The Point for Japan

Research evidence excerpt

The Point for Japan

cancellation in China. However, industry data for plastic injection molding

machines (PIMM) is very strong, and SHI is one of Japan's leading suppliers. Q2

results are due out August 4 and we model OP of ¥14.5bn. We also hope to hear

targets for the next MTP.

Graeme McDonald

Hirose Electric (6806.T) - Staying Neutral: Expecting strong progress toward

full-year guidance in April-June

We raise our OP forecasts, lift our target price to ¥29,000 from ¥18,000 (revising

our risk-free rate assumption to 2.0% from 1.5%, our risk premium to 3.0% from

5.0%, and our base year to FY3/29 from FY3/27), and maintain our Neutral rating.

We raise our profit forecasts because the impact of the rise in the gold price that

hit earnings in FY3/26 is easing and demand from industrial equipment makers

continues to recover. Although we remain Neutral as we believe these factors are

priced in to some extent, we note the share price could firm up around results on

expectations for an upward revision.

Takayuki Naito

Obic Business Consultants (4733.T) - Briefing takeaways: Comments on price

hikes for cloud products (Bugyo i Series, DX Suite, Edge)

OBC held a FY3/26 Q1 results briefing at 13:00 on July 23. The key point was its

comments on price hikes. In response to rising cloud infrastructure costs the

company announced it will implement SaaS product price hikes from October. We

thought the likelihood of OBC hiking prices had increased, but an announcement

now is a surprise. Our impression is positive. While the earnings impact this fiscal

year will be limited given the timing, the outlook for next fiscal year earnings has

improved. Prices will be hiked for the SaaS products Bugyo i Series, DX Suite, and

Bugyo Edge (77% of cloud products), with increases of c15%.