Daily Brief Japan: Toyota Motor Corp Spon Adr, TSE Tokyo Price Index TOPIX, Stella Chemifa and more

In today’s briefing:

Toyota’s EV Woes: Struggling To Find The Fast Lane In Electric Mobility
Raising Requirements for Shareholder Proposals Could Hinder the Shift to Value-Creating Management
Stella Chemifa (4109 JP) – Strong Earnings, Attractive Share Price

Toyota’s EV Woes: Struggling To Find The Fast Lane In Electric Mobility

Toyota Motor Corporation, the world’s largest automaker by production volume, finds itself at a critical juncture in the global automotive industry.
Despite a commendable first-half operating income of ¥2.464 trillion for fiscal 2025 and a full-year forecast of ¥4.3 trillion, the company’s electrification strategy—or lack thereof—remains a contentious issue.
While Toyota has mastered the art of hybrid and internal combustion engine (ICE) vehicles, it continues to lag significantly behind competitors like Tesla and BYD in the electric vehicle (EV) space.

Because the majority of companies are still unable to change themselves, both the government and the TSE have taken measures to expect engagement from institutional investors, including activist investors.
Japan has high barriers in areas that aren’t regulated by law. The existence of cross-shareholdings has allowed managers to continue to operate without respect for the interests of minority shareholders.
It is premature to raise the requirements for shareholder proposals and requests to call special meetings to the level of other countries when many companies are still protected by cross-shareholdings.

H1 FY2025/3 results review: In H1 FY2025/3, Stella Chemifa (hereafter, the Company) reported strong results, with net sales up 25.3% YoY to JPY 18,160 mn and operating profit up 94.3% YoY to JPY 2,180 mn.
The boost in sales was driven by an increase in shipments in the semiconductor category, mainly for memory devices thanks to a recovery in market conditions, and an increase in shipments of enriched boron (energy category) for new nuclear facilities overseas.
Operating profit rose substantially, as growth in shipments in the high purity chemicals business and an increase in volume in the transportation business offset the JPY 210 mn drag on profits stemming from the Company’s inability to fully reflect cost increases from higher anhydrous hydrofluoric acid prices, a key raw material, and the yen’s depreciation, onto its prices.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network