Morning Session Comments No. 8: Mitsui O.S.K. Lines, Tes Holdings, Kawasaki Kisen, Kanadevia, A-T, F&LC (Traders Web)

Mitsui O.S.K. Lines rebounded sharply after SMBC Nikko Securities raised its price target from ¥6,200 to ¥7,200 and indicated upside based on the assumption that shipping market conditions would remain elevated. Some analysts also expected an upward revision to first-half guidance following results for the first quarter of the fiscal year ending March 2027. Nomura Securities separately updated its earnings forecasts and raised its price target from ¥7,900 to ¥10,000.

Kawasaki Kisen also rebounded sharply, with SMBC Nikko raising its price target from ¥2,900 to ¥3,100. The firm indicated that expectations for shareholder returns under the next medium-term management plan would provide support, against a backdrop of strong container shipping market conditions.

Tes Holdings extended its gains. Its consolidated subsidiary Tes Engineering announced that it would work with NTT DOCOMO BUSINESS to strengthen the security of the communications infrastructure supporting remote monitoring of solar power generation facilities.

Kanadevia rebounded sharply after SBI Securities raised its price target. The market viewed favorably the disappearance of one-off costs in the fiscal year ending March 2026 and the potential for earnings growth at its European subsidiary Inova. The company was reported to be planning a V-shaped recovery in operating profit and a substantial dividend increase in the fiscal year ending March 2027.

A-T announced that the number of grave plots sold as of the end of August was up 18.5% year on year, while the number of contracts rose from the previous month to 530. The number of newly affiliated temples was 1, and the number of temples newly opening cemeteries was 2. F&LC benefited from strong performance in Japan and overseas, with SMBC Nikko Securities raising its price target from ¥3,850 to ¥6,100.