Aviation electronics <6807>: 2,651 yen (+98 yen).

Significant rise. The day before, the earnings for the second quarter were announced. The operating profit for the July-September period was 5.44 billion yen, a 10.2% increase from the same period last year, exceeding the market estimate of around 4.8 billion yen. The profitability of wire harnesses has improved, resulting in a significant increase in gross profit margin compared to the same period last year and the previous quarter. The full-year plan remains at 17 billion yen, a 17.9% increase from the previous year. Despite uncertainties for the second half due to mobile devices, there is a movement to evaluate the overshooting of actual results positively.

Bandai Namco Holdings <7832>: 3,159 yen (+65 yen).

Marked rebound. The day before, an upward revision of earnings forecast was announced. The first half operating profit has been raised from the previous forecast of 82 billion yen to 112 billion yen, and for the full year, from 115 billion yen to 160 billion yen, a 76.4% increase from the previous year. The full-year consensus was expected to be around 140 billion yen, and there is a positive anticipation for the upward revision beyond expectations. It seems that the digital business and toy hobby business are expected to grow significantly with hit products and high profit margin services.

KOA <6999>: 1,006 yen (-117 yen).

Marked decline. The day before, the first half earnings were announced, with operating profit at 0.47 billion yen, a 67.3% decrease compared to the previous year, and the full-year forecast has been downward revised from the previous 1.6 billion yen to 1.15 billion yen, a 65.3% decrease from the previous year. The resistor demand for the latter half is notably decreasing due to economic stagnation in Japan, Europe, and Asia. It seems to be following a downward revision on September 30 (3.9 billion yen -> 1.6 billion yen). The annual dividend has also been reduced from the previous plan and the previous year's 50 yen to 40 yen.

Canon Electronics <7739>: 2,371 yen (+114 yen).

Significant rebound. The day before, the third quarter earnings were announced, with cumulative operating profit at 8.25 billion yen, a 78.8% increase compared to the same period last year, and the progress rate for the full-year plan remains at 9.25 billion yen, a 1.2% increase from the previous year. Components are doing well, driven by increased revenue from laser scanner units. It is expected that the certainty of the full-year performance exceeding expectations will lead to an upward revision of the consensus on the year-end dividend, which is currently undecided.

NIDEC <6594>: 2,857 yen (+14.5 yen).

Stalemate. The company announced its second-quarter earnings the day before. Operating profit was 60.7 billion yen, a 10.5% increase compared to the same period last year, exceeding the market consensus by around 4 billion yen. Precision small motors, particularly for HDD recovery, performed well, and the weakening yen also contributed to profit growth. The full-year estimate remains at 240 billion yen, a 47.1% increase from the previous year. Anticipating better-than-expected earnings, there is a move towards a review ahead. A earnings conference is scheduled for this morning.

SIN-BIYO PHARMACEUTICAL <4582>: 225 yen (0 yen).

Stalemate. The company disclosed data demonstrating the clinical effectiveness of the injection drug brincidofovir (IV BCV) for adenovirus (AdV) infections in severely immunocompromised patients. In a Phase IIa clinical trial of 31 patients, out of 20 patients who achieved disappearance of AdV in the blood, 19 cases (95%) reported favorable clinical progress such as disappearance or improvement of AdV infections as assessed by the trial physicians. Currently, there is no approved antiviral drug for AdV, and due to the lack of safe and effective treatment options, IV BCV is expected to become a new treatment choice.

S&J <5599>: 885 yen (-2 yen).

Continued decline. The company raised its operating profit forecast for the second quarter of the fiscal year ending March 2025 from the previous estimate of 0.116 billion yen to 0.18 billion yen (54.0% increase). Revenue progress remains largely as planned, with no adjustments; however, delays in interior construction related to office relocation and some delays in hiring plans resulted in cost increases postponed to the third quarter and after. Nevertheless, the full-year earnings forecast remains unchanged due to the expectation of these costs occurring after the third quarter, resulting in limited positive response in the stock price.

Selen Dip <7318>: 1,540 yen (+190 yen).

Marked rebound. The company announced the acquisition and subsidiary formation of Excel Group, which develops and manufactures resin molded products such as automotive parts ducts. Excel consists of a total of 9 companies, including 5 domestic and 4 overseas companies, making it the largest M&A since the company's establishment. Following Iwai, this is a roll-up type M&A based on functionality and technology, with high compatibility with Mitsuya Kogyo, which develops and manufactures lightweight and quiet automotive interior and exterior products using resin molding. Expectations are high for synergy effects, and Excel's participation in the group with overseas production bases will lead to the company's global evolution in a discontinuous manner.