＜4021＞ Nissanka 4534 +100
Significant continued growth. The day before announced the expansion of treasury stock acquisition quotas and the extension of the acquisition period. An announcement of 1.25 million shares, which is 0.90% of the number of issued shares, and a share repurchase with an upper limit of 5 billion yen was made on 5/13, but now, the maximum acquisition limit has been raised to 2.5 million shares or 10 billion yen. The acquisition period used to be from 5/14 to 7/31, but it was changed to 25/3/31. The reason for the change is that it is part of the execution of a flexible capital policy and shareholder return that also takes stock market trends into account.
＜8306＞ Mitsubishi UFJ 1637 +9
High prices updated with continued growth. The yield on new 10-year government bonds temporarily rose to 1.065%, rose 0.03% from the day before, and is at a high level for the first time in about 12 years and 5 months since 2011/12. Long-term US interest rates have risen from a retreat in early interest rate cut observations, and the impact has spread to Japanese government bonds. Also, it seems that speculation that the Bank of Japan will cut government bond purchases or increase additional interest rates in the near future has also been viewed as material. An increase in long-term interest rates will lead to buying materials for bank stocks.
＜8630＞ SOMPO 3306 +133
Significant continued growth. It also seems that evaluations of the new medium-term plan announced the day before are increasing. As a numerical management target, in addition to aiming for a revised consolidated ROE of 13-15% (FY23 11.8), the revised EPS growth rate is targeted at an annual rate of 12% or more. Also, policy stocks are 200 billion yen or more in fiscal year 24, and further acceleration is planned with a reduction of 600 billion yen over 3 years to the lowest line, and 50% of policy stock sale gains (after tax) will be additionally returned as shareholder returns.
＜2437＞ Shinwa 532 +12
Massive backlash. A revised dividend forecast for the fiscal year ending 24/5 was announced the day before. The year-end dividend was expected to be in the range of 5.5-7.0 yen, but if it were to be 6 yen, the annual dividend would be 13 yen. The year-end dividend is below the center value of the range forecast, but it seems to lead to a sense of security while downside was feared from the earnings trend up to the 3rd quarter. From an annual dividend of 13 yen, the dividend yield based on the previous day's closing price is at the level of 2.5%.
＜1887＞ Japan Land Development 481 -18
The low price was updated due to continued declines. A downward revision of the earnings forecast for the fiscal year ending 24/5 was announced the day before. Operating profit and loss were lowered from the previously forecast deficit of 5.6 billion yen to a deficit of 9.5 billion yen. The civil engineering business declined due to delays in progress in large-scale construction and delays in receiving orders for new construction, and it seems that costs also increased more than expected due to the occurrence of breakthrough construction to avoid process delays. A surplus recovery of around 4 billion yen is expected for the fiscal year ending 25/5, but the widening deficit for the fiscal year ending 24/5 will lead to a negative impact.
＜3407＞ Asahi Kasei 1028 -22
A sharp decline. The acquisition of the Swedish pharmaceutical company Kaliditas was announced. All shares have been acquired through TOB, and the total acquisition amount is expected to be 173.9 billion yen. Cariditas is developing drugs for kidney disease in the United States and elsewhere. On the company side, it seems that they are aiming for sales of 1 trillion yen in the pharmaceutical and medical device business in fiscal year 30. The final profit and loss of Cariditas for the fiscal year ending 23/12 is in deficit of about 6.8 billion yen, but future sales are expected to expand rapidly. Movements to be wary of increased financial burdens etc. are taking precedence today.
＜9519＞ RENOVA 1016 -102
A sharp decline. Nomura Securities continued to make “neutral” investment decisions, and the target stock price was lowered from 1330 yen to 1000 yen. The rebound had been getting stronger over the day before, but it was a trigger for return sales. Nomura Securities revised its EBITDA forecast downward from the fiscal year ending 25/3 to the fiscal year ending 26/3 because profit margins for biomass power generation have declined. Although the company plan is expected to be exceeded, it is said that there is little sense of undervaluation in stock prices. Expanding the effects of the partnership with Tokyo Gas is the key to the future.
＜3401＞ Teijin 1519 -89
A sharp decline. SMBC Nikko Securities downgraded investment decisions from “1” to “2,” and the target stock price was also lowered from 1850 yen to 1600 yen. Structural reforms and growth expectations for Aramid were anticipated, but expectations were factored into structural reforms to a certain extent, and it seems that profit margins for Aramid deteriorate drastically in the fiscal year ending 25/3 due to price declines. It seems that they are judging that the sense that stock prices are undervalued has disappeared in particular.
＜7011＞ Mitsubishi Heavy 1308 -49
The sharp decline continued. A new medium-term plan was announced the day before. As numerical targets, in addition to setting business profit of 450 billion yen or more (forecast for the fiscal year ending 25/3), ROE 12% or more (same 11.1%), etc. for the fiscal year ending 27/3, DOE has been adopted as a shareholder return policy, and an annual dividend of 26 yen (same 22 yen) is planned. It seems that the level is almost in line with market expectations, but it also seems that expectations for the mid-term budget have been raised beforehand, leading to a short-term sense of exhaustion.
＜6525＞ KOKUSAI 4165 +90
Significant continued growth. Nomura Securities raised investment decisions from “neutral” to “buy,” and the target stock price was also raised from 5,000 yen to 5450 yen. Stock prices have been sluggish since February due to declining orders, falling gross profit margins, supply and demand concerns associated with unlocking, etc., but bad materials have surfaced in terms of performance, and it seems that evaluations have been raised due to medium-term GAA structural sales expansion and high growth expectations due to NAND recovery. Also, there is a high possibility that an increase in shareholder returns will be realized after the fiscal year ending 26/3.