Daily Brief Japan: Otsuka Holdings, TSE Tokyo Price Index TOPIX, MARUKA FURUSATO , Okinawa Cellular Telephone, Jafco Co Ltd, Sfp Dining, Shin Etsu Chemical and more

• A compelling investment strategy focused on high-quality Japanese equities, selected for strong financial health and growth prospects. This approach targets companies offering stability and long-term appreciation.
• The portfolio emphasizes industrial, automation, pharma, and technology hardware sectors, balanced with a tactical volatility trading approach. This strategy aims to enhance returns while managing short-term market fluctuations.
• Otsuka Holdings is highlighted as a core pharma pick. Screen and Hirose Electric are strong value picks in manufacturing and electronic tech, contributing to the portfolio’s quality and value focus.

• BoJ will want to retain discretion regarding ETF sales, so it’ll sell flexibly depending on stock market conditions. The sale of ETFs is just the beginning of a long journey.
• The shift to inflationary economy has made it easier than before to implement measures to improve capital profitability. Nevertheless, companies whose capital profitability hasn’t improved significantly should make further efforts.
• To raise average ROE of companies 2ppt, OP margin must increase 25% from current levels. Achieving 25% increase in a company’s overall OP margin requires significant restructuring of business portfolios.

Key points (machine generated)

• MARUKA FURUSATO Corporation revised its FY12/25 financial forecasts downward, expecting recovery in FY12/26.
• The company reported a slight increase in net sales but significant declines in operating and ordinary profits due to rising labor costs and lack of extraordinary income.
• An organizational restructuring is planned for January 2026, with a commitment to increase dividends to a target of at least 3.5% for FY12/25.

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• In 1H FY03/26, operating revenue was JPY42.1bn (+2.2% YoY), with a net income of JPY6.5bn (+6.9% YoY).
• Mobile service revenue increased to JPY22.6bn (+3.3% YoY), with total contracts rising to 692,300 (+1.4% YoY).
• Operating revenue progress was 49.5% of the FY03/26 forecast, with operating profit at 51.4% of the target.

• JAFCO’s revenue and profits declined YoY, with revenue at JPY11.9bn and net income at JPY1.9bn.
• Capital gains were JPY4.4bn, with a 1.84x investment multiple, and one domestic IPO was executed.
• Total investment in 1H FY03/26 was JPY13.7bn, with JPY7.7bn in domestic VC investments across eight companies.

Key points (machine generated)

• SFP Holdings reported increased revenue but decreased profit for the interim period ending February 2026.
• The company is focusing on improving its cost ratio through menu revisions, aiming for increased revenue and profit for the full year.
• SFP Holdings has rebounded to pre-pandemic levels by leveraging domestic consumption recovery and is expanding its presence in regional cities.

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

• Shin Etsu Chemical is a global leader in polyvinyl chloride (PVC) and semiconductor silicon wafers, granting it significant market influence and economies ofscale.
• The company is facing near-term headwinds, evidenced by disappointing FY26 guidance which forecasts a 14.4% decline in operating income, leading to recent stock price underperformance.
• Despite the cyclical downturn, Shin Etsu maintains a robust financial position, characterized by a strong balance sheet and significant cash flow, enabling substantial shareholder returns through buybacks.

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