eREX Co.,Ltd. <9517> surged to the daily limit, moving independently of the broader market. The company operates an electricity retail business purchasing and reselling surplus power, while also running multiple biomass power plants domestically and abroad. "Against the backdrop of soaring global energy prices, market expectations are growing that the company's business model is capturing business opportunities," noted a strategist at a mid-tier securities firm. While the company has built a track record through decarbonization support for East Japan Railway Company <9020> via virtual PPAs (environmental value transactions), market recognition appears to be spreading of eREX as a leading related stock in anticipation of the emissions trading system (GX-ETS) set to commence full operations next month. Credit trading conditions show a recent margin trading ratio of 0.78x, indicating a net short position, while the Japan Securities Finance loan-to-borrowing ratio stands at an even tighter 0.11x, suggesting underlying conditions favorable for increased investor interest from a stock supply-demand perspective.

ENVIRONMENTAL CONTROL CENTER CO.,LTD. <4657> exhibited upward momentum. Around 1:00 p.m., the company announced it had developed an AI system to support asbestos fiber counting work through a joint research team with the National Institute for Environmental Studies and Japan NUS Co., Ltd. (JANUS, Shinjuku, Tokyo), which was viewed favorably by the market. The system was developed based on the recognition that there is a need for a support system capable of counting with accuracy and analysis time equivalent to experienced analysts by applying artificial intelligence (AI) to fiber detection in phase contrast microscopy (PCM) images. The developed "MECOLAS" is an automatic detection system using an AI model and image processing for PCM images of actual atmospheric samples, and represents Japan's first asbestos measurement support system amid the global trend of international standardization organizations and occupational safety and health agencies, including the International Organization for Standardization (ISO), considering AI utilization for asbestos counting.

TAIHEIYO KOUHATSU INCORPORATED <8835> surged sharply, rising to its highest level since 2014. Katakura & Co-op Agri Corporation <4031> also posted substantial gains, updating its year-to-date high for consecutive sessions. More than a month has passed since the United States and Israel initiated military operations against Iran, and the Middle East conflict shows no signs of resolution. On the 28th, Yemen's Houthi armed group, which maintains close ties with Iran, attacked Israel, marking entry into a new phase and raising concerns about prolonged risks of disruption to fertilizer raw material transportation. While risk-averse sentiment dominates the stock market, demand for fertilizer-related stocks continues on speculation of earnings boosts from rising fertilizer prices. OAT Agrio Co., Ltd. <4979> opened with a gap up and continued its sharp rise.

EBRAINS, INC. <6599> delivered exceptional upward performance. The stock jumped as much as \340 at one point, decisively breaking through the \3,640 high reached on the 25th of the previous week. The market capitalization has risen to its highest level in approximately five years and two months, marking levels not seen since January 2021. As global security risks intensify amid Russia's invasion of Ukraine and U.S.-Israeli military attacks on Iran, investor attention toward defense-related stocks has strengthened. In this context, EBRAINS engages in contract manufacturing of backplanes, key devices in industrial computers, with defense-related projects including communications and radar systems experiencing steady growth, bringing the company into focus as a leading related stock. The company has entered a period of earnings growth acceleration with the start of mass production for smart grids and other applications. Expectations for shareholder returns, including consecutive dividend increases each period, have also supported the stock price rise.

Advanced Media, Inc. <3773> surged to the daily limit on strong investor interest. The positive reaction followed the company's announcement after market close on the 27th of the previous week that it had revised upward its consolidated earnings forecast for the fiscal year ending March 2026, raising net profit from \1.4 billion to \1.62 billion (up 15.1% year-on-year), while also increasing the year-end dividend forecast from \30 to \33.50 (previous year: \27.50). The revision is attributed to the recognition of approximately \580 million in gains on sale of investment securities as extraordinary income following the sale of investment securities held. The dividend forecast includes an increase in the ordinary dividend along with a commemorative dividend of \2.50 to mark the 20th anniversary of listing. Meanwhile, the company revised downward its sales forecast from \8 billion to \7 billion (up 5.0% year-on-year) and operating profit from \1.8 billion to \1.34 billion (down 7.1% year-on-year). While subscription-based stock-type contracts were acquired smoothly across business divisions, large-scale flow-type projects decreased in the CTI division serving the contact center industry, and M&A plans envisioned at the beginning of the fiscal year experienced delays.

*This article may contain unconfirmed information. Stock trading should be conducted at your own risk and judgment.

Source: MINKABU PRESS