＜4519＞ Chugai Pharmaceutical 4860 -291

The sharp decline continued. Financial results for the first quarter were announced the day before. Core operating income was 102.1 billion yen, down 3.1% from the same period last year, but market consensus has improved due to a cost ratio decline higher than expected. However, sales revenue declined drastically, with a 24.1% decrease from the same period. In addition to the decline in sales due to the completion of deliveries to the Rona Grove government, Babysmo, Alesensa, etc. also fell short of expectations, and overseas shipments of Actemra also seem to have declined due to the effects of biosimilars. They seem to have a negative view of sluggish headlines.

＜6752＞ PanaHD 1325 -68

A sharp decline. Revisions to earnings forecasts were announced the day before. Operating profit was revised downward from the previous forecast of 400 billion yen to 360 billion yen, an increase of 24.8% from the previous fiscal year. Since consensus was at a level that slightly exceeded company plans, negative reactions prevailed. Note, transient factors, such as recording adjusted operating expenses relating to past manufacturing process issues in the automotive battery business, and recording goodwill impairment losses in part of the automobile-related business, are the main causes of downward revisions.

＜4751＞ Cyber 976.5 -58.5

A sharp decline. Financial results for the first half of the year were announced the day before, and operating profit was 27.4 billion yen, up 56.0% from the same period last year, exceeding market expectations by just over 5 billion yen. It also seems that the game business exceeded expectations due to hits such as “Granblue Fantasy Relink.” However, expectations for the same title were taken as having already been factored in since strong sales etc. were being conveyed at the moment. Also, since the full-year plan of 30 billion yen has been left unchanged, it seems that the sense of immediate exhaustion is ahead.

＜6962＞ Great Vacuum 817 +34

Significant continuous growth. An upward revision of the earnings forecast for the fiscal year ending 24/3 was announced the day before. Ordinary profit was raised from the previous forecast of 1.7 billion yen to 3.1 billion yen, down 39.3% from the previous fiscal year. It seems that factors include an increase in profit margins due to the depreciation of the yen in exchange rates, and the recording of exchange gains outside of business. Ordinary income has been revised upward following the financial results for the first half of the year. Since stock prices have continued to decline year to date, they can be taken as clue material for a rebound.

＜6807＞ Avionics 2510 +179

Significant continuous growth. Financial results for the fiscal year ended March 24 were announced the day before, and operating profit was 14.4 billion yen, down 17.9% from the previous fiscal year, reaching 14 billion yen on par with the previous plan. Meanwhile, the plan for the fiscal year ending 25/3 is 17 billion yen, with a 17.9% increase from the same period, turning into a 2-digit increase in profit. The annual dividend is also planned to be 60 yen, an increase of 5 yen from the previous fiscal year. Operating profit is above the market consensus level of about 15.5 billion yen. It seems that sales are expected to expand for the automobile industry and the aerospace/space market, which will receive momentum from the defense business.

＜5189＞ cherry blossom rubber 2720 +500

Stops are highly proportional. Operating income for the fiscal year ending 2014/3, which announced drastic upward revisions to earnings and dividend forecasts the day before, was raised from the previous forecast of 660 million yen to 1.13 billion yen, 2.7 times the previous fiscal year. The background is that orders related to government offices increased rapidly in the fourth quarter in the fire and disaster prevention business. It is in the form of a drastic upward correction following January. The annual dividend has also been drastically raised again, and it is a 90 yen distribution including a commemorative dividend of 30 yen from the previous plan of 50 yen.

＜6723＞ Renesas 2534 +12.5

Continued growth. Today, we announced financial results for the first quarter of the fiscal year ending 12/24. Non-GAAP sales revenue was 351.8 billion yen, down 2.2% from the same period last year, but it was above the previous plan center value of 345 billion yen. The same operating income was 113.5 billion yen, down 9.1%, but it was about 10 billion yen higher than the forecast based on the conventional sales plan center value. The operating margin is 2.3 points higher than previously anticipated. Profit is expected to decrease compared to the previous quarter for the April-6 fiscal year, but due to recent drastic stock price adjustments, the increase in actual prices was evaluated.

＜9551＞ METAWATER 2015 -271

Plummeting. Financial results for the fiscal year ending 24/3 were announced the day before. Operating profit was 9.9 billion yen, up 14.0% from the previous fiscal year, but the fiscal year ending 25/3 was 9 billion yen and profit is expected to decline 9.1%, and negative reactions prevail. Cost increases such as human investment and DX investment seem to resonate. The medium-term plan for the fiscal year ending 28/3 has also been announced, with orders of 200 billion yen or more, operating income of 13 billion yen, etc., but the positive impact seems limited.

＜6954＞ FANUC 4455 -158

A sharp decline. Financial results for the fiscal year ending 2014/3 were announced the day before, and operating profit was 141.9 billion yen, down 25.8% from the previous fiscal year, and 121 billion yen is planned to decrease 14.7% from the same period for the fiscal year ending 25/3. The market consensus for the fiscal year ending 25/3 is around 160 billion yen, and although exchange assumptions etc. are conservative, it looks like there will be a big decline. Demand recovery is scarce, and earnings are expected to be sluggish due to deterioration in operations, etc. Furthermore, it was announced that 12.5 million shares, which is 1.32% of the number of issued shares, will be implemented with an upper limit of 50 billion yen.

＜7751＞ Canon 4066 -374

A sharp decline. Financial results for the first quarter were announced the day before, and operating profit was 80.1 billion yen, down 5.2% from the same period last year, and market expectations were lowered by about 10 billion yen. The imaging business has fallen more than expected. The full-year forecast is 435 billion yen, a 15.9% increase from the previous fiscal year, and it is at a level that exceeds consensus, but rather, there is also a view that it reflects the severity of fundamentals that are more severe than expected in response to unchanged performance under circumstances where the depreciation of the yen is currently progressing.