Forging ahead towards the next phase

FY3/26 results were resilient and ahead of the Company’s guidance revised in February 2026. Although macro uncertainty driven by Middle East tensions contributed to a conservative FY3/27 guidance, we think investors should look past the temporary headwind and focus on the Company’s new FY3/27–FY3/31 medium-term plan. The new MTP outlines an ambitious ¥200bn investment plan to drive the Company’s next stage of growth in FY3/32 – FY3/36. We think IINO Lines is well positioned to execute on the ¥200bn Capex plan. Further, the strategic use of debt to partially fund the investments is ROE accretive and the new ¥30/share dividend floor gives investors a clear capital return framework through the investment cycle.

FY3/26 validated Real Estate stability

Portfolio stability on display

FY3/26 results validated the structural resilience of the Company’s business portfolio, as Real Estate delivered its highest operating profit in at least five years at ¥4.35bn (+25.6% YoY), counterbalancing a -33.4% YoY decline in Oceangoing Shipping driven by weak Chemical Tanker market conditions and tensions in the Middle East in the final weeks of Q4. Despite a -10.3% YoY revenue decline, full-year operating profit of ¥13.4bn came in +8.4% above the February 2026 revised guidance, as Real Estate outperformed and shipping markets were stronger than expected. Earnings were further helped by favorable FX tailwinds and strong earnings contribution from equity-method affiliates.

New MTP targets ¥200bn of investment

IINO Lines launched its new FY3/27-FY3/31 MTP, “Transformation for a Sustainable Future”, highlighted by its ambitious ¥200bn Capex strategy (2x vs. the prior MTP), which, in addition to investing in its core Chemical Tanker fleet, targets Large Gas Carriers and vessels for new energy cargoes as an area of growth. IINO Lines aims to shift large gas carriers into a core business by 2030 driven by longer term opportunities in decarbonization and demand for new energy. Further, the plan targets a +50% growth in Business Core Profit during the period, and a ¥30/share dividend floor was introduced.

Valuations

On our earnings estimates, the shares are trading on a PER FY3/27 of 12.2x (on -21.2% EPS growth YoY), and a PBR of 0.9x.

For the full report, please click here: IINO Kaiun Kaisha (9119) FY3/26 results update

Business description: IINO Lines (Iino Kaiun) engages in global shipping of energy resources and other materials, while also managing a global real estate portfolio.

Design-driven growth strategy continues to deliver

Arr Planner’s affordable luxury positioning continues to drive increasing market share amidst Japan’s contracting housing market, with record Q1 contracted home orders that grew +21.1% YoY against nationwide new housing starts that declined -14.3% YoY in January to March 2026. Importantly, Arr Planner’s market share gains are on the back of upward price revisions that drove record operating margins, demonstrating Arr Planner’s pricing power and the Company’s design-driven approach to homebuilding continuing to resonate with customers. With a record custom-built home order backlog and development homes inventory, Arr Planner believes it can sustain its current growth momentum. Further, we believe the Company’s FY1/27 guidance appears conservative given the positive Q1 results and the Company’s track record of strong execution.

Guidance appears conservative (again)

Operating leverage being realized

Q1 revenue of ¥12.64bn (+23.3% YoY) and operating profit of ¥1.00bn (+53.7% YoY) were both Q1 records, and EPS grew +61.2% YoY to ¥62.49. Gross margin expanded +60bp YoY to 18.7% as customers remained receptive to price revisions due to Arr Planner’s design-driven approach to homebuilding. SG&A grew at roughly half the pace of revenue despite continued investment in hiring and showroom opening, lifting the operating margin +150bp YoY to 7.9% and demonstrating the operating leverage of the business. The Tokai Area grew revenue +26.6% YoY and the Tokyo Metropolitan Area grew +15.3% YoY.

Unchanged guidance appears conservative

Arr Planner maintained its FY1/27 guidance following strong Q1 results, which is seasonally the weakest quarter for the sector. Given the Company’s record order backlog and the Company’s track record of delivering results ahead of guidance, we believe the forecasts may again prove conservative.

For further details on our analysis

Please see our recent initiation report

Valuations

On Astris earnings estimates, the shares are trading on an estimated PER FY1/27 of 5.7x and current PBR of 1.8x.

For the full report, please click here: Arr Planner Co., Ltd (2983) Q1 FY1/2027 results update

Business description: Arr Planner is a detached home builder based in Nagoya, Japan, with a rapidly growing presence in the Tokyo Metropolitan Area. The Company differentiates itself from competitors as a builder of architecturally-driven detached homes at an affordable price point.

Set to rebound QoQ

Softening fundamentals in Q1-3 FY7/26 results stemmed from increased recruitment with lower-than-expected sales outcomes for new business, culminating in a downward revision to FY7/26 guidance. However, we believe the key issue is that the mismatch between increased headcount and capacity, with a limited sales pipeline, is a one-time event; this is indicated by implied guidance for Q4 FY7/26, where both sales and OP are expected to return to a YoY growth profile. While management has also toned down growth expectations for FY7/27 relative to targets outlined in their medium- to long-term vision, the earnings outlook remains one of YoY recovery.

Long-term forecasts maintained

Management has maintained its financial targets for FY7/30, but the revised guidance range for FY7/27 points to a more end-loaded growth profile as it aims for ¥100bn sales with 15% OPM.

Announcing first-ever buyback

A 2.02% share buyback has been announced; this is a first for the company, and highlights management’s positive direction toward shareholder returns while maintaining a growth focus.

Valuations

Based on our revised earnings estimates, the shares are trading at a PER FY7/27 of 6.1x (on +263.0% EPS growth YoY) and an FCF yield of 11.6%. At these levels, we believe the share price has yet to reflect a material YoY earnings recovery.

For the full report, please click here: INTLOOP (9556) Q3 FY7/26 results update

Business description: INTLOOP is an upstream consulting services firm that utilizes both freelance and in-house consultants serving as subcontractors and directly contracting to market-leading consultancy firms and system integrators.

A franchise-defining semiconductor acquisition

With the ¥9.4bn acquisition of VTEX, KITZ becomes the clear global number two in semiconductor vacuum valves, with ~9% market share and the leading supplier within the booming Japanese Wafer Fab Equipment (WFE) supply chain. While the market may view this as a minor bolt-on acquisition, we believe it is a franchise-defining transaction of significant strategic importance. For the global WFE industry, KITZ is now a viable alternative to the dominant industry leader, which holds a 71% market share. WFE OEMs have a clear incentive to qualify a credible second source, and KITZ is now positioned to be that supplier. Furthermore, KITZ acquired VTEX when earnings were near a cyclical trough, leaving meaningful upside as record AI-driven semiconductor capex lifts WFE spending. We believe VTEX to be an important acquisition that meaningfully accelerates the growth of KITZ’s semiconductor equipment business, which is 13.5% of revenue.

Acquired near the lows

KITZ acquired 100% of VTEX from Kanadevia for ¥9,198mn

The all-cash consideration (¥9,368mn all-in) was financed with debt and within the ¥20bn allocated to M&A under the SHIN GLOBAL 2027 medium-term plan. VTEX generated consolidated revenue of ¥9,380mn and net income of ¥491mn in FY3/25. This implies KITZ acquired VTEX at a valuation of 18.7x PER and 0.98x P/Sales. Importantly, VTEX’s FY3/25 results reflect the semiconductor industry’s capex trough during the 2023 – 2024 period.

No guidance revision announced, but upside likely

On our illustrative pro forma analysis, VTEX lifts KITZ’s FY12/26 semiconductor equipment revenue to ¥35.9bn on an annualized basis from FY12/26 guidance of ¥26.5bn, with the segment accounting for 18% of KITZ’s FY12/26 revenue. But we think the upside is likely driven by positive outlooks and increased capex budgets from WFE OEMs and chipmakers. We think investors should look past headline earnings guidance as JGAAP requires the amortization of M&A goodwill, understating the underlying profitability of the business

Valuations

Based on corporate guidance, the shares are trading on FY12/26 PER of 17.5x and a PBR of 1.8x.

For the full report, please click here: KITZ Corporation (6498) Acquisition of V TEX Corporation

Business description: KITZ Corporation is Japan’s largest valve manufacturer, listed in Tokyo and founded in 1951.

Earnings look to have bottomed

FY4/26 saw Macbee Planet significantly impacted by adverse conditions experienced by major clients in the Finance and Wellness sectors, as well as an increase in personnel and advertising costs that resulted in negative earnings growth YoY. However, quarterly trends indicate that both a slowdown in sales declines YoY and an OPM recovery were underway from Q3 FY4/26. With challenging conditions set to continue for major clients and a focus on business investment, FY4/27 guidance still indicates a YoY earnings decline. Whilst we do not expect a V-shaped recovery, our estimates indicate earnings bottoming out in the near term, with a steady recovery trend from FY4/28. We believe the shares are poised for a re-rating.

Low valuations, 5.5% dividend yield

Flat DPS YoY, return to positive free cash flow

The company has maintained flat DPS YoY of ¥55, resulting in a 32.4% payout ratio. The balance sheet remains well capitalized with a net cash position of ¥3.07bn. Capital deployment in M&A remains in play to continue building out consumer touchpoints, and we estimate the company can continue to generate positive free cash flow, as evidenced by a YoY recovery in FY4/26.

Valuations

Based on revised Astris Advisory estimates, the shares are trading at an FY4/27 PER multiple of 6.7x (on -11.3% EPS growth YoY), a free cash flow yield of 33.4%, and 5.5% dividend yield.

For the full report, please click here: Macbee Planet (7095) Q4 FY4/26 results update

Business description: Macbee Planet is an independent online performance marketing company specializing in data-driven marketing analytics. Utilizing proprietary technology, the company enhances ROI for advertisers across various sectors.

Achieved the key metrics in the medium-term business plan but missed in the Machinery business

Furukawa outpaced its three times-upwardly-revised guidance for FY3/26, hitting key metrics in the medium-term plan on the back of soaring commodity prices, namely copper and gold. However, the Machinery business underperformed, missing its OP target and mix ratio due to a thin order backlog in the Industrial Machinery segment and delays in passing on raw material costs to prices in the UNIC Machinery segment. Meanwhile, management has effectively managed leverage while enhancing shareholder returns. For FY3/27, the company guides for a recovery in the Machinery business alongside a contraction in Metals; however, we view management’s conservative outlook for the Metal segment as having potential upside.

Back to core

Inorganic expansion to accelerate growth

We have upwardly revised our FY3/27–FY3/29 sales and OP forecasts to reflect a stronger outlook for the Machinery business. This upgrade is driven by the full consolidation of EarthTechnica (remaining 40% stake), while bottom-line growth will be further supported by an increased equity stake in Mitsui Miike Machinery (to 34.1% from 20.0%). Meanwhile, we anticipate a normalization of the Metal segment over the same period, leaving the core Machinery business as the primary driver of FCF.

Valuations

The shares are trading at our estimated PER FY3/27 of 15.2x, and dividend yield of 2.1%.

For the full report, please click here: Furukawa (5715) Q4 FY3/26 results update

Business description: Furukawa produces and sells machinery products for infrastructure and construction sites, electronic materials and chemical products for semiconductors and electronic devices and is the owner/operator of a commercial building in Tokyo.

Double-digit growth strategy

Led by capable management and a strategy centered on sustaining double-digit growth, we view the earnings outlook for Polaris Holdings as positive. Management aims to outperform the market by 1) increasing its domestic footprint organically and via M&A, 2) driving domestic demand via brand integration and loyalty programs, and 3) portfolio repositioning by diversifying to resilient geographic regions and increasing the brand portfolio to apartment hotels, onsen/lifestyle, and resort hotels. The core message is that growth should be sustained despite near-term volatility in inbound demand, supported by substantial expansion opportunities in the domestic market as a leading hotel operator.

Robust strategic positioning offers upside

Strategic backing, agile execution, and a high-return operating model

We view Polaris’ competitive advantages to be 1) backed by Star Asia Group, providing funding, deal flow, and sector expertise, 2) agile, growth-oriented management with strong execution in a conservative sector, and 3) asset-light/flexible contract mix supports downside protection and high profitability. We view the business and capital alliance between Star Asia Group and Mizuho Leasing (8425) as potentially beneficial, offering funding and access to new strategic opportunities.

ESG

We continue to score the company as ‘Amber’ under our Astris-Sustainability model scorecard

Valuations

On our revised earnings estimates, the shares are trading at a PER FY3/27 of 19.4x (on +8.3% reported OP growth YoY, +19.6% EBITDA growth YoY, and underlying (ex-goodwill and tax impact) EPS growth 5.2% YoY), a free cash flow (FCF) yield of 15.7%. We believe that a premium PER multiple appears justified, supported by its stronger growth profile, proven M&A execution, and flexible operating model.

For the full report, please click here: Polaris Holdings (3010) Deep-dive review 2026

Business description: Polaris Holdings is a hotel operator with three domestic key franchises - Best Western Japan, KOKO HOTEL, and Value The Hotel. It is shifting its business model towards low-risk management contracts, variable-rent lease contracts, and as an owner/operator.

Sustained earnings momentum

The key takeaway for FY3/26 results is that Duskin is on the right trajectory to improve returns, with record-high segment profitability at the Food Group and the Direct Selling Group showing a convincing moderation in earnings decline. The outlook for FY3/27 is for continued progress, particularly with relatively low YoY hurdles for the Direct Selling Group, which had booked upfront costs related to case-equipped mop cleaners; we believe the Food Group will continue to generate high returns despite one-time IT system costs. Targets set for FY3/28 in the medium-term business plan appear challenging in parts, yet we believe the company is on a solid earnings trend.

More predictable earnings profile

Earnings recovery potential at Direct Selling Group

A strategic focus on new customer acquisition and the development of new offerings is having a positive impact on the Direct Selling Group segment, with the Clean Service business (focused on mop rentals) seeing sales remain relatively flat YoY. The Care Service and Other businesses saw YoY sales growth, indicating that sales volumes can recover despite challenging market conditions, and highlight the segment’s potential as a renewed earnings pillar.

Food Group continues to perform

The ‘Mister Donut’ operation continues to perform strongly, driven by a combination of increasing average customer spend and new store openings. The outlook for FY3/27 appears firm in our view, with high margins expected despite IT system costs and a potential slowdown in new store openings.

Valuations

Based on our revised earnings estimates, the shares are trading at an estimated PER FY3/27 of 18.7x (on +6.5% OP growth YoY), dividend yield of 3.2%, and current PBR of 1.2x.

For the full report, please click here: Duskin (4665) Q4 FY3/26 results update

Business description: Duskin operates a residential and commercial services franchise specializing in rental mops and mats, and a coffee and doughnut restaurant chain called ‘Mister Donut’, with both businesses having a dominant domestic market share.

Indications of early success

Q1-4 FY3/26 results demonstrated that MIXI’s strategy to develop new earnings pillars is bearing fruit, with the Sports and Lifestyle segments delivering high double-digit sales growth and improvements in profitability YoY. We believe continued business investment to grow these segments will result in limited reported earnings growth in FY3/27, alongside high amortization costs associated with the acquisition of PointsBet Holdings. However, as both Sports and Lifestyle segments continue to scale, we believe the earnings trajectory will become positive, driven by user growth and effective monetization.

To generate sustainable earnings

Issuing the first medium-term vision

The company has issued a Medium-Term Vision (called ‘Growth Strategy in the We-Time Economy’) outlining its growth strategy and financial targets into the early 2030s. We view the core message here as the company being positioned to generate sustainable underlying EBITDA growth, improving returns to reach an ROE of 15% or higher. This plan addresses the managed decline in the Digital Entertainment segment and highlights potential upside risk from the Investment segment.

Valuations

Based on our revised earnings estimates, the shares are trading at a FY3/27 PER of 12.2x and an FCF yield of 7.5%. The balance sheet remains cash-rich, with net cash and securities making up 57.4% of current market capitalization.

For the full report, please click here: MIXI Inc. (2121) Q4 FY3/26 results update

Business description: MIXI Inc. is a digital content company with the ‘MONSTER STRIKE’ mobile gaming franchise, the ‘FamilyAlbum’ video and photo-sharing app, and sports interests ranging from professional sports clubs to sports betting services.

FY3/26 guidance beat

FY3/26 Q1-4 sales and OP beat company guidance amid further evidence of effective mobile LTV (Lifetime Value) brand strategy execution and price revisions. Full-year sales rose +2.4% YoY to ¥86.35bn and OP rose +5.2% YoY to ¥18.69bn versus company guidance for sales of ¥85bn and OP of ¥18.2bn. This 14^th consecutive year of OP growth, together with the sales and EPS rise, marked a strong start to its medium-term management plan.

Further growth forecast for FY3/27

The company forecasts sales growth to accelerate to +4.2% YoY (¥90bn), helped partly by last year’s price revisions, further brand strategy traction, Business Services’ revenue growth and au Denki net additions.

Shareholder returns remain in focus

MTMP (FY3/26-FY3/31) aims for ¥100bn sales by FY3/31

Almost all of the additional ¥15.69bn in sales needed to meet this target will be generated by the Solutions Business and au Denki, amid intense competition in the mobile business.

Mobile branding strategy shows results

The company’s age-specific au plans are raising its competitiveness, encouraging users to its more profitable flagship brand from its lower-priced UQ service. Meanwhile, UQ user loyalty is improving through promoting bundle plans centered on device purchases.

Focus on shareholder returns

¥5bn spent on its recently-completed buyback, representing 100% of volume, due to share price appreciation. A new ¥5bn program and planned 26^th straight annual DPS hike for 3/27, highlights a continued focus on shareholder returns.

Valuations

According to our estimates for FY3/27, shares are trading on an estimated PER of 24.1x and a free cash flow yield of 4.0%. Total shareholder returns for FY3/27 will reach 84.1% on our estimates, assuming a dividend payout ratio of 47.7% and the company spending the maximum planned ¥5bn on share buybacks.

For the full report, please click here: Okinawa Cellular (9436) Q4 FY3/26 results update

Business description: Okinawa Cellular is a telecoms provider operating parent KDDI’s brands in Japan’s southernmost prefecture of the same name. It offers both mobile and FTTH services.

More improvements to come

FY3/26 results were ahead of guidance, driven by efficiency gains at the Flour Milling segment. The Food segment saw growth, but profitability was impacted by cost pressures. We continue to think the segment could deliver meaningful earnings growth if costs stabilize. Importantly, further production efficiency gains are ahead, as NIPPN’s new Chita Mill commenced operations in February 2026. As NIPPN’s record pipeline of strategic capex projects comes online over the next few years, we think the trend of incremental efficiency gains is likely to continue, although tempered by higher depreciation charges. Furthermore, NIPPN’s commitment to optimizing its capital structure, as evidenced by FY3/26, and to reducing cross-shareholdings should drive incremental earnings growth.

Improving capital structure & efficiency

Efficiency gains materializing

FY3/26 operating profit growth of +2.8% YoY outpaced revenue growth of +1.8% YoY, driven by a +80bp expansion in gross margin as efficiency gains began to materialize. The Flour Milling segment was the standout performer, with operating margins expanding +33bp to 7.9% on productivity improvements, despite a modest revenue decline from regulated price adjustments. This strength helped offset margin pressure in the core Food segment (OP -2.3% YoY), where rising labor and logistics costs more than offset top-line growth.

Capital allocation highlights

NIPPN accelerated capex in FY3/26 (¥33.5bn, +60% YoY), redeemed the ¥25bn convertible bond, and raised ¥50.3bn in new debt. Cross-shareholding disposals totaled ¥5.9bn in FY3/26, with NIPPN targeting additional disposals in FY3/27. The Company completed its ¥4.0bn share buyback in H2 FY3/26.

FY3/27 guidance impacted by depreciation

FY3/27 guidance expects steady growth with sales of ¥430.0bn (+2.8% YoY), but operating profit to decline to ¥19.5bn (-11.7% YoY), driven by an increase in depreciation from the newly operational Chita Mill.

Valuations

On our earnings estimates, the shares are trading on an estimated FY3/27E EV/EBITDA of 7.0x (on +1.4% EBITDA growth YoY) and PER of 10.3x and at 0.52x our SOTP valuation.

For the full report, please click here: Q4 FY3/26 results update

Business description: Aoyama Zaisan Networks Company is a market-leading comprehensive consulting firm.

Transitioning beyond Real Estate

FY12/26 showed Aoyama Zaisan Networks’ earnings base shifting further towards the consulting platform, with operating profit growing despite the slowdown in ADVANTAGE CLUB formation in Q1. Wealth Consulting continued to see strong growth, with sustained strength in Asset Succession services demonstrating that customer engagement and revenue growth are not reliant on ADVANTAGE CLUB. Consultant productivity is also trending higher in Q1 despite slower AD formation activities. ADVANTAGE CLUB sales activity has also resumed with AZN expecting formation cadence to accelerate from autumn onwards, when the details of the tax reform are expected to be announced. AZN is also considering introducing new real estate investment products from H2 FY12/26 onwards. Taken together, we believe these measures should drive a return to growth in Real Estate Solutions in FY12/27.

Acceleration in Wealth Consulting

Sustained momentum in Wealth Consulting

Q1 operating profit of ¥0.91bn grew +20.9% YoY against a -34.1% YoY reported revenue decline, with operating margin expanding +545bp reflecting a shifting revenue-mix. Wealth Consulting sales of ¥2.9bn (+23.2% YoY) and gross profit of ¥1.5bn (+55.7% YoY) meant segment gross margin expanded +1,110bp to 53.0%, driven by strong performance at the Asset Succession sub-segment, which saw revenue growth of +46.9%. Real Estate Solutions sales of ¥4.7bn (-48.9% YoY) reflect a slowdown in ADVANTAGE CLUB formation (2 formed in Q1), with the Company expecting more ADVANTAGE CLUB formation activity in H2.

AI adoption within Wealth Consulting

AZN is rolling out AI agents to further improve Consultant productivity, shifting time from internal back-office tasks to client-facing meetings. AZN believes AI can contribute to +20% revenue uplift by FY12/30.

Valuations

Based on our estimates, the shares are trading at an estimated PER FY12/26 of 11.8x (on -3.5% EPS growth YoY), FCF yield of 10.7%, and dividend yield of 4.4% (on a 50% payout ratio).

For the full report, please click here: Aoyama Zaisan Networks Company (8929) Q1 FY12/26 results update

Business description: Aoyama Zaisan Networks Company is a market-leading comprehensive consulting firm.

Industrial Films overlaid on effective cost reduction

FY3/26 performance ended on a strong note, buoyed by sustained momentum in Industrial Films, specifically driven by MLCC mold-release films and SRF. Concurrently, the turnaround in the “Businesses Requiring Improvement” exceeded initial targets. Within this segment, the consolidation of manufacturing operations for Airbag Fabrics bore fruit, and Nonwoven materials achieved meaningful structural cost efficiencies. Driven by robust operating cash flows and the normalization of capital expenditure, free cash flow reached a pivotal inflection point and remained positive throughout FY3/26. We anticipate this powerful recovery momentum will be sustained across the new medium-term management plan through FY3/31.

We foresee continued positivity

Projecting upside despite the temporarily high oil price

Toyobo delivered impressive FY3/26 results, surpassing its profit guidance even after it had been upwardly revised twice during the fiscal year. This strong performance was anchored by the robust expansion of the Industrial Films and an accelerated recovery within the “Businesses Requiring Improvement”. While we have maintained our FY3/27–FY3/28 estimates to account for uncertainties in global oil prices, we expect this positive operational trajectory to persist. While some caution is warranted regarding the delayed recovery in the Life sciences (particularly biotech) and increased depreciation expenses from new film facilities, this positive growth trajectory in the core business is expected to persist.

Valuations

On our earnings estimates, the shares are trading on FY3/28 PER 14.0x, FCF yield of 4.1%, and a total shareholder yield of 2.1%. The PBR of 0.7x is at a material discount to domestic peers. We believe the expected recovery in profitability and efforts to optimize its balance sheet are not fully reflected in the current share price.

For the full report, please click here: Toyobo (3101) Q4 FY3/26 results update

Business description: Toyobo is a well-established producer of chemical materials with more than 140 years of experience

Numbers beat, strong momentum

With sales growth accelerating to 34.5% YoY in Q4, Restar exceeded FY3/26 guidance, representing a positive surprise. The Devices BU experienced an upturn in AI-related demand, as well as steady sales from consumer electronics and selective areas within the industrial equipment sector. Given improved near-term earnings visibility, we have revised our earnings estimates upward to reflect continued momentum in memory demand in a tightening market. While target metrics set in FY3/27 guidance are lower than the medium-term plan, it nevertheless points to continued efforts to improve ROE and ROIC YoY, as management maintains its focus on 1) proactive investment in growth, 2) improving shareholder returns, and 3) financial soundness.

On track to meet revised targets

Guidance pointing to sustained growth

The company is guiding high single-digit OP growth YoY for FY3/27, primarily focused on profitability improvements across both the Systems and IT & SIer BUs. We believe that demand for AI-related infrastructure will be sustained YoY, driving core earnings at the Devices BU and providing earnings upside. We are not estimating any M&A impact in our estimates, as per the company.

Valuations

Based on our revised earnings estimates, the shares are trading at an estimated PER FY3/27 of 12.2x (on OP growth of 12.7% YoY), dividend yield of 3.9%, and current PBR of 1.3x.

For the full report, please click here: Restar (3156) Q4 FY3/26 results update

Business description: Restar is a semiconductor trading company constructed via multiple mergers and acquisitions, with strong historical ties to Sony (6758)

FY3/27 expected to be a transitional year

AS ONE delivered full year operating profit growth ahead of revenue growth in FY3/26, demonstrating the operating leverage in its model. The FY3/27 financial guidance points to a year of growth investments, which should translate to profitability improvement in future years. We note that AS ONE has maintained a strong track record of cost discipline, which makes us believe the elevated SG&A spend in FY3/27 is expected to generate meaningful returns. Further, top line growth outlook is positive and shows signs of increasing wallet share. Although ROE reached a record 13.3% and exceeded the FY3/28 MTP target ahead of schedule, we believe AS ONE will continue to incrementally improve its ROE and ROA.

FY3/26 was a record year

Record results across both top and bottom line

AS ONE delivered FY3/26 consolidated net sales of ¥110.7bn (+6.7% YoY, +1.7% vs guidance), operating profit of ¥12.8bn (+10.7% YoY, +2.6% vs guidance) and EPS of ¥128.35 (+11.7% YoY), driven by a combination of solid revenue growth and strict cost discipline. FY3/26 ROE of 13.3% is also a new record high, with AS ONE delivering on its 13% ROE target under its current MTP well ahead of schedule.

FY3/27 guidance points to steady revenue growth but earnings impacted by growth investments

AS ONE guided for FY3/27 net sales of ¥117.9bn (+6.5% YoY) and operating profit of ¥12.9bn (+0.5% YoY), with reported EPS declining -1.9% YoY to ¥125.86. The margin compression is driven by a +10.4% YoY growth in SG&A, reflecting the opening of a new Rental & Calibration Center in November 2026, logistics investments (Smart DC expansion), and costs driven by publication of the Company’s signature general catalogue. However, we believe the guidance is conservative as it does not reflect the impact of the Middle East tension, which drove a significant YoY jump in demand for oil-derived consumable products.

Valuations

On our earnings estimates, the shares are trading on an estimated PER FY3/27 of 16.6x (on -2.0% EPS growth YoY) and a free cash flow yield of 7.7%.

For the full report, please click here: AS ONE (7476) Q4 FY3/26 results update

Business description: AS ONE is a wholesaler and distributor of equipment and consumable products used in the scientific and medical field.

Earnings pressure from growth investments

With management prioritizing investment into AI, LaKeel experienced a notable decline in earnings YoY for Q1 FY12/26; this impact was exacerbated by License sales falling YoY, albeit from a high hurdle. The company is undergoing a structural shift towards introducing AI agents in the HR domain and the broader application of AI platforms in system development – we view this as necessary to ensure long-term sustainable growth. However, near-term earnings visibility may be affected as investment costs rise and progress in gaining market share in the HR software market remains limited. However, we believe the enhanced 7.45% share buyback program provides valuation support.

Strengthened buyback program

Share buyback program upgraded

The current share buyback program has been revised from repurchasing 2.89% of issued shares to 7.45%, which was a positive surprise. This reflects management’s view that the shares are undervalued and that efforts are underway to improve shareholder returns and capital efficiency.

No change to FY guidance

The company has maintained FY12/26 guidance, implying improving earnings momentum going forward; we have kept our earnings estimates unchanged.

Valuations

The shares are trading at an estimated PER FY12/26 of 14.0x (on +33.0% EPS growth YoY) and a free cash flow yield of 13.3%. The revised share buyback (assumed to be completed at 100% by FY12/26) is expected to lift total shareholder return to 12.0%.

For the full report, please click here: LaKeel (4074) Q1 FY12/26 results update

Business description: LaKeel is a cloud technology company providing aPaaS and SaaS solutions to large enterprises. Its flagship products are LaKeel DX and LaKeel Apps.

Seasonally back-loaded revenue structure

Although the cumulative revenue run rate stands at 39.2% of the FY target, the company maintains its FY6/26 outlook, relying on its back-loaded business nature concentrated in Q4. Performance was anchored by the Optical segment, where robust demand in Japan, Europe, and Asia, combined with production efficiency gains, lifted segment margins from 23.7% to 34.2%. Concurrently, the Life Science & Equipment Development segment kept pace. Looking ahead, structural tailwinds from AI applications are providing highly visible mid-to-long-term traction for its semiconductor equipment pipeline, notably PCVM and PAP. Backed by a historically strong Q4, FY guidance remains intact.

FY guidance unchanged

Expect a strong Q4

We maintain our FY6/26 estimates, anticipating a back-loaded performance driven by typical seasonality, with the bulk of delivery concentrated in Q4. Visibility in the Optical segment remains high, underpinned by a robust order backlog and strong margin expansion. Additionally, semiconductor-related equipment is well positioned to transition into commercialization in the near term. Supported by a healthy net cash position and positive free cash flow, JTEC possesses the financial flexibility required to execute its growth strategy. We remain patient as these medium-to-long-term initiatives move toward fruition.

Valuations

Based on our earnings estimates, the shares are trading at an estimated FY6/26 PER 76.5x (on +130.5% EPS growth YoY) and an FCF yield of 3.0%.

For the full report, please click here: JTEC Corp (3446) Q3 FY6/26 results update

Business description: JTEC Corp is a specialist technology innovator and a global market leader in customized X-ray mirrors. It is undergoing business expansion in the life sciences and semiconductor sectors

Recalibrating across all facets

Although the bottom line was impacted by extraordinary losses, the core business finished FY3/26 largely in line with initial guidance. Within the DH Group, the domestic debugging business remains supported by Nintendo Switch 2, while global expansion continues to layer on incremental top-line growth. Conversely, the AGEST Group is weighed down by strategic downsizing and certain low-margin IT services projects. In FY3/27, the DH Group expects to extend its upward trajectory, driven by sustained Nintendo Switch 2 tailwinds, accelerating international expansion, and the FY consolidation of HUWIZ SOLUTIONS. Furthermore, the company is deploying various explorations around AI (HumanOps OS, TFACT, SOC). Lastly, following the withdrawal of the AGEST Group spin-off listing, management has introduced a progressive dividend policy to enhance investor returns.

Steady outlook in sight

FY3/27 estimates slightly above company guidance

Our FY3/27 estimates sit slightly above management’s guidance, projecting consolidated sales of ¥41.27bn (vs. ¥41.08bn CE) and OP of ¥2.80bn (vs. ¥2.73bn CE). Our outlook reflects: 1) sustained operational momentum within the DH Group, driven by high-growth global expansion, and 2) structural stabilization at AGEST Group as trailing headwinds from strategic downsizing and legacy, low-margin IT service contracts normalize. Concurrently, net income is projected to surge by 57.6% YoY, driven by a favorable rebound from extraordinary losses recorded in FY3/26.

Valuations

On our estimates, the shares are trading on a FY3/27 PER of 9.1x (with +57.6% EPS growth YoY) and EV/EBITDA of 4.5x. With earnings momentum gathering in the core business and the AGEST Group in better shape, we believe an improving earnings outlook has yet to be priced into the shares.

For the full report, please click here: Digital Hearts Holdings (3676) Q4 FY3/26 results update

Business description: Digital Hearts Holdings provides game debugging services to entertainment companies and software testing and QA services to corporate customers.

Solid execution, improving earnings visibility

Q1-2 FY9/26 results were ahead of expectations, driven by a combination of firm domestic demand in Fine Chemicals involving favorable price revisions, and a return to a robust growth profile YoY in Life Sciences. Management is executing well under challenging macro conditions, and also provided further insight into upcoming projects in Sustainability (deep ocean mineral resources and offshore wind power), which highlights 1) the company’s strong positioning for future growth, and 2) improving longer-term earnings visibility. The company has raised its FY9/26 guidance and DPS (from ¥58 to ¥60) and announced a 2-for-1 share split, signaling a prioritization of shareholder returns.

Indications of strengthening outlook

Forward visibility continues to build

We have raised our earnings estimates for FY9/26 and beyond, reflecting stronger earnings momentum in the near term and improving earnings visibility regarding the Sustainability business segment. Implied guidance for H2 FY9/26 appears overly conservative in our view, despite the usual seasonality expectations.

Valuations

On our revised earnings estimates, the shares are trading at an estimated FY9/27 PER of 10.5x (on +3.4% YoY OP growth), a 3.9% dividend yield, and a current PBR of 0.9x. We believe that given 1) the company’s exposure to niche growth opportunities in the sustainability market, 2) being relatively shielded from spiking oil and gas prices, unlike some of its larger sector peers, and 3) a continuing profile of improving shareholder returns and a cash-rich balance sheet, the shares should undergo multiple expansion to reflect these positives.

For the full report, please click here: Sanyo Trading (3176) Q2 FY9/26 results update

Business description: Sanyo Trading is an independent multiple-specialty trading company in chemicals, auto parts, environmental, and life sciences. It imports niche high-value products from Japan and exports to developed and emerging markets.

Quality earnings backed by recurring income and pricing power

Q1-4 FY3/26 results modestly exceeded guidance, highlighting that the company has high earnings visibility, stemming from recurring income from maintenance contracts, and sustainable structural demand from modernization. A positive surprise was the QoQ uptrend in profitability in Q4 FY3/26, driven by pricing power in Modernization Services, which had initially been expected to be margin dilutive. These characteristics make the business resilient under mixed macro conditions and help drive high-quality earnings.

Strong forward visibility

Positive outlook for FY3/27

With a sustained double-digit growth profile and YoY margin expansion, we believe the company’s guidance illustrates the qualities typically associated with premium franchises: chiefly, high and sustainable returns, strong free cash flow generation, pricing power (for Modernization Services), a conservative balance sheet, and high earnings predictability. The company has been investing in human capital and has sufficient capacity to support growth, unlike certain areas in the construction and services sectors, where a tight labor market would constrain growth.

Valuations

On revised Astris Advisory estimates, the shares are trading at a FY3/27 PER multiple of 38.5x (with +15.6% YoY EPS growth) and a free cash flow yield of 2.5%. Demonstrating resilient earnings, pricing power, and strong cash generation, we maintain our view that the shares deserve a premium valuation multiple because its earnings are more durable, predictable, and scalable than its peers.

For the full report, please click here: Japan Elevator Service Holdings (6544) Q4 FY3/26 results update

Description: Japan Elevator Service (JES) is an independent company that specializes in elevator maintenance and renovation services. It serves nearly all OEM brands in the domestic market. Operating in a market where elevator OEMs dominate, JES is executing a growth strategy to expand its domestic market share.