Ferrotec Corporation

Ferrotec, the largest vacuum seal maker, announced it will conduct a tender offer for Japan Resistor Manufacturing, a company engaged in fixed resistors and potentiometers. The tender offer price is 1,901 yen, 49.1% above the previous day's closing price of 1,275 yen, with a minimum planned purchase of 618,700 shares and no upper limit. The offer period runs until November 5. Japan Resistor Manufacturing has expressed its approval and recommends that shareholders tender their shares, and the company is expected to be delisted after the tender offer succeeds. Following the announcement, Japan Resistor Manufacturing's share price hit the daily limit-up of 300 yen, rising to 1,575 yen, converging toward the tender offer price.

Disclosure filings released after the September 17 market close produced a full slate of positive and negative developments relevant to investment decisions. On the positive side, Apple International raised its ordinary profit forecast for the current fiscal year by 18% and increased its dividend by 5 yen; Choshimaru reversed its current-year ordinary profit outlook to a 21% increase, projecting a record high for the first time in three terms along with a 1 yen dividend hike; Kasumigaseki Capital raised its prior-year ordinary profit forecast by 7%, adding to its record-high projection; and Hobonichi raised its prior-year ordinary profit forecast by 67%. In M&A, Saint Marc Holdings will take over the udon specialty restaurant business Tsurutontan from K Express for 12.8 billion yen, while B-style Holdings will acquire all shares of HR Asocié for 1.21 billion yen, making it a subsidiary. Ferrotec will launch a tender offer for Japan Resistor Manufacturing at 1,901 yen per share, a 49.1% premium to the September 17 closing price, aiming to make it a wholly owned subsidiary, while Nippon Seiki will buy back up to 3.61 million shares, or 6.27% of its outstanding shares, for a maximum of 9.979 billion yen. On the negative side, Chubu Steel Plate reversed its current-year ordinary profit outlook to a 46% decline; PharmaRise Holdings ended the June-August quarter with a 31% drop in ordinary profit; Industrial & Infrastructure Fund Investment Corporation is expected to post a 2% decline in current-year ordinary profit; Advance Residence Investment Corporation a 6% decline; and Ichigo Hotel REIT Investment Corporation an 18% decline.

Mitsui Matsushima Holdings, Ferrotec, Aun, and others hit limit up. Mitsui Matsushima Holdings announced upward revisions to its earnings and dividend forecasts, raising its operating profit for the fiscal year ending March 2027 from 9.7 billion yen to 10 billion yen, net profit from 7.1 billion yen to 8.6 billion yen, and increasing its annual dividend from 74 yen to 130 yen. Ferrotec revised its operating profit forecast for the fiscal year ending December 2026 upward from 38 billion yen to 60 billion yen, driven by increased demand for semiconductor material products and thermomodules for AI data centers. Aun announced the start of operational support for ChatGPT advertising, providing assistance from planning to performance measurement for ad delivery in seven countries including Japan. AI Mechatronics received an order worth approximately 2.5 billion yen for a solder ball mounter system from a major overseas semiconductor manufacturer, with sales to be recorded in the fiscal year ending June 2028. UBS Securities initiated coverage on Tecsend with a buy rating and a target price of 5,300 yen, citing benefits from expanding investment in logic. AZ Maruwa Holdings announced the establishment of a shareholder benefit program and a capital and business alliance with JPYC, while INPEX extended significant gains on the back of higher crude oil prices due to escalating tensions in the Middle East. Obic posted a 15.7 percent year-on-year increase in first-quarter operating profit to 24.9 billion yen, but the surprise was limited and gains were capped. Bronco B saw first-half operating profit rise 57.5 percent to 1.93 billion yen and revised its full-year forecast upward, but the market reaction was muted. Tokai Tokyo Intelligence Lab raised its target price on Nihon Dempa Kogyo to 4,100 yen, amid heightened expectations related to generative AI.

The Nikkei Average rebounded on the 23rd, closing 307 yen higher at 66,422 yen. Following Alphabet's increased capital expenditure plans, funds flowed into semiconductor-related stocks, with Advantest and SoftBank Group leading the index higher. Meanwhile, on the Prime Market overall, declining issues outnumbered gainers, as domestic demand sectors weakened amid rising crude oil prices and higher long-term interest rates. Ferrotec, which sharply raised its full-year operating profit forecast, hit its daily limit up with pro-rata allocation, while Cover, which announced the launch of a new game service, plunged on sell-on-the-fact trading. Trading value on the Tokyo Stock Exchange Prime Market was approximately 8.56 trillion yen.