<7811> Nakamoto Pax 1687 +85

Marked rebound. The company announced its first-half financial results the day before, with operating profit reaching 156 billion yen, a 53.0% increase compared to the same period last year, significantly exceeding the previous estimate of 100 billion yen. The positive impact of a substantial upside was anticipated due to the first quarter having grown by 6.9%. Increased orders in IT, industrial materials related to smartphone applications, and semiconductors, as well as strong sales of high-profit-margin in-house products related to lifestyle materials, all contributed to a favorable performance. The full-year forecast remains unchanged, but there is a perceived awareness of the potential for upside.

<3382> 7&iHD 2335 +105

Significant extension. It has been reported that the company has made a new acquisition proposal to Kushital Corporation in Canada, totaling 7 trillion yen, at a price of 18.19 dollars per share (approximately 2700 yen), exceeding 20% above the previous proposal of 14.86 dollars and the previous day's closing price. Expectations for the acquisition premium seem to be reignited. The company had previously rejected the proposals citing undervaluation of corporate value, among other reasons.

<7445> Light On 256 -49

Sharp decline. The company announced its financial results for August 2024 the previous day, with operating losses of 5 billion yen, falling short of the previous estimate of a 2.4 billion yen deficit. Net losses have reached a significant 12.1 billion yen due to impairment losses and other factors. It marks the 6th consecutive year of net losses and also triggers a breach of financial covenants. Consequently, W&D Investment Design, backed by World Co. Ltd. and DBJ, aims for a subsidiary with a Discount TOB. There are concerns about the substantial dilution of stock value.

<5020> ENEOS 845 +7.4

Raised. Amidst a generally sluggish trend in oil-related stocks due to the decline in crude oil prices, there was a reverse rise. The company's subsidiary, JX Metal, announced its application for a new listing on the Tokyo Stock Exchange, which was viewed as a positive buying factor. Its market capitalization is estimated to exceed 700 billion yen, making it a large-scale listing surpassing Tokyo Metro. The scheduled timing for the listing is in March-April 2025. Although the direction of the IPO is already factored in, there are also expectations for enhanced shareholder returns using IPO funds as capital.

<8905> Aeon Mall 2077.5 -57.5

Significant continued decline. The previous day announced the first half financial results, operating profit increased by 9.9% year-on-year to 26.8 billion yen compared to the same period last year. However, for the 6-8 month period, it remained at 11.4 billion yen compared to 15.5 billion yen in the first quarter, landing approximately 1 billion yen below market consensus. The stock price had risen after the first quarter financial results, leading to profit-taking selling pressure. It seems that the performance of the China business is falling below expectations, with a subdued trend continuing in China.

<8570> Aeon FS 1235 -28

Significant continued decline. The previous day announced the first half financial results, operating profit increased by 33.8% year-on-year to 27.1 billion yen compared to the same period last year. However, for the 6-8 month period, the profit slowed down to 11.9 billion yen, an increase of 7.2% compared to 15.2 billion yen in the first quarter. It seems that there is some retreat in performance expectations, such as excessive optimism about earnings. In the domestic business, the impact of rising interest rates has led to a decrease in debt liquidation profits, falling below expectations. Additionally, the accumulation of operating receivables, including an increase in revolving balance, seems to be progressing smoothly.

<9787> Aeon Dira 4285 +265

Significant continued increase. The previous day announced the first half financial results, operating profit increased by 4.8% year-on-year to 7.62 billion yen compared to the same period last year. This turnaround from a 5.2% decrease in the first quarter seems to be the result of expanding market share among customers, acquiring new customers, and the successful implementation of price revisions. The full-year forecast remains at 16 billion yen. Furthermore, a mid-term plan has been announced, targeting an operating profit of 17 billion yen for the fiscal year ending in February 2027. As part of shareholder returns, they are considering a dividend payout ratio of 50% and are also actively exploring and implementing share buybacks.

<9519> RE No Va 903 -31

Significant continued decline. SMBC Nikko Securities maintains its investment rating at '2' and has lowered its target stock price from 2850 yen to 1100 yen. They revised their performance expectations due to delays in the operation of biomass power plants, the impact of rising biomass fuel costs, and the dilution caused by the third-party allocation of new shares to Tokyo Gas, also considering a reassessment of growth potential. They have reduced the forecasted operating profit for the fiscal year ending in March 2025 from the previous expectation of 14.9 billion yen to 1.9 billion yen, expecting it to fall below the consensus of around 5.5 billion yen.

INPEX 1605 decreased by 66 to 2107.

Marked decline. Today, petroleum-related stocks, including the company, are among the top decliners. The previous day's NY crude oil futures market saw a sharp drop, with WTI futures for November falling by 3.6% compared to the previous day. Concerns about reduced demand in China and the US EIA lowering the outlook for oil prices are being noted, leading to profit-taking sales. Additionally, there are emerging perspectives on movements towards a ceasefire in Lebanon in the Middle East situation.

Warabeniho 2918 decreased by 224 to 2106.

Significant continued decline. The previous day, the first-half financial results were announced, with operating profit at 4.26 billion yen, a 5.2% decrease from the same period last year, landing in line with the original plan. On the other hand, the full-year forecast has been revised downward from the previous 4.5 billion yen to 3.6 billion yen, a 43.6% decrease from the previous year. In the domestic food-related business, sales of rice products are below plan, and this trend is expected to continue in the second half. Additionally, the initial deficit of the newly established Iruma factory appears to be larger than expected.