Daily Brief Japan: Bengo4.Com Inc, Note, Escrow Agent Japan, Mec Co Ltd, HIRANO TECSEED Co (Kinzoku), Nachi Fujikoshi and more

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Japan Eyewear Holdings (5889 JP), FIT EASY (212A JP), and Tekscend Photomask (429A JP) were included in the TOPIX index at the end of November 2025.
• Bengo4.Com Inc (6027 JP) recently announced a Section Transfer to the Prime market which means there will be a TOPIX inclusion at the end of January 2026.

• Note is a Japanese content platform capitalizing on the burgeoning creator economy, demonstrating a remarkable turnaround from significant losses to profitability, driven by accelerating revenue growth.
• The company exhibits classic platform characteristics with extremely high gross margins and a scalable business model, but faces intense competition in the crowded digital content space.
• Valuation appears stretched, with high multiples on current earnings, indicating that the market has priced in substantial future growth and successful monetization expansion.

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• In FY02/25, the company reported revenue of JPY4.7bn (+14.6% YoY), operating profit of JPY482mn (+5.8% YoY), recurring profit of JPY487mn (+6.5% YoY), and net income attributable to owners of the parent of JPY349mn (+16.4% YoY).
• Service usage in the Financial Solutions business increased as the company’s main clients—online banks—actively promoted their housing loan products.
• Operating profit grew at a slower pace than revenue due to higher depreciation from system upgrades and the addition of new functions, as well as a rise in human capital investment.

• MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY.
• Chemicals sales rose +11.6% YoY to ¥14,559mil while chemical sales volume also gained +10.9% YoY to 34,844ton.
• The gross profit margin [GPM] improved to 62.4% (+1.0ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101.

• Hirano Tecseed (hereinafter HT) reported FY25 1H OP of ¥1,209mil (+18.0% YoY) on sales of ¥18,157mil (-25.5% YoY), generating an OPM of 6.7% – a significant improvement from FY24 1H’s OPM of 4.2%.
• Given the successful passing through of cost increases to customers in the C&LM segment, FY25 1H earnings overshot company guidance which had been revised up with the release of its Q1 results from an OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to an OP of ¥1,000mil (-2.4 YoY) on unchanged sales.
• Full-year FY25 guidance remains unchanged [OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY)] as HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariffs and shifts in global EV market.

• Nachi Fujikoshi is a diversified Japanese manufacturer of industrial machinery and components, with a significant presence in bearings, machine tools, robotics, and specialty steels. The company’s integrated production model, from materials to finished products, provides a key operational advantage.
• The company is currently facing headwinds, reflected in declining revenue and net income over the past three years. This is largely attributable to sluggishness in key end markets like China and weakening demand for semiconductor-related equipment.
• Strategically, Nachi is focusing on structural reforms to improve profitability and is targeting growth in the electric vehicle (EV) and industrial machinery sectors. Expansion in key geographic markets such as the U.S. and India, particularly for its robotics division, is a central pillar of its future growth strategy.

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