<9449> GMO 2566.5 +76
The stock of GMO Co., Ltd. rose significantly. Jefferies Securities upgraded its investment rating from "hold" to "buy" and raised its target stock price from ¥2800 to ¥3000. Despite the lack of short-term catalysts, the internet infrastructure-based business is solidly evaluated. Most of the main businesses tend to have constant revenue growth, and the company is actively engaged in AI investment and shareholder returns. Thus, the current stock price valuation level is considered undervalued.
<7581> Saizeriya 5800 +30
The stock of Saizeriya Co., Ltd. rose further. The monthly trend for June was well-received, with same-store sales growth continuing for the 32nd consecutive month and revenue growth exceeding 30% since February 2023. In addition, Ichiyoshi Securities has upgraded its rating from "B" to "A", and Fair Value has raised its target stock price from ¥6700 to ¥8000, providing additional buying incentives. Due to the strong revenue growth, Ichiyoshi Securities has revised its performance estimates upward, expecting an operating profit of ¥160 billion for the August 2024 period, compared to the company plan of ¥131 billion.
<4361> Kawaguchi化 1619 +107
The stock of Kawaguchi Chemical Industry Co., Ltd. continues to rise significantly. The company announced its first-half financial results the previous day, with operating profit increasing by 29.5% year-on-year to ¥200 million and net profit increasing by 59.7% to ¥190 million. The previous estimates were ¥140 million and ¥90 million, respectively. The background of the better-than-expected performance is the strong sales of rubber chemicals due to the recovery of automobile production and the active acquisition of demand for general-purpose and special chemicals overseas amid the progress of yen depreciation. In addition, it is priced in, but the company is recording a special profit from the sale of JSR shares.
<3993> PKSHA 3610 +160
The stock of PKSHA Technology Inc. bounced back significantly. The company announced that it is preparing to change its market classification to the Prime market, which is considered a buying incentive, in order to realize further medium- to long-term growth and improvement in corporate value. However, the date of the change application is still undecided. In the midst of a significant stock price adjustment since the March high, there is a movement to expect expansion of aggressive measures toward listing on the Prime market.
<2678> Asukuru 2060 -100
The stock of Askul Corporation fell sharply. The company announced its financial results for the May 2024 period the previous day, with operating profit reaching ¥17 billion, up 16.0% from the previous year, and slightly exceeding the previous estimate of ¥16.5 billion. However, the profit for the May 2025 period is expected to be ¥18 billion, a 6.2% increase YoY, and the profit growth rate is expected to slow down. The consensus is also slightly below ¥1 billion, and negative reactions are expected. It seems that expenses for the establishment of a Kanto distribution center are anticipated.
<2670> ABC Mart 2729.5 -145.5
Major drop. The financial results for the first quarter were announced the previous day, with operating profit rising 9.0% YoY to 18.4 billion yen, slightly above the company's plan. The market consensus was also around 17.7 billion yen. However, based on the monthly trend at the moment, it is considered that the smooth financial results are within expectations, and there is little surprise. The full-year forecast is maintained at 58.7 billion yen, a 5.4% increase YoY. Footnote: There is a prevailing sense of fatigue due to the sluggish sales in South Korea.
<5713> Sumitomo Mining 5284 +378
Significant rise. Nonferrous metal stocks such as the company's stock have been bought due to the generally rising nonferrous metal prices in the overseas market the previous day. Copper rose 2.0%, nickel rose 1.9%, and gold rose 1.5%. In particular, the rising price of gold contributed to the rise of the company's stock, as the decline in long-term US interest rates due to the underperformance of the ISM non-manufacturing economic index and the appreciation of the euro and the depreciation of the dollar have led to the rise in gold prices.
<7012> Kawasaki Heavy Industries 5978 -473
Large drop. It has been reported that the company has solicited funds fraudulently through fictitious transactions with trading partner companies, and has borne the cost of purchasing goods and services for submarine crews of the Maritime Self-Defense Force and other personnel. The fraudulent fund-raising started at least six years ago, and the amount diverted may exceed several billion yen. Against the backdrop of expected benefits from expanding defense budgets, there is also a growing sense of uncertainty regarding future transactions with the Ministry of Defense.
<9627> Ain HD 5553 -567
The stock of Ain Holdings, Inc. fell significantly. It was announced that they will acquire the interior goods retail industry "Francfranc," with a takeover price of about ¥50 billion and the transfer of shares scheduled for August 20th. The last operating profit for the subsidiary to be acquired is estimated to be around ¥2.6 billion. Both companies aim to improve customer unit price and purchase quantity by collaborating with their store networks and offering a wide range of product choices. However, due to the difference in business formats, there is also a strong sense of uncertainty about the synergy effect, and there is a movement to be cautious about the increase in the burden.
<3612> World 2230 +204
The stock of World Co., Ltd. rose sharply. The company announced its first quarter financial results the previous day, with operating profit increasing by 16.0% year-on-year to ¥6.65 billion. The progress rate for the first half of the year, with a plan of ¥7.3 billion and a 25.0% increase YoY, was 91.1%. In addition to the good performance of EC sales, the selling, general and administrative expense ratio is also improving due to the progress of expense control. In addition, in the monthly trend for June, same-store sales increased by 10.6% compared to the same month of the previous year, achieving double-digit growth for the first time in 7 months simultaneously announced.