Nippon Kogaku <6849>: 1,684.5 yen (-411 yen)

Significant decline. The first quarter financial results were released last weekend and operating income fell into a net loss of 1.2 billion yen. The first half forecast was revised downward from the previous 7 billion yen to 3 billion yen, a year-on-year decline of 59.9%. Both domestically and overseas, execution was heavier in the second half than anticipated, and China continued to be weak. In particular, there is a negative view of the revenue decline switch in domestic sales. Although the full-year forecast is unchanged, the hurdle for achieving it is considered high.

TohsPrecision <7729>: 7,153 yen down by

Stop-loss selling indications. The first quarter financial results were announced last weekend, and operating profit was down 3.9% year-on-year to 4.08 billion yen, which was about 1 billion yen below market expectations. A new full-year forecast for the year ending March 2025 has been announced, with operating profit expected to increase by 6.7% from the previous year to 27 billion yen. The market consensus was about 32 billion yen, making it a significant downgrade. It is assumed to be conservative guidance, assuming that household demand will not recover.

AvantG <3836>: 1,452 yen (+231 yen)

Significant rebound. The financial results for the 2024 June term were announced last weekend, and operating profit increased by 24.6% year-on-year to 4.1 billion yen, exceeding the previous expectation of 3.85 billion yen. The operating profit growth rate up to the third quarter was only 5.3%. Operating profit for the year ending June 2025 is expected to be 4.9 billion yen, up 19.5% year-on-year, due to expected sales growth from a steady increase in order backlogs. In addition, the annual dividend is planned to be increased by 6 yen from the previous year to 25 yen.

JMDC <4483>: 3,200 yen (+187 yen)

Significant rebound. Operating income declined sharply by 57.2% year-on-year to 1.09 billion yen in the first quarter financial results announced last weekend. However, the base income, excluding the shift in the previous year such as subsidiary transfers and retirement and severance pay for subsidiary executives, increased by 20%. The earnings outlook for the first half was also announced this time, with operating income of 1.71 billion yen expected in the July-September quarter, a 62% increase from the previous year.

LINE Yahoo <4689>: 370 yen (+19.4 yen)

Significant rebound. Operating income was 106.8 billion yen, an increase of 79.8% compared to the same period last year. Despite the fact that profits from the loss of control of subsidiaries were recorded, it was also a landing that exceeded expectations. In addition, a share buyback through TOB was announced, in which 86.59 million shares, equivalent to 5.06% of the issued shares, or 150 billion yen, will be acquired. The purchase price is 388 yen, and the purchase period is from August 5th to September 2nd.

Tasuki HD <166A>: 581 yen (-31 yen)

Continuing decline. After the end of trading on the 2nd, it was pushed down due to the market's unfavorable situation. The company announced an upward revision of its financial estimates for the full year ending in September 2024, and selling is taking the lead. It has revised the revenue from the previous estimate of 44 billion yen to 47.1 billion yen (an increase of 7.0%) and the operating profit from 4 billion yen to 4.5 billion yen (an increase of 12.5%). Based on recent performance trends, taking into account the impact on revenue and each stage of profit due to the consolidation of Aura's subsidiaries, the company has revised its performance estimates.

PB Systems <4447>: 541 yen (-27 yen)

Continued decline, updated annual low. After the transaction on the 2nd, they announced a large-scale order for their main business, the Secure Cloud System business. However, it is being sold due to a downturn in the market. The order amount was about 1.176 billion yen, and the order content was an additional construction to accommodate about 0.03 million new users on a SaaS private cloud platform for business-specific software specialized in a particular industry that can be used via the Internet. Recognition of steady revenue growth and a stable financial foundation has determined that the company can return profits to shareholders while executing investments for future growth. Additionally, they will conduct shareholder benefits in commemoration of the 10th anniversary of their listing and will present QUO cards worth 0.01 million yen to shareholders who hold more than 300 shares as of the end of December 2024 regardless of the holding period.

Cloud W <3900>: 1,089 yen (+150 yen)

Significant buying indications. After the transaction on the 2nd, they released a revision for the 2024 September dividend forecast, which is being seen as positive news. They revised the initial dividend from no year-end dividend to 18 yen for this fiscal year. Despite executing investments for future growth, they've made a significant change to their company structure by determining that profits can be returned to shareholders.