The Point for Japan

研报英文原文证据摘录

The Point for Japan

Chugai Pharmaceutical (4519.T) - Undisclosed Foundayo royalties appear

modest

Chugai explained it has been receiving Foundayo royalties since April-June, but

declined to provide specifics. It has also yet to announce a full-year royalties

forecast (we estimate ¥20bn). Chugai has factored related contribution into

guidance based on its conservative estimates. Chugai also failed to provide an

update on progress against its own assumptions for April-June. Non-Roche

royalties totaled ¥4.1bn in January-March and ¥4.1bn in April-June, showing slow

progress against the full-year ¥38.7bn projection. January-March royalties were

primarily driven by Nemluvio, while April-June appears to reflect contributions

from both Nemluvio and Foundayo. While Nemluvio sales are strong, exports from

Chugai fluctuate, so April-June likely saw lower Nemluvio contributions, which

were offset by modest-looking Foundayo contributions.

Hidemaru Yamaguchi

Baudroie (4413.T) - Tailwinds from AI-driven infrastructure, security demand

Our post-March-May results follow-up newly confirmed that security-related

revenue is rising. Baudroie operates network security as one of its core businesses,

and government-led demand for security enhancement has recently emerged,

centering on financial institutions. In addition to demand for network

infrastructure enhancements driven by AI implementation needs, this new

demand should benefit the firm strongly, and we thus expect the favorable

earnings environment to continue. We raise our target price from ¥2,800 to ¥3,200

and maintain our Buy rating.

Moriya Koketsu

NSK (6471.T) - Precision equipment business in focus, but only 6% of sales and

12% of OP

Earlier this week we highlighted the robust state of THK's business. One of THK's