Next week's 5 stocks

(7414) Onoken

From the Shikiho, Industry: Wholesale trade.

【Features】Specialty trading company for steel materials and construction equipment. Expanding nationwide anchored by Kitakyushu. Reputable for handling imported steel materials from China and others

【Profit decline】Steel demand weak. However, with price increases, the gap between selling prices and inventory is expected to narrow modestly in the latter part. Operating profit increases vs. the previous issue. Dividend increase. For year ending March 2023, active demand for logistics warehouses and redevelopment led to growth in profits. On the other hand, due to higher inventory prices, the gap with selling prices narrowed, resulting in operating loss. Dividend cut.

【Capital investment】In 2022, depreciation was clearly exceeded. Strengthening logistics centers with new warehouse at Fukuoka branch and increasing value-added through higher processing ratio. The company’s large stockpiles meet rising customer needs.

On May 13, 2022, results and forecasts were announced. For the year ended March 2022, operating profit increased by 80.5% year on year to 11.756 billion yen, ordinary income up 78.3% to 11.977 billion yen; sales and profits grew. For the forecast for the year ending March 2023, operating profit is expected to decline 24.2% year on year to 8.915 billion yen, ordinary income down 24.2% to 9.078 billion yen, expecting a decrease in sales and profits.

From the high of 1434 yen on December 20, 2019, the stock fell sharply from the corona market, bottoming at 976 yen on March 13, 2020, and forming an uptrend (A). Within this, it rose to 1311 yen on June 5, then fell to 1109 yen on September 24; from this rebound, it rose to 1309 yen on November 17, forming a double-top pattern, and on November 26 rose with a pullback to 1190 yen, creating an uptrend (B) parallel to uptrend (A). Within this uptrend (B), on March 19, 2021, it rose to 1483 yen, then pulled back to 1257 yen on June 29, and surged thereafter to a year-to-date high of 1808 yen on September 16, after which price action consolidated, forming a downtrend (C) with the February 9 of this year at 1750 yen as a second top. In this, on May 25, it dropped to 1363 yen to test the bottom.

Buying point
1360–1400 yen

Take profits
1470–1500 yen

Stop loss
No stop loss at present

(6381) Anest Iwata

From the Shikiho, Industry: Machinery.

【Features】Manufacturer of painting equipment, compressors, etc. Domestic painting equipment share exceeds 70%. Aggressive overseas expansion in Europe, America, Asia, etc.

【Trend】Domestic auto parts painting equipment demand is sluggish. Overseas demand for painting equipment and painting facilities in China and other regions is rising. Dividend increase. For year ending March 2023, with abundant order backlog, domestic painting devices are recovering. Sales of medium-sized compressors are increasing. Upward trend in profits.

【Expansion】Promoting medium-sized compressors with high versatility in India and Europe/Americas. Two lines of stock held by Mitsubishi UFJ and Joyo to be offered for sale in January. Up to 682,000 shares until the end of June, with ¥500 million treasury stock purchases to offset impact.

On May 10, 2022, results and forecasts were announced. For the year ended March 2022, operating profit rose 38.8% year on year to 4.78 billion yen, ordinary income up 31.0% to 5.572 billion yen; sales and profits grew. For the forecast for the year ending March 2023, operating profit is expected to increase 2.5% year on year to 4.90 billion yen, ordinary income up 1.4% to 5.650 billion yen, continuing two consecutive years of growth in sales and profits.

From December 17, 2019, stock at 1,100 yen reached a high before corona, then fell during corona; on March 23, 2020, the low was 787 yen, bounced, and on August 7, 756 yen formed a double bottom. From here, a short-term uptrend (B) began, with the year’s high of 1,160 yen on January 29, 2021, then dropped to 987 yen on February 26 before rebounding, and on March 19, 1,130 yen formed a second top; on May 13 it pulled back to 971 yen, then slowly rose to 1,087 yen on September 8. From there, a sharp fall trend (C) formed, with a new low of 720 yen on January 24 this year, rebounding to 862 yen on March 23, pulling back to 790 yen on May 11, and continuing to hover around 869 yen on May 30.

Buying point
① 820–850 yen

② 780–810 yen

Take profits
① in the case of 920–950 yen

If it falls to 880–910 yen by ②

Stop loss
No stop loss at present

(6809) TOA

From the Shikiho, Industry: Electrical machinery.

【Features】Two pillars: in-house broadcasting equipment and security systems. Strengthening regional structure from product planning to sales overseas

【Improvements】Domestic education market steady; delays in US railway deliveries; rising raw material costs. Previous issue profits increased, but no COVID subsidies. For year ending March 2023, domestic education market expansion and network camera product launches; recovery in commercial facilities; operating profit increasing.

【New style】Proposes conversation assistance system that can be heard clearly behind partitions at reception. With masks, demand for microphone amplification increases; stock high-quality wireless microphones.

On May 2, 2022, results and forecasts were announced. For the year ended March 2022, operating profit declined by 5.8% year on year to 2.159 billion yen, ordinary income down 5.9% to 2.407 billion yen; forecast for the year ending March 2023 shows operating profit up 34.3% to 2.90 billion yen, ordinary income up 24.6% to 3.00 billion yen, turning to four consecutive years of revenue and profit growth.

From December 27, 2019, stock at 1,184 yen fell sharply in corona market, bottoming at 630 yen on March 17, 2020; autonomous rebound to 861 yen on March 27, then down to 654 yen as a double bottom on August 3, rising to 570 yen on January 29, 2021, then pulling back to 487 yen on May 13; after this, moved to uptrend (B), reaching 959 yen on November 22, then entered a correction and turned into a downtrend (C). This year, the low of 630 yen on March 8 and the high of 756 yen on March 25 formed a triangle consolidation (D), tightening along the downtrend (C), with a sharp rise above the triangle after breaking out at 662 yen on May 12. As the May 22 credit date has passed, if there is a pullback, further upside tests are anticipated.

Buying point
① 730–760 yen

② 690–720 yen

Take profits
① in the case of 820–850 yen

If it falls to 8630–860 yen by ②

Stop loss
No stop loss at present

(3315) Nippon Cokes & Chemical Industry

From the Shikiho, Industry: Petroleum products and coal.

【Features】Major cokecoke producer. Nippon Steel/Sumitomo group. Imports and sells coal and powderizing equipment as well. Formerly Mitsui Mining

【Decline】Coke sales benefited from low raw coal costs and favorable market conditions; fuel sales also strong, boosting margins. For year ending March 2023, overall chemical machinery orders recovered; however, coke margins compressed as raw coal price relief faded. Operating profit fell. Dividend cut.

【Recovery】Partially damaged coke shipping equipment to be restored by early 2022 with temporary loading facilities; backlog clearing expected. Chemical machinery to continue expanding for secondary battery-related producers.

On May 13, 2022, results were announced. For the year ended March 2022, operating profit rose 75.1% year on year to 12.253 billion yen, ordinary income up 77.5% to 11.454 billion yen; strong growth in sales and profits.

Bottomed at 51 yen on March 13, 2020, corona markets caused sharp declines; bottomed again at 63 yen on March 17, 2020, then rebound; on September 24, 2020, up to 60 yen, then formed uptrend, rising to 124 yen on March 22, 2021, and on July 20 pulled back to 100 yen, reaching a high of 162 yen on October 4. A symmetrical triangle formed with the low of 138 yen on October 1; 158 yen on October 26 marked a resistance and fell to 121 yen on November 29. Gradual rise followed; on February 22 of this year, the low was 133 yen, then surged to 197 yen on March 7, peaking, then drifting lower; on May 18 fell to 123 yen and rebounded to 139 yen on May 23, testing the bottom again.

Buying point
121–126 yen

Take profits
145–150 yen

Stop loss
No stop loss at present

(7537) Marubun

From the Shikiho, Industry: Wholesale trade.

【Features】Electronics trading company handling semiconductors and system equipment. Founded 1844. Joint venture with Arrow for overseas expansion

【Growth】Revenue recognition standards applied reduce sales by about 85 billion. Devices expansion of commercial rights succeeded; industrial machinery demand grew. For year ending March 2023, continued expansion of device rights and brisk demand for systems due to robust capital investment; earnings rising, dividends increasing.

【Expansion】Contracted with three companies in Tohoku for nationwide sale of robots for elder care and medical facilities. Joint development of wireless power transmission demo testers.

On May 13, 2022, results and forecasts were announced. For the year ended March 2022, operating profit surged 485.9% to 5.994 billion yen, ordinary income up 1,234.24% to 4.106 billion yen; substantial growth. For the forecast for the year ending March 2023, operating profit is expected to decline 14.9% to 5.10 billion yen, ordinary income up 9.6% to 4.50 billion yen, with growth in profits expected again.

Corona market caused a sharp drop; bottomed at 406 yen on March 17, then rose to 654 yen on June 29, fell to 441 yen on August 3, recovered to 570 yen on January 29, 2021, then rose to 162 yen high on October 4. Formed triangular consolidation with low of 138 yen on October 1, 2020; breakout at 158 yen on October 26 led to a rise to 121 yen on November 29. Gradual rise and rapid rally to 133 yen on February 22 this year; peak at 197 yen on March 7; then drifted lower. On May 18 fell to 123 yen, rebound to 139 yen on May 23, testing the bottom again.

Buying point
① 730–760 yen

② 690–720 yen

Take profits
① in case of 820–850 yen

② if it falls to 800–820 yen

Stop loss
No stop loss at present