Morning session comments highlighted several stock developments, including a sharp decline in JFE Systems following a drop in first-half profit, Ubiquitous AI's temporary limit-down after its collateral requirement was raised, and Proship's adoption by Nagase & Co. to comply with the new lease accounting standards.
JFE Systems reported consolidated operating profit of ¥2.30 billion for the first half of the fiscal year ending March 2027, down 13.9% year on year, resulting in a sharp decline in the stock during the morning session. The decrease in revenue following the completion of system refresh projects for steelworks customers, along with higher personnel expenses and other costs, weighed on results. The company also raised its interim dividend for the fiscal year ending March 2027 from its previous forecast of ¥22 to ¥24, while leaving its full-year dividend unchanged at ¥70.
Ubiquitous AI announced that Japan Securities Finance would implement collateral collection measures from the 29th, sending the stock temporarily to its daily limit down. The collateral requirement for margin transactions will be raised to 50%.
Proship announced that Nagase & Co. had adopted Proship's “ProPlus＋” and Fast Accounting's “Steward New Lease Accounting Standards” to comply with the new lease accounting standards. The initiative aims to provide visibility into contract information across the group and standardize lease management. The impact on the share price is expected to be limited.
OBIC edged lower after Iwai Cosmo Securities raised its target price, with the market also assessing the company's better-than-expected results for the first half of the fiscal year ending March 2027 and the tailwind from support for digital transformation. Asahi Kasei gained recognition after Daiwa Securities raised its target price. Lintec's target price was raised by SMBC Nikko Securities, citing expanding semiconductor demand and the end of goodwill amortization at its North American subsidiary.