<4091> Nippon Sanso HD 4799 -579

Sharp decline. The company announced its first-half results the day before, with operating profit increasing by 1.1% to 82.5 billion yen compared to the same period last year. The profit growth rate slowed significantly from the 17.8% increase in the first quarter. It recorded an impairment loss of 1.07 billion yen due to the cancellation of the hydrogen production project. Despite the positive trend in core operating profit due to price increases and the weakening yen, the growth rate has slowed, especially with the high stock price, giving a negative view on the operating profit margin.

<9506> Tohoku Electric Power 1320 -184.5

Sharp decline. The company released its first-half financial results the day before, with ordinary profit decreasing by 30.0% to 153.4 billion yen compared to the same period last year. The decline rate expanded from the 20.3% decrease in the first quarter. The decrease in differential income due to the lag effects of the fuel cost adjustment system was a contributing factor to the decline. The full-year estimate remains at 190 billion yen, a 34.9% decrease from the previous year, and temporary discounts on electricity charges are being considered. There were no significant surprises in the financial results, and despite positive expectations from other electrical utilities, the prevailing reaction has been negative.

<6504> Fuji Electric 8319 +369

Marked improvement. The company announced its second-quarter financial results the previous day, with operating profit for July-September at 23.1 billion yen, a 13.5% increase from the same period last year, exceeding market expectations by around 2.5 billion yen. The full-year estimate has been revised upwards from the previous 109 billion yen to 111.5 billion yen, a 5.1% increase from the previous year. Although still below consensus levels due to conservative assumptions such as exchange rates, there is room for sales improvement. Expecting an upward trend in the industrial and food distribution businesses due to increased demand for plant systems.

<7148> FPG 2660 +285

Sharp rise. The company announced its financial results for the fiscal year ending September 2024 the day before, with operating profit increasing by 56.8% to 28.6 billion yen compared to the previous period. It exceeded the upward revision of 25.6 billion yen that was made during the third quarter financial results. As a result, the year-end dividend was increased from the initial plan of 67.1 yen to 81.55 yen. It expects a double-digit increase in operating profit for the fiscal year ending September 2025, reaching 31.7 billion yen, a 10.7% increase. The planned annual dividend is 130.4 yen, an increase of 10.1 yen from the previous year. Additionally, it announced a share buyback for up to 1 million shares and 2 billion yen.

<4062> IBI Den 4668 -301

Marked decline. The day before, the company announced its second quarter results, with operating profit for July-September at 17.2 billion yen, an 8.3% increase from the same period last year, exceeding market expectations by about 4 billion yen. In the first half, it significantly exceeded the company's plan of 19 billion yen with 28.5 billion yen, but the full-year forecast has been revised downward from the previous 42 billion yen to 40 billion yen. It seems to anticipate a slowdown in earnings in the electronic segment in the second half due to anticipated costs for new factory setup. Negative sentiment prevails regarding the deteriorating momentum in the future.

<6752> Panasonic Holdings 1343.5 +105.5

Significant rebound. The day before, it announced the financial results for the second quarter, with an operating profit of 132.3 billion yen for the July-September period, a 29.1% increase from the same period last year, significantly surpassing market expectations by nearly 25 billion yen. The full-year forecast remains at 380 billion yen, a 5.3% increase from the previous year, and as there was a high possibility of downward revision in the market, positive views are prevailing. The company's energy business is performing better than expected, driven by expansion in the AI data center sector.

<6503> Mitsubishi Electric 2726 +338.5

Sharp rise. The day before, the company announced its second quarter results, with operating profit for July-September at 118 billion yen, a 57.7% increase from the same period last year, significantly surpassing market expectations by about 40 billion yen. The full-year forecast remains at 400 billion yen, a 21.8% increase from the previous period, but concerns about a downward revision linger, making the positive impact of the earnings beat significant. Profitability improvements in air conditioning and home appliances have exceeded expectations, along with significant improvements in profit margins in the previously worrisome FA systems.

<6920> Laser Tech 19615 -3860

Steep decline. The day before, the company announced its first quarter results, with operating profit at 15.9 billion yen, a 54.9% increase from the same period last year, but market expectations fell short by nearly 10 billion yen. The full-year forecast of 104 billion yen remains unchanged. Despite concerns following ASML's downward outlook for the next fiscal year, cancellations or delays in orders have not materialized, but inquiries from ACTIS and MATRICS seem to have slightly weakened. It is worth noting that disclosures of quarterly order receipts and backlogs have been discontinued starting this fiscal year.

<6526> Socionext 2485.5 -436.5

Plunged. The day before, it announced second-quarter earnings, with operating profit for July-September at 5.29 billion yen, a decrease of 38.2% from the same period last year, and a 48.5% decrease from the previous quarter. The full-year estimate remains at 27 billion yen, a 24.0% decrease from the previous year, but in real terms excluding exchange rate effects, it is expected to fall by about 10% from the initial forecast. Sales declined in the data center/network sector compared to the initial forecast, with a mainly lower-than-expected performance in China by region.

<6702> Fujitsu 2695 -268

Sharp decline. The day before, it announced second-quarter earnings, with operating profit for July-September at 35 billion yen, a decrease of 24.6% from the same period last year, falling short of the market forecast of around 60 billion yen. The full-year forecast was revised downwards from the previous 330 billion yen to 310 billion yen. Approximately 20 billion yen in early retirement recruitment costs were recorded in the second quarter, which was a contributing factor to the shortfall, but there seems to be a prevailing view of slight disappointment. It appears that orders and sales in regions grew less than expected.