In Japan Daily Round-Up

Topix -0.01%, Y/$106.06
Recruit’s Dip Weighs on Topix in Market Lacking Trading Appetite

  • Japan Medical Dynamic Marketing (7600) +6.2%; lifts 1H operating profit forecast 43% to 1.17b yen
  • Toppan Printing (7911) +2%; SMBC Nikko estimates pre-tax profit of 96b yen from sale of Recruit shares
  • Suzuki Motor (7269) +1.5%; Toyota will take ~5% stake in Suzuki for 96b yen
  • AGC (5201) +1.4%; upgraded to buy from neutral at Mizuho
  • Sumco (3436) +1.4%; upgraded to buy from neutral at Okasan Securities
  • Alps Alpine (6770) +1.3%; raised to equalweight from underweight at Morgan Stanley MUFG
  • PALTAC (8283) +2.8%; raised to Positive from Mixed at Storm Research
  • Recruit (6098) -4.8%; shareholders to sell more than 386b yen of shares; will buy back up to 1.79% of shares for 80b yen
  • Bic Camera (3048) -3.8%; cut to underweight from equalweight at Morgan Stanley MUFG
  • Nitori (9843) -2.7%; downgraded to hold from buy at Jefferies
  • YA-MAN (6630) -2.8%; underperformance continues amidst decelerating inbound related demand (Storm rating: Negative)
  • Two dead as Japan orders 870,000 to flee heavy rains
  • Japan Ministry To Seek Tax Breaks For 5G Base Stations: Nikkei
  • Japan Mulls Cut in 10% Foreign Ownership Reporting Rule: Reuters
  • BoJ Suzuki: No Need To Be Extremely Strict About JGB Range; Deeper Negative Interest Rate Among Options
  • Hitachi Capital To Pay 40 Yen Special Dividend
  • Paltac Upgraded to Positive at Storm Research
  • Pola Orbis Downgraded to Neutral at SMBC Nikko; PT 2,730 Yen
  • Hirose Electric Upgraded to Neutral at MUFJ-MS; PT 11,500 Yen
  • Recruit Downgraded to Neutral at Marusan Securities
  • Ariake Japan Cut to Neutral at Goldman; Price Target 7,700 Yen
  • Nissin Foods Upgraded to Buy at Goldman; PT 7,700 Yen
  • Omron Upgraded to Buy at Mizuho; PT 6,000 Yen
  • Dentsu to Buy Marketing Shop MuteSix in Bid for Startup Clients
  • Marubeni Invests In U.S. Fiber Recycler Tyton Biosciences
  • Sumitomo Dainippon To Invest Up To $25m In Remiges Fund II
  • Taiho Pharmaceutical To Invest Up To $30m In Remiges Fund II
  • Citizen Watch To Retire 1.87% Of Shares On Sept. 30
  • Sony To Sell Its Whole 5.03% Stake In Olympus Back To Olympus
  • Olympus To Buy Back Up To 6.22% Of Shares For 99b Yen
  • Kadokawa To Buy Back Up To 2.99% Of Shares For 3b Yen
  • DIC Corp. to Buy BASF Colors & Effects for EUR985 Million
  • New 52 week highs (15): Nippon Paint, Round One
  • New 52 week lows (283): W-Scope (Storm rating: Positive), Nihon Trim, EF-ON, Designone Japan, Signpost, Nissan, Metaps, Outsourcing, Kyoritsu Maintenance, Sogo Medical, CareerIndex, Yonex, Gunosy, Money Partners, Wellnet, Monex, CrowdWorks, Sanyo Special Steel, Toho Titanium, Hotto Link, Pola Orbis, GS Yuasa, Ryohin Keikaku, Jamco, Piolax, Hitachi Capital, Makita, Descente, Jalux, Alfresa, Hosokawa Micron (Storm rating: Negative), Arcland Sakamoto, Furukawa Electric, Furukawa Battery, Unitika, CMK
  • Ryoyo Electro Reports Half-Year Group Earnings Results: 1H OP Y1.1bn +34%YoY
  • Tokyo Dome Reports Group Annual and Half-Year Forecasts: 1/20 OP raised Y11.5bn to Y12.2bn +6%YoY
  • Park24 Reports 9-Month Group Earnings Results: 1-3Q OP Y14.6bn -3%YoY

Source: Bloomberg, Kurt Schussler

PALTAC (8283, Positive): stock +2.8%, representing a solid start to life on the Storm Recommended List as our upgrade argues 1Q earnings concerns have been overdone versus it long term growth prospects in a report entitled ‘Japan’s middleman’.