Daily Brief Japan: Digital Holdings Inc, Shimano Inc, Shionogi & Co, TSE Tokyo Price Index TOPIX, JRC , KEIWA , Sms Co Ltd, Symbio Pharmaceuticals, Pca Corp and more

• The Digital Holdings Inc (2389 JP) Board has responded to SilverCape’s hostile offer by proposing countermeasures ostensibly to protect the interests of minorities.
• The precedent Makino countermeasures against Nidec’s hostile offer were intended to buy time for a higher white-knight offer. In this case, it is being done to facilitate a lower offer.  
• The countermeasures will severely dent SilverCape’s chances of succeeding. Hakuhodo Dy Holdings (2433 JP)’s irrevocables and insiders should be sufficient to pass the shareholder vote to implement the countermeasures. 

• Q3 sales fell 4% YoY and operating profit dropped 57%, reflecting continued weakness in bicycles and margin compression, though results aligned with lowered guidance. 
• Elevated channel inventories in Europe and China highlight lingering post-Covid demand normalization, with 2026 guidance likely to remain conservative amid structural headwinds.
• ROIC has halved as invested capital outpaced sales growth; despite strong cash and shareholder returns, Shimano faces slow recovery and limited near-term catalysts.

• During H1FY26, Shionogi & Co (4507 JP) maintained revenue, operating profit, and net profit at the same level as previous year. None of the key parameters achieved their respective targets.
• Better-Than-Expected contribution from Torii, additional revenue generation from Quviviq, double-digit revenue growth of cefiderocol in the U.S. and EU, and stable growth in HIV royalty drove overall performance.
• Shionogi has reduced FY26 revenue guidance (due to weak prescription drug sales) and raised operating and net profit guidance, driven by strong growth in royalty income and cost optimization initiatives.

• The decline in IPOs for small-cap companies was as anticipated. Once the topic of revising the listing criteria for Growth Markets arose, IPOs had to pay attention to new criteria.
• For companies planning IPOs, the requirement to demonstrate a commitment to growth during the listing review process has a positive aspect: it’ll lead to a decrease in small-scale listings.
• Growing companies will move to Prime Market, while those failing to reach JPY10 billion will transition to Standard. Companies maintaining JPY10 billion but without growth may stay in Growth Market.

Key points (machine generated)

• FISCO Ltd. released a report on JRC Corporation following its interim financial results for the fiscal year ending February 2026.
• JRC’s second quarter results met revised expectations, with projected year-on-year growth exceeding 20% in revenue and profit.
• Analysts anticipate a CAGR of over 20% in operating profit until February 2028, with a potential stock price of around 3,000 yen.

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Key points (machine generated)

• Keiwa Co., Ltd. reported a 2.8% increase in sales to 9,913 million yen and an 8.9% rise in operating profit to 2,247 million yen for the interim period ending December 2025.
• The company specializes in high-value optical sheets for LCD displays, particularly its light diffusion film ‘Opalus®.’
• Despite strong sales, ordinary profit declined by 23.6% to 1,960 million yen, with interim net profit attributable to shareholders at 693 million yen.

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• Sales increased to JPY33.5bn (+5.1% YoY), with operating profit at JPY4.4bn (+22.9% YoY) and net income JPY5.0bn (+36.0% YoY).
• Elderly care career sales reached JPY11.0bn (+6.9% YoY), while medical care career sales totaled JPY10.6bn (+3.1% YoY).
• Kaipoke’s sales rose to JPY6.6bn (+14.2% YoY), driven by membership growth and adoption of paid optional services.

Key points (machine generated)

• Symbio Pharmaceuticals focuses on unmet medical needs in cancer, blood disorders, and viral infections.
• The company plans to file for approval of its antiviral drug Brincidofovir (BCV) by 2028.
• BCV shows strong antiviral and antitumor activity, with ongoing research in adenovirus infections and neurodegenerative diseases.

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• In 1H FY03/26, the company reported revenue of JPY8.2bn, with operating profit and net income declining YoY.
• Revenue by category showed cloud services increased by 15.0% YoY, while maintenance services decreased by 14.3% YoY.
• The company revised its FY03/26 forecast, expecting revenue of JPY17.5bn and operating profit of JPY2.5bn.