Daily Brief Japan: BayCurrent Consulting , Softbank Group, Hoshizaki Corporation, Taiyo Yuden, T Hasegawa, Hennge KK, Cellebrite DI , World Holdings, Aruhi Corp, Kyowa Kirin Co Ltd and more

• The five year data period for the September 2025 Nikkei 225 rebalance is now over (as of 31 July). First obvious news? No Fast Retailing (9983 JP) capping.
• That was obvious a couple months ago, and the BayCurrent Consulting (6532 JP) buying to come has been known for five months.
• The Kokusai Electric (6525 JP) Offering last month makes it more likely an ADD than it was in June (when it didn’t replace NTT Data), but not a done deal.

• SoftBank Group (9984 JP) reports Q1 FY2025 earnings on 7 August at 15:30 JST, with a conference call at 16:30 JST.
• Highlights: SoftBank’s post-earnings moves are often sharp and unpredictable — with outliers above ±12%. Options markets flag the results day as a high-volatility event to watch.
• Why Read: Essential for investors or options traders focused on Japan: Understand how timing, historic patterns and current volatility pricing shape both opportunity and risk around SoftBank earnings.

• Hoshizaki Corporation (6465 JP)‘s stock price has dropped over the last 3 months, and the lower market cap could result in global index deletion in August. 
• An early cutoff in the review period could result in the stock staying on in the index but that puts it at risk of deletion in November.
• There has been an increase in short interest and cumulative excess volume over the last couple of months and that indicates positioning in the stock.

• Taiyo Yuden underperformed its peers in electronic components by 29% over the past year, but its change in operating profit margin should outperform peers by 68% in the current year.
• Exposure to the U.S. is less than 7% of direct sales, but probably 25% including indirect exposure. Still, based on supply/demand analysis, we think Yuden is probably tariff proof.  
• While rivals have prioritized high-margin device modules to offset component sales declines, Yuden doubled down on its core capacitor and inductor strengths and appears to be coming out ahead.

• Revenue increased 3.5% YoY to JPY54.5bn, with major subsidiaries in the US, China, and Malaysia contributing growth.
• Operating profit decreased 3.3% YoY to JPY7.2bn due to higher SG&A expenses, despite revenue growth and improved cost ratio.
• Flavor Division revenue rose 4.4% YoY to JPY48.7bn, while Fragrance Division revenue declined 3.3% YoY to JPY5.8bn.

• Revenue reached JPY8.0bn (+32.3% YoY), with HENNGE One contributing JPY7.5bn (+34.3% YoY) and Professional Service JPY506mn (+8.1% YoY).
• Operating profit was JPY1.6bn (+72.3% YoY), with a margin of 19.7% (+4.6pp YoY); gross profit was JPY6.9bn (+35.7% YoY).
• SG&A expenses rose to JPY5.3bn (+27.6% YoY), including JPY618mn in advertising (+34.1% YoY) and JPY2.0bn in personnel (+21.9% YoY).

• Cellebrite is a quality business in digital forensics, a market leader in the industry
• Cellebrite has strong financials, including high margins, free cash flow conversion, and a bootstrap structure

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• Revenue was JPY131.8bn (+18.9% YoY), operating profit JPY5.0bn (+111.0% YoY), and net income JPY2.7bn (+259.6% YoY).
• Products HR business revenue was JPY58.4bn (+9.9% YoY), segment profit JPY1.7bn (+46.0% YoY), driven by semiconductor demand.
• Real Estate business revenue was JPY24.8bn (+81.9% YoY), segment profit JPY2.1bn (+578.2% YoY), despite delayed property handovers.

• Operating revenue in Q1 FY03/26 was JPY5.5bn, a decrease of JPY9mn YoY, with origination-related revenue down 9.5%.
• Operating expenses increased by JPY362mn YoY to JPY5.0bn, driven by higher finance and personnel costs.
• Pre-tax profit declined by 45.0% YoY to JPY437mn, with profit attributable to owners down 43.5% YoY.

• Kyowa Kirin Co Ltd (4151 JP) revenue declined 1% YoY to ¥230.7B, impacted by APAC business restructuring, reduced drug prices in Japan, despite the growth in North America and EMEA.
• The company remains heavily dependent on Crysvita generating almost 43% of the total revenue of the company. Crysvita sales rose 10% YoY to ¥99.8B in 1H25.
• The next big trigger to the stock price would be the FDA decision on approval of ziftomenib, due in November.