Core Viewpoint - Nepra Foods Inc. issued a clarification regarding its financial performance statements for FY2025, emphasizing the need for baseline figures to accompany percentage changes for better investor assessment [1]. Financial Information Clarification - The previous press release dated September 11, 2025, included percentage changes in financial performance without providing the baseline figures, which could hinder investor understanding [1].

Summary of Anjoy Foods Group Conference Call Company Overview - **Company**: Anjoy Foods Group (603345.SS, 2648.HK) - **Industry**: Food and Beverage Key Takeaways from the Conference Call 1. **Key Accounts (KAs) Strategy**: - Focus on launching frozen hotpot ingredients in KAs for the upcoming Chinese New Year peak season, following the successful launch of frozen flour and rice products in 1H25. - Management expects distributors to increase shipments despite lower gross profit margins compared to traditional channels, citing lower selling costs and potential for higher net profit margins through deeper collaboration and scaling up. - Plans to introduce 3-20 new products for major KAs such as Freshippo, RT-mart, and Pandonglai, with future opportunities identified in discount channels [1][1][1]. 2. **Overseas Development**: - Collaboration with leading chain KAs to launch approximately 9 high-margin fresh-lock products across 250 stores. - Future expansion into catering and hotel channels in Hong Kong is anticipated to yield higher pricing and margins compared to the domestic market [1][1][1]. 3. **Dingweitai Update**: - The frozen bakery business is projected to achieve high single-digit percentage growth in sales for FY25, with a target of RMB 100 million in 2024. - Management noted that 60% of its channels are emerging, including coffee shops, catering, and ready-to-drink (RTD) drinks, which are expected to create synergies with traditional distribution channels [1][1][1]. 4. **Competition Strategy**: - In 1H25, the company experienced a 1-5% pricing promotion across various categories. - Management does not foresee further deterioration in pricing into 2H25, indicating a stable competitive environment [1][1][1]. Investment Rating and Price Target - **Rating**: Buy-rated on Anjoy A/H shares. - **Price Target**: - Anjoy-A: RMB 82.0 based on a target P/E multiple of 16x applied to the 2026E EPS estimate. - Anjoy-H: HK$ 71.0, reflecting a 20% discount to the A-share multiple [2][3][3]. Risks Identified 1. Lower-than-expected growth in the frozen meal business. 2. Changes in consumer preferences. 3. Rising raw material costs. 4. Food safety concerns. 5. Pricing pressure due to intense competition in the industry [7][7][7]. Conclusion - Anjoy Foods Group is strategically positioning itself for growth through product innovation and expansion into new markets, while maintaining a cautious outlook on competition and market dynamics. The company's strong market position and growth trajectory make it a favorable investment opportunity despite identified risks.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Japanese Equities - **Context**: The analysis focuses on investment opportunities in Japanese equities amid declining tariff uncertainty following a 15% reciprocal tariff agreement announced on July 22, 2025, which significantly reduced trade-related uncertainty [1][7]. Core Insights - **Earnings Performance**: First quarter earnings exceeded expectations despite concerns, with recurring profit declining by 8.0% year-over-year but surpassing consensus expectations by 10.4% [8][48]. - **Investor Positioning**: The distortions in investor positioning caused by tariff concerns are expected to gradually unwind, particularly in sectors that were previously underweighted, such as the auto sector [6][9]. - **Stock Screening**: A screening of stocks was conducted to identify those likely to benefit from the unwinding of distortions, focusing on large cap, highly liquid stocks with strong recurring profit performance relative to full-year guidance [6][48]. Sector Analysis - **Active Fund Positioning**: There has been a decline in weights for Raw Materials & Chemicals, while increases were noted in IT & Services and Financials. The auto sector's weight change appears limited due to prior underweighting [12][19]. - **Valuation Metrics**: Sectors such as Foods, Pharmaceuticals, and Transportation & Logistics appear attractive based on Book-to-Price (B/P) and forward Earnings-to-Price (E/P) metrics, while sectors like Energy & Resources and Machinery are considered relatively expensive [21][23][39]. - **Foreign Exposure**: Japanese companies derive 44% of total sales from overseas, with 18% from the Americas and 16% specifically from the US. High exposure sectors include Rubber Products and Transport Equipment [31][34]. Investment Recommendations - **Long Side Conditions**: Stocks recommended for the long side must show a decline in global fund active weight, a valuation score of 70 or higher, a US sales ratio of 10% or more, and Morgan Stanley ratings of Overweight or Equal Weight [40][42]. - **Short Side Conditions**: Stocks for the short side should exhibit an increase in global fund active weight, a valuation score of 30 or lower, a US sales ratio below 10%, and Morgan Stanley ratings of Equal Weight or Underweight [40][43]. Performance Insights - **Stock Performance**: The long side has underperformed the universe (TOPIX500), while the short side has outperformed significantly, with a performance gap attributed to the period surrounding the announcement of reciprocal tariffs [44][46]. - **Market Sentiment**: Political optimism in Japan and a resilient tech sector are expected to support large cap, highly liquid stocks, with upward revisions in analysts' earnings forecasts anticipated due to stronger-than-expected first quarter results [50][49]. Additional Considerations - **Sector-Specific Trends**: While some sectors have shown improved investor preference, caution is warranted due to valuation levels. Individual stock assessments remain essential [39][48]. - **Earnings Guidance**: Corporate guidance has remained largely unchanged, but some companies have revised their outlooks upward, indicating milder-than-expected impacts from tariffs [49][50]. This summary encapsulates the key points discussed in the conference call regarding the Japanese equities market, focusing on the implications of tariff agreements, sector performance, and investment strategies.

Investment Rating - The report maintains a target for the TOPIX at 2,900 points for Q2 2026, with a base case EPS growth forecast of 1% for 2025 and 8% for 2026 [7][9]. Core Insights - The report suggests a strategic shift from high volatility stocks to high-dividend stocks, anticipating a cautious outlook during the April–June earnings season and an increased preference for cash flow among investors [6]. - External pressures include US tariff hikes, which have increased from 10% to 25%, creating uncertainty in trade negotiations, particularly in the auto sector [6]. - The upcoming Upper House election is expected to influence sectors such as defense, retail, real estate, and utilities, depending on the ruling coalition's performance [6]. - The Financial Services Agency (FSA) plans to revise Japan's Corporate Governance Code, which may lead to renewed interest in cash-rich stocks [6]. Summary by Sections Economic Outlook - The report anticipates a cautious economic environment with potential political shifts post-election affecting fiscal and monetary policies [6]. - The demand for infrastructure investment is expected to grow, enhancing the performance of national resilience-related sectors over the medium to long term [6]. Sector Preferences - Domestic demand-oriented sectors are favored over external demand-driven sectors, with a net overweight position in the financial sector [18][20]. - Specific sectors such as pharmaceuticals, retail, and construction materials are highlighted for their growth potential, while export-oriented sectors may face challenges [17][21]. Focus List - The focus list includes companies with a cautious view on cyclical large-scale external demand stocks and a bullish view on domestic demand growth stocks [21]. - Companies such as Kajima, Japan Tobacco, and Cosmos Pharmaceutical are rated as Overweight, indicating strong potential for returns [21].