to ¥91.8B, driven by 16% growth in medical division.
The company has raised guidance for FY25 revenue and operating profit and reduced net profit guidance to reflect better-than-expected performance of medical division and booking of impairment loss.
Asahi will buy back up to 8.8M shares (representing 3.2% of issued shares) for ¥15B. Buyback will be conducted from May 16, 2025 to October 31, 2025.

Macnica Holdings (3132 JP) – Lingering Weakness in Semiconductors…

By Astris Advisory Japan

Consolidated OP declined in Q4 FY3/25 (-40.7% QoQ), reflecting weakness in Semiconductors due to continued sluggishness in Industrial Equipment and higher SG&A triggered by the consolidation of a subsidiary.
The segment OP for Semiconductors declined sharply (-68.6% QoQ), lowering the OP margin (Q3 FY3/25 3.4%, Q4 FY3/25 1.1%).
As a result, the consolidated OP margin also declined (Q3 FY3/25 4.1%, Q4 FY3/25 2.5%).

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May 20

Daily Brief Japan: Toyota Industries, Mitsubishi Logisnext Co., Ltd., Toyota Motor, TSE Tokyo Price Index TOPIX, Matsuya Co Ltd, Kaken Pharmaceutical and more

In today’s briefing:

[Japan M&A/Activism] Toyota Industries (6201) Deal Could Be Announced Near-Term
Toyota Industries (6201 JP): A Potential Privatisation Sooner than Expected
[Japan M&A] Mitsubishi Logisnext (7105) – The Deal Still Looks Mighty Good
Toyota Motor (7203 JP) Tactical View: Privatization Momentum Builds — Ready to Rally?
Reasons Why the TSE’s Request to “improve IR System” Seems to Be Ineffective This Time
StubWorld: Toyota Industries/Motors, GMO Internet
Matsuya’s Record Sales May Signal Peak for Sector
Kaken Pharmaceutical (4521 JP): Bleak FY26 Ahead, No Immediate Respite In Sight

[Japan M&A/Activism] Toyota Industries (6201) Deal Could Be Announced Near-Term

Friday 25 April, Toyota Industries (6201 JP) released earnings for last year, guidance for this year and a Bloomberg scoop suggested Toyota Motors chairman Akio TOYODA would launch an MBO.
In some ways surprising, but activists/”noisy shareholders” and TSE guidance on dual listings caused pressure, and Toyota Motors was trying to walk the good governance walk.
I discussed the situation here on Day 1, and here a few days later. Long-only shareholders sold. Today, Kyodo had a follow-up article. Then Nikkei. Looks more solid now.

Toyota Industries (6201 JP): A Potential Privatisation Sooner than Expected

Kyodo news agency reported that Toyota Industries (6201 JP) plans to accept a tender offer by Toyota Motor (7203 JP) and Toyota Chairman Akio Toyoda, potentially in May or June.
The Nikkei reported that Toyota plans to borrow JPY3 trillion to fund the acquisition. These articles provide more clarity on price, composition of the offeror, financing structure, and timeline.
These articles increase the probability of a tender offer around JPY18,515 (JPY6 trillion market cap). At the last close, the gross spread was 12.1%.

[Japan M&A] Mitsubishi Logisnext (7105) – The Deal Still Looks Mighty Good

On 9 May Mitsubishi Logisnext Co., Ltd. (7105 JP) delayed earnings by 30 minutes. Shares popped. Then earnings were released, no deal, and shares crashed. Now they are rebounding.
But they remain volatile and subject to dips like the one this AM -5% at one point. Fears may be due to the idea that first smoke here was Dec-2024.
5 months later, no deal yet. Bids were due pre-earnings but with tariffs and writedowns, one wonders if bidders were waiting for results.

Toyota Motor (7203 JP) Tactical View: Privatization Momentum Builds — Ready to Rally?

By Nico Rosti

Since April 28th we traced a path for Toyota Motor (7203 JP)‘s stock price, first here (forecast: going down) and then here (forecast: potential 2-week pullback to 2578).
Last week Toyota Motor (7203 JP)pulled back to 2598 (pretty close to our 2578 target). The stocks closed down for 2 weeks, as predicted. A rally may be starting.
Rumors of an acceleratingof privatization bid for Toyota Industries (6201 JP)could act as a fresh catalyst for the stock—aligning with our model’s forecast from May 8th.

Reasons Why the TSE’s Request to “improve IR System” Seems to Be Ineffective This Time

By Aki Matsumoto

TSE plans to mandate the development of IR system, but since most companies disclosed that they have already taken action, fewer companies will move to do something from now on.
Analysis of IR disclosure and stock valuations showed that IR disclosure scores did not differ among the five groups of companies by percentage change in Tobin’s Q.
The fact that many companies haven’t been able to provide capital profitability and management strategies that investors seek has led to reluctance to hold briefings to communicate with overseas investors.

StubWorld: Toyota Industries/Motors, GMO Internet

By David Blennerhassett

Given recent – and ongoing developments – with Toyota Industries (6201 JP) and GMO Internet (4784 JP), I’m revisiting my NAVs.
Preceding my comments on the Toyota Group and GMO, are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Matsuya’s Record Sales May Signal Peak for Sector

By Michael Causton

Matsuya Co Ltd (8237 JP) had a terrific FY2024, posting a new sales record at its Ginza store, the first since 1992.
There are worries that this year or next will be the peak given the ongoing decline in sales to locals, and if a strengthening Yen puts paid to tourist largesse.
The same headwinds are hitting all the major department store firms, including Isetan Mitsukoshi Holdings Ltd (3099 JP),Takashimaya (8233 JP) and J Front Retailing (3086 JP).

Kaken Pharmaceutical (4521 JP): Bleak FY26 Ahead, No Immediate Respite In Sight

Kaken Pharmaceutical (4521 JP) witnessed 31% YoY revenue growth in FY25 to ¥94 billion on the back of flurry of one-time upfront payments, resulting in surge in profits too.
Kaken’s major drug Clenafin saw revenue drop of 2% YoY to ¥17 billion on patent cliff, while Artz revenue grew 6% YoY to ¥19 billion.
For FY26, Kaken expects revenue to fall 6% to ¥88 billion. No respite from immediate pangs of revenue loss from NHI drug price revision and generic competition for top-selling products.

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May 19

Daily Brief Japan: Sankyo Co Ltd, Seven & I Holdings, Nexon, Eisai Co Ltd, GMO Internet and more

In today’s briefing:

[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month – Data on Each, Plus History
Merger Arb Mondays (19 May) – Seven & I, Nissin, Welcia/Tsuruha, Mayne, ESR, OneConnect, Frasers
How Nexon (3659) Got Its Mojo Back
Eisai Co Ltd (4523 JP): Leqembi at a Growth Juncture as New Markets Open Up; Margins Under Pressure
GMO Internet Placement: Extremely Overvalued at the Moment

[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month – Data on Each, Plus History

Buybacks are a central part of Corporate Japan’s effort to improve corporate/capital governance. Lots of cross-holders want/need to sell. Lots of companies want to reduce excess equity.
This earnings season has seen a LOT of new buybacks announced. ¥7.3trln in the last month and that doesn’t even include the biggest buybacks extant by March-end companies.
We are experimenting with new ways of displaying data/analytics for buybacks in Japan. To that end, we have a new tool. We hope users find it useful. We invite feedback.

Merger Arb Mondays (19 May) – Seven & I, Nissin, Welcia/Tsuruha, Mayne, ESR, OneConnect, Frasers

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Insignia Financial (IFL AU), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP), ZEEKR (ZK US), Mayne Pharma (MYX AU), Smart Share.
Lowest spreads: Bright Smart Securities And (1428 HK), Dada Nexus (DADA US), Nissin Corp (9066 JP), Sinarmas Land (SML SP), Fujitsu General (6755 JP), Torii Pharmaceutical (4551 JP).

How Nexon (3659) Got Its Mojo Back

By Michael Allen

Nexon underperformed the software segment by 32% in the past 12 months, and analysts expect earnings to decline over the next 5 years.
But the company beat Q1 consensus EBIT estimates.by 54% and the stock lurched 17% the very next day.
Nexon’s business is immune to tariffs and tends to perform well in recessions. The company’s pipeline appears to be stronger than anyone imagined.

Eisai Co Ltd (4523 JP): Leqembi at a Growth Juncture as New Markets Open Up; Margins Under Pressure

In FY25, Eisai Co Ltd (4523 JP) reported 6% YoY growth in revenue, driven by 3Ls. Operating profit rose 2% YoY and net profit climbed 9% YoY to ¥46B.
Eisai guided for FY26 revenue of ¥790B, flat YoY. Revenue for Leqembi is expected to grow significantly (¥76.5B, up 73% YoY). Operating profit is expected to remain flat at ¥54.5B.
Leqembi’s potential market expansion holds promise, especially in the developed economies with the proportion of aged population gradually on the rise and with a dearth of suitable treatment options available.

GMO Internet Placement: Extremely Overvalued at the Moment

By Nicholas Tan

GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
Shares are very overvalued at the moment and should be worth a mere fraction of its current trading value.
We have looked at the company’s deal dynamics in our earlier notes. In this note, we discuss the firm’s outlook as well as valuation.

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May 18

Daily Brief Japan: JTEC Corp/Osaka, Tsuruha Holdings, Technopro Holdings and more

In today’s briefing:

JTEC Corp (3446 JP) – Continued Uplift in Performance
Last Week in Event SPACE: Tsuruha/Welcia Merger, Mayne Pharma, Canvst, Insignia Financial
TechnoPro (6028 JP): A Good Privatisation Candidate

JTEC Corp (3446 JP) – Continued Uplift in Performance

By Astris Advisory Japan

Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science & Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.
The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.
Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term.

Last Week in Event SPACE: Tsuruha/Welcia Merger, Mayne Pharma, Canvst, Insignia Financial

By David Blennerhassett

Glass Lewis has now joined ISS in recommending holders vote against the Tsuruha Holdings (3391 JP)/Welcia Holdings (3141 JP) merger, presumably as it relates to the ratio.
Mayne Pharma (MYX AU), ASIC AND Cosette have effectively signed off on the Scheme Booklet’s veracity. That should be assuring to investors.
Canvest Environmental Protection Group (1381 HK)‘s Scheme comfortable got up – despite a last minute hiccup – and poor governance – to adjourn the meeting.

TechnoPro (6028 JP): A Good Privatisation Candidate

Technopro Holdings (6028 JP) shares were up 20.7% on Friday based on a Mergermarket report that is conducting a privatisation auction with bids due in six weeks.
Technopro responded that it has been continuously exploring various strategic alternatives, including privatisation, to enhance shareholder value. TechnoPro has the characteristics to make a good privatisation target.
The precedent is Bain’s privatisation of Outsourcing Inc (2427 JP) at a forward EV/EBITDA multiple of 13.5x. A similar multiple implies a JPY4,400 offer. TechnoPro can justify a higher multiple.

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May 17

Daily Brief Japan: Technopro Holdings, Tsi Holdings, TSE Tokyo Price Index TOPIX, Oisix ra daichi, T&D Holdings, Cyber Security Cloud Inc, Kyodo Printing, France Bed Holdings, Dic Corp, Resorttrust Inc and more

In today’s briefing:

[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs
TSI Holdings: Strong Growth in BPS and Aggressive Record of Share Buybacks
Another Reason Companies Are Reluctant to Disclose in English, and Not Just Because of the Cost
Oisix ra daichi (3182 JP): Full-year FY03/25 flash update
T&D Holdings (8795 JP): Full-year FY03/25 flash update
Cyber Security Cloud Inc (4493 JP): Q1 FY12/25 flash update
Kyodo Printing (7914 JP): Full-year FY03/25 flash update
France Bed Holdings (7840 JP): Full-year FY03/25 flash update
Dic Corp (4631 JP): Q1 FY12/25 flash update
Resorttrust Inc (4681 JP): Full-year FY03/25 flash update

[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs

Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
Overnight, an article appeared in MergerMarket – a high-dollar M&A-related news service – saying the company was going through a sale process. The company confirmed it was one possibility.
The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.

TSI Holdings: Strong Growth in BPS and Aggressive Record of Share Buybacks

By Douglas Kim

Tsi Holdings (3608 JP) is a leading apparel company in Japan. Net cash was 45 billion yen at end of February 2025, representing 58% of its current market cap.
The company has an excellent record of increasing its BPS, reducing outstanding shares, and buying back shares. Valuations have become more attractive.
Its share price has had a nice pullback in the past three months (down 22% from its peak levels in February 2025).

Another Reason Companies Are Reluctant to Disclose in English, and Not Just Because of the Cost

By Aki Matsumoto

Even in 93.8% of prime companies that disclose financial results in English, many disclose only summaries and financial statements in English, while few provide qualitative information and notes in English.
The belief that the company doesn’t provide sufficient information to shareholders to control AGM is common to reluctance to disclose documents in English, which are highly demand by overseas investors.
The idea of “not wanting to provide overseas investors with sufficient information,” which has ingrained in many companies, is opposed to movement to “improve the quality of dialogue with investors.”

Oisix ra daichi (3182 JP): Full-year FY03/25 flash update

In FY03/25, sales increased by 72.5% YoY, EBITDA by 55.3% YoY, and operating profit by 33.9% YoY.
For FY03/26, the company forecasts sales of JPY270.0bn, EBITDA of JPY14.0bn, and operating profit of JPY8.0bn.
The company targets adjusted EPS of JPY175.0 in FY03/30, with a five-year CAGR of 11%.

T&D Holdings (8795 JP): Full-year FY03/25 flash update

Ordinary revenues in FY03/25 reached JPY3.7tn, a 16.3% YoY increase, with insurance premiums at JPY2.6tn.
Group adjusted profit rose 36.7% YoY to JPY141.5bn, driven by strong domestic life insurance business performance.
T&D Holdings forecasts FY03/26 ordinary revenues to decline 19.3% YoY to JPY3.0tn, with a 12.3% YoY profit increase.

Cyber Security Cloud Inc (4493 JP): Q1 FY12/25 flash update

Revenue increased to JPY1.2bn (+24.4% YoY), driven by growth in WafCharm and CloudFastener, with ARR at JPY4.5bn (+30.9% YoY).
Operating profit declined to JPY241mn (-23.6% YoY) due to increased operating expenses, including personnel and outsourcing costs.
Shadankun’s ARR reached JPY1.7bn (+6.1% YoY) with a user count of 1,322 companies and a churn rate of 1.06%.

Kyodo Printing (7914 JP): Full-year FY03/25 flash update

Revenue reached JPY100.0bn (+3.1% YoY) with operating profit at JPY2.3bn (+47.8% YoY) and net income JPY3.3bn (+121.4% YoY).
Information-related segment saw increased revenue from transportation tickets, IC cards, and digital transformation services, despite promotional material order declines.
Living and Industrial Materials segment focused on packaging solutions, addressing raw material costs, and expanding high-value-added product offerings.

France Bed Holdings (7840 JP): Full-year FY03/25 flash update

FY03/25 revenue was JPY60.6bn (+2.4% YoY), operating profit JPY4.7bn (+2.4% YoY), net income JPY2.9bn (-6.0% YoY).
Medical Services revenue rose 4.2% YoY, Home Furnishing and Health revenue decreased 1.3% YoY, with GPM at 54.6%.
FY03/26 forecast: revenue JPY62.3bn (+2.9% YoY), operating profit JPY4.8bn (+1.1% YoY), net income JPY3.1bn (+3.5% YoY).

Dic Corp (4631 JP): Q1 FY12/25 flash update

Consolidated sales reached JPY262.1bn (+2.5% YoY), with operating profit at JPY13.1bn (+54.0% YoY), driven by market recovery.
Segment sales varied, with packaging inks declining in Asia, while jet inks for digital printing increased significantly.
Operating profit rose in Japan and overseas, supported by cost savings and stable sales prices across product lines.

Resorttrust Inc (4681 JP): Full-year FY03/25 flash update

Sales and operating profit increased YoY; Membership and Medical segments saw higher sales and profits, while Hotel and Restaurant segment had lower profits.
Contract value for hotel memberships increased YoY; sales and operating profit rose due to higher contract value and improved margins.
FY03/26 forecast: sales JPY259.0bn (+3.9% YoY), operating profit JPY27.5bn (+4.3% YoY), net income JPY19.0bn (-5.7% YoY).

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May 16

Daily Brief Japan: Aichi Steel, Appier Group, Paramount Bed Holdings Co Lt, Freee KK, ASICS Corp, Fast Fitness Japan Inc, Sumitomo Metal Mining, Hakudo Co Ltd, Grandy House, Forum Engineering Inc and more

In today’s briefing:

[Japan Activism?] Toyota Group Equity Affiliate and Murakami Target Aichi Steel Does Large ToSTNeT-3
Appier (4180 JP) | AI Marketing Leader Positioned for Long-Term Growth
Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now
High Conviction 2025 – Freee: Robust Business Model Supports Stable Margins; Further Upside Ahead
Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance
Fast Fitness Japan Inc (7092 JP): Full-year FY03/25 flash update
Sumitomo Metal Mining (5713.T): Strategic Reset Amid Downstream Challenges and Valuation Discount
Hakudo Co Ltd (7637 JP): Full-year FY03/25 flash update
Grandy House (8999 JP): Full-year FY03/25 flash update
Forum Engineering Inc (7088 JP): Full-year FY03/25 flash update

[Japan Activism?] Toyota Group Equity Affiliate and Murakami Target Aichi Steel Does Large ToSTNeT-3

Aichi Steel (5482 JP) announced earnings on 25-April during market hours. Results were OK. Guidance was OK. The div was WAY up for Mar26. Shares fell. Then rose 26-April.
Aichi Steel is a Toyota Motors equity affiliate (26-27%), Toyota Industries, Toyota R.E., megabanks, the Kyoeikai, and Nippon Steel all have stakes. Nippon Steel recently reduced its position.
Activist Murakami has about 10% across two entities. This morning, the Company was to buy back 16%. WHO is selling? We don’t know yet. Likely a mix. Details may matter.

Appier (4180 JP) | AI Marketing Leader Positioned for Long-Term Growth

By Mark Chadwick

Solid Q1 and reaffirmed guidance: Appier delivered 27% organic growth in Q1, maintained FY targets, and continues to benefit from resilient demand for AI marketing solutions.
Strategic acquisition of AdCreative.ai: The deal expands Appier’s AI portfolio, enhances creative automation capabilities, and supports cross-sell potential, despite short-term margin pressure from integration.
Attractive valuation with upside: Despite strong fundamentals, shares trade below 3x EV/sales; H2 seasonality and AI adoption present a compelling re-rating opportunity.

Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now

By Shifara Samsudeen, FCMA, CGMA

In FY25, Paramount Bed Holdings Co Lt (7817 JP) reported 2% YoY revenue growth to ¥109B, mainly driven by the nursing care business.
Due to higher SG&A expenses, operating profit decreased 6% YoY to ¥13B and net profit was down 15% YoY to ¥9B.
Paramount guided FY26 revenue to grow 4% YoY to ¥113B and also trimmed FY27 targets in mid-term plan.

High Conviction 2025 – Freee: Robust Business Model Supports Stable Margins; Further Upside Ahead

Freee KK (4478 JP) reported 3QFY06/2025 results today. Revenue for the quarter was marginally below consensus despite increasing 27% YoY, while GAAP OP beat consensus by a huge margin.
Due to the tax filing season, freee’s S&M costs tends to be higher during 3Q which led to slightly lower Adj. OP during the quarter. Price revisions have improved ARPU.
Freee’s share price has been up more than 40% YTD, strengthening profitability and its solid business model vs Money Forward (3994 JP) mean there is further upside.

Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

By Mark Chadwick

Asics reported its first-quarter results during trading hours, with the stock closing down 8.6% on the day.
While headline numbers were strong, investors may have been disappointed by the lack of upward revision to full-year guidance.
Our positive view on Asics remains unchanged. The company is successfully navigating geopolitical and macro uncertainties while strengthening its brand.

Fast Fitness Japan Inc (7092 JP): Full-year FY03/25 flash update

FY03/25 revenue increased 13.8% YoY to JPY18.0bn, driven by membership growth in domestic Anytime Fitness clubs.
Operating profit decreased 4.7% YoY to JPY3.3bn due to higher costs, despite revenue growth and cost-curbing efforts.
FY03/25 saw 71 club openings and 11 closures, ending with 1,194 clubs and 974,000 members.

Sumitomo Metal Mining (5713.T): Strategic Reset Amid Downstream Challenges and Valuation Discount

By Rahul Jain

Sumitomo Metal Mining (TSE:5713) faced challenges in FY2024, with earnings impacted by weak treatment and refining charges (TC/RCs) in the copper segment and underperformance in battery materials.
Its recent 3-Year Business Plan 2027, to boost EBITDA from ¥150 billion to ¥275 billion by FY2027 by working on the mines, focussing on battery materials business, and recycling.
The stock has declined approximately 37% over the past year, making it more attractive with a forward EV/EBITDA of around 4.0x, suggesting potential undervaluation.

Hakudo Co Ltd (7637 JP): Full-year FY03/25 flash update

Revenue increased by 16.0% YoY to JPY66.4bn, driven by higher product prices and semiconductor equipment demand.
Operating profit rose 18.2% YoY, aided by increased gross profit per unit and inventory valuation gains.
FY03/26 forecast: Revenue JPY75.8bn (+14.1% YoY), operating profit JPY3.2bn (+8.3% YoY), net income JPY2.4bn (+5.1% YoY).

Grandy House (8999 JP): Full-year FY03/25 flash update

Grandy House’s FY03/25 sales increased YoY, driven by higher sales volume in Tokyo, despite a decline in homes sold.
Pre-cut Parts segment faced YoY declines in sales and profit due to a sluggish housing market and factory upgrades.
Total assets decreased by JPY5.7bn from end-FY03/24, mainly due to reduced inventories in the Real Estate Sales business.

Forum Engineering Inc (7088 JP): Full-year FY03/25 flash update

FY03/25 revenue reached JPY34.7bn (+10.9% YoY) with operating profit at JPY4.2bn (+38.7% YoY) due to increased engineer utilization and staffing rates.
FY03/26 forecasts project revenue of JPY38.2bn (+10.1% YoY) and operating profit of JPY5.0bn (+32.1% YoY), focusing on Cognavi Staffing and Graduates.
Revised medium-term plan targets FY03/26 revenue of JPY38.2bn and operating profit of JPY5.0bn, emphasizing engineer staffing and India expansion.

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May 15

Daily Brief Japan: GMO Internet, Nippon Road, Sumitomo Mitsui Construction, Sankyo Co Ltd, Ryohin Keikaku, GMO Pepabo Inc, Cyberlinks and more

In today’s briefing:

GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE
[Japan M&A] – Three+ Years Later, Shimizu Comes In To Buy Out Minorities in Nippon Road (1884)
GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements
GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering
[Japan M&A/Activism] Infroneer To Buy Out Activist Target Sumi Mits Construction (1821) Cheapish
Sankyo Co: Big Buyback + Five Years Left Until Opening of Mega MGM Osaka Integrated Casino Resort
Nippon Road (1884 JP): Shimizu Corp (1803 JP) Tender Offer Is Light but Likely Done
Trust in Muji Reaps Big Returns
GMO Pepabo Inc (3633 JP): Q1 FY12/25 flash update
Cyberlinks (3683 JP): Q1 FY12/25 flash update

GMO Internet (4784) Offering – This Is a GINORMOUS Re-IPO – AVOID LIKE THE PLAGUE

Last year, GMO injected its internet business into GMO Internet (4784 JP) and took shares as consideration. Somehow, GMO Internet got a TOPIX inclusion earlier this year.
The company has 1.24% float of 3.4mm shares. GMO Internet Group – the parent – will now offload 91.7mm shares in an equity offering to meet TSE Continued Listing Requirements.
That is about ¥279bn at current price against float of ¥10bn. Full market cap is ¥850bn. That’s 170x Dec25e Net Income. I expect the price will fall. You were warned.

[Japan M&A] – Three+ Years Later, Shimizu Comes In To Buy Out Minorities in Nippon Road (1884)

In February 2022, Shimizu Corp (1803 JP) bought an additional 25% to get to 50.1% of Nippon Road (1884 JP). It wasn’t a great price.
It was, however, a good trade to buy the dip after, as recommended. I expected Shimizu to come back in one to three years. It took three.
Like last time, the price is light. The multiple is low. There are no synergies in the price analysis, in specific violation of the METI Fair M&A/CorpTakeover Guidelines. Bah humbug.

GMO Internet Placement: Secondary Sell-Down (Quasi IPO) To Meet Prime Listing Requirements

By Nicholas Tan

GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
As the current free-float is tiny, the deal is more like a quasi-IPO rather than a placement, in our view.
In this note, we will talk about the deal dynamics as well as updates on the company’s financial performance.

GMO Internet (4784 JP): A Huge US$1.9 Billion Secondary Offering

GMO Internet (4784 JP) has announced a secondary offering of 91.7 million shares, worth around US$1.9 billion.
The selling shareholder is GMO Internet Group (9449 JP). The secondary offering aims to increase the tradable share ratio to satisfy the TSE Prime Market’s continued listing criteria.
The offering represents 239.4 days of the 1-year ADV, the highest compared to the recent large Japanese placements. Pricing is likely to be on 5 June.

[Japan M&A/Activism] Infroneer To Buy Out Activist Target Sumi Mits Construction (1821) Cheapish

Noted activist Yoshiaki MURAKAMI and associates owned ~12.5% in March 2024, perhaps a tad more. Now they own ~29%.
Integrated Construction Co INFRONEER Holdings (5076 JP) – congenitally allergic to paying full price for acquisitions – is buying Sumitomo Mitsui Construction (1821 JP) well below FAs’ DCF range midpoints.
But MURAKAMI-san has tossed his cards in, agreeing to tender. This looks like it gets done, but there are interesting angles.

Sankyo Co: Big Buyback + Five Years Left Until Opening of Mega MGM Osaka Integrated Casino Resort

By Douglas Kim

On 12 May, Sankyo Co Ltd (6417 JP) announced a big share buyback worth 13.66% of total issued shares (excluding treasury shares).
Aggregate amount of the purchase cost is up to 60 billion yen (9.7% of its current market cap).
We continue to have a Positive view of Sankyo which continues to demonstrate its commitment to deliver higher shareholder returns through aggressive share buybacks.

Nippon Road (1884 JP): Shimizu Corp (1803 JP) Tender Offer Is Light but Likely Done

Nippon Road (1884 JP) has recommended a tender offer from Shimizu Corp (1803 JP) at JPY2,520, a 16.2% premium to the undisturbed price.
The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.
The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal.

Trust in Muji Reaps Big Returns

By Michael Causton

Muji continues its impressive growth streak both at home and abroad – sales in March alone rose 33% in Japan.
Muji has grown in part because of its ability to move into new categories, even cosmetics and food, possible because Muji’s biggest asset is how well it is trusted.
The latest, with significant potential given inbound demand, is Muji Stay which includes its own hotels, rooms in other hotels and inns, as well as house rentals on Airbnb.

GMO Pepabo Inc (3633 JP): Q1 FY12/25 flash update

Revenue in Q1 FY12/25 increased YoY, driven by higher-priced contracts in EC Support and Financial Support businesses.
Domain & Rental Server (Hosting) revenue and operating profit progress lagged, despite increased customer spend from price revisions.
Handmade Products business achieved significant operating profit growth, aided by minne Ads, despite a decline in gross merchandise value.

Cyberlinks (3683 JP): Q1 FY12/25 flash update

Revenue grew by 4.4% YoY to JPY4.5bn, with recurring revenue up 9.4% YoY to JPY2.1bn.
Operating profit increased 16.6% YoY to JPY414mn, with a 1.0pp rise in OPM to 9.2%.
Trust segment revenue dropped 36.7% YoY, while Government Cloud segment revenue increased 3.9% YoY to JPY2.1bn.

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May 14

Daily Brief Japan: Mitsui Matsushima, Sankyo Co Ltd, GENDA , Renesas Electronics, Chiba Kogyo Bank, Takeda Pharmaceutical, Tokyo Keiki Inc, Daiichikosho, AZ-Com Maruwa Holdings, Medinet Co Ltd and more

In today’s briefing:

[Japan Activism] Murakami Owns ~42% and Company Announces 31.3% Buyback
[Japan Buyback] Sankyo (6417) – Starts Buying Bigly. Again. Re-Levered It Has A Super-High ROE
GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large
Automotive & Industrial Semiconductors Part 2: Is It the Bottom, Finally? Time to Buy?
Chiba Kogyo Bank (8337 JP): Full-year FY03/25 flash update
Takeda Pharmaceutical (4502 JP): FY25 Went Well; Near Term Headwinds To Keep FY26 Subdued
Full-year FY03/25 flash update and upward revision to performance targets in the medium-term business plan
Daiichikosho (7458 JP): Full-year FY03/25 flash update
AZ-Com Maruwa Holdings (9090 JP): Full-year FY03/25 flash update
Medinet Co Ltd (2370 JP): 1H FY09/25 flash update

[Japan Activism] Murakami Owns ~42% and Company Announces 31.3% Buyback

With earnings today (which beat guidance), Mitsui Matsushima (1518 JP) announced upbeat guidance for next year, a very large dividend hike from ¥130/share to ¥230/share, and a Very Large Buyback.
The buyback is ¥20bn (vs ¥47bn market cap) or 3.5mm shares (31.3%). It starts 2 June. Astute Murakami trackers may recognise the potential pattern here.
If the company buys back all 3.5mm shares at just below book, EPS of ¥756 = 12.9% ROE and PER of 7.8x. Even up 30% from here that isn’t super-rich.

[Japan Buyback] Sankyo (6417) – Starts Buying Bigly. Again. Re-Levered It Has A Super-High ROE

On 12 May 2025, Sankyo Co Ltd (6417 JP) announced earnings (Revenue -3.7%yoy, OP +1.5%, Net Profit +0.4%) with guidance for March 2026 showing Revs, OP, and NP all falling.
OP and NP would fall 14.4% and 18.5% respectively. The dividend is expected to fall ¥10 to ¥90/share which would be a 41.6% payout ratio.
The company also announced a BIG BUYBACK – Up to ¥60bn buying up to 30.0mm shares (13.66%), starting today and going through 31 March 2026.

GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large

By Sumeet Singh

GENDA (9166 JP), along with a selling shareholder, is looking to raise around US$190m to partly fund its M&A.
Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
In this note, we will talk about the placement and run the deal through our ECM framework.

Automotive & Industrial Semiconductors Part 2: Is It the Bottom, Finally? Time to Buy?

By Nicolas Baratte

Revenues are hitting the bottom in 1Q25, most firms mention sequential growth in 2Q, sometimes YoY growth. Trends depend on specific firms, mentions of both Auto and Industrial recovering.
Gross / operating profit recovery could take a bit longer as inventory and price concessions could negate revenue growth for a couple of quarters.
2 categories of stocks: the cheap ones (NXP, Onsemi, Renesas, STMicro) and the expensive stocks (Analog Devices, Infineon, Microchip, Texas Instruments). I’d go with Renesas and Texas Instruments.

Chiba Kogyo Bank (8337 JP): Full-year FY03/25 flash update

Consolidated ordinary income reached JPY56.9bn (+4.3% YoY), with ordinary profit at JPY10.7bn (+4.2% YoY) for FY03/25.
Non-consolidated core gross profit declined 5.4% YoY to JPY37.5bn, while expenses increased JPY597mn YoY to JPY25.3bn.
The capital adequacy ratio improved to 9.18% non-consolidated and 9.19% consolidated, with risk-weighted assets declining.

Takeda Pharmaceutical (4502 JP): FY25 Went Well; Near Term Headwinds To Keep FY26 Subdued

Takeda Pharmaceutical (4502 JP) announced FY25 result, with revenue and operating profit being in-line with guidance. Revenue grew 7.5% YoY, driven by continued strong momentum from Growth and Launch Products.
Takeda guided for its FY26 outlook of lower sales and higher margins, reflecting near term headwinds amid cost control.
Continued strong performance of its Growth and Launch product portfolio, ripe late-stage pipeline, and expected margin improvement from FY26 envisage long-term growth prospect of the company.

Full-year FY03/25 flash update and upward revision to performance targets in the medium-term business plan

From FY03/22 to FY03/24, Q4 revenue accounted for over 30% of full-year revenue, with Q4 operating profit over 80%.
In FY03/25, the company reported revenue of JPY57.7bn (+22.2% YoY) and operating profit of JPY4.9bn (+75.4% YoY).
For FY03/26, the company forecasts revenue of JPY59.6bn (+3.4% YoY) and operating profit of JPY3.9bn (-19.9% YoY).

Daiichikosho (7458 JP): Full-year FY03/25 flash update

Revenue grew to JPY153.0bn (+4.3% YoY), with net income rising to JPY18.2bn (+44.6% YoY) due to decreased taxes.
Operating profit declined to JPY17.9bn (-3.5% YoY) due to increased personnel and depreciation expenses from capital investment.
FY03/26 forecasts revenue of JPY162.7bn (+6.3% YoY) with operating profit remaining flat due to higher costs.

AZ-Com Maruwa Holdings (9090 JP): Full-year FY03/25 flash update

The company reported FY03/25 revenue of JPY208.4bn (+4.9% YoY) and operating profit of JPY11.0bn (-20.8% YoY).
The company forecasts FY03/26 revenue of JPY220.0bn (+5.6% YoY) and operating profit of JPY11.9bn (+8.5% YoY).
The medium-term management plan targets FY03/28 revenue of JPY280.0bn (+34.4% vs. FY03/25) and operating profit of JPY20.0bn (+82.3%).

Medinet Co Ltd (2370 JP): 1H FY09/25 flash update

Sales increased by 1.3% YoY to JPY405mn, with operating loss widening to JPY756mn due to higher SG&A expenses.
In the Specified Cell Products Manufacturing Business, sales were JPY300mn, supported by stable orders and new manufacturing.
Regenerative medicine segment loss narrowed to JPY217mn due to reduced R&D expenses after discontinuing α-GalCer/DC development.

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May 13

Daily Brief Japan: Renesas Electronics, Nissin Corp, Recruit Holdings, Marubun Corp, Medical System Network Co, Meiwa Estate, Minato Holdings, Nagaoka International and more

In today’s briefing:

Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters
Renesas Electronics Block – Well Flagged, Clean up but Momentum Isn’t Great
[Japan M&A] Bain Deal for Nissin (9066) Is Still Light Vs Comparable Deals
Nissin Corp (9066 JP): Bain-Sponsored MBO at JPY8,100 Is Arguably Light
Recruit: Weakening Labour Markets and More Downside Ahead
Marubun Corp (7537 JP): Full-year FY03/25 flash update
Medical System Network Co (4350 JP): Full-year FY03/25 flash update
Meiwa Estate (8869 JP): Full-year FY03/25 flash update
Minato Holdings (6862 JP): Full-year FY03/25 flash update
Nagaoka International (6239 JP): Q3 FY06/25 flash update

Renesas Electronics (6723 JP): Denso Exits as Stock Price Falters

By Brian Freitas

Denso Corp (6902 JP) is looking to raise up to JPY137bn (US$940m) by selling 73.9m shares of Renesas Electronics (6723 JP) to international investors.
The indicative price range is JPY 1,812-1,848/share, a discount of 1-2.95% to Monday’s close. The placement is 4.1% of shares outstanding and is 4.7 days of ADV.
We do not expect any passive buying at the time of settlement of the placement shares. The earliest passive buying will take place in August and September.

Renesas Electronics Block – Well Flagged, Clean up but Momentum Isn’t Great

By Sumeet Singh

Denso Corp (6902 JP) is looking to raise US$940m via selling its remaining stake in Renesas Electronics (6723 JP).
DENSO last sold some of its stake nearly a year ago and hence, this deal is well flagged.
In this note, we will talk about the placement and run the deal through our ECM framework.

[Japan M&A] Bain Deal for Nissin (9066) Is Still Light Vs Comparable Deals

The deal price is higher than the Bloomberg article insinuated. The closing date is earlier than the Bloomberg article suggested. But that doesn’t mean it’s enough.
The Large ToSTNeT-3 buyback last year changed the shareholder structure significantly, but many holders who sold are unknown. I would expect they were cross-holders.
For that, this deal is NOT a done deal. There may be games played on this deal.

Nissin Corp (9066 JP): Bain-Sponsored MBO at JPY8,100 Is Arguably Light

By Shifara Samsudeen, FCMA, CGMA

Nissin Corp (9066 JP) has recommended a Bain-sponsored MBO tender offer of JPY8,100 per share, a 27.6% premium to the last close.
The offer is attractive compared to peer multiples and historical trading ranges. However, it is light compared to precedent transaction multiples.
While the offer represents an all-time high, it is below the midpoint of the target IFA DCF valuation range. A counterbid cannot be ruled out.

Recruit: Weakening Labour Markets and More Downside Ahead

Recruit Holdings (6098 JP) reported 4Q and Full-year FY03/2025 results on Friday which fell below consensus estimates. However, earnings were in line with the company’s guidance.
Labour markets have begun to cool off with concerns over potential impact of trade wars and economic uncertainty, and the company expects top line to decline in FY03/2026E.
Though the company’s monetisation efforts have paid off, we expect Recruit’s earnings to remain under pressure and think there’s opportunity to gain on the Short side.

Marubun Corp (7537 JP): Full-year FY03/25 flash update

Net sales decreased 10.8% YoY to JPY210.8bn, with operating income down 31.0% YoY to JPY9.0bn.
Ordinary income increased 12.7% YoY to JPY6.3bn, supported by foreign exchange gains from yen appreciation.
Dividend forecast revised to JPY66.0 per share, with a payout ratio of 40.4%, up from JPY52.0.

Medical System Network Co (4350 JP): Full-year FY03/25 flash update

FY03/25 sales increased by 6.1% YoY to JPY122.4bn, while operating profit decreased by 17.7% YoY to JPY3.2bn.
FY03/26 forecast projects sales of JPY125.5bn (+2.5% YoY) and operating profit of JPY3.4bn (+7.8% YoY).
Community Pharmacy Network segment FY03/26 targets: 12,000 network affiliates, 9,000 partner pharmacies, and 6,850 digital service adopters.

Meiwa Estate (8869 JP): Full-year FY03/25 flash update

In FY03/25, revenue and operating profit increased YoY, driven by the Real Estate Agency Business’s strong performance.
Built-for-Sale Condo Business saw revenue increase but operating profit decline due to lower condo sales revenue and margins.
FY03/26 forecasts a YoY revenue increase, driven by Real Estate Agency Business, with a JPY5.00 commemorative dividend planned.

Minato Holdings (6862 JP): Full-year FY03/25 flash update

Revenue increased by 29.0% YoY to JPY24.5bn, with significant growth in the Digital Device Business segment.
Operating profit decreased by 37.9% YoY to JPY767mn, with varying performance across business segments.
Net income attributable to owners fell by 74.8% YoY, influenced by the absence of a prior extraordinary gain.

Nagaoka International (6239 JP): Q3 FY06/25 flash update

Cumulative Q3 FY06/25 results show revenue of JPY5.4bn, operating profit of JPY771mn, and net income of JPY496mn.
Water-related business revenue was JPY1.7bn, with segment profit of JPY54mn, impacted by increased personnel expenses.
Energy-related business revenue reached JPY3.7bn, with segment profit of JPY1.1bn, affected by project delays and personnel costs.

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May 12

Daily Brief Japan: Imagica Robot Holdings, Nissin Corp, Daiichi Jitsugyo, Gakken Holdings, Inabata & Co, Monex Group Inc, Seria Co Ltd, Anicom Holdings, Yellow Hat Ltd, CELSYS and more

In today’s briefing:

[Japan M&A] Son of Chairman/55%Owner Taking Imagica (6879) Private at 10x FCF, 4+x EBITDA. CHEAP.
Nissin Corp (9066 JP): A Rumoured Bain-Sponsored MBO?
Daiichi Jitsugyo (8059 JP): Full-year FY03/25 flash update
Gakken Holdings (9470 JP): 1H FY09/25 flash update
Inabata & Co (8098 JP): Full-year FY03/25 flash update
Monex Group Inc (8698 JP): Full-year FY03/25 flash update
Seria Co Ltd (2782 JP): Full-year FY03/25 flash update
Anicom Holdings (8715 JP): Full-year FY03/25 flash update
Yellow Hat Ltd (9882 JP): Full-year FY03/25 flash update
CELSYS (3663 JP): Q1 FY12/25 Flash update

[Japan M&A] Son of Chairman/55%Owner Taking Imagica (6879) Private at 10x FCF, 4+x EBITDA. CHEAP.

This deal should not come as a surprise. Bloomberg has an article out saying tycoons are taking companies private to avoid shareholder activism. It’s not just that.
The stated reasons (competitive environment requiring faster decision-making and significant restructuring) are all kinda hot garbage. This is being done at adjusted EV/EBITDA of 4x and 10x FCF.
And there are no synergies counted, and half of the Adjusted EV is net receivables+inventory equal to about 2mos of revenues. This is being done too cheaply. But…. TIJ baby…

Nissin Corp (9066 JP): A Rumoured Bain-Sponsored MBO?

Nissin Corp (9066 JP) shares were up 10.3% based on a Bloomberg report that it would be privatised through a Bain-sponsored MBO.
The deal is expected to exceed JPY100 billion. Assuming this refers to a market cap, the implied offer price is around JPY6,500 (21.5% premium to last close).
While the rumoured offer represents an all-time high share price, it is light compared to precedent and peer multiples. A long-dated offer makes it susceptible to a counterbid.

Daiichi Jitsugyo (8059 JP): Full-year FY03/25 flash update

FY03/25 results: Orders JPY206.3bn (+1.3% YoY), revenue JPY221.8bn (+18.1% YoY), operating profit JPY13.1bn (+44.1% YoY).
FY03/26 forecast: Orders JPY230.0bn (+11.5% YoY), revenue JPY220.0bn (-0.8% YoY), operating profit JPY12.0bn (-8.4% YoY).
DJK’s “V2030” strategy targets JPY18.0bn operating profit by FY03/31, with ROE of 10% or higher.

Gakken Holdings (9470 JP): 1H FY09/25 flash update

Revenue increased by JPY5.3bn YoY, driven by Kirihara Shoten’s addition and increased study guide sales.
Operating profit declined by JPY600mn due to rising costs in Healthcare and Welfare; Educational segment saw profit growth.
Net income rose by JPY652mn, aided by absence of prior stock sale loss and step acquisition gain.

Inabata & Co (8098 JP): Full-year FY03/25 flash update

FY03/25 saw a 9.4% YoY sales increase, driven by a weaker yen and strong Japan and Southeast Asia performance.
Operating profit rose 21.9% YoY due to higher sales and improved margins, while net income decreased slightly.
FY03/26 forecasts sales growth but profit decline, with concerns over US tariffs, inflation, and geopolitical issues.

Monex Group Inc (8698 JP): Full-year FY03/25 flash update

Consolidated net operating revenue was JPY17.0bn, down 2.4% YoY and 6.3% QoQ, with commissions received at JPY8.2bn.
US segment net operating revenue increased 3.3% YoY and 4.8% QoQ to USD76.0mn, with brokerage commissions at USD26.4mn.
Crypto Asset segment net trading income was JPY3.2bn, down 22.7% YoY and 27.3% QoQ, with SG&A expenses at JPY3.7bn.

Seria Co Ltd (2782 JP): Full-year FY03/25 flash update

Sales reached JPY236.3bn (+5.9% YoY) with operating profit at JPY16.8bn (+11.3% YoY) and net income JPY11.2bn (+14.2% YoY).
For FY03/26, Seria forecasts sales of JPY242.9bn (+2.8% YoY) and net income of JPY10.2bn (-9.1% YoY).
The company plans to open 120 directly managed stores and close 70, totaling 2,122 stores by FY03/26 end.

Anicom Holdings (8715 JP): Full-year FY03/25 flash update

Recurring revenue increased by 12.0% YoY to JPY67.7bn, driven by underwriting, investment, and other revenue growth.
Recurring profit rose 18.8% YoY to JPY4.9bn, aided by cost control, operational efficiency, and decreased expenses.
FY03/26 forecast anticipates record-high revenue but declining profit due to one-time AXA Direct policy transfer fees.

Yellow Hat Ltd (9882 JP): Full-year FY03/25 flash update

FY03/25 sales increased 5.1% YoY to JPY154.1bn, with operating profit up 6.7% YoY to JPY15.5bn.
Yellow Hat expanded sales of expendable auto parts and services, acquiring Y International Inc. for diversification.
FY03/26 projections: sales JPY170.0bn (+10.3% YoY), operating profit JPY15.9bn (+2.9% YoY), net income JPY11.4bn (+1.2% YoY).

CELSYS (3663 JP): Q1 FY12/25 Flash update