The morning comments covered Seven Industries' downward revision of its first-half operating earnings forecast from a profit to a loss, as well as related news on ANYCOLOR, Nishimatsuya Chain and Stella Pharma. RaQualia Pharma is expected to receive an upfront payment upon the start of Phase 2 trials for a novel analgesic, while Nomura has initiated coverage of Kiyo Bank.
Seven Industries revised its operating earnings forecast for the first half of the fiscal year ending March 2027 downward from the previous ¥22 million profit forecast to a ¥58 million loss. Resource prices remained elevated due to the situation in the Middle East, supply-chain lead times lengthened, and rising costs for interior building materials had a greater-than-expected impact. The full-year forecast was left unchanged, with earnings improvement targeted through additional price revisions, a review of fixed costs and staffing, and productivity gains.
Iwai Cosmo Securities cut its target price for ANYCOLOR from ¥6,300 to ¥5,000 and reportedly judged that a re-rating would take time. Shareholder returns, including share buybacks, remain a point of focus, and the company is viewed as having potential for steady growth even as the industry matures.
Nishimatsuya Chain announced that October same-store sales fell 5.6% year on year, customer numbers fell 5.6%, average spending per customer rose 0.7%, and total-store sales fell 3.1%. The company said sales of winter clothing were below the previous year because temperatures were relatively high during the latter part of the period.
Stella Pharma's application for partial approval of changes to the manufacturing and marketing approval related to expanding the indication for recurrent meningioma was deemed approvable by the Pharmaceutical Affairs Council. Formal approval is expected following future administrative procedures. Selling has also emerged as investors take profits following the release of the news.
RaQualia Pharma announced the start of Phase 2 trials for a novel analgesic licensed to Hisamitsu Pharmaceutical and is expected to receive a ¥200 million upfront payment under the agreement. The related sales are scheduled to be recognised in the fourth quarter of the fiscal year ending December 2026, with no impact on the full-year earnings forecast.
Nomura Securities initiated Buy-rated coverage of Kiyo Bank and indicated that deposits and lending would drive earnings. The target price is ¥2,190, and the bank was assessed as having share-price upside supported by deposit acquisition and a high ROE.