<7201> Nissan Motor 480 -29.2

Significant decline. A report from last weekend indicated that the integration ratio with Honda might start discussions at about 5 to 1. In recent corporate restructuring using a holding company model, it is common to calculate the average stock prices over periods of one month, three months, and six months before reaching an agreement, and to use that as a reference for determining the integration ratio. After the integration news, it seems that there was also a strong movement in short covering, leading to an awareness of a sense of completion regarding these movements, as the company is factoring in the discount reorganization.

<5631> Nippon Steel Corporation 5778 -300

Significant decline. Today, alongside the company, the drops of the three major heavy machinery companies are notable, with selling pressure prevailing in the main defense-related sectors. Many stocks have seen substantial rises in 2024, and with the year-end and New Year holidays approaching, there seems to be a strong tendency for profit-taking sales. Additionally, the government decided on the defense budget proposal for 2025 at last weekend's cabinet meeting, which is said to be the largest ever at 8 trillion 700.5 billion yen, but this may lead to a sense of material exhaustion in the short term.

<2742> Hiros' 4625 +425

Sharp rise. Last weekend, the company announced its third-quarter financial results, reporting a cumulative operating profit of 8.66 billion yen, an 11.8% increase year-on-year, with the full-year plan unchanged at 10.96 billion yen, a 0.8% increase compared to the previous period, achieving a progress rate of 79%, leading to rising expectations for improved performance. Against a backdrop of rising commodity prices due to soaring raw material costs, the same-store sales in the supermarket industry appear to be on an upward trend.

<3050> DCM 1432 -30

Bounced back after struggling. Last weekend, the company announced its third-quarter earnings. The cumulative operating profit amounts to 27.9 billion yen, reflecting a 17.9% increase compared to the same period last year, with a double-digit growth trend expected to continue for the September to November period. However, compared to the first half's 18.3% increase and the unchanged full-year plan's 18.5% increase, the surprise appears limited. There seems to be a sense of exhaustion regarding immediate gains. While disaster prevention products were performing well, winter goods reportedly lagged as temperatures did not drop.

<3010> Polaris HD 184 +12

It surged, reaching a high of 46 yen at one point. An upward revision of the performance forecast for the fiscal year ending March 2025 was announced. Revenue was raised from the previous estimate of 20.1 billion yen to 26 billion yen, and operating profit was raised from 1.89 billion yen to 2.2 billion yen. The significant cause of the upward adjustment is the inclusion of three months of revenue from Minashia due to the management integration, as well as the operational performance of existing hotels seeming to be better than initially expected. It has also been announced that the management integration with Minashia has been completed.

<5802> Sumitomo Electric Industries 2853.5 -31

It fell back. It has been reported that the mass production plan for semiconductor materials for EVs has been canceled. In addition to constructing a new factory in Toyama Prefecture, there were plans to establish a new line at the existing factory in Hyogo Prefecture, but it seems that this has been retracted as the recovery of EV demand is difficult to foresee. An investment amount of approximately 30 billion yen was planned. It was supposed to receive a maximum subsidy of 10 billion yen from the Ministry of Economy, Trade and Industry for the factory construction, but this has also been canceled. There is a movement to be cautious of the uncertainty caused by changes in the long-term Global Strategy.

<2685> Adastria 3465 -345

Significant drop. The third-quarter financial results were announced last weekend, with a cumulative operating profit of 14.8 billion yen, a 9.4% decrease compared to the same period last year. The 9-11 month period was 4.85 billion yen, showing a 19.0% decrease, marking an expanding decline in profitability. The decrease in gross margin seems to be due to the consumption of autumn products and fluctuations in point usage rates, along with struggles faced by overseas subsidiaries and food service subsidiaries. Although the full-year plan of 19 billion yen, which represents a 5.5% increase from the previous period, has been maintained, it seems the achievement hurdle has risen.

<3391> Tsuruha HD 8725 +509

Significant continued rise. Currently negotiating a management merger with Welcia HD, it has been reported that adjustments are being made to aim for the merger timing at the end of 2025. Initially set for the end of 2027, it seems that the anticipated overseas authorities' procedures are no longer necessary. There is a positive reaction to the advancement of a large-scale reorganization involving the management integration of two major drugstore chains. Welcia HD is also seeing strong buying activity.

<6264> Marumae 1630 +113

Significant continued rise. The first-quarter financial results were announced last weekend, with an operating profit of 0.44 billion yen, turning from a loss of 0.02 billion yen in the same period last year to a profit. The progress rate against the unchanged first half plan of 0.7 billion yen has reached 63.4%. The rapid expansion of sales in the Semiconductor field is the background to this significant improvement in performance. The order volume has grown to 2.13 billion yen, 2.3 times more than the same period last year, and the order backlog has also increased to 2.1 times. The probability of achieving the full-year performance is seen to be increasing, and despite the Semiconductor-related sectors being soft today, buying activity is strong.

<4825> WNI Weather 3870 +545

Rapid rise. Last weekend, the first half financial results were announced, with operating profit at 1.68 billion yen, which is a 32.8% increase compared to the same period last year, and the profit growth rate expanded from 0.46 billion yen in the first quarter, an increase of 9.6%. Sea and Land Domain drove revenue growth, and it seems that efficiencies in Operation utilizing AI have progressed due to the strengthening of the development environment. The full-year Financial Estimates remain at 3.8 billion yen, a 16.2% increase compared to the previous period, but it appears that expectations for upward revisions are increasing.