Daily Brief Japan: Nintendo, Northsand, Moriya Corp, Nikkei 225, Hikari Food Service, Nihon Dengi and more

• Switch 2 production signals confidence: Supplier orders for up to 25 mn units imply upside to Nintendo’s conservative guidance and likely operating profit revisions over FY3/26.  
• Quarterly Earnings Sensitivity: Every 1 mn hardware units adds ¥11 bn to OP and 1 mn software units ¥3 bn, making Q2 results a key sentiment catalyst.
• Sector positioning remains strong: With major global peers acquired, Nintendo stands as the premier pure-play gaming franchise; valuation premium sustained by scarcity and structural growth exposure.

• Northsand (446A JP) aims to raise around US$121m in its Japan IPO.
• Northsand is a consulting firm that provides both IT and business consulting services. Established in 2015, it helps organizations improve efficiency, modernize operations, and achieve sustainable growth.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Moriya Corp is a well-established general construction company based in Nagano, Japan, with operations primarily in civil engineering, building construction, and real estate. The company has demonstrated a strong growth trajectory, underscored by a robust increase in market capitalization and a solid financial performance in recent years.
• The Japanese construction market provides a stable, albeit moderately growing, backdrop, supported by significant government investment in infrastructure, disaster resilience, and renewable energy projects. Moriya is well-positioned to capitalize on these trends, particularly in public works and infrastructure renewal.
• Despite a strong performance and an attractive valuation with a low P/E ratio, the company faces industry-wide challenges, including a shrinking workforce, rising material costs, and intense competition. Volatility in operating cash flow presents a key area for investor monitoring.

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• A look at our probabilistic tactical models for US and Asian Equities: comparing which stocks are overbought and which ones are oversold.
• Most of the U.S. and Asian stocks we track are overbought, with Asian markets showing the strongest overbought conditions. 
• Meta (META US)  and the CSI 300 Index (SHSZ300)  offer bargain-hunting opportunities for tactical investors.

Key points (machine generated)

• The briefing on October 31, 2025, featured Mitsunori Otani, President of Hikari Food Service Co., Ltd.
• The event included a Q&A session moderated by Hiroe Takai from FISCO Co., Ltd.
• The focus was on Hikari Food Service’s presence on the Tokyo Stock Exchange Growth Market in the retail industry.

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• In FY03/25, the company recorded revenue of JPY43.1bn (+10.7% YoY), gross profit of JPY18.7bn (+28.3% YoY), operating profit of JPY9.1bn (+46.0% YoY), recurring profit of JPY9.3bn (+47.2% YoY), and net income attributable to owners of the parent of JPY6.4bn (+37.3% YoY).
• By segment, revenue totaled JPY39.4bn (+12.9% YoY) in the Air Conditioning Instrumentation-related business and JPY3.7bn (-8.3% YoY) in the Industrial Systems-related business.
• Revenue increased as the company recognized revenue from large new installation projects (e.g., factory projects, redevelopment projects in the Tokyo metropolitan area) in the Air Conditioning Instrumentation-related business.