<5713> Sumitomo Kinzai 3801 -387

Significant decline. The company announced its earnings report for the first half of the year the previous day, with pre-tax profit increasing significantly by 35.7% year-on-year to 73 billion yen. However, the full-year financial estimates have been downwardly revised from the previous 111 billion yen to 96 billion yen, a 0.2% increase from the previous year, leading to a negative reaction. The actual profit, excluding one-off gains and losses, is maintaining the forecast range of 110-120 billion yen, but it seems that there will be more one-off negative factors such as inventory valuation deterioration in the second half of the year. The annual dividends remain unchanged at 99 yen.

<3769> GMOPG 7557 -1075

Sharp decline. The company announced its earnings report for the fiscal year ending September 2024 the previous day. Operating profit increased by 24.0% year-on-year to 25.2 billion yen, slightly exceeding the company's plan. On the other hand, the forecast for the fiscal year ending September 2025 is an expected 20.0% increase to 30.2 billion yen, but the consensus estimate of around 32 billion yen is lower. Due to a decrease in gains on the sale of non-operating assets, net profit is expected to decline. Concerns about the risk of large franchisee exits seem to be factored in, but there are movements indicating concerns about a slowdown in growth.

<3659> Nexon 2123.5 -449

Sharp decline. The company announced its third-quarter earnings report the previous day, with operating profit for July-September reaching 51.5 billion yen, an 11.3% year-on-year increase. However, the market expectation of around 60 billion yen was lower. The full-year forecast range is set at 124.6-133.1 billion yen, but it falls short of the market expectation of around 160 billion yen. The revenue from 'Dungeon & Fighter Mobile' declined earlier than expected by the market. Although the company announced a share buyback of up to 10 million shares and 20 billion yen, the support effect is limited.

<5805> SWCC 7420 +520

Significant rise. The stock surged after the earnings announcement at 3 p.m. the previous day, and the upward momentum continued today. The operating profit for the first half of the year reached 10.4 billion yen, doubling compared to the same period last year. The full-year financial estimates have been upwardly revised from the previous 13.5 billion yen to 20.5 billion yen, a significant 59.9% increase from the previous year. The consensus estimate was around 17.5 billion yen. There seems to be a longer-than-expected strong demand for electrical utilities infrastructure. Also, the annual dividends have been raised from the previous plan of 110 yen to 120 yen.

<6465> Hoshizaki 5568 +451

Significant gains. The previous day, it announced its third-quarter earnings, reporting an operating profit for the July-September period of 15.5 billion yen, a 23.4% increase from the same period last year, slightly exceeding the market consensus by nearly 2 billion yen. The full-year forecast was revised upward from the previous 44 billion yen to 48.5 billion yen, but it was perceived as extremely conservative. Additionally, it announced a share buyback of up to 10 billion yen, equivalent to 2.5 million shares, representing 1.7% of the issued shares. This comes right after the completion of its previous share buyback in July, potentially leading to surprises.

<4186> Toa Kasei 3780 +219

Marked rebound. The day before, it released its third-quarter earnings, revealing an operating profit of 9.8 billion yen for the July-September period, a 2.2-fold increase from the same period last year, surpassing the market expectation of around 8 billion yen. Strong performance was driven by increased shipments of high-purity chemicals. While maintaining the full-year forecast at 29.3 billion yen, the consensus is likely to be revised upwards. Furthermore, it also announced a buyback of its own shares, capped at 7 billion yen, to acquire up to 2.5 million shares, representing 2.05% of the issued shares. The purchase period will be from November 13 to January 31 of the following year.

<6753> Sharp Corp 1011 +122.6

Sharp rise. The previous day, it reported its second-quarter earnings, with an operating profit of 6.29 billion yen, reaching 5.3 times the level of the same period last year. It exceeded the market expectation by about 3 billion yen. The Smart Office segment is performing well, and the narrowing of losses in devices contributed significantly. With the recording of gains from the sale of investment securities, net profit expanded to 23 billion yen. The full-year operating profit forecast remains at 10 billion yen, and the net profit at 5 billion yen respectively. Costs related to structural reforms are also anticipated. The lack of negative impact contributes to a sense of comfort for buyers.

<8219> Aoyama Shoji 1634 +300

Trading at the daily limit up price based on market capitalization. It announced a change in dividend policy, where previously the minimum dividend was 60 yen with a dividend payout ratio of 40%. In the future, it will adopt the higher of a dividend payout ratio of 70% or DOE of 3%. Consequently, the annual dividend for the fiscal year ending March 2025 has been increased from the previous 61 yen to 127 yen. Additionally, it disclosed a buyback of its own shares, capped at 3 billion yen, to acquire up to 1.5 million shares, equivalent to 2.98% of the issued shares. The semi-annual earnings were also announced simultaneously, with actual results falling below previous estimates, but the full-year forecast has been revised upwards.

<6481> THK 3080 +500

High proportional allocation of stop. It has been announced that the company will implement the acquisition of treasury stocks, with a limit of 20 million shares, equivalent to 16.31% of the issued shares, and 40 billion yen, with the acquisition period from today until November 12th next year. The basic policy regarding the review of management objectives, the decision to achieve an early realization of ROE exceeding 10%, aims to improve capital efficiency and enhance shareholder returns. Expecting support for current demand and supply dynamics. Additionally, the earnings report for the third quarter was announced, but the full-year operating profit was revised downwards from 27 billion yen to 17 billion yen.

<8035> Tohoku Electric 22805 +200

Rebound. The company announced its second quarter earnings the previous day, with an operating profit of 148.2 billion yen for the July-September period, an increase of 54.1% compared to the same period last year. The full-year forecast has been raised from the previous 627 billion yen to 680 billion yen, representing a 49.0% increase. The full-year consensus was estimated to be around 635 billion yen. They also announced the implementation of a share buyback with a limit of 3.5 million shares and 70 billion yen. Furthermore, despite anticipating a decrease in China, the fact that they have not changed their outlook for next year's WFE provides a sense of reassurance.