E Guarantee <8771>: 1,359 yen (+46 yen) Shares rise sharply. The company announced its medium-term management plan, with fiscal year 2028's operating profit target of 10 billion yen (compared to 4.9 billion yen in fiscal year 2024) and a ROE target of 20% or higher (compared to 15.3% in fiscal year 2024). The plan aims to shift from stable growth requiring database development to accelerated growth through increased risk-taking and resource investment. As for shareholder returns, the dividend payout ratio is set to be 50% or higher, and continuous improvement of DOE is targeted.
Severe rise. Along with other small and medium-sized growth stocks such as SHIFT, Sansan, Money Forward, and APPIER, the company is listed among the top rising rates. The decline in US long-term interest rates, with 10-year government bond yields falling to the mid-4.2% range at one point, is seen as a factor. The CPI for May, released the previous day, showed a year-on-year increase of 3.3%, below the April level and market expectations of 3.4%. Also, the core index fell from 3.6% in the previous month to 3.4%, below the market expectation of 3.5%.
Shia Inc <3458>: 1,428 yen (+127 yen) Shares rise sharply. The company announced its Q3 results the previous day. Cumulative operating profit was 1.19 billion yen, a decrease of 81.9% YoY, and profit for April to June is likely to be in the red because there were no property sales. However, the company has stated that all businesses are progressing as planned. On the other hand, the announcement of a special dividend has been seen as a positive development. The year-end dividend was planned to be 26 yen, but it has been raised to 50 yen by implementing a special dividend of 24 yen. The annual dividend will be 75 yen, up 50 yen from the previous period.
Significant growth. The company announced its first-half results the day before with an operating profit of 2.96 billion yen, a year-on-year increase of 43.4% and a high revenue growth rate that continued in the April-June quarter with 1.84 billion yen and 22.2% increase year-on-year. It appears that the sale of profitable components and repairs is expanding steadily in government, domestic, and overseas demand. The full-year plan has been upwardly revised from the conventional 4.18 billion yen to 4.54 billion yen, a 12.2% increase from the previous period, and optimism for further upward revisions is increasing due to the high progress rate.
Lax <3923>: 1,860 yen (+89.5 yen) Share prices rebound sharply. In addition to the company, representative stocks of small and medium-sized growth stocks such as SHIFT, Sansan, Money Forward, and APPIER have all risen in the top rising rate. The decline in US long-term interest rates, with 10-year government bond yields falling to the mid-4.2% range at one point, is seen as a factor. The CPI for May, released the previous day, showed a year-on-year increase of 3.3%, below the April level and market expectations of 3.4%. Also, the core index fell from 3.6% in the previous month to 3.4%, below the market expectation of 3.5%.
Anycolor <5032>: 2,864 yen (+500 yen) Stocks hit the limit. The company announced its financial results for the fiscal year ending April 2024, as well as its share buyback. The buyback allows for the acquisition of up to 4 million shares, or 6.40% of the issued shares, with an upper limit of 7.5 billion yen, and will be carried out from June 13 to August 31. There are moves to expect the impact of supply and demand due to a relatively short period of high-level share buybacks. Operating profit for the fiscal year ending April 2024 was 12.4 billion yen, up 31.4% from the previous year, and is expected to be 14.8 billion yen, up 19.7% from the previous year, for the fiscal year ending April 2025.
Sakurasaku <7097>: 990 yen (-105 yen) New low for the year. Second-quarter cumulative sales for the fiscal year ending October 2024 were 306 million yen, with an operating profit of 14 million yen. There was no indication of the rate of change as the financial statements for the same period in the previous year were not prepared, but according to presentation materials, sales were down 2.1% from the same period last year, and operating profit was down a significant 75.4%. However, the M&A needs of small and medium-sized enterprises are robust, and deals are expected to be concentrated in the second half of the year, so the forecast for the full fiscal year ending October 2024 is for sales to be up 21.3% and operating profit to be up 39.1% compared to the previous year.
Tomo Industrial <6309>: 4,915 yen (+435 yen) Stock prices surge. The company announced its medium-term management plan with the aim of achieving operating profit of 30 billion yen in fiscal year 2024 (compared to 9.5 billion yen in fiscal year 2020) and ROE of 15% or higher (compared to 8.5% in fiscal year 2020) by shifting to growth at an accelerated pace through the improvement in risk appetite and the investment of resources sought for infrastructure development. As for shareholder returns, the company aims to target a dividend payout ratio of 50% or higher and to continue to improve its DOE.
The Nareru Group <9163>: 2,855 yen (+128 yen) Rapid surge. Second-quarter cumulative sales revenue for the fiscal year ending October 2024 was 10.202 billion yen, up 22.9% YoY, and operating profit was up 26.9% YoY to 1.333 billion yen, representing a significant increase in profit. Improved contract prices, an increase in employees due to efforts to strengthen recruitment of human resources, and an increase in the number of employees working in response to customer needs have all contributed to this. There are also plans to improve the treatment of technical personnel and strategically invest in recruitment costs, but as of now, the progress rate for sales revenue for the entire fiscal year is 46.7%, and the stage-wise profits are progressing smoothly.
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Japan M&A <9236>: 1664 yen (-207 yen)
The lowest price of the year has been updated. In the second quarter of the fiscal year ending October 2024, the cumulative revenue was 306 million yen and the operating profit was 14 million yen. As the quarterly financial statements were not prepared for the same period of the previous year, there was no description of the increase or decrease rate, but it is said that sales decreased by 2.1% and operating profit decreased significantly by 75.4% compared to the same period of the previous year according to the earnings presentation material, which caused concern. However, M&A needs of small and medium-sized enterprises are steadily increasing, and the 24 fiscal year ending October performance forecast has been maintained with double-digit increase in revenue and profit, with revenue up 21.3% and operating profit up 39.1% compared to the previous year.
Narrel Group <9163>: 2855 yen (+128 yen)
Rapid increase. The cumulative sales revenue in the second quarter of the fiscal year ending October 2024 was 102.02 billion yen, an increase of 22.9% compared to the same period of the previous year. In addition, operating profit increased significantly by +26.9% to 13.33 billion yen, and quarterly profit increased significantly by +27.9% to 9.23 billion yen. In addition to improving contract prices, the number of employees has increased due to promotion of hiring of personnel. As a result of sending out personnel to meet customer needs, the number of workers has also increased, and strategic hiring expenses have been implemented to improve the treatment of technical personnel. Although each stage profit progressed smoothly and sales revenue progress rate was 46.7% against the full-year performance forecast, Sakura Saku <7097>: 990 yen (-105 yen)
Japan M&A <9236>: 1664 yen (-207 yen)
Dropped sharply. The cumulative revenue for Q3 of the fiscal year ending in July 24 increased by 9.9% compared to the same period last year to 11.271 billion yen and the operating profit increased by 147.1% to 405 million yen. The revenue from the sale of real estate for sale is scheduled for the Q4 period, but the cost-cutting measures have been more effective than expected, and the progress rate is around 80% due to the inclusion of 'subsidy income' for the development of nurseries in the Q3 as planned. The year-end dividend for this fiscal period was raised by 4 yen, and the full-year dividend was revised upward from the conventional plan of 16 yen to 20 yen, but it seems to have fallen short of investor expectations.