Gifty <4449>: 1,092 yen (+150 yen)

Limit up. The third quarter earnings report was released the previous day, with a cumulative operating profit of 1.36 billion yen, a year-on-year increase of 9.7%, marking a recovery from an 8.1% decline in the first half. The high demand for e-gifts has continued, leading to growth in transaction amounts and revenue. The full-year forecast is set at 1.7 billion yen, continuing a 34.3% increase from the previous period. Additionally, a change in dividend policy has been announced, with progressive dividends planned based on a target payout ratio of 30%, planning an initial dividend of 10 yen this current period.

EM Systems <4820>: 640 yen Ka -

Limit up buy order priority. The third quarter earnings report was released the previous day, with a cumulative operating profit of 3.2 billion yen, an increase of 77.5% year-on-year, and the full-year forecast has been raised from the previous 2.57 billion yen to 3.8 billion yen, reflecting a 63.0% increase compared to the previous period. The introduction and installation of electronic prescriptions and related single option software appear to be accelerating, particularly in chain pharmacies. The annual dividend has also been increased from the previously planned 16 yen to 29 yen. A mid-term plan extending to the fiscal year ending December 2027 has also been announced, indicating a target payout ratio of 100% during this period.

Macromill <3978>: 971 yen Ka -

Limit up buy order priority. TIJ, a CVC Capital Partners affiliate, has announced a TOB aiming for complete acquisition. The company recommends participation in the TOB. The TOB price of 1,150 yen represents a premium of 40.1% compared to the previous day's closing price, and there is a prevailing move towards adjusting prices closer to the TOB price. The TOB period is set from November 15 to December 26.

Net Pro HD <7383>: 441 yen Ka -

Limit up buy order priority. The third quarter earnings report was released the previous day, with an operating loss of 0.87 billion yen recovering sharply from a loss of 0.6 billion yen in the same period last year, significantly surpassing the previous estimate of 0.32 billion yen. Consequently, the full-year forecast has been revised upward from the previous 1.08 billion yen to 1.7 billion yen, while the previous period had a loss of 0.63 billion yen. Improvements in credit and billing operations across services have contributed to cost control and efficiency in sales and administrative expenses, enhancing profitability. Significant upward revisions are leading to buying impact.

Dentsu Group <4324>: 4097 yen (-700 yen)

Limit down. The earnings report for the third quarter was announced the previous day, showing an operating profit of 3.2 billion yen for the July-September period, a decrease of 88.2% compared to the same period last year, significantly down from 11.2 billion yen in the April-June period. Market financial estimates were expected to be around 27 billion yen. The full-year estimate has been revised down from the previous 107.1 billion yen to 92 billion yen, a level 2.0 times lower than the previous period. Following the earnings report for the April-June period, the stock price had been on an upward trend, leading to a negative impact from the downbeat earnings report. It seems that the recovery in the CXM area across the americas, EMEA, and APAC is delayed.

Headwater <4011>: 9860 yen (+190 yen)

Rebound. Announced upward revision of full-year earnings forecast for the fiscal year ending December 2024, which was positively received. The revenue forecast remained unchanged, but operating profit was revised upward from 0.226 billion yen to 0.293 billion yen (30.0% increase), ordinary profit from 0.229 billion yen to 0.297 billion yen (30.0% increase), and net income attributable to parent company shareholders from 0.156 billion yen to 0.206 billion yen (30.0% increase). Factors include the expansion of project scale due to the increase in alliance strategy and the ratio of generative AI projects, as well as the success of cost reduction measures resulting in securing gross profit exceeding expectations.

AnyMind <5027>: 1134 yen (+150 yen)

Hit the upper price limit. Announced third-quarter results for the fiscal year ending December 2024, which was positively received. Revenue was 35.68 billion yen (up 55.9% year-on-year), operating profit was 1.68 billion yen (up 407.2%), performing well. Revenue and gross profit have been steadily progressing across all businesses, particularly indicating that the expansion of operations in the asia region is driving overall company growth. Moreover, it was stated that the performance of each business segment has been steadily exceeding the upward revised forecast from August 14, and the full-year earnings forecast for the fiscal year ending December 2024 has been revised upward again.

AViC <9554>: 1136 yen (+47 yen)

Significantly continued to rise. Announced results for the fiscal year ending September 2024, viewed positively. Revenue, mainly from enterprise customers, increased by 20.4% from the previous period to 1.934 billion yen, and ordinary profit increased significantly by 57.3% to 0.441 billion yen. Notably, regarding FACT, which became consolidated from October 2023, it has contributed to profits based on numbers after the amortization of goodwill and intangible assets from the third quarter. For the fiscal year ending September 2025, a revenue increase of 30.1%, an increase in operating profit of 50.4%, and an operating margin of 26.7% are expected, forecasting the highest growth rate and profit margin in the industry.