Japan

• I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), Ns United Kaiun Kaisha (9110 JP), OFX Group (OFX AU), Atlantic Lithium (A11 AU), Cygnus Metals (CY5 AU). 
• Lowest spreads: Accent Group (AX1 AU), Kakaku.com Inc (2371 JP), Australian Strategic Materials (ASM AU), Future Corporation (4722 JP), Taiyo Holdings (4626 JP), Dida (2559 HK). 

• On Friday after the close, Seven & I Holdings (3382 JP) announced a ToSTNeT-3 buyback scheduled for Monday morning for ¥400bn, worth 8+% of shares outstanding. 
• That’s big. But the seller is likely to be SMBC Nikko. And they will then spend much of the next year buying back ¥400bn of shares on-market. 
• Separately, 7&i announced an alliance with Softbank Corp, PayPay, and Sumitomo Mitsui Card. They will buy ¥100bn each. Net, this means a 2% buyback IF successful. More if not.

• Makino Milling Machine Co (6135 JP) ended its consideration of the NSSK offer due to concerns about whether NSSK could secure FEFTA approval, given its reliance on foreign investors for financing.
• This event sets a precedent, as a Japanese PE-led bid is not a credible shield against FEFTA rejection. Japanese regulators are looking through to ultimate ownership/control.
• Due to a significant re-rating of peers/index and Makino’s upgraded FY2029 targets since the undisturbed date, the share price fall on a deal break should be around 10%. 

• Welcome to Curator’s Cut – a fortnightly roundup of standout themes from the 1,600+ insights shared on Smartkarma.
• In this cut, we go looking for value in Korea beyond memory, weigh SHEIN’s long-awaited IPO, and trace how TOPIX’s reshuffle could life small-cap Japanese banks.
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.

• Togami Electric is a long-established Japanese manufacturer of electrical power distribution and control equipment, poised to benefit from domestic grid modernization and the global push for electrification.
• The company has demonstrated a strong growth track record, with a 3-year net income CAGR of 23.13% and a consistently growing dividend, reflecting solid operational execution and shareholder-friendly policies.
• While the company exhibits strong fundamentals and operates in a market with favorable tailwinds, its valuation appears moderate. Key risks include dependency on the Japanese domestic market and potential for increased competition from larger, global players.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Q1 results in line; full-year OP guidance ¥218bn, ~3.5% below street consensus
• Order intake surging +37% YoY signals demand recovery, but is priced in at 22x EV/EBITDA vs. 10-year average 17x
• Balance sheet remains overcapitalised; no new announcement on capital returns

• Record Q1 sales ¥732bn (+33% YoY) at a 28.9% operating margin; EPS beat consensus but revenue missed 3.7%. Profitability, not the top line, drove the print.
• Management raised H1 sales to ¥1,620bn and lifted the WFE market view to $150B+/$190B+ for CY26/27, with H2 guided stronger; full-year guidance still withheld to Q2.
• We upgrade to BULISH (from NEUTRAL). PT ¥75,000 = 48x FY2027E EPS ¥1,560, ~35% upside — the premium multiple justified by AI-led WFE re-acceleration and TEL’s leading-edge mix.

• For July 2026, ten new transactions (firm and non-binding) were discussed on Smartkarma (by the Quiddity team) with an overall announced deal size of ~US$7bn.
• The average premium for the new transactions announced (or first discussed) in July was ~51%, and a year-to-date average of ~48%.
• The average premiums for transactions in 2025, 2024, 2023, 2022, 2021, 2020, and 2019 were 49%, 43%, 39%, 41%, 33%, 31%, and 31%.

• A rebound in demand from China and the weak yen supported June quarter sales and profit growth. But further yen weakness seems cannot be assumed.
• AI contributes to factory automation, but cannot replace the granular knowledge of the company’s sales-engineers. 
• The shares have rebounded to within 4% of their early May high.  At 35X our EPS estimate for FY Mar-28, they look reasonably valued. 

• Itochu has acquired Champion’s Japanese licensing and distribution rights, partnering with digital retail specialist Inglewood to run the brand.
• Current retail sales stand at ¥27 billion, but Itochu is betting on a 30% jump within three years
• Itochu and Inglewood hope to achieve this through an omnichannel overhaul and Inglewood’s e-commerce and AI-driven retail platform.

• Bain+LY have come over the top of EQT+DG for Kakaku.com (2371 JP). We may get another 5% out of this, but we’re closer to the end than the beginning.
• Commonwealth Bank of Australia (CBA AU) has knock Rio Tinto Ltd (RIO AU) off its perch as the most shorted Aussie stock by $ value.
• Murakami Group has, indeed, increased its stake in Yamada Holdings (9831 JP). They are now at 6.26%. They are not in it because Yamada is fairly-priced vs Edion (2730 JP).

• The dual-tender structure is a highly sophisticated tax and regulatory optimization: Nippon Steel’s acceptance of a lower self-tender price of ¥7,676/share versus the minority offer of ¥10,600/share is driven by the Japanese “deemed dividend” (minashi haito) tax exemption. This structure maximizes post-tax proceeds for Nippon Steel while ensuring the transaction complies with METI’s Fair M&A Guidelines by directing the premium to minority shareholders.
• The transaction price of ¥10,600/share represents a significant discount to the fleet’s replacement asset value: Despite a 36.95% premium over the pre-announcement close, the valuation of 1.32x PBR (based on June 30, 2026 net assets of ¥189.1 billion) fails to reflect the current skyrocketed replacement costs of Capesize and Newcastlemax vessels. Tight global shipyard capacity has driven up asset values, meaning NYK is acquiring high-quality steel-carrier assets at a steep discount to what it would cost to build them today.
• Closing timeline is highly vulnerable to global antitrust delays: Because NS United and NYK collectively command a massive share of the dedicated dry bulk transport from Australia and Brazil to Japan and China, approvals from competition authorities in Japan (JFTC), China (SAMR), and Brazil (CADE) are highly likely to extend the transaction timeline beyond the targeted late-2026 launch, pushing the final close well into 2027.

• Ns United Kaiun Kaisha (9110 JP) announced a preconditional tender offer from Nippon Yusen Kk (9101 JP) (NYK Line) at JPY10,600, a 31.8% premium to the last close price.  
• While representing an all-time high, the offer is materially below the midpoint of the special committee IFA’s DCF valuation range and is light compared to peer multiples.
• However, this is likely a done deal, as Nippon Steel has provided an irrevocable commitment and Zennor will be supportive given the significant return on its average cost per share. 

• The company is the subject of a takeover bid by major shareholder and affiliate Nippon Yusen (NYK) at a significant premium, which is the primary driver for the investment case.
• NS United Kaiun operates as a specialized marine transportation company, with a focus on long-term contracts for industrial raw materials, underpinned by its strong relationship with Nippon Steel.
• The company exhibits a strong dividend track record and financial resilience, though it faces the inherent cyclicality of the global shipping industry and risks associated with the pending acquisition’s regulatory approval.

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• I tally 29 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
• Three new deals were was discussed on Smartkarma this week: SK Signet (260870 KS), Energy One (EOL AU), and Ns United Kaiun Kaisha (9110 JP). 
• Key updates/news also took place on: Perpetual Ltd (PPT AU), Zenith Minerals (ZNC AU), Australian Strategic Materials (ASM AU), Pepper Money (PPM AU), and Yamada Corp (6392 JP).

• In Q1 FY03/27, the company reported revenue of JPY732.4bn, operating profit of JPY211.4bn, and net income of JPY164.3bn.
• The company revised its 1H FY03/27 forecast, projecting revenue of JPY1.62tn and operating profit of JPY458.0bn.
• The company forecasts new semiconductor production equipment sales of JPY1.24tn, with DRAM sales increasing by 75.9% YoY.

• Nippon Yusen has agreed to buy super-majority control of Ns United Kaiun Kaisha (9110 JP) from erstwhile controller (and shareholder partner) Nippon Steel Corporation (5401 JP). 
• The price is a nice premium, and an all-time high, and well above book – which is not bad for a shipping company. But it isn’t a super-high multiple. 
• Together, friendly corporate and financial holders own near 60%. Domestic passive enough to get past 67%. This should be OK. Not much need or purpose for activism here. 

• Record everything. Q1FY26 revenue ¥1,767.1bn (+76.2% QoQ, +415.5% YoY), non-GAAP operating profit ¥1,326.2bn at a 75.0% margin — every line above guidance. Pricing (+~70% QoQ) did >90% of the work.
• Balance sheet transformed. First-ever net cash (¥186.7bn), LBO-era senior loans fully repaid, record ¥827.2bn core FCF. Q2 guided to fresh records; ¥800bn buyback (5.5% shares) and 3-for-1 stock split announced.
• BULLISH maintained; TP cut to ¥72,000 (from ¥120,000) — 12x FY2026E EPS of ¥6,000, our standard memory-sector P/E basis, marking the multiple to a de-rated tape while raising estimates.

• Q1 revenue reached JPY62.5bn (+1.8% YoY), with operating profit at JPY3.6bn (-14.2% YoY) due to increased costs.
• Revenue in the remodeling market rose 5.6% YoY, driven by enhanced product specifications and customer-focused proposals.
• The company revised its full-year forecast, lowering revenue and profit expectations due to Middle East tensions.

• Revenues declined 43.3% YoY to JPY51.4bn, with the Leasing Fund Business offset by lower real estate fund revenues.
• Gross profit decreased 3.2% YoY to JPY26.3bn, while the gross profit margin improved 21.2pp to 51.3%.
• Operating profit was JPY17.6bn, down 8.6% YoY, with SG&A expenses rising 10.0% YoY to JPY8.7bn.

• Revenue increased 26.9% YoY to JPY20.6bn, driven by higher deal numbers and increased average deal value.
• The company revised its FY09/26 forecast to JPY28.3bn revenue, JPY10.9bn operating profit, and JPY7.7bn net income.
• Dividend per share for FY09/26 is JPY72.47, based on a 30% payout ratio of earnings forecast.

• Sales reached JPY75.9bn, a 6.0% YoY increase, achieving 23.7% of the company’s full-year forecast.
• Operating profit rose 11.2% YoY to JPY3.7bn, with segment-specific growth in Chemicals and declines in Fibers.
• Net income attributable to owners was JPY3.1bn, a 23.6% YoY increase, achieving 29.5% of the full-year forecast.

• Shin-Etsu Chemical’s price slumped after it maintaining full-year guidance in the Q1/27 results disappointed the market, and while overall EBIT recovered, this masked a divergence for the two largest divisions
• The continued severe decline in the US housing and PVC-driven Infrastructure segment has been offset by strength in the semiconductor-led Electronics, and smaller Functional, and Processing and Specialized, divisions  
• While it has declined to our well-below-consensus valuation, which prices in substantial risk for the major divisions, negative sentiment could persist and the shares stagnate given few immediate catalysts

• In Q1 FY03/27, revenue was JPY237.9bn (-0.4% YoY), with an operating loss of JPY921mn and net loss of JPY3.6bn.
• Component business revenue was JPY61.8bn (-25.5% YoY), with operating profit at JPY2.7bn (-56.2% YoY).
• Mobility business revenue reached JPY148.2bn (+12.7% YoY), with an operating loss of JPY3.1bn.

• Celsys reported 1H FY12/26 sales of JPY5.6bn, operating profit of JPY2.2bn, and net income of JPY1.5bn.
• Cumulative shipments of CLIP STUDIO PAINT reached 67.00mn units, with over 80% sold internationally, supporting 11 languages.
• Annual Recurring Revenue from SaaS subscriptions hit JPY6.3bn, with a monthly churn rate of 4.9% by June 2026.

• On 30 July, Diamond reported that Sony Corp (6758 JP) had proposed privatising Tamron Co Ltd (7740 JP) at an acquisition price of around JPY200 billion. 
• If the JPY200 billion refers to the cost to acquire the voting shares excluding Sony’s, the implied offer is JPY1,469, a 29.5% premium to the unaffected price of JPY1,134.
• Effissimo would support the rumoured offer price, as it represents an all-time high and is attractive relative to peers’ multiples.  

• Kaga Electronics’ decision to lower the tender offer minimum threshold to 55.73% (15,988,500 shares) on July 17, 2026, effectively neutralizes Sand Grove’s blocking attempt. Kaga’s stake of outstanding shares will comfortably represent over 66.67% of present votes at the upcoming EGM squeeze-out due to typical low general shareholder attendance.
• Yoshiaki Murakami’s fund (City Index Eleventh) chose to exit its entire stake on the open market immediately following the TOB announcement. Because the market price traded above the 1,580 yen offer price, the activist secured immediate liquidity and bypassed the rigid settlement timelines of the tender offer.
• The acquisition is structurally driven by Shinko Shoji’s cash-rich, low-margin reality post-Renesas. The liquidation of Renesas inventory created a super-liquidity event of ¥32.32 billion in working capital cash inflow, which Kaga will use to immediately offset the interest-bearing debt of its ¥45.9 billion acquisition loan.

• SCREEN Holdings is a dominant force in the semiconductor wafer cleaning equipment market, poised to benefit significantly from the long-term growth in the semiconductor industry, driven by artificial intelligence and advanced computing.
• The company’s strong financial performance is evidenced by a robust growth track record and a positive outlook, with forecasts for substantial revenue and profit increases in FY03/27, despite recent short-term headwinds.
• Key risks include the cyclical nature of the semiconductor industry, intense competition from other major equipment manufacturers, and geopolitical factors, particularly those related to the Chinese market and global trade regulations.

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• In Q1 FY03/27, revenue was JPY121.8bn (-10.3% YoY), with operating profit at JPY14.4bn (-41.1% YoY).
• For FY03/27, the company forecasts revenue of JPY743.0bn (+22.7% YoY) and operating profit of JPY156.5bn (+27.7% YoY).
• The company anticipates WFE market growth of about 20% YoY in CY2027, driven by foundry investments.

• We focus on key factors for these small cap banks such as equity shareholdings relative to market value, gearing to higher interest rates, and their exposure to bond holdings
• We recommend buy ratings on Hyakugo and Awa two of the top three banks in our proprietary scorecard, primarily for their high level of equity shareholdings relative to market capitalization
• Hyakugo is highly geared to higher rates and has low unrealized losses on bond positions, with Awa topping equity holdings to market value; Juroku, Aichi and Shiga are on watch

• In Q1 FY03/27, the company reported revenue of JPY23.1bn, operating profit of JPY537mn, and net income of JPY526mn.
• Overseas revenue increased 15.3% to JPY16.3bn, representing 70.6% of total revenue, with improved cost of sales ratio.
• Regional revenue changes: Japan -3.6% YoY, North America -40.6%, Europe +40.7%, Greater China +73.9%, Other regions -28.5%.

• Q1 FY3/27 results were above expectations, indicating the early-to-mid-cycle stage in the semiconductor cycle, and the company’s skills in winning newly transferred commercial distribution channels in overseas markets.
• With record-high quarterly order levels demonstrating strong earnings visibility with no immediate concerns over procurement, we believe the earnings outlook remains positive.
• The company has maintained FY3/27 guidance, but we have revised our earnings estimates to reflect 1) a more robust outlook for the Semiconductor Business, and 2) the Cybersecurity Business to demonstrate more upbeat prospects. No changes have been made to the CPS Solutions Business, with sales expected to ramp in H2 FY3/27.

Key points (machine generated)

• Miahelsa Holdings reported a 4.3% revenue increase to 24,850 million yen and a 28.6% rise in operating profit to 824 million yen for the fiscal year ending March 2026.
• The company operates 45 pharmacy stores, 78 daycare and after-school facilities, and 61 nursing care facilities as of March 2026.
• Childcare support is identified as a key growth driver for the company’s future expansion.

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

• Strike’s cumulative Q3 FY09/26 revenue was JPY16.0bn (+10.8% YoY), with operating profit at JPY5.1bn (+24.7% YoY).
• The company closed 212 M&A deals (+10.4% YoY), with revenue per deal at JPY75.5mn (+0.4% YoY).
• Cost of revenue was JPY6.6bn (+8.3% YoY), while SG&A expenses rose to JPY4.3bn (+1.0% YoY).

• North American Growth Engine: The company’s revenue trajectory is heavily reliant on its North American operations, specifically the robust sales performance of key products Orgovyx (prostate cancer) and Gemtesa (overactive bladder). These products are central to the company’s near-term growth and strategy to offset upcoming revenue losses.
• Profitability Under Pressure from R&D Investment: While structural reforms have led to a significant V-shaped recovery in profitability from the lows of FY24, future earnings are expected to be constrained. The company is channeling resources into its R&D pipeline, particularly in oncology, leading to higher expenses that will weigh on core operating profit despite projected revenue growth.
• Navigating a Critical Transition: Sumitomo Pharma is at a pivotal juncture, managing the loss of exclusivity for major past earners like Latuda while banking on its pipeline to deliver the next generation of blockbusters. The success of late-stage assets, such as Enzomenib in oncology, is critical for sustaining long-term growth and establishing the company as a “Global Specialized Player”in its focus areas of oncology and neurology.

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• In the latest salvo, Bain+LY have come back with a counter to the last overbid by EQT+DG at ¥3,450. That bid needed a bump because ¥3,500 was <2% higher.
• Bain+LY have bid ¥3,520 standalone and ¥3,640 with KDDI agreement. I expect this is enough to get Kakaku’s support if EQT don’t match.
• The market had priced this outcome PLUS another overbid. I wouldn’t be surprised to see two more but we’re closer to the end than the beginning.

• Future Corporation (4722 JP) announced a Chairman-led MBO at JPY2,451, a 2.9% premium to the last close of JPY2,382.  
• The low takeover premium could be explained by the mysterious 65.13% share price surge from 24 June to 27 July. Also, the offer represents an all-time high. 
• However, the offer is below the midpoint of the special committee’s IFA DCF valuation range and is light relative to precedent transactions, potentially attracting activists.

• Bain/LY (4689 JP) revised their Kakaku.com Inc (2371 JP) offer to JPY3,520 (JPY3,640 if KDDI agrees to share buyback), a 2.0% premium to EQT/Digital Garage (4819 JP)’s JPY3,450 offer.
• The latest Bain/LY offer mirrors the EQT/DG offer by gaming the competing offer clauses. Crucially, the new disclosure of Bain/LY IFA’s valuation range points to headroom for further increases.
• EQT/DG can match Bain/LY’s JPY3,520 offer with a modest 2.0% increase to the effective cost of its 17 July offer. If it matches Bain/LY’s effective cost, EQT can offer JPY3,790.

• The Nikkei 225 (NKY INDEX) is down -15% from its mid-June peak. The recent wave of heavy selling in semiconductor and AI-related stocks led the drop.
• Market sentiment around the Nikkei 225 is bearish to cautious at the moment, with widespread market anxiety regarding the sustainability of return on investment (ROI) for massive AI capital expenditures. 
• Potential catalysts: the BOJ Monetary Policy Meeting happens on July 30-31, 2026. Guidance language will be watched. Our model is flagging potential imminent short-term exhaustion of the current sell-off.

• An increase in % of variable compensation in executive compensation, linked to medium-to-long-term performance targets, is expected to foster shareholder-oriented management and lead to growth of shareholder value over time.
• Some caution is needed when executive compensation is linked to TSR. The key is to ensure that executive incentive compensation is determined based on combination of medium-to-long-term performance and TSR.
• Although the proportion of performance-based and incentive compensation has been gradually increasing, it seems that many executives are still hesitant to take risks to create value.

• In Q1 FY03/27, revenue decreased 43.0% YoY to JPY10.0bn, with a net loss of JPY720mn.
• Condominium business revenue fell 62.3% YoY, with 49 units handed over and land bank at JPY430.0bn.
• Asset Management revenue rose 0.2% YoY, driven by higher management fees and expanded assets under management.

• Sales, EBITDA, and operating profit increased YoY due to decreased amortization expenses after FY03/26 impairment loss in Overseas.
• Staffing services sales rose 8.6% YoY, driven by AI improvements in the matching process.
• Medical Platform business faced challenges from reduced pharmaceutical marketing budgets and Middle East instability affecting Global Career.

Key points (machine generated)

• FISCO Ltd. reports on Systems Design (Ticker: 3766), an independent system integrator in Japan since 1967.
• The company has successfully completed its 8th Medium-Term Management Plan and is transitioning to the 9th plan for growth.
• For the fiscal year ending March 2026, Systems Design projects consolidated sales of 9,993 million yen, a 4.0% increase from the previous year.

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

Key points (machine generated)

• Tenox specializes in foundation work, crucial for supporting various structures.
• The company is expected to achieve profit growth due to the Hokkaido Shinkansen extension project.
• Tenox has developed innovative techniques like Tenocolumn and Gantex pile, enhancing its reputation in disaster prevention.

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

• Revenue increased 16.1% YoY to JPY16.3bn, with operating profit rising 19.4% YoY to JPY3.6bn.
• Self-storage management revenue grew 9.4% YoY to JPY10.5bn, with 11,008 new units opened, occupancy at 78.82%.
• FY12/26 revenue forecast raised to JPY28.7bn, with an annual dividend forecast of JPY27.50 per share.

• Yesterday, I published [Quiddity Index] The TOPIX Change in Oct 2026 – Part I (Methodology Madness) about the TOPIX Methodology Change in October 2026.
• TOPIX matters because it is the Japan index with BY FAR the largest amount of passive tracking AUM. Change matters because, well, it does. There will be $80bn+ of flows.
• Part II discusses one particular trade which is a kind of a loophole. It has moved already so it is worth watching; it may still be good. It may not.

• Next-generation hardware margins will face initial compression due to elevated LPDDR5 and NAND flash costs, forcing Nintendo to price the successor system at $399.99 to maintain its strict policy of avoiding below-cost hardware sales.
• The working capital preparation for the Holiday 2026 launch is unprecedented, with Nintendo targeting a massive 10 million unit inventory build by year-end, driving a projected $3 billion to $3.5 billion cash outflow in the current quarters to mitigate the supply-chain bottlenecks and scalping that plagued prior launches.
• Transmedia and licensing operate as low-capex brand multipliers rather than primary profit centers; the high margin profile of movies and theme parks stems from licensing models where partners bear the construction and production risks, leaving Nintendo to leverage these channels to drive high-margin digital software sales within its locked-in 340 million account ecosystem.

• Strong 1H beat driven by forex gains and fishing outperformance; full-year operating income guidance unchanged as 2H faces Middle East cost headwinds.
• Bicycle inventory overhang in Europe and China persists, though 2Q showed early signs of stabilisation; fishing tackle momentum remains robust.
• Valuation broadly in line with historical averages; we maintain our mildly bullish view.

• Q1 FY03/27 results: Sales JPY43.7bn (-21.3% YoY), operating profit JPY6.9bn (-11.9% YoY), net income JPY4.7bn (-15.0% YoY).
• Revised FY03/27 forecast: Sales JPY205.3bn (+17.9% YoY), operating profit JPY22.5bn (+28.9% YoY), net income JPY15.0bn (+14.9% YoY).
• FY03/29 targets: Sales JPY230.3bn (+32.2% vs FY03/26), operating profit JPY28.5bn (+63.3%), cash flow JPY48.0bn.

Key points (machine generated)

• System D, listed as 3804 on the Tokyo Stock Exchange, develops industry-specific business support software.
• The company operates in five sectors: Academic Solutions, Public Education Solutions, Public Accounting Solutions, Wellness Solutions, and Software Engineering.
• System D is focusing on profit growth through new product development, M&A strategies, and innovations in generative AI.

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

• ITFOR Inc. (hereafter, the Company) is an independent system integrator established in 1972 and is now a leading packaged software vendor with strengths in the financial, public sector, and retail industries.
• Currently, profitability is improving thanks to recurring business services such as maintenance and BPO, as well as enhanced cross-selling efforts, with ROE reaching 13.9% for FY2026/3.
• SIR believes the current share price is undervalued relative to the Companys fundamentals.

Key points (machine generated)

• Daikoku Denki reported a 5.5% decline in net sales to ¥54.34 billion and a 21% drop in operating profit to ¥9.67 billion for FY3/26, despite exceeding forecasts.
• The company anticipates further declines for FY3/27, forecasting net sales of ¥48 billion and operating profit of ¥4.5 billion, due to reduced machine installations and higher R&D costs.
• Daikoku Denki’s medium-term plan aims for net sales of ¥49 billion and over 8% ROE by FY3/28, with a long-term goal of ¥60 billion in sales and 10% ROE by FY3/31.

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

Key points (machine generated)

• Nacoo (TSE: 9788) operates in a challenging market but maintains strong core operations.
• The company focuses on the rental sector and offers products like home delivery water and water purifying servers.
• For the fiscal year ending March 2026, Nacoo reported a 1.5% decline in sales and a 17.4% decrease in operating profit.

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

Key points (machine generated)

• Sanyei Corporation faced an 8.9% decline in net sales to ¥36,332 million in FY3/26, largely due to reduced demand for travel-related products.
• The company’s Fashion Accessories Business significantly impacted overall profits, leading to a 51% drop in operating profit.
• In response, Sanyei launched the SANYEI NEXT 2028 plan to restructure its business, focusing on e-commerce, overseas sales, and sustainability, with modest growth expected in FY3/27.

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

Key points (machine generated)

• MIRAIT ONE Corporation, formed in July 2022, reported record-high FY3/26 results with orders up 4.7% and operating profit up 22.4%.
• The company aims to evolve from traditional telecommunications to a broader social infrastructure provider using its Full-Value Model.
• For FY3/27, MIRAIT ONE projects a 9.6% increase in net sales and a 16.7% rise in operating profit, supported by a medium-term management plan focused on strategic transformations.

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

• The FY 2026 result looks good despite the volatile gold price. 
• Channel checks on the customers confirmed no changes in the demand. In fact, the regulatory requirement is severe, a penalty of up to 5% global turnover. 
• The weaker share price represents a buying opportunity rather than a sale. 

• In FY2026/3, Japan System Techniques Co., Ltd. (hereafter, the Company) reported net sales of JPY 32,459 mn (+10.7% YoY) and operating profit of JPY 3,911 mn (+22.7% YoY), achieving substantial increases in sales and profits and setting new record-high earnings.
• Operating margin rose to 12.0%, supported by higher-value projects and the impact of price revisions in the Package business.
• The three main businesses, DX&SI, Package, and Medical Big Data, posted higher sales and profits, while the Global business recorded an operating loss.

• Chugai Pharmaceutical (4519 JP) reported a rise of 15% YoY in revenue to ¥663.3B. Mainstay alongside new products help maintain growth momentum in both domestic and overseas market.
• 2026 guidance reiterated. Revenue expected to increase 7% YoY. Core profit numbers expected to increase by 7.5% YoY each. Achieved almost 43-46% of their 2026 headline guidance numbers.
• Although Chugai is still hugely dependent on Hemlibra export, new launches are slowly gaining momentum. Moreover, new breakthrough products like orforglipron will help provide some traction to the growth momentum.

Key points (machine generated)

• Grimus, listed on TSE, is expanding its grid storage battery business for growth.
• The company offers diverse energy products and tailored consulting services to various customer segments.
• Grimus aims for sustained profitability and market expansion, with a focus on high-growth energy solutions and stable retail electricity revenue.

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

Key points (machine generated)

• i-plug, listed on the Tokyo Stock Exchange Growth Market, is experiencing steady growth and launching new services.
• The ‘OfferBox’ platform allows companies to directly approach and select new graduates, improving recruitment efficiency.
• i-plug also provides additional services like aptitude testing and offer-type recruitment to strengthen its market position.

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

Key points (machine generated)

• IKI has shown steady growth in revenue and profit for the fiscal year ending March 2026.
• The company provides comprehensive IT services and serves major clients like NTT Data Group and Hitachi.
• Digital transformation projects account for 42.9% of IKI’s sales.

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• In FY2026/3, Japan System Techniques Co., Ltd. (hereafter, the Company) reported net sales of JPY 32,459 mn (+10.7% YoY) and operating profit of JPY 3,911 mn (+22.7% YoY), achieving substantial increases in sales and profits and setting new record-high earnings.
• For FY2027/3, the Company forecasts net sales of JPY 34,300 mn (+5.7% YoY) and operating profit of JPY 4,150 mn (+6.1% YoY), aiming to set new record highs with a 16th consecutive year of sales growth and a 12th consecutive year of profit growth.
• As the medium-term management plan strategy produces results and excessive concerns about AI fade, the Company’s valuation could be rerated over the medium to long term.

Key points (machine generated)

• M-Up Holdings reported significant revenue and profit growth for the fiscal year ending March 2026, driven by increased electronic ticket sales and dividends.
• The company operates over 900 fan club sites with more than 4.7 million paid members, making it Japan’s largest in the sector.
• Led by Koichiro Mitou, M-Up Holdings excels in acquiring strong intellectual property and manages a diverse portfolio of digital content.

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Key points (machine generated)

• New Constructor’s Network Co., Ltd. reported a 3.6% increase in net sales to ¥8,414 million for FY3/26, but profits declined significantly.
• Operating income fell by 14.6% to ¥152 million, and profit attributable to owners decreased by 25.2% to ¥144 million.
• For FY3/27, the company forecasts net sales of ¥9,310 million (up 10.6%) and a recovery in operating income to ¥308 million (up 102.5%), while delaying its medium-term management plan.

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Key points (machine generated)

• A briefing on Nichika Chemical Co., Ltd. was held on July 27, 2026, featuring President Yasumasa Emori and investor DAIBOUCHOU.
• The event was moderated by FISCO market reporter Hiroe Takai and focused on the company’s operations and future outlook.
• Participants were reminded to review important disclaimers regarding the material presented during the session.

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• A couple of years ago, TOPIX announced a methodology change to start in October 2026. Until that point, companies which IPO on TSE Prime or move segments are TOPIX members.
• In October 2026, using data from end-August 2026, there will be a ranking of the eligible TSE-listed (including Growth and Standard names) universe, adjusted by liquidity/ criteria.
• Incumbent members in the top 97% of cumulative free-float market cap (FFMC) stay in. Non-members in the top 96% get in. Members outside 97% get deleted. We see 700+ changes.

• Onitsuka Tiger posted record revenues last year at a 37.7% operating margin. 
• It is, and has been, far outperforming its parent, setting the stage for the full spin-off into a new subsidiary.
• The brand is likely to move further upmarket as a full lifestyle brand as it targets ¥200 billion, anchored by six new flagships and a return to the US market.

• In early June, a Nikkei article suggested that Yamada Holdings (9831 JP) and Edion Corp (2730 JP) would enter talks to merge. The knee-jerk reaction? Send smaller EDION higher. 
• That was the wrong trade. Yamada was cheaper on earnings/PSR/PBR with plans to sell assets/restructure. The Yamada/EDION ratio bounced, but is flat over the past month.
• Now we have a new fly in the ointment, and that should be good for Yamada shareholders. It’s a Potentially Big Twist

• The market is pricing Ricoh as a terminal print asset, but the company has demonstrated an ability to harvest this asset and grow its cash flows.
• Bears confuse managed IT’s commodity perimeter with Ricoh’s real core. Japanese enterprise document workflows are contractually and culturally sticky, resisting platform automation.
• Activist Investors own shares of Ricoh equal to 57 days ADV, and they’ve increased their position as the stock under-performed. They were too early, but the consensus is late.

• I tally 30 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below
• Four new deal were discussed on Smartkarma this week: OFX Group (OFX AU), Get Nice (64 HK), Z Fin (1168 HK), and Gabia Inc (079940 KS).
• Key updates/news also took place on: Kakaku.com Inc (2371 JP), China Shengmu Organic Milk (1432 HK), Ajinomoto Co (2802 JP), and Changhong Jiahua (3991 HK).

• An increase in the approval rate for shareholder proposals and a decrease in the approval rate for management proposals will influence the company’s subsequent policies.
• Thanks to TSE’s educational initiatives, there’s been an increase in shareholder proposals that address management issues raised by activist investors. This is expected to encourage companies to implement fundamental reforms.
• However, with most shareholder proposals being rejected, there may be companies that are buying time by increasing shareholder returns until they can implement radical measures that carry significant risk.

• YUKIGUNI FACTORY CO., LTD. (hereinafter, “the Company”) produces, processes, and sells Maitake, which was the first in the world to be successfully mass-produced (with approximately 51% of the domestic production share), as well as a range of mushrooms (Eryngii, Buna-shimeji, Button Mushrooms, etc.).
• In recent years, the Company has also pursued the development of mushroom-based alternative meats as part of its efforts to create new value from mushrooms.
• Through a vertically integrated value chain spanning production, processing, and sales, the Company enforces strict quality control and ensures stable year-round supply.

• Revenue increased 3.2% YoY to JPY8.7bn, driven by large projects in Air Conditioning Instrumentation-related business.
• Orders for new installations rose 46.3% YoY, while revenue for existing facilities increased 30.9% YoY.
• Operating profit rose 97.2% YoY to JPY209mn, with orders increasing 32.0% YoY due to higher demand.

• Company Profile: Stella Chemifa Corporation (hereafter, the Company) is a long- established business with a 110-year history and has a strong competitive position in the manufacturing and sale of hydrofluoric acid and fluorine-related compounds.
• The Company is believed to be the world’s largest producer of high-purity hydrofluoric acid used in semiconductor cleaning solutions by production capacity and is highly regarded in the industry.
• It also manufactures enriched boron used in nuclear reactor-related applications and has established a unique market position. 

• The margin reset is real and dated. Gross margin >71% for three straight quarters; operating margin 42.9% in June, up 456bp YoY 
• The order book DISCO stopped disclosing is now filed under liabilities. Contract liabilities jumped 46% in one quarter to a record ¥73.0bn — management confirmed backlog is building.
• BULLISH, Fair Value ¥89,000 — 50x FY3/28E EPS of ¥1,781. Implied return +49 after today’s Q2-guidance-driven crash to ¥59,910; the target requires only a multiple recovery to last week’s level.

• Japanese Mid-cap Banks – Iyogin (TSE:5830) remains our top pick, we drop Hokuhoku from the buy list
• Iyogin and Nishi-Nippon rank first and second in our scorecard; Iyogin is a virtual “all-rounder” in terms of attributes whilst Nishi-Nippon scores highly on interest rate gearing and valuation
• Hachijuni remains a buy, as it leads on equity shareholdings to market capitalisation and its interest rate gearing is improving; we take profits on Hokuhoku, downgrading it to a neutral

• Konica Minolta is undergoing a significant strategic transformation, shifting focus from its declining, albeit cash-generating, traditional office printing business towards designated ‘strengthening businesses’ such as industrial printing, performance materials, and healthcare.
• The company’s Medium-term Business Plan (2023-2025) prioritizes improving profitability and achieving a Return on Equity (ROE) of 5% or more through structural reforms, business selection, and concentration.
• Financial performance has been volatile, with a significant net loss in FY2025 followed by a recovery in FY2026, reflecting the impact of restructuring costs and the challenging transition. Valuation appears attractive relative to peers, but this is balanced by the secular headwinds in its core market.

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• Intractable Switching Costs in Advanced Nodes: SCREEN’s value-capture is protected by deep chemical co-development with TSMC and IMEC. Replacing a SCREEN single-wafer cleaning tool at a leading-edge node (3nm/2nm) requires re-qualifying the entire yield recipe, a process that takes 6 to 12 months and risks multi-million-dollar yield excursions, making switching costs virtually prohibitive once a tool is qualified.
• Divergent Competitive Profiles: While SCREEN maintains a dominant 45% to 50% share of the overall wafer-cleaning market, it faces distinct regional and technical challenges. It holds a near-monopoly in legacy batch cleaning (over 60% share), but is defending its 35% to 40% single-wafer share against Tokyo Electron’s supercritical drying technologies and Lam Research’s bevel-cleaning systems, while Chinese domestic competitor ACM Research poses a structural threat in legacy Chinese fabs.
• AI-Driven Intensity Multipliers: Transitioning to Gate-All-Around (GAA) and advanced packaging (HBM3e/HBM4 and CoWoS) serves as a major structural volume driver. GAA architectures increase cleaning steps to over 200 steps per wafer, while TSV (Through-Silicon Via) residue cleaning for HBM increases clean-step intensity by 30% to 35% compared to standard DRAM, cementing SCREEN’s content-per-wafer growth despite cyclical headwinds in mainstream PC/smartphone markets.

Key points (machine generated)

• Mikuni Co., Ltd. is an independent parts manufacturer with over 100 years of experience, focusing on the mobility sector.
• The company supplies intake and fuel injection products for motorcycles, automobiles, and power sports equipment, and operates globally.
• The report highlights Mikuni’s performance for the fiscal year ending March 2026, showcasing its diverse portfolio and growth potential.

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Key points (machine generated)

• FEED ONE CO., LTD. holds a 15% market share in Japan’s compound feed industry and achieved record-high profits in FY3/26 despite a 1.8% decline in net sales.
• The company’s profitability focus, effective cost management, and price adjustments contributed to significant increases in operating and ordinary profits.
• For FY3/27, FEED ONE projects a 9.1% increase in net sales and plans to shift to a value-based model while enhancing shareholder returns with a new 3% dividend policy.

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Key points (machine generated)

• Nagai Reiben reported a 0.7% decrease in sales to 13,267 million yen for Q3 FY ending August 2026.
• Operating profit declined by 3.5% to 2,813 million yen, with ordinary profit down 1.2% to 2,958 million yen.
• A 12.3% increase in operating profit is expected for the full fiscal year due to a price increase and delayed projects.

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