During the morning session, developments at several companies were reported, including Kura Sushi’s higher target price and continued Buy rating, Comture’s partner agreement with Dataiku Japan, and Hitachi’s long-term agreement with EDF group company Enedis.
SBI Securities raised Kura Sushi’s target price from ¥1,825 to ¥2,000 while maintaining its Buy rating. Although the company posted a slight decline in revenue and a sharp drop in profit recently due to the impact of major IP collaborations, its domestic and overseas store openings were viewed as progressing steadily. Restrictions on its expansion into Thailand and accelerated expansion in Asia are positioned as growth drivers going forward. Improvements in the cost ratio, higher average customer spending through the use of conveyor lanes, and initiatives to revitalize the fisheries industry were also cited as contributing to higher corporate value over the medium to long term. Progress in the company’s Asian expansion is expected to remain a focus.
Comture rebounded for the first time in 4 days and announced that it had entered into a partner agreement with Dataiku Japan. The companies will collaborate on implementing a data analytics and AI platform using “Dataiku”, migrating from existing environments, applying AI agents to business operations, providing hands-on support, and establishing ongoing usage. The new implementation is expected to help companies promote the use of their data.
Hitachi announced that Hitachi Energy had entered into a long-term comprehensive agreement with EDF group company Enedis, with a total value of €350 million. By providing a stable supply of distribution transformers and lifecycle services, the agreement is expected to support the expansion and modernization of France’s power transmission and distribution networks, as well as the adoption of renewable energy, electrification, and the electrification of industry.
Alps Alpine downgraded Tokai Tokyo Intelligence Lab’s rating from “Outperform” to “Neutral” and revised its target price from ¥2,400 to ¥2,200. The decision assumes that the company will fall short of its profit plan for the fiscal year ending March 2027, with higher material costs and the treatment of compensation cited as factors.
Pan Pacific International Holdings raised Daiwa Securities’ investment rating from “3 (Neutral)” to “2 (Outperform)”, while cutting its target price from ¥1,020 to ¥800. Although gross profit margin fell short of the target for the fiscal year ending June 2026 due to the impact of its pricing strategy, operating profit was viewed positively as it met the plan through the containment of SG&A expenses. The view is that medium- to long-term growth remains unchanged. AP Holdings rebounded for the first time in 4 days after the Nikkei reported that it was entering rice production. The company plans to establish its own supply system by 2029 and eventually considers selling externally.