Investment Rating - The report assigns an "Overweight" rating to Canon (7751.T) with a price target of ¥6,200, while the stock closed at ¥4,441 on May 20, 2025 [4]. Core Insights - Canon is expected to expand its semiconductor domain in its new medium-term plan starting in F12/26, with a new ArF dry lithography product launch anticipated in late 2025 [3]. - The company is also working on Nanoimprint Lithography (NIL) and aims for mass production after customer reviews, while addressing performance issues [3]. - In the medical sector, Canon is restructuring with a focus on improving profitability, targeting an operating profit margin (OPM) of 10% within the next 2-3 years [3]. - The firm plans to drive growth through business domain expansion, including mergers and acquisitions (M&A) [3]. Financial Estimates - The estimated EPS for F12/26 is ¥364.6, with a P/E multiple of 17.0x, reflecting a phase of profitability improvement [7]. - The projected OPM is expected to exceed the historical high of 10.6% since F12/11 [7]. Market Context - The current market capitalization of Canon is ¥5,923.2 billion, with an average daily trading value of ¥16.7 billion [4].

Investment Rating - The report assigns an "Overweight" rating to Elia, indicating a positive outlook for the stock [6]. Core Insights - Elia's FY25 guidance includes a net profit range of €490-540 million, which aligns closely with the consensus estimate of €526 million [8][3]. - The company provided divisional guidance for the first time, which is expected to validate consensus expectations [8][3]. - The 2025 capital expenditure (capex) outlook has been slightly revised down in both Belgium and Germany, with Belgium's capex expected at €1.5 billion (previously €1.7 billion) and Germany's at €3.6 billion (previously €3.8 billion) [2]. Summary by Sections Financial Performance - Elia's net profit guidance for 50 Hertz is set at €380-420 million, compared to a consensus of €405 million [3]. - ETB's net profit is expected to be in the range of €255-285 million, against a consensus of €257 million [3]. - The non-regulated segment is projected to incur a loss of €35-45 million, with a positive contribution from Nemo Link Interconnector of approximately €25 million [3]. Capital Expenditure - The revised capex for Belgium is €1.5 billion and for Germany is €3.6 billion, reflecting project delays [2]. Market Position - Elia's current market capitalization is approximately €10.073 billion, with a price target set at €120.00 [6].

Investment Rating - The investment rating for Shiseido is Underweight [2][55]. Core Insights - Shiseido plans to implement structural reforms in F12/25 to improve profits in the Japan business by reviewing personnel expenses and promoting digitalization and e-commerce channels [5]. - The company sees growth potential in the Japanese market, particularly among the elderly and younger demographics, as well as male customers, aiming to enhance brand value for both domestic and Asian markets [5]. - In the China and Travel Retail (TR) business, Shiseido aims to regain price control and advance restructuring through the integration of two businesses [5]. - The US market presents challenges due to high price sensitivity and competition, but Shiseido identifies significant expansion opportunities in e-commerce and fragrances [5]. Valuation Methodology - The price target for Shiseido is set at ¥2,600, valuing the stock at 11.5x EV/EBITDA based on F12/26 forecasts [6].

May 21, 2025 07:31 AM GMT Recruit Holdings (6098) | Japan Japan Summit 2025: Re- evaluation of Corporate Quality and Business Model to Continue as Stock Market Normalizes? Earnings and business environment: Services provided to companies seeking to recruit new employees are affected by market conditions. As a whole, we understand Recruit is seeking the best possible measures and looking for opportunities to review the overall structure of its business. The company is aiming to improve the efficiency of busi ...

Investment Rating - The investment rating for Alchip Technologies Ltd is Overweight (OW) with a price target of NT$3,988.00, indicating a potential upside of 53% from the closing price of NT$2,605.00 on May 19, 2025 [5][67]. Core Insights - Alchip Technologies Ltd is positioned as a key partner in NVIDIA's NVLink Fusion initiative, which allows hyperscalers to create custom computing systems [2][7]. - The report emphasizes the importance of ASIC design in enhancing efficiency for internal workloads and reducing total cost of ownership (TCO) [7]. - Alchip is reaffirmed as the sole supplier for AWS's 3nm AL accelerator, with no other design service providers currently involved in the same project [7]. Summary by Sections Investment Rating - Alchip Technologies Ltd is rated Overweight with a price target of NT$3,988.00, representing a 53% upside from the current price [5]. Financial Metrics - The market capitalization of Alchip is NT$212,060 million, with an average daily trading value of NT$7,195 million [5]. - Projected EPS for fiscal years ending December 2023 to December 2026 are NT$43.27, NT$79.13, NT$81.56, and NT$147.34 respectively [5]. Market Position - Alchip is highlighted as one of the first adopters of NVLink Fusion, alongside other notable companies such as Astera Labs and MediaTek [2]. - The report notes that while NVLink Fusion is a significant development, concerns about lock-in risks with NVIDIA may affect the pace of concrete project developments [7]. Future Outlook - The report suggests accumulating Alchip stock, given its strong position in the semiconductor market and the anticipated growth from its partnerships and technology advancements [7].

May 20, 2025 12:14 AM GMT Sustainability | Japan Morgan Stanley MUFG Securities Co., Ltd.+ M Update TOPIX 500 Firms Making TNFD- aligned Disclosures Of the TOPIX 500 constituents, 152 are making disclosures aligned with the TNFD recommendations, but 63 of them have yet to issue any commitment as TNFD Adopters. Exhibit 1: TOPIX 500 constituents making disclosures aligned with the TNFD recommendations | Ticker Company name | Ticker Company name | | --- | --- | | 1332 NISSUI | 4927 POLA ORBIS HOLDINGS | | 1333 ...

May 20, 2025 12:15 AM GMT Rio Tinto Limited | Asia Pacific M Update Adding to South American lithium exposure What's new? Rio Tinto has announced an agreement with Codelco (not covered) on forming a JV to develop the Salar de Maricunga lithium project in Chile. RIO will receive a 49.99% interest in the JV and commits to an investment of up to US$0.9bn (US$350m upon close – expected 1Q26; US$500m upon decision to proceed with construction – before 2030; and US$50m into the JV if it achieves production by CY3 ...

Investment Rating - The investment rating for Dyno Nobel Limited is Equal-weight with a price target of A$2.90, indicating a modest upside of 13% from the current price of A$2.57 [6]. Core Insights - The report indicates that divestments are progressing towards a full fertilizer separation, although the proceeds from these sales appear light [1][4]. - The underlying performance in explosives is solid, but overshadowed by resegments and turnarounds [1]. - The market is expected to wait for a complete fertilizer separation before making significant moves [1]. Financial Performance - The sale of the Fertiliser Distribution business to Ridley Corporation is expected to yield gross proceeds of A$375 million, which is viewed as underwhelming at 7x EBIT based on the average over the past five years [4]. - The Perdaman offtake agreement is projected to generate gross proceeds of A$145 million, which is considered light given expectations of A$45 million per annum of EBIT [4]. - The company reported a 1H25 EBIT of A$174 million, which is a 13% increase compared to Morgan Stanley estimates and an 8% increase versus the previous year [9]. Market Guidance - The guidance for FY25 remains unchanged, with an expected exit run rate of approximately 40-50% of a ~A$300 million EBIT uplift program [9]. - The production forecast for Phosphate Hill in FY25 is maintained at 740-800kt, with anticipated gas costs of A$40-80 million due to shortfalls [9]. - Contracted fertilizer sales volumes have been deferred into 2H25 due to adverse weather conditions [9].

Investment Rating - The investment rating for Britannia Industries Ltd is Equal-weight [8] Core Insights - Management anticipates a gradual sequential recovery in growth, aiming for double-digit revenue growth in fiscal year 2026. Price hikes implemented in the fourth quarter are expected to fully impact the first quarter, with no further price changes anticipated [1] - Volume growth was reported at 3.5% in the fourth quarter [1] - The company is targeting cost savings of over 2.5% in fiscal year 2026, with a focus on increasing distribution depth in high-potential outlets and expanding reach in rural areas [2] - The non-biscuit portfolio currently represents 75% of the product mix, with aspirations to grow it at 1.5 times the biscuit portfolio [2] - The company has not actively pursued mergers and acquisitions due to high valuations and low potential for value creation [3] Financial Metrics - The price target for Britannia Industries Ltd is set at Rs 5,511.00, with a current share price of Rs 5,436.00, indicating a 1% upside potential [8] - Market capitalization is reported at Rs 1,307,186 million, with an enterprise value of Rs 1,295,712 million [8] - Projected revenue for fiscal year 2025 is Rs 177,781 million, increasing to Rs 194,068 million in fiscal year 2026 [8] - Earnings per share (EPS) is expected to grow from Rs 91.57 in fiscal year 2025 to Rs 109.51 in fiscal year 2026 [8] - The company maintains a high return on equity (ROE) of 60.6% for fiscal year 2025, projected to be 60.1% in fiscal year 2026 [8]

Investment Rating - The report assigns an "Overweight" rating to Eli Lilly & Co. with a price target of $1,133.00, reflecting a strong growth outlook for the company [5]. Core Insights - The SURMOUNT-5 Phase 3 obesity trial data indicates that Zepbound (Tirzepatide) outperformed Wegovy (Semaglutide) in terms of weight reduction, with a 20.2% reduction from baseline at 72 weeks compared to 13.7% for Wegovy [2]. - Zepbound patients were significantly more likely to achieve substantial weight loss milestones, being 2.8 times more likely to lose at least 30% of their body weight compared to Wegovy patients [2]. - The trial also showed that Zepbound had a lower incidence of gastrointestinal adverse events leading to treatment discontinuation compared to Wegovy, although injection-site reactions were more common with Zepbound [1][2]. Summary by Sections Trial Results - In the SURMOUNT-5 trial, 89.3% of Zepbound participants received at least one 15mg dose, while 92.8% of Wegovy participants received at least one 2.4mg dose [1]. - The rates of nausea and diarrhea were similar in both groups, but Zepbound had a lower vomiting rate (15% vs. 21%) [1]. Weight Reduction - The percent change from baseline in body weight at 72 weeks was 20.2% for Zepbound versus 13.7% for Wegovy [2]. - Zepbound patients were 1.3x to 2x more likely to achieve weight reductions of at least 10%, 15%, 20%, and 25% compared to Wegovy patients [2]. Cardiometabolic Improvements - Greater weight reduction with both treatments led to improvements in cardiometabolic risk factors, including blood pressure and glycemia, with clinically relevant mean differences between Zepbound and Wegovy [3][7]. Market Context - The SURMOUNT-5 data may help Eli Lilly maintain market share in the face of potential impacts from the IRA on Semaglutide in 2027 and its eventual loss of exclusivity in 2032 [9].