In today’s briefing:
- Toyota Motor (7203 JP) Tactical Outlook: Uncertainty Persists, But Rebound Likely
- Japan Steel Works (5631 JP) – Steady Profit Growth, Nuclear Edge, and Premium Justified
- Advantest – High-Performance Chip Boom & Share Buybacks Make This A Stock To Watch!
- Both Statutory Nomination Committee and BODs Chaired by Outside Directors Are in the 2% Range
Toyota Motor (7203 JP) Tactical Outlook: Uncertainty Persists, But Rebound Likely
- We continue our coverage of Toyota Motor. In our last insight we flagged overbought conditions and a likely pullback—Toyota declined as expected. Our model now flashes an “upcoming rebound” signal.
- Toyota Motor (7203 JP) has been falling for 3 weeks. At the end of last week our WEEKLY model flagged the stock as “very oversold“: 83% probability of WEEKLY reversal.
- We cannot say if this rebound will become a rally, at the moment: uncertainty around the stock persists, and this particular pattern usually sees more selling, after the bounce.
Japan Steel Works (5631 JP) – Steady Profit Growth, Nuclear Edge, and Premium Justified
- Strong earnings momentum with revenue, margins, and EPS consistently improving over FY21–FY25, driven by a shift toward high-margin industrial machinery.
- Strategic monopoly in ultra-large nuclear forgings, supported by global SMR tailwinds, capacity expansion plans, and a record order backlog across nuclear and defense.
- Valuations remain elevated, but are backed by strong visibility, margin expansion, and structurally advantaged positioning in a tightening global supply chain.
Advantest – High-Performance Chip Boom & Share Buybacks Make This A Stock To Watch!
- Advantest Corporation delivered a robust performance in FY 2024, with record-high sales, operating income, and net income, primarily driven by sustained demand for AI-related high-performance semiconductor testing.
- The company effectively addressed the increased complexity in semiconductors through strategic procurement, supply chain diversification, and long-term agreements.
- This allowed Advantest to meet the elevated demand, particularly in SoC and memory tester sales.
Both Statutory Nomination Committee and BODs Chaired by Outside Directors Are in the 2% Range
- Since the number of companies transitioning to US Type 3 Committees isn’t increasing, a perverse debate has begun on weakening the authority of nomination committees in US Type 3 Committees.
- Despite calls from investors to appoint outside directors as chairpersons of BODs to stimulate discussion and strengthen supervisory functions by separating supervision from execution, these calls have been ignored.
- If the board of directors simply approves plans created by each business division based on their budgets, then it is not involved in important company decisions.
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