＜8058＞ Mitsubishi Corporation 2566 -70.5

The sharp decline continued. Nomura Securities lowered investment decisions from “buy” to “neutral,” and the target stock price was also lowered from 3620 yen to 2950 yen. In addition to sluggish coking coal market conditions, adverse effects due to a drop in production volume were more than expected, and the reason is that profit levels declined. In addition to high cash generation output, even if shareholder returns and high dividend yields underpin stock prices, the ROE level for the fiscal year ending 26/3 is expected to fall below the sector average of 7% and 11%, so the stock price increase is heavy.

＜2809＞ Kewpie 3370 -241

A sharp decline. The day before, the medium-term management plan for fiscal year 25-28 was announced. As numerical targets for fiscal year 28, operating profit of 45 billion yen, sales operating margin of 7.5%, ROE of 8.5% or more, etc., and dividends will also be gradually raised to the lower limit of 54 yen per year based on a total return ratio of 50% or more as a shareholder return. There are many positive views such as profit growth and shareholder returns, but there also seems to be a view that the target ROE level is unsatisfactory.

＜9603＞ H.I.S. 1757 -114

A sharp decline. Number 1 Travel Shibuya, which is a subsidiary travel agency, has announced that it is undergoing an investigation by the Tokyo Labor Bureau on suspicion of fraudulently receiving employment adjustment subsidies for measures against the novel coronavirus. It also seems that the possibility of fraudulent payment is extremely high from internal investigations, etc. Assuming that the impact on financial results is confirmed, it is said that the announcement of financial results for the fiscal year ending 24/10 scheduled for December 13 will be postponed. The date of presentation is currently undecided.

＜8227＞ Shimamura 8308 +278

Significant continued growth. Monthly trends for November were announced the day before. Existing store sales increased 4.7% from the same month last year, turning positive for the first time in 2 months. In addition to the same 2.8% increase in the number of customers, the customer unit price also rose 1.9%. It seems that sales of outerwear and practical products for the whole season are increasing. The previous month had a 3.7% decrease, turning negative for the first time in 12 months, but it seems that excessive sense of caution etc. will recede in response to sales recovery in November.

＜1911＞ Sumitomo Hayashi 5693 +249

Significant continued growth. President-elect Trump appointed Scott Bessent as the next Secretary of Treasury last weekend, and the view that fiscal discipline will be observed has intensified, long-term interest rates declined in the NY market the day before, and real estate stocks etc. are being bought. It also seems to have led to an awareness that it is a tailwind for the US housing market, and it seems that positive responses are dominant for companies that develop housing businesses in the US.

＜7201＞ Nissan 392.1 -14.8

A sharp decline. It is reported that it was known that US production would decrease 17% compared to the previous year until the end of 25/3. Factories in Mississippi and Tennessee appear to be targeted. Until now, it has been decided to cut production until the end of the year, but it seems that it has been determined that it is necessary to continue inventory adjustments due to poor sales. Incidentally, the company has decided to reduce global production capacity by 20% due to poor performance. In response to this report, it seems that people are becoming aware of the prolonged period of sluggish performance.

＜7013＞ IHI 7908 -405

The sharp decline continued. It is reported that a fire occurred during the development test of the next-generation small rocket “Epsilon S” carried out by JAXA. It seems that an error occurred in the combustion test of the 2nd stage engine and a fire broke out. It seems that it was a test to confirm whether the engine burns properly. It is said that there is a possibility that the demonstration aircraft launch scheduled for fiscal year 24 will be pressured to be reviewed. IHI Aerospace is carrying out Epsilon launch services, and it seems that there are concerns about the impact.

＜7003＞ Mitsui E&S 1659 +163

rapid expansion. It has been announced that they have received an order for 8 near-zero emission tire type gantry cranes for the Port of Long Beach in California from an American port cargo handling company. In February, the US government announced a command document relating to cyber risk management measures for cranes made in China as measures to strengthen cybersecurity at ports, and after that, it was the first order acceptance project for the United States. There also seems to be a situation where people are aware that future order expansion will begin in earnest.

＜4204＞ Sekisui Chemical 2446 +122

Significant continued growth. It is reported that the Ministry of Economy, Trade and Industry will establish a government target to introduce 20 gigawatts in fiscal year 40 for the new solar cell “perovskite.” It seems that it aims to support about 10% of household electricity use. In addition to supporting research on mass production technology for realization, it seems that measures to increase demand will also be examined. The company has begun development for commercialization of perovskite, and is aiming to start sales in '25. Expectations for enjoying policy benefits take precedence.

＜7997＞ Kurogane Kosakusho 897 +150

Stops are highly proportional. The redistribution for the fiscal year ending 24/11 has been announced, and it is a development that is viewed as purchase material. Although no year-end dividend was anticipated, it is said that a dividend of 20 yen will be implemented. Based on earnings forecasts, it seems that it has been determined that a system for realizing stable continued dividends is being put in place. The company has implemented dividends since the 10 yen dividend for the fiscal year ended 18/11. Furthermore, the sale of some investment securities was also announced, and it is said that a profit from the sale of 55 million yen will be recorded as special profit.