The Point for Japan

Research evidence excerpt

The Point for Japan

to the Nisseicom consolidation impact (depreciation + M&A-related

expenses). We forecast Q3 OP of ¥4.8bn (+25%), expecting profit growth despite

increased depreciation (+¥450mn) from subsidiary consolidation, driven by

reduced hiring costs from recruitment restraint. Shift already indicated in its Q2

presentation materials that Q3 OP would be around ¥5bn, so Q3 OP will likely offer

little surprise. Meanwhile, the key focus points for the Q3 briefing are primarily AI-

related orders and the resulting next FY earnings level. Shift has been promoting

its AI-related business initiatives recently, and depending on the order value at Q3,

expectations for growth potential from next FY onward could change.

Moriya Koketsu

Nitto Boseki (3110.T) - Chinese glass cloth maker reportedly begins T-glass

shipments to Panasonic and Resonac (Nikkei)

Guangyuan New Materials has begun shipping T-glass (low CTE glass) to Resonac

and Panasonic, according to an online Nikkei article published at c11:00 on June

30. The Chinese glass cloth manufacturer plans to expand monthly production to

1mn m2 and has invested c¥160bn to enter the T-glass market, with operations

beginning sequentially from 2025. The article also states that Guangyuan New

Materials holds proprietary patents and employs different production technology

to Nittobo. While there is still a technological gap compared to Nittobo, the

company is apparently accelerating its technological development.

Yuta Nishiyama

Ajinomoto (2802.T) - Strong demand for ABF, competitive advantages and

robust supply system

Ajinomoto held a briefing on its functional materials business earlier today.

Management reported that shipments remain strong currently, tracking ahead of