Japan

• Revenue decreased YoY due to the sale of GMO Creators Network shares; net income rose 169.5% YoY.
• Lolipop! saw a decline in low-priced contracts; ARPU increased 5.2% YoY after a price revision.
• Company revised FY12/26 forecast, recognizing deferred tax assets; plans a special dividend of JPY74 per share.

• TRIAL Holdings’ FY06/26 revenue was JPY1.35tn (+67.6% YoY), with operating profit at JPY30.4bn (+43.9% YoY).
• Retail AI business revenue was JPY918mn (-6.8% YoY), and operating profit was JPY657mn (+1094.5% YoY).
• Consolidated FY06/27 forecast projects revenue of JPY1.46tn (+8.2% YoY) and net income of JPY10.7bn (+203.8% YoY).

• Revenue reached JPY3.4bn (+11.9% YoY), with operating profit at JPY634mn (+18.9% YoY) and OPM at 18.7%.
• DX Solutions revenue increased due to expanded business with existing clients and new client acquisitions.
• KIOXIA group revenue was JPY988mn (+26.5% YoY), while Toshiba and Hitachi groups saw slight declines.

• Allegro MicroSystems reported first quarter fiscal year 2027 results showing continued sequential growth, with sales reaching $259 million—a 27% increase year-over-year—and non-GAAP earnings per share (EPS) of $0.23, more than 2.5 times the prior year quarter.
• This marked the company’s sixth consecutive quarter of sequential sales growth.
• Automotive revenues grew 15% year-over-year, driven by increasing content per vehicle amid the industry’s shift toward electrification and advanced driver-assistance systems (ADAS).

• In Q1 FY03/27, revenue increased by 4.6% YoY to JPY10.5bn, while business income declined by 54.2% YoY.
• The company forecasts FY03/27 revenue of JPY43.6bn (+3.6% YoY) and orders of JPY45.6bn (+6.9% YoY).
• Revised 1H FY03/27 forecast projects revenue of JPY20.9bn, with business income and profits revised downward by JPY250mn.

• In 1H FY12/26, sales reached JPY23.9bn, exceeding forecasts due to increased average spend per wedding.
• Segment sales totaled JPY23.2bn, with directly operated facilities generating JPY19.9bn, and segment profit margin at 7.1%.
• T&G raised full-year forecast for FY12/26, expecting sales of JPY49.0bn and net income of JPY800mn.

• Sales decreased by JPY341mn YoY, with a decline in funerals at directly operated halls by 4.9% YoY.
• Operating profit fell JPY887mn YoY, with SG&A expenses rising 9.3% YoY due to higher advertising and personnel costs.
• FY09/26 forecasts revised downwards, with sales expected to fall JPY1.8bn and operating profit JPY960mn below initial projections.

• Full-year revenue rose 6.3% YoY to JPY27.2bn, driven by growth in Domestic and Overseas Operations segments.
• Operating profit declined 11.4% YoY to JPY1.5bn, with cost of revenue increasing 7.4% YoY to JPY21.3bn.
• The company opened 47 new salons, increasing total salon count to 767 by end-March 2026.

• Revenue increased by 11.6% YoY to JPY11.3bn, with DX support services contributing JPY5.7bn and IT staffing JPY5.6bn.
• Net income declined by 31.7% YoY to JPY520mn due to a JPY297mn loss from trust-type stock options.
• Progress towards full-year FY12/26 targets: 49.3% revenue, 47.3% operating profit, 47.8% recurring profit, 39.1% net income.

• Sales increased to JPY33.9bn (+18.4% YoY), driven by power supplies, mice, and smartphone accessories, despite declining beauty appliance sales.
• Operating profit rose to JPY3.9bn (+28.6% YoY) due to increased gross profit, despite higher SG&A expenses.
• B2C sales reached JPY20.9bn (+7.7% YoY), while B2B sales grew significantly to JPY13.0bn (+41.0% YoY).

• I was bearish Hino Motors Ltd (7205 JP) / Archion (543A JP) against Isuzu Motors (7202 JP) last year at this time. That trade did well. I am bullish now. 
• Isuzu released Q1 results a bit more than a week ago. They were salutary. Archion released Q1 yesterday. Also salutary. Historical comparisons are a bit tough, but outlook is good.
• When looking at Q1 seasonality vs Hino history, and Q1 revenue results vs last year, either Q1 was a very special outlier or the guidance is quite conservative.

• MS Global adds Kokusai Electric (6525 JP) and deletes JFE Holdings (5411 JP) and Seibu Holdings (9024 JP), effective 1 Sep 2026.
• Kokusai Electric enters bridge window with +13.5% pre-announcement alpha. Historical data suggest fading upon positive gap in post-announcement.
• We assign both DELETEs to the high-velocity group. Flat-to-down opens suggest a DELETE bridge fade.

• In what is rapidly becoming tedious, EQT+DG have raised their bid on Kakaku.com by 3.48% to thwart Bain’s bid, which is now just 1.96% above EQT’s bid. 
• If Bain wants to “win”, it has to come over the top. They can raise by ¥2/share and that refreshes everything but that would just allow EQT to raise ¥2/share.
• Kakaku.com should probably sit both down and say “Final round. We have spoken to KDDI. Put in your best bid and we will support/recommend. No crying at the casino.”

• Q1 underlying OP rose 32% YoY to ¥29.0bn, annualising ahead of ¥110bn guidance; the ¥233bn bargain purchase gain we flagged at initiation landed almost to the number.
• We were right on the company, wrong on the entry: the July secondary cleared ¥260 — well below our ¥360 line — leaving the stock at ¥272, 0.80x book.
• Reaffirm BULISH stance, TP reset to ¥370 (was ¥450), +36% upside; basis is a tight blend of 14.5x ex-gain earnings, 1.08x book and ~5.2x EV/EBITDA at Isuzu-parity.

• EQT/Digital Garage (4819 JP) revised its offer for Kakaku.com Inc (2371 JP) to JPY3,570, a 3.5% premium over the previous JPY3,450 offer and a 1.4% premium over Bain/LY’s JPY3,520 base offer.
• The latest EQT/DG offer is the minimum needed to stay on the right side of the competing-offer clauses, thereby retaining KDDI’s support and potentially getting Oasis to switch allegiance.
• Bain/LY (4689 JP) continue to have room to respond with a revised offer. The competitive auction could push the final winning bid towards JPY3,800.

• In Q1 FY03/27, the company reported a YoY revenue decline of 15.3% and operating profit drop of 73.8%.
• The company raised its 1H FY03/27 forecast, citing increased waste volumes and lower-than-expected energy costs.
• Revenue and profit increased in the spread business due to high resource prices and rigorous metal sorting.

• NIRAKU GC HOLDINGS, INC. (hereinafter, the Company) reported its FY2026/3 IFRS results, with operating revenue of JPY 33,600 mn* (+18.7% YoY), operating profit of JPY 4,231 mn (+67.0% YoY), profit before income tax of JPY 3,361 mn (+103.5% YoY), and profit attributable to owners of the parent (hereinafter, net profit) of JPY 1,759 mn (+189.8% YoY), achieving double-digit revenue and profit growth.
• Steady performance in the core Pachinko and pachislot business, together with the new real estate investment business operated by its subsidiary NBI Holdings Co., Ltd., which has gained traction, contributed to overall earnings growth.
• SIR believes that, if earnings contributions from the new business become more visible alongside growth in the core business, this could be further reflected in the share price, supported by the Company’s high dividend yield.

• Orders totaled JPY46.7bn (-1.2% YoY), revenue JPY35.2bn (-4.5% YoY), operating profit JPY2.0bn (-27.2% YoY).
• Revenue increased to JPY14.9bn (+9.7% YoY), operating profit rose to JPY2.1bn (+464.8% YoY) due to improved profitability.
• Orders rose to JPY8.9bn (+21.2% YoY), revenue increased to JPY8.5bn (+4.5% YoY), segment posted operating loss JPY548mn.

• Q1 FY03/27 progress rates: sales 24.0%, operating profit 26.2%, recurring profit 26.3%, net income 26.0%, evaluated operating profit 29.0%.
• Membership segment Q1 FY03/27: sales JPY18.9bn (+46.8% YoY), operating profit JPY6.9bn (+72.7% YoY), evaluated sales JPY26.6bn.
• HIMEDIC business Q1 FY03/27: sales JPY14.7bn (+8.2% YoY), operating profit JPY2.2bn (+21.7% YoY), member growth contributed.

• Copro’s Q1 FY03/27 revenue reached JPY13.9bn, a 68.0% YoY increase, with operating profit at JPY961mn, up 55.1% YoY.
• The company reported a net income decline of 4.7% YoY due to early tax expense recognition, expecting reversal in Q2.
• Technician headcount rose 56.0% YoY, with construction dispatch at 7,377, and mechanical, electrical, semiconductor dispatch at 462.

• Dmg Mori Co Ltd (6141 JP) is looking to raise up to US$320m from a primary offering to overseas investors.
• Proceeds will mainly be used for capex at various production plants to increase production capacity.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Sysmex Corp (6869 JP) has reported stellar performance for Q1FY27, with double-digit growth across key parameters. Revenue increased 24% YoY to ¥131B, mainly driven by hematology sales.
• Challenging market environment continues in China, with the region reporting 34% YoY decline in revenue on a local currency basis. However, this remains in-line with initial assumptions.
• In addition to strong business progress in the Americas, taking into account recent foreign exchange trends, Sysmex revised upward its earnings forecasts for H1 and FY27.

• In Q1 FY03/27, revenue increased 5.1% YoY to JPY1.2bn, with DX Suite user licenses rising to 3,136.
• Operating profit rose 83.7% YoY to JPY183mn, driven by reduced labor costs and outsourcing expenses despite higher server costs.
• Q1 progress against full-year FY03/27 forecast: 22.8% revenue, 35.1% operating profit, 35.1% ordinary profit, 33.2% net income.

• In 1H FY12/26, the company achieved revenue of JPY19.5bn, operating profit of JPY3.5bn, and net income of JPY2.4bn.
• Agrichemicals field revenue was JPY8.1bn, with strong domestic and overseas sales of plant protection materials and green products.
• Fertilizers and biostimulants field revenue reached JPY11.4bn, with solid performance in domestic and overseas markets like Spain and Indonesia.

• Growth runway remains considerable – Q1 FY3/27 results demonstrated sustained high earnings growth driven primarily by robust Modernization demand whilst maintaining high levels of profitability.
• We believe the market is overlooking the long-term value of consistency; while the company’s predictable earnings profile can limit the frequency of positive earnings surprises, it reflects a high-quality recurring revenue model capable of delivering sustainable compounding over time.
• The growth runway remains considerable in our view, given the demand pool for both maintenance and modernization, and the company’s track record in raising market share.

• In 1H FY12/26, revenue rose 9.8% YoY to JPY10.8bn, with operating profit surging 91.5% YoY.
• Cloud services revenue increased 29.7% YoY, while package system revenue declined 15.4% YoY.
• Revised full-year FY12/26 forecast: revenue JPY23.8bn, operating profit JPY4.8bn, pre-tax profit JPY4.8bn, profit attributable JPY3.2bn.

• Revenue increased by 34.1% YoY to JPY45.8bn, with operating profit up 79.7% YoY to JPY9.4bn.
• Chemicals business revenue rose across core areas, driven by inorganic and fine chemicals, boosting operating profit margin.
• Full-year forecast revised upward, with expected revenue of JPY94.0bn and operating profit of JPY18.0bn.

• Revenue was JPY3.9bn, a decrease of 8.1% YoY, with Product Services down 18.8% and Professional Services up 12.1%.
• An operating loss of JPY71mn occurred, with a 10.1pp increase in cost ratio and 5.8pp rise in SG&A expenses.
• License revenue fell 69.5% YoY to JPY224mn, while subscription revenue for LaKeel products excluding LOM rose 17.5%.

• In Q1 FY03/27, Data Applications reported revenue of JPY1.1bn, operating loss of JPY40mn, and EBITDA of JPY8mn.
• Software Development revenue was JPY565mn with a segment loss of JPY3mn; subscription revenue represented 51.0% of recurring revenue.
• System Integration revenue was JPY400mn with a segment loss of JPY26mn; AI business revenue was JPY158mn with a segment loss of JPY11mn.

• Revenue increased by 14.8% YoY to JPY10.2bn, with recurring revenue rising 11.3% YoY to JPY4.7bn.
• Operating profit grew 46.1% YoY to JPY1.4bn, with an operating profit margin increase of 3.0pp YoY to 14.2%.
• Revenue in the Trust segment rose 199.9% YoY to JPY155mn, with a reduced recurring loss of JPY26mn.

• Two+ years ago, the TSE announced a second phase methodology change for its main equity index TOPIX. TOPIX would change from being inclusive to being exclusive, resembling global indices. 
• The data cutoff for TOPIX methodology change rankings is 14bd away. That cutoff determines who gets in, who stays in, and who gets the boot. The annual FFW review coincides.
• The BEST trades are the unrelated FFW trades, the INs, the LFRs, and of course, the NOT OUTs. Borderlines are interesting. Two stocks +2%? -4%?, +42/24x ADV. Or not. 

• We screen the Japan equity universe ahead of the MS-Japan August 2026 quarterly review.
• We expect one ADD and two DELETE candidates with mid to high conviction.
• The main risk is that our estimated cutoffs or FF values.

• Last week, Roderick van Zuylen mentioned the Japanese mid-market private equity firm Integral (5842 JP – US$631 million). So after the interview, I was keen to dig deeper.

• You can think of Integral as Japan’s version of KKR. It was founded as a spin-off from Unison Capital, led by former banker Nobuo Sayama.

• Throughout the years, its high-profile deals have included rescuing the fashion brand Yohji Yamamoto and the airline Skymark Airlines from bankruptcy.

• Chiyoda Corporation is a Yokohama-based engineering, procurement, and construction (EPC) contractor and one of only a handful of companies on earth capable of building a full-scale LNG liquefaction plant, alongside Bechtel, Technip Energies, and Japanese peer JGC Holdings.
• Two of its own joint-venture partners on its largest US LNG projects, McDermott International and Zachry Holdings, went bankrupt attempting the same work, thinning an already tiny global competitive set just as a fresh ~$90B wave of global LNG projects arrives.
• Chiyoda itself nearly went the same way twice, with a ¥214.9B net loss in FY2019 and a second solvency scare in FY2024, both triggered by cost blowouts on the same Golden Pass LNG project in Texas, and was kept alive only because controlling shareholder Mitsubishi Corp injected preferred-stock capital both times.

• The “Agentic AI” narrative is largely a high-margin marketing wrapper designed to capitalize on generative AI hype; while GenAI (specifically via the US$38.7 million acquisition of AdCreative.ai) acts as a highly effective client acquisition hook, Appier’s actual conversion-driving and ROI engine remains its legacy predictive machine learning algorithms (AIBID, AiDeal).
• Appier’s exposure to platform privacy shocks (Apple’s IDFA and Google’s Privacy Sandbox) is structurally mitigated by its focus on session-based contextual modeling and first-party data integration via its CDP, AIRIS, transforming industry-wide data depreciation from a headwind into a competitive tailwind against identity-reliant DSPs.
• SBC dilution is extraordinarily low at under 2.0% of revenue, reflecting Japanese Prime Market expectations for hard GAAP profitability; this disciplined approach to stock compensation under IFRS is a key differentiator from hyper-dilutive US ad-tech peers, although it limits their ability to easily attract top-tier Silicon Valley engineering talent.

• Sales declined 27.3% YoY to JPY470mn, with operating loss increasing to JPY3.6bn from JPY2.2bn YoY.
• SG&A expenses rose 50.1% YoY to JPY4.0bn, including R&D expenses of JPY3.0bn, up 89.5% YoY.
• Net loss attributable to owners of the parent was JPY3.6bn, 83.6% of the full-year forecast.

• Olympus Corp (7733 JP) registered 16% YoY rise in revenue to ¥240.4 in Q1FY27 while the adjusted operating profit witnessed 133% YoY increase to ¥30.7B (margin up 640bps to 12.8%).
• The company expects FY27 revenue to be ¥1055-1076B (up 4.4%-6.5% YoY), adjusted operating profit to be ¥160.5-179.5B (up 12%-25.3% YoY) and profit to be ¥95.5B-109B (EPS of ¥90-102).
• The Q1FY27 earnings is a positive. We now expect a slow, steady and decent recovery starting FY27. We reiterate our bullish stance on the name. 

• In FY06/26, revenue was JPY10.1bn (-7.9% YoY) and net income was JPY1.1bn (+0.4% YoY), achieving forecast targets.
• Revenue from payment services was JPY8.5bn (-10.8% YoY), while transportation industry revenue was JPY1.6bn (+11.4% YoY).
• For FY06/27, the company forecasts revenue of JPY10.5bn (+4.4% YoY) and net income of JPY1.2bn (+6.3% YoY).

• Mimaki Engineering’s Q1 FY03/27 revenue was JPY20.1bn, with a 3.3% YoY increase and 22.0% progress rate.
• Operating profit rose 21.6% YoY to JPY2.4bn, aided by forex effects and improved product mix.
• SG market revenue increased 11.4% YoY to JPY9.1bn, driven by strong hybrid printer and ink sales.

• In 1H FY12/26, revenue rose YoY, driven by Machinery & Tools, despite declines in IoT Solution segment.
• Operating profit fell YoY due to increased SG&A expenses surpassing gross profit growth; Machinery & Tools, Construction Machinery, IoT Solution profits declined.
• Net income attributable to owners fell YoY; gains on asset sales were outweighed by operating profit decline.

• After initial good absolute and relative performance, the stock has corrected with the oil and gas complex
• Q1 results show the company is exceeding its plan as higher prices impact the P&L positively
• The highest commodity weightings across the major trading houses mean this will be a winner as the next leg of the commodity bull market unfolds

• Rigaku’s valuation has re-rated upwards over the past year from a scientific- instrument multiple (low teens PER) to a semi-cap multiple (high 30s to low 40s PER) as investors increasingly recognize the Company’s Semiconductor Process Control Instruments business as the primary growth and earnings driver.
• We believe Rigaku’s growth upside remains underappreciated as the Company’s FY12/27 medium-term plan (MTP) targets were anchored on a less constructive semiconductor industry environment and outlook.
• Furthermore, the demand visibility for Rigaku’s X-ray metrology equipment has improved as the leading chipmakers and WFE reaffirmed their increasingly complex product roadmaps and announced record multi- year capex plans. 

• Kurita Water Industries (6370 JP) is an indirect beneficiary of the growing AI CapEx spending, and as a result, it trades at a discount to its global peers.  
• The management is committed to doing a share buyback of around USD 220 million from now to mid-next year, which will provide some floor for the share price. 
• It is also less volatile and less correlated with the other large caps within the AI CapEx spending beneficiaries such as TSMC, and SK Hynix. 

• Yutori started as a Gen Z streetwear platform but has rapidly evolved into a diversified lifestyle group spanning fashion, cosmetics, lingerie, and Korea.
• After revenues jumped 71% in FY2025, the company is now targeting ¥18.5 billion this year but, despite this, the share price has fallen more than half.
• The upside is coming from both organic growth, full ownership of Her lip to, aggressive M&A, and AI-driven efficiency. A good time to invest perhaps.

• Context: The Kikkoman (2801 JP) vs. Nichirei (2871 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Nichirei (2871 JP) and short Kikkoman (2801 JP) targets a 4% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Q1 FY03/27 saw record highs in revenue (JPY2.8bn), operating profit (JPY441mn), and net income (JPY353mn), with YoY growth.
• Orders in Q1 FY03/27 decreased by 33.6% YoY to JPY1.7bn, while the order backlog increased by 22.3% YoY.
• Public Infrastructure revenue grew 33.7% YoY to JPY1.4bn, with a 71.2% YoY decrease in orders to JPY348mn.

• Revenue increased by 18.1% YoY to JPY51.4bn, with operating profit up 4.3% YoY to JPY6.3bn.
• Japan segment saw a 16.9% YoY revenue increase to JPY28.5bn, with a 52.0% YoY rise in operating profit.
• US segment revenue grew 20.6% YoY to JPY22.6bn, but operating profit declined 43.1% YoY to JPY1.6bn.

• Orders increased 17.0% YoY to JPY7.2bn, and revenue rose 12.3% YoY to JPY6.8bn, setting record highs.
• Operating profit increased 10.5% YoY to JPY1.9bn, while net income declined 7.1% YoY to JPY1.3bn.
• mcframe license revenue reached new highs, rising 43.5% YoY to JPY2.0bn, driven by strong license sales.

• Revenue reached JPY19.5bn (+11.9% YoY), operating profit JPY1.8bn (+27.2%), and net income JPY1.5bn (+225.0% YoY).
• Domestic revenue was JPY10.5bn (+7.4% YoY), overseas revenue JPY2.9bn (+80.3% YoY), with operating profit JPY2.8bn (+29.1% YoY).
• Domestic revenue declined YoY due to fewer development projects, while overseas revenue increased, boosting overall segment revenue.

• Sales increased by 13.3% YoY to JPY593.0bn, with operating profit rising 92.2% YoY to JPY51.9bn.
• Recurring profit rose 157.7% YoY to JPY52.3bn, and net income attributable to owners increased 184.1% YoY to JPY37.2bn.
• DIC revised its full-year forecast, expecting sales of JPY1.14tn and operating profit of JPY78.0bn.

• The JPX Nikkei 400 rebalances once a year at the end of August. We track the rebal every week and publish on it every month. Review Results were announced Friday.
• This year, there are 45 ADDs and 39 DELETEs. Our High and Medium Conviction ADDs and DELs each had 92% Hit Rates. Our overall Success Rate was 89%. 
• There are a lot of capping and un-capping events and 32 names where the trade is larger than US$100mm. 58 names with more than 2 days to trade.

• There are 45 adds/39 deletes for the JPX Nikkei400 Index to bring the number of index constituents back to 400. There are many stocks with multiple days ADV to trade.
• Based on the adds, deletes and capping changes, we estimate one way turnover of 8.1% and a round-trip trade of JPY 1,424bn (US$9bn).
• The adds have been floundering versus the deletes over the last few months and there could be some outperformance heading into implementation of the changes.

• Q1 FY27 operating profit BEAT consensus convincingly, while maintaining guidance it has beaten by 41% in the last comparable year — yet the stock sits 46% below its peak.
• Digital software is 61.5% of sales, up from 30% three years ago; ¥1,707 of net cash per share — 21% of the price — goes unrewarded by the market.
• We initiate with BULLISH stance and 12-month FV of ¥9,500, based on 35x FY27E management guidance EPS of ¥268.90.

• Nippon Parking Development (NPD) showcases a unique and resilient business model, successfully diversifying from a core parking business into high-growth leisure segments, including ski resorts and theme parks.
• The company has demonstrated a strong track record of growth, with a 5-year revenue CAGR of 9.89% and a 5-year net income CAGR of 31.91%, supported by the revitalization of underutilized assets and capturing inbound tourism demand.
• A commitment to shareholder returns is evident through 16 consecutive years of dividend increases and a recently announced policy to raise the minimum annual dividend by approximately 33% over the next three years, supplemented by share buybacks.

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• Revenue increased to JPY14.0bn, driven by Logistics Solutions and Business Innovation, but profits declined due to lower margins.
• Q1 FY03/27 results showed operating loss of JPY377mn, recurring loss of JPY180mn, and net loss of JPY109mn.
• Revenue from warehouse automation projects was JPY8.3bn, with an operating loss due to low-margin projects.

• TKC reported record highs in Q3 FY09/26 with sales of JPY67.6bn and operating profit of JPY16.5bn.
• Local Government segment’s operating profit surged 304.3% YoY due to migration to standards-compliant systems and Government Cloud.
• Revised full-year FY09/26 forecast: Sales JPY86.8bn, Operating profit JPY17.6bn, Net income JPY12.9bn, with increased dividends.

• Japan Electronic Materials (JEM) is a key supplier of probe cards, an essential consumable in the semiconductor testing process, positioning it as a prime beneficiary of long-term growth in the semiconductor industry, particularly in high-growth segments like AI and high-bandwidth memory (HBM).
• The company exhibits a robust financial profile, characterized by strong revenue and net income growth, expanding margins, and a consistent track record of increasing dividends, suggesting effective management and operational efficiency.
• Trading at a significant valuation discount to its direct peers, JEM presents a potentially attractive investment opportunity, assuming it can sustain its growth trajectory and navigate the inherent cyclicality of the semiconductor market.

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• Revenue increased by 28.6% YoY to JPY21.9bn, driven by strong demand in semiconductor production equipment and aerospace industries.
• Operating profit rose 257.7% YoY to JPY1.4bn, with improvements in order rates, product lineup, and manufacturing capabilities.
• The company revised its full-year forecasts, citing higher-than-expected Q1 results and strong semiconductor-related capital investment.

• Soken Chemical is a high-growth specialty chemicals manufacturer with a strong focus on high-performance acrylic adhesives and functional materials, primarily serving the dynamic electronics and automotive industries.
• The company exhibits a robust financial profile, characterized by impressive net income and dividend growth, alongside expanding profit margins. Future growth is strategically aimed at expanding into ASEAN and Indian markets and developing new applications beyond its core display-related products.
• Key risks include a significant concentration in the cyclical liquid crystal display (LCD) market, particularly in China, and susceptibility to raw material price fluctuations and intense competition within the specialty chemicals sector.

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• Avex has demonstrated a strong revenue recovery and return to profitability in the latest fiscal year, driven by growth in its core Music and Anime & Visual Content segments.
• The company maintains a shareholder-friendly profile with a consistent dividend payout and an attractive yield, supported by a strong ‘Dividend’ Smartscore.
• Significant concerns remain regarding the company’s highly volatile cash flow generation and a multi-year decline in market capitalization, which contrast with recent net income growth.

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• Strategically, range trade Seven & I Holdings (3382 JP). Sell large pops, buy large declines. Big picture this big buyback  doesn’t change very much at all on a net basis.
• Legend Holdings (3396 HK)(finally) sees a decent move. The positive profit alert issued no doubt nudge things along nicely. 
• Post sale to Heidelberg, how much, if any, will the market re-rate MAAS Group Holdings (MGH AU) as an infrastructure/ “AI-enabler” rather than a contractor currently?

• Rs Technologies is a global leader in the semiconductor wafer reclaim market, holding an estimated 33% market share, and is expanding its presence in the prime wafer manufacturing sector, primarily in China.
• The company is well-positioned to benefit from long-term semiconductor industry growth, driven by secular trends such as AI, 5G, and automotive electronics, which increase wafer consumption and the economic incentive for reclamation.
• Financial performance shows strong revenue growth, though margins have faced some pressure. The forward-looking strategy focuses on capacity expansion in both reclaimed and prime wafer segments to meet rising demand and capture further market share.

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• Architects Studio Japan (ASJ) is facing significant financial distress, characterized by persistent net losses, negative cash flow, and a deepening negative net worth, which raises going-concern uncertainty.
• The company’s core business model, a platform connecting architects with clients and builders, is under pressure from a shrinking network of affiliated studios and a challenging macroeconomic environment in the Japanese construction sector.
• Management has initiated a turnaround strategy focused on restructuring contracts to regain studio members, diversifying into new business areas like environmental solutions and AI platforms, and seeking capital alliances to repair its balance sheet.

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• Under Companies Act, the amount available for profit distribution is based on parent company profits; however, with increased holding companies, parent companies alone often cannot accurately reflect actual business operations.
• As an initiative by the company to address the discrepancy between these rules and actual business practices, the use of “reversal of capital reserves” is a commendable approach.
• It’s certainly true that many companies don’t yet provide sufficient shareholder returns. Meantime, investors want to hear about companies’ investment plans and cash allocation strategies aimed at increasing corporate value.

• AI Inside is pivoting from a successful AI-OCR provider to a broader AI platform company with the launch of ‘Leapnet,’ aiming to empower other companies to build and monetize their own AI agents.
• While revenue has shown consistent growth, profitability has been volatile due to strategic investments in personnel and infrastructure, as evidenced by the 19.2% YoY decline in operating profit in FY03/26 despite a 7.9% revenue increase.
• The company’s future success hinges on the adoption of its new Leapnet platform and the continued evolution of its core ‘DX Suite’ product in a highly competitive Japanese AI market that is forecast to grow at a CAGR of over 20%.

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• Aizawa Securities is demonstrating a significant growth trajectory, evidenced by a robust 3-year revenue CAGR of 21.76% and a 46.73% 3-year net income CAGR, driven by a strong performance in its core securities business.
• The company is strategically shifting towards a recurring revenue model by focusing on asset management and a ‘Goal-Based Approach’ to sales, aiming to enhance earnings stability and achieve a target ROE of 8% by fiscal year 2028.
• Despite strong growth, the firm faces considerable risks from the highly competitive and cyclical Japanese brokerage industry, along with earnings volatility stemming from its investment and asset management segments.

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• Advanex is a global manufacturer of high-precision springs, capitalizing on growing demand from the automotive and medical sectors, which are its largest and third-largest markets, respectively.
• The company has demonstrated a significant financial turnaround, swinging from a net loss in FY2025 to a substantial profit in FY2026, supported by strong revenue growth. This is reflected in its high Growth and Momentum Smartkarma Smartscores.
• Key risks include dependence on major customers in cyclical industries, volatility in raw material prices, and foreign exchange fluctuations due to its extensive global operations.

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• AnGes is a Japanese biopharmaceutical company focused on the development of gene-based medicines, with a primary focus on gene therapy and nucleic acid drugs.
• The company’s lead pipeline product is a Hepatocyte Growth Factor (HGF) gene therapy for patients with critical limb ischemia, a severe form of peripheral arterial disease. The company is preparing for a Biologics License Application (BLA) submission to the US FDA in 2026, with potential commercialization in the latter half of 2027.
• AnGes has a history of significant operating losses and has not paid a dividend, reflecting its stage as a research and development-focused biotechnology firm requiring substantial ongoing investment in its clinical pipeline.

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• Dominant Sponsor Relationship: AEON REIT’s primary strength and core strategy revolve around its symbiotic relationship with AEON Group, Japan’s retail giant. This provides a stable pipeline of property acquisitions and ensures near-100% occupancy through long-term master lease agreements, generating predictable cash flows.
• Defensive Portfolio in a Challenging Sector: The REIT focuses on necessity-based, large-scale suburban shopping centers, which are more resilient to e-commerce pressures than urban, fashion-focused malls. This defensive posture offers stability but may limit significant growth in a mature and competitive market.
• Attractive Yield vs. Muted Growth: The REIT offers a high dividend yield, making it attractive for income-focused investors. However, its growth prospects are modest, as reflected in its historical performance and the structural headwinds facing the Japanese retail sector, such as a declining population and the rise of online shopping.

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• Ambition Corp is capitalizing on a robust Tokyo condominium market, characterized by rising prices and tight supply, driving strong revenue and net income growth.
• The company exhibits a concerning financial profile with consistently negative operating and free cash flow, indicating potential liquidity and operational efficiency risks despite high profitability growth.
• A strategic pivot towards digital transformation with its ‘Ambition Cloud’ platform aims to streamline operations and enhance stakeholder engagement, potentially offering a competitive edge in a traditional industry.

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• Revenue increased 10.9% YoY to JPY2,019.6bn, while pre-tax profit decreased 14.6% YoY to JPY589.2bn.
• Investment gain rose to JPY1,859.4bn, with significant contributions from Intel and ByteDance investments.
• AI Computing segment reported JPY175.3bn revenue (+30.2% YoY) and JPY200.8bn segment loss, driven by higher R&D expenses.

• Vertically Integrated Leader with Global Reach: Sumitomo Forestry leverages its unique “WOOD CYCLE”value chain, spanning from forest management to housing construction, to drive growth. While maintaining a strong base in Japan, the company has become a major housing supplier in the U.S. and Australia, making its overseas business a primary earnings driver.
• Strategic Focus on Decarbonization and Sustainable Growth: The company’s long-term vision, “Mission TREEING 2030,”positions it to capitalize on the global shift towards sustainability. By promoting wooden construction and expanding its forest assets, Sumitomo Forestry aims to contribute to a decarbonized society while creating new revenue streams.
• Navigating Cyclical Markets and Rising Costs: The company’s performance is closely tied to the cyclical nature of global housing markets and is susceptible to fluctuations in interest rates and building material costs. While overseas expansion provides geographic diversification, the domestic Japanese market faces headwinds from a declining population.

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• Q1 FY03/27 revenue was JPY25.1bn (+8.1% YoY), with operating profit at JPY2.2bn (-4.9% YoY), impacted by higher costs.
• Domestic Chemical and Other segment revenue rose to JPY2.3bn (+11.1% YoY), with operating profit slightly increasing to JPY271mn.
• Overseas segment revenue increased to JPY6.0bn (+18.3% YoY), with operating profit turning positive at JPY151mn.

• Fuji Electric is strategically positioned to capitalize on global megatrends of decarbonization and automation, leveraging its core technological strengths in power semiconductors and power electronics.
• The company is making significant capital expenditures, particularly in high-growth silicon carbide (SiC) power semiconductors, to capture increasing demand from the electric vehicle (xEV) and renewable energy sectors.
• While facing intense competition and cyclical market risks, the company’s vertical integration from chips to systems provides a competitive advantage, though execution on scaling new technologies remains a key factor for future profitability.

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• Arclands operates a diversified business model, centered on home improvement retail but supplemented by a significant food service segment (Katsuya), which provides a degree of operational resilience.
• Recent financial performance shows a pattern of revenue growth, driven by store network expansion and acquisitions, but declining profitability due to rising costs and intensifying competition.
• Forward strategy is heavily focused on M&A, including the recent acquisition of Viva Home and a planned business integration with Joyful Honda, aiming to become Japan’s leading home center operator. Successful integration and synergy realization are key to future growth.

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• Revenue increased by 9.6% YoY to JPY29.9bn, with operating profit rising by 6.7% YoY to JPY6.4bn.
• Segment revenue for the Real Estate Revitalization business was JPY18.7bn, with a profit margin of 27.3%.
• Total assets at end-Q1 FY03/27 were JPY292.1bn, with net assets increasing by 13.1% to JPY136.1bn.

• Poppins Holdings is a major provider of care services in Japan, strategically positioned to benefit from the country’s key demographic trends: an aging population and rising female workforce participation, which drive structural demand for its elderly and childcare services.
• The company is experiencing robust top-line growth, particularly in its Family Care and Elderly Services segments. However, profitability has recently come under pressure due to rising labor costs and operational challenges in its Edu-care (childcare) division.
• Valuation appears attractive compared to peers, especially on EV/Sales and EV/EBITDA metrics. The key investment question is whether management can translate strong revenue growth into improved profitability by addressing labor shortages and controlling costs.

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• Revenue increased by 10.7% YoY to JPY126.2bn, driven by firm demand and a weaker yen.
• Segment profit rose by 41.2% YoY to JPY8.6bn, while operating profit decreased by 19.1% YoY.
• Automotive shock absorber revenue grew 10.7% YoY to JPY66.8bn, boosted by higher OEM demand and weaker yen.

• Q1 FY03/27 revenue increased 8.5% YoY to JPY27.7bn, with operating profit up 59.7% YoY to JPY2.5bn.
• Revised forecasts for FY03/27 show increased revenue of JPY128.0bn and net income of JPY8.4bn, exceeding previous estimates.
• Year-end dividend forecast raised to JPY59.0 per share, resulting in an annual dividend of JPY105.0 per share.

• Orders decreased 6.7% YoY, with building construction orders down 30.8% YoY, but civil engineering orders up 102.4% YoY.
• Revenue declined 2.5% YoY, gross profit increased 2.2% YoY, while operating profit decreased 8.9% YoY due to higher SG&A expenses.
• Segment profit margins varied, with notable changes in civil engineering and Development and Others, despite overall profit decline.

• Friday marked the end of the data observation period for the autumn 2026 Nikkei 225 Review. Advantest was over 10% so it gets capped. The CPAF moves to 6.4.
• There are some new selection rules added to the Guidebook. There are some small changes to existing sector classifications, a new sector, and some intra-sector rebal procedures in future.
• As it stands, the Advantest Capping is the big trade, but that is far away. The ADDs should be known. The DELETEs are tough and not really sellable.

• Digital Hearts Holdings (3676 JP) announced a Chairman-led MBO at JPY1,060, a 40.8% premium to the last close of JPY753.  
• The timing is opportunistic as the shares have underperformed peers YTD. The offer is below the midpoint of the target IFA’s DCF valuation range and the special committee’s requested offer.
• However, the deal is likely to complete, as the substantial shareholders have either provided irrevocables or will be supportive, given that the offer provides an attractive ROI.  

• One-Off tariff refunds boosted earnings, but the underlying quarter still comfortably exceeded expectations.
• First-Party software continues to drive Nintendo’s earnings power, even for the old Switch
• The market is focused on costs; longer-term investors should focus on the coming shift back toward higher-margin software.

• Operating revenue increased 2.5% YoY to JPY11.8bn, driven by growth in outstanding guarantee exposure at the parent company.
• Operating expenses rose 7.4% YoY to JPY4.0bn, with credit-related expenses and various operating expenses contributing to the increase.
• Recurring profit grew 7.9% YoY to JPY9.3bn, supported by higher yields on securities investments and equity in earnings of affiliates.

• Financial Turnaround with Strong Outlook: JGC has successfully returned to profitability in the latest fiscal year after two years of losses, driven by improved execution on large-scale Engineering, Procurement, and Construction (EPC) projects. The company has a substantial order backlog of over ¥1.1 trillion, providing good visibility for near-term revenue and profit stabilization.
• Dominant Player in Global LNG Market: The company is a world-leading contractor for Liquefied Natural Gas (LNG) plants, having built facilities that account for over 30% of global production capacity. This deep expertise positions JGC to capitalize on the continued medium-to-long-term demand for LNG as a key energy transition fuel.
• Strategic Pivot to New Energy and High-Margin Materials: While maintaining its strength in traditional energy, JGC is actively expanding into future-growth areas, including hydrogen, fuel ammonia, and Sustainable Aviation Fuel (SAF). This is complemented by a stable, high-performance functional materials business, which provides diversification and a source of steady earnings.

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• Q1 FY03/27 revenue increased by 14.2% YoY to JPY66.2bn, driven by higher flavor and fragrance sales.
• Operating profit declined by JPY80mn YoY due to higher raw material costs and increased SG&A expenses.
• The Fragrance business saw a 22.2% YoY revenue increase to JPY21.9bn, with operating profit up 138.3% YoY.

• Sales increased by 16.2% YoY to JPY4.7bn, while operating profit decreased by 5.8% YoY to JPY760mn.
• Graphics LSI unit sales fell by 20,000 units YoY, with a 24.4% progress against the sales forecast.
• AI Business segment reported a sales decline of 10.1% YoY, with an operating loss of JPY59mn.

• In Q1 FY03/27, revenue was JPY72.5bn (+38.1% YoY), operating profit JPY6.9bn (+183.4% YoY), net income JPY5.7bn (+349.2% YoY).
• The company revised its FY03/27 forecast: revenue JPY265.0bn (+20.6% YoY), operating profit JPY14.7bn (+50.9% YoY), net income JPY9.2bn (+64.3% YoY).
• Segment forecasts: Electronic and Advanced Materials revenue JPY48.0bn (+20.7% YoY), Aluminum and Copper Products revenue JPY110.0bn (+21.4% YoY).

• Lasertec’s FY06/26 sales were JPY230.5bn (-8.3% YoY), with operating profit at JPY105.3bn (-14.3% YoY).
• Orders increased 125.7% YoY to JPY237.5bn, mainly for ACTIS and MATRICS mask defect inspection systems.
• Lasertec plans FY06/27 R&D expenses of JPY20.0bn (+22.8% YoY) and capital expenditures of JPY5.7bn (+141.3% YoY).

• Amagasa is undergoing a dramatic business transformation, marked by a significant revenue surge in the most recent fiscal year, following a prolonged period of declining sales and substantial losses.
• The company has recently diversified from its core women’s footwear business into new segments, including Lifestyle, Entertainment, and Sustainable businesses, indicating a strategic pivot to capture new growth avenues.
• Despite impressive top-line growth, the company’s financial health remains precarious, characterized by a history of net losses, consistently negative operating and free cash flows, and a note from the company regarding the existence of material uncertainty related to its ability to continue as a going concern.

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• Kojima is a major Japanese electronics retailer operating as a subsidiary of Bic Camera Inc., which provides significant strategic advantages in purchasing, product lineup, and branding.
• The company has demonstrated a recent turnaround in profitability, with improving net income and margins over the past three fiscal years, supported by a strong dividend growth track record.
• Despite recent improvements, Kojima faces significant long-term challenges, including intensely competitive industry conditions, historically volatile and often negative cash flow generation, and reliance on a mature domestic market.

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• Japan’s listed power electrical contractors reported June-quarter results consistent with the early stages of a multi-year infrastructure upcycle, driven by grid modernisation, data centre build-out, and offshore wind development.
• Profit increases were largely attributed to improved construction efficiency, thorough cost management, and an increase in net sales for segments such as indoor electrical and air-conditioning work.
• The decision to maintain full year guidance reflects a cautious outlook due to persistently high raw material prices, a continued labor shortage, and potential supply chain disruptions

• In Q1 FY03/27, consolidated gross sales increased 6.4% YoY, with operating profit rising 32.2% YoY, driven by Department Store and Shopping Center businesses.
• Department Store business saw 11% YoY domestic sales growth, with operating profit rising 66.9% YoY, supported by high-end product demand.
• Supermarket business experienced a 24.6% YoY decline in operating profit due to decreased sales and customer traffic.

• Orders were JPY15.4bn (-20.5% YoY), order backlog JPY18.4bn (-9.3% YoY), sales JPY17.2bn (+10.6% YoY).
• FY06/27 forecasts: sales JPY17.7bn (+2.6% YoY), operating profit JPY2.2bn (+6.0% YoY), net income JPY1.5bn (+2.9% YoY).
• Dividend for FY06/27 is JPY37 per share, with a forecasted payout ratio of 63.6%.

• Revenue decreased by 2.4% YoY to JPY6.4bn, while net income attributable to owners declined by 14.1% YoY.
• Consulting business revenue rose 9.0% YoY to JPY5.4bn, with operating profit increasing 14.5% YoY to JPY779mn.
• Investment business revenue fell 36.2% YoY to JPY1.1bn, with operating profit decreasing 27.8% YoY to JPY260mn.

• Nippon Denko’s 1H FY12/26 revenue reached JPY38.8bn, operating profit JPY5.3bn, and recurring loss JPY2.9bn.
• Domestic Ferroalloys business saw underlying recurring profit rise to JPY1.6bn, while overseas faced JPY400mn loss.
• Full-year forecasts include JPY81.1bn revenue, JPY11.0bn operating profit, and JPY7.5bn underlying recurring profit.

• Sales were JPY1.8bn, down 17.9% YoY, with operating profit at JPY67mn, down 90.7% YoY.
• Business Production segment sales rose 22.2% YoY, while Venture Capital segment sales fell 86.9% YoY.
• Operating profit in Business Production was JPY380mn, up 12.1% YoY, with a segment loss of JPY28mn in Venture Capital.

• Argo Graphics is a key technical solutions provider in Japan’s CAD/PLM market, specializing in Dassault Systèmes’ CATIA software, which is integral to the automotive and aerospace industries.
• The company has demonstrated exceptional growth in net income and dividends over the past three years, though reported profits in FY26 were significantly inflated by a large one-time gain.
• A significant concern for investors is the company’s consistently negative free cash flow track record over the last decade, which contrasts sharply with its strong operating cash flow and earnings growth, raising questions about long-term sustainable value creation.

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• Arealink is the largest self-storage operator in Japan, with its “Hello Storage”brand driving the majority of its revenue and earnings through a recurring-revenue model.
• The company is poised to benefit from strong secular tailwinds in the Japanese self-storage market, which is projected to grow significantly due to urbanization and shrinking living spaces.
• While revenue and profit are growing, key challenges include a declining overall occupancy rate for storage units and the underperformance of its ‘Other Operational Services’ segment.

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• Amada is a global leader in metalworking machinery, well-positioned to capitalize on the growing demand for automation and precision engineering in key industries like automotive (especially EVs), aerospace, and electronics.
• The company is pursuing a strategic transformation under its ‘Medium-term Business Plan 2030’, shifting from a product-centric model to an integrated solutions provider, leveraging IoT and AI to enhance customer manufacturing processes. This plan targets significant growth, aiming for ¥520 billion in revenue and an ROE of over 10% by fiscal 2030.
• While facing risks from economic cyclicality and margin pressures, Amada is focused on strengthening shareholder returns, with plans for over ¥250 billion in dividends and share buybacks over five years, alongside strategic investments in growth areas and M&A.

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