<7012> Kawasaki Heavy 5321 +170

Significantly increased. The Ministry of Defense has announced the outline request for the budget for fiscal year 2025 and it is reported that the defense budget will be increased by 7.4% compared to the initial budget for fiscal year 24, requesting a record high of 8 trillion 538.9 billion yen. It is said that the budget includes expenses for the maintenance of a satellite network related to the operation of the "counterattack capability" to strike enemy missile launch sites. This has led to increased interest in defense-related stocks, and related stocks such as the company and IHI are currently being bought.

<3778> Sakura 3770 +335

Significant increase. It is reported that the Ministry of Internal Affairs and Communications is supporting the decentralization of data centers in various regions by leveraging high-speed optical communication technology, which Japanese companies excel in. It seems that data centers, which are currently concentrated in urban areas, will be dispersed to various locations with the assistance of maintenance subsidies. The use of optical-electrical fusion technology, which utilizes light instead of electrical signals for data processing and communication, is expected to be promoted. Details are expected to be finalized in September, and it is said that the establishment of data centers using funds and partial subsidies for maintenance costs are being considered as support measures.

<8439> Tokyo Century 1709.5 +124

Significant continued increase. SMBC Nikko Securities has upgraded its investment rating from "2" to "1" and raised the target stock price from 1550 yen to 1900 yen. It seems that they have high expectations for improvements in ROE through portfolio transformation, a favorable business environment in the aviation business, margin improvement due to the peak-out of procurement interest rates, and abundant business opportunities with major shareholders such as Itochu and NTT. In addition, the company's stock is said to have a tendency to outperform during a period of declining US interest rates.

<6745> Hochiki 2104 -205

Significant decline. The company announced a sale of 1.74 million 7400 shares and an implementation of a sale through oversubscription with an upper limit of 0.25 million 6100 shares. The sellers include major shareholders such as Air Water, Mitsui Sumitomo Insurance, Aiphone, Mitsubishi UFJ Trust, and Tachibana Elec. The sale price will be determined between September 9th and 11th. In addition to accommodating the intentions of some shareholders to sell, the company aims to expand its shareholder base and improve liquidity. The impact on the supply and demand situation is expected to intensify in the short term based on the daily trading volume.

Significant decline. The company announced the implementation of selling 7.3 million shares and an over-allotment with a limit of 1.09 million shares. It appears to be in response to confirming the intention to sell all shares owned by Toyota. The selling price is scheduled to be determined between September 9th and 11th. There seems to be concerns about the immediate deterioration of supply and demand. In order to alleviate such supply and demand impact, they have also announced a maximum limit on the number of shares to be acquired through the share buyback currently being carried out, as well as an extension of the acquisition period.

Sharp increase. The company announced that it has entered into a domestic sales agency agreement with the French company POLLEN METROLOGY. POLLEN is a company that provides a comprehensive AI-driven process control platform to shorten the time to market for semiconductor manufacturing. In the future, they will work closely together to expand solutions and enhance user-provided products, leading to expectations of future business expansion.

Trading at the daily limit high. The company has announced the signing of a domestic sales agency contract with the French company POLLEN METROLOGY. POLLEN provides a comprehensive AI-driven process control platform to shorten the time to market for semiconductor manufacturing. In the future, they will work closely together to expand solutions and enhance user-provided products, leading to expectations of future business expansion.

Significant continued decline. The company announced its third-quarter financial results over the weekend, with cumulative operating profit reaching 25 billion yen, a 3.3-fold increase compared to the same period last year. The full-year forecast has been raised from the previous 21 billion yen to 31 billion yen. The company's performance exceeded expectations, driven by an expansion of orders, including those related to the Noto Peninsula earthquake. However, given that the first-half performance was 24 billion yen, surpassing the previous full-year plan, the prevailing sense is that short-term exhaustion has become dominant.

Sharp rise. The company announced its first-half financial results over the weekend, with an operating loss of 6.5 billion yen, an improvement of 4.7 billion yen compared to the same period last year. On July 31, the company revised its outlook from the previously planned 163 billion yen loss to an 80 billion yen loss, and the extent of the deficit has continued to shrink. It has recovered to a profit of 2.4 billion yen in the May-July period. While the full-year outlook is still a projected profit of 5 billion yen, the likelihood of an upward revision has also strengthened.

Sharp increase. The company announced its first-half financial results over the weekend, with an operating loss of 6.5 billion yen, an improvement of 4.7 billion yen compared to the same period last year. On July 31, the company revised its outlook from the previously planned 163 billion yen loss to an 80 billion yen loss, and the extent of the deficit has continued to shrink. It has recovered to a profit of 2.4 billion yen in the May-July period. While the full-year outlook is still a projected profit of 5 billion yen, the likelihood of an upward revision has also strengthened.

Significant increase. The company announced its first-half financial results over the weekend, with an operating loss of 6.5 billion yen, an improvement of 4.7 billion yen compared to the same period last year. On July 31, the company revised its outlook from the previously planned 163 billion yen loss to an 80 billion yen loss, and the extent of the deficit has continued to shrink. It has recovered to a profit of 2.4 billion yen in the May-July period. While the full-year outlook is still a projected profit of 5 billion yen, the likelihood of an upward revision has also strengthened.

<4369> Trichemical 3975 +200

Significant gains. Last weekend, the company announced its mid-year earnings. Operating profit was 1.94 billion yen, a 76.2% increase compared to the same period last year, far exceeding the previous plan of 1.64 billion yen. As a result, the full-year forecast has been revised upwards from the previous 3.38 billion yen to 3.9 billion yen. It seems that the semiconductor industry has turned around due to an increase in demand for AI-related products, with a particularly notable recovery in memory semiconductors. In addition, the company's shipment of products in China is expected to exceed expectations, as it continues to make active investments in the country.

<3031> Raccoon HD 661 +85

Sharp rise. The company announced its first quarter earnings last weekend, with operating profit increasing by 7.6% compared to the same period last year, reaching 0.3 billion yen. Although the profit growth rate is at a low level when compared to the annual plan of 1.25 billion yen, which is 2.2 times higher than the previous year, it is worth noting that in the previous year, advertising and publicity expenses were significantly increased from the second quarter onwards, resulting in an inflated profit level in the first quarter. This time, the company released its unannounced mid-year plan, revealing a 77.6% increase compared to the same period last year, amounting to 0.58 billion yen, which has dispelled concerns over the low growth rate.