Murata Manufacturing Co., Ltd. 2527.5 -32

It continues to decline. On the 2nd, it was reported that Apple in the USA would launch an unprecedented sale in China, offering discounts of up to 500 yuan on the latest iPhone models. With consumers being cautious about spending, it seems to be aimed at gaining an advantage in competition with local companies. Furthermore, on the 3rd, it was also reported that smartphone shipments of overseas brands in China decreased by 47.4% year-on-year in November, highlighting the struggles with smartphone sales in China. This has led to selling pressure on Electronic Component stocks, such as those related to Apple.

Mitsui High-tec, Inc. 873 +46

Significant rebound. The stock price of Rivian, an EV manufacturer in the USA, surged by 24.5% last weekend. The fourth quarter customer deliveries exceeded market expectations, leading to a reduction in excessive concerns about the future of the EV market. The stock price of Tesla in the USA also rose by more than 8%. The company is positioned as a central figure in domestic EV-related stocks, and amid growing concerns over policies under the Trump administration, its stock price has been in a slump, with the alleviation of future concerns spreading.

Tosoh Corporation 3756 +223

Significant rebound. A new medium-term plan has been formulated for the fiscal year ending December 2027. Numerical targets include revenue of 270 billion yen and operating profit of 48 billion yen for the fiscal year ending December 2027 (with a forecast of 29.3 billion yen for the fiscal year ending December 2024), and an ROE of 13.0%. Regarding cash allocation, it will allocate for stable and continuous Dividends targeting a DOE of 4.0%, and, after investing in capital expenditures and growth investments, flexibly allocate towards stock buybacks. The high profit targets are viewed positively.

Hitachi, Ltd. 3971 +34

A rebound. It has been reported that the products subject to the "designated price" system, which specifies the selling price of home appliances, will be doubled from the current 10% to 20%. The aim is to adopt the designated price for the cheapest models among the product categories to prevent significant discounts on mid-range to high-end models. By improving profitability, it aims to make it easier to secure funding for product development. There are expectations that this will lead to a boost in the home appliance business, which has relatively low profitability.

Mitsui O.S.K. Lines <9104> 5643 +135

Continuing to rise, new highs have been set since last year. It has been reported that Japan's three major marine shipping companies will increase the number of LNG carriers by more than 40% by fiscal year 30. With the incoming President Trump advocating for the development of natural resources, the global LNG production is expected to expand, and it seems they are aiming for a leading position in the growing market through major investments. The company currently operates 97 LNG ships, the largest in the world, but they also seem to be considering a fleet of 140 vessels by fiscal year 28 and 150 by fiscal year 30.

Amiyaki <2753> 1739 +119

Significant rebound. Today, the third-quarter financial results have been announced. Cumulative operating profit is 1.92 billion yen, a 39.5% increase compared to the same period last year, and progress is steady against the unchanged full-year plan of 2.72 billion yen, a 22.4% increase from the previous period. The October-December period also sees a high revenue growth continuing with 0.57 billion yen, a 32.9% increase. Revenue growth has been achieved across various segments including the yakiniku business, yakitori business, and restaurant business, among others.

Suzuki <7269> 1882.5 +92.5

Significant rebound. Since the beginning of the year, the stock price of Maruti Suzuki has risen significantly and is viewed as a buying opportunity. Maruti Suzuki's December passenger vehicle sales volume increased by 24% compared to the same month last year, showing strong performance, and is considered a factor in the stock price increase. Additionally, it is attracting attention as an automobile stock that is less susceptible to changes in the business environment under the Trump administration in the USA. It has also been reported that a new medium-term management plan will be announced in February.

Frontier M <7038> 786 +70

Significant rebound. The consolidated subsidiary Frontier Capital has announced that it will make Eagle Invesco, which owns all shares of Hobbylink Japan, a subsidiary. Hobbylink is a toy retailer primarily handling models, plastic models, and figures, and sells primarily to overseas customers through the internet. As one of the oldest players in the industry, it appears to have a stable customer base. Recent operating profit is around 0.7 billion yen, suggesting anticipated performance impact.

＜5401＞ Nippon Steel 3158 -24

Fell back. It has been reported that President Biden issued a cease order regarding the company's acquisition plan of United States Steel. It seems to have determined that it could act in a way that threatens National Security. The company is said to have a policy to file a lawsuit, but the likelihood of being forced to change the scheme is increasing. This situation was anticipated, and while it leads to a retreat of short-term financial risks, it has not resulted in a significant reaction, but there is a consciousness of uncertainty in the mid- to long-term strategy.

＜5801＞ Furukawa Electric 7046 +361

Significant rebound. It has been reported that Japan's public and private sectors are advancing customer development in the USA using high-speed Optical Fiber communication technology. Companies that want to market products in the USA are to be publicly recruited by spring, and they will support some of the construction costs for local demonstration facilities and capture demand from massive tech companies investing in Datacenters, aiming to expand the market Share of Japanese firms in the USA. It appears that there are expectations for the expansion of related products such as Optical Fiber for companies like them and wire stocks.