[Financial Summary] Trading companies are underpinned by non-resources and depreciation of yen, and the 'monster' stock buyback of Mitsubishi Corporation is also a highlight

The financial results for the 3rd quarter (April-December, 3Q) of the fiscal year ending 2024/3 for the five major trading companies have been completed.During the first period due to the war in UkraineDecrease in reaction when historical resource levels have come to an endExpected, all 5 companiesFull year profit decline forecastI left it unchanged. However, each company is less likely to be affected by market conditions, such as fibers and foodsStrengthening the non-resource sectorIn addition, thickening buffers (cushioning materials) to prepare for continued depreciation of the yen or unexpected impairment is likely to be an upward factor for the full year. Trading company stocks”Buffett brandIt continues to rise because there is also a sense of buying security that it is”, and it is only Sumitomo Corporation (0.96 times) that has PBR (stock price-net asset ratio) divided by 1 times.

Stock prices skyrocketed due to the unconsolidation of Mitsubishi Corporation's monster share buybacks and Lawson
Mitsubishi Corporation had a big impact on stock prices due to the 3Q financial results announcement. On the 7th, the day after the announcement, it was temporarily about 11% higher than the day before. In addition to the fact that 3Q net profit exceeded market expectations, the upper limit500 billion yenIt is 10% of the total number of issued shares as an upper limitIt was announced that it would acquire treasury stockWhat I did was well received. Jeffries Securities is”Monster-class stock buybacks” and raised the target stock price from 2666 yen to 3200 yen. Also, the company'sThe fact that KDDI makes a TOB (tender offer) for Lawson, which is a consolidated subsidiary, is also a big surpriseIt became. SMBC Nikko Securities evaluated “the fact that Lawson, which has a low ROA (return on total assets), can be removed from the balance sheet is a movement leading to asset efficiency improvements.” What is the overall evaluation by the 10 analysts”BULLISH”, what is the target stock price2550 to 3200 yen. The closing price on the 9th2770 yen。

Did ITOCHU improve in the full year and completely increase profits
ITOCHU Corporation's profits were supported by non-resource sectors such as convenience stores and information/finance businesses. The net profit and loss forecast for the current fiscal year was left unchanged at 800 billion yen, down 0.1%, but Chief Financial Officer Tsuyoshi Hachimura (CFO) said at the financial results briefing”A loss buffer (cushioning material) of 30 billion yen has been leftIn addition to clarifying,” he also said “805 billion yen in the previous fiscal year is expected to bottom,”There is a possibility of a complete increase in profitIt made me smell it. Since resource prices have remained higher than expected and the yen continues to depreciate, even in the marketAn upward increase in profit for the full year is expectedIt's been done. Kurihara Hideaki, senior analyst at the Tokai Tokyo Research Center, anticipates 870 billion yen, an 8.7% increase from the previous fiscal year. As a stock price reaction after the announcement, a one-time sale occurred due to the fact that 3Q net profit fell below market expectations and that there were no additional shareholder return measures. What is the overall evaluation by 9 analysts”Somewhat bullish”, what is the target stock price6300 to 7100 yen. The closing price on the 9th6572 yen。

Only Mitsui & Co., Ltd. revised upward for the full year
Among the five companies, Mitsui & Co., Ltd. was the only one to raise full-year net profit forecasts and reduce the expected decline in profit. Iron ore prices have remained high, and production in Brazilian mines where they have interests is strong,Upturn in the metal resources businessIt is said that it has become the biggest. The non-resource ratio for the full year rose to 49%. What is the overall evaluation by analyst name”Somewhat bullish”, what is the target stock price range5490 to 6800 yen. The closing price on the 9th5862 yen。

Sumitomo Corporation focuses on non-resource sectors
Sumitomo Corporation experienced a decline in resource prices such as nickel, but profits in non-resource sectors such as transport aircraft and infrastructure increased 6%. According to the Nihon Keizai Shimbun,The ratio of the non-resources sector to consolidated net profit for the fiscal year ending 2024/3 is expected to be 78%It surpassed ITOCHU Corporation inThe best of the 5 major companiesIt becomes. The buffer for impairment of full-year forecasts is set at 50 billion yen, and if unexpected impairment does not occur, there are high expectations for upside gains. What is the overall evaluation by the 10 analysts”neutrality”, what is the target stock price range3100 to 4100 yen. The closing price on the 9th3323 yen。

Marubeni has plenty of room to rise towards the analysts' average target stock price
Marubeni's progress rate against full-year net profit is as high as 83%, and it is said that there is a buffer of 20 billion yen. What is the overall evaluation by 11 analysts”Somewhat bullish”, what is the target stock price range2350 to 3030 yen. What is the average target stock price2696.36 yenSo, the divergence from the closing price of 2371 yen on the 9th is about14%andIt is estimated that there is the most room for stock price growth among the 5 companies。