VALUENEX Japan Inc. <4422> remained locked at its daily limit up, drawing exceptional attention. The Tokyo stock market on the 3rd saw defense-related stocks heavily bought amid rising global geopolitical risks stemming from escalating tensions in the Middle East. Within this context, the company's shares have emerged as a prominent defense-related stock. The company provides big data analysis tools based on proprietary algorithms and offers consulting services leveraging these tools. It demonstrates strength in government-related projects, with a strong track record in projects such as technical information collection and analysis for the Air Self-Defense Force among central government agencies. As orders related to the Ministry of Defense tend to have high continuity, expectations for the company's medium-term earnings expansion are pushing up the stock price. With a market capitalization of around \5 billion, making it extremely small-cap, and with short selling via the stock lending market having increased significantly recently, short covering has contributed to the sharp surge.

TOKYO STEEL MANUFACTURING CO., LTD. <5423> showed sudden momentum. The stock broke out of its trading range in the lower \1,600s and clearly shifted toward higher levels. It decisively surpassed the year-to-date high of \1,659 set on the 27th, the previous Friday. As an independent electric furnace manufacturer holding a top-tier market share in the industry, the company's valuation metrics remain in bargain territory, with its price-to-book ratio significantly below liquidation value. Against this backdrop, a substantial shareholding report filed on the 2nd by Hong Kong-based investment fund Oasis Management, known as an activist investor, revealed that Oasis's shareholding in TOKYO STEEL MANUFACTURING reached 6.25%, newly exceeding the 5% threshold as of that date. The stated purpose of the holding is portfolio investment and significant proposal activities (the fund may engage in significant proposal activities to protect shareholder value), and this has attracted buying in anticipation of further gains for the stock.

ASAHI EITO HOLDINGS CO.,LTD. <5341> rapidly gained popularity, remaining at its buy limit. After the close of trading on the 2nd, the company announced it had begun discussions regarding collaboration on trade with a Tokyo-based listed company with a market capitalization of around \100 billion in its "rare gas" business involving helium, neon, and other gases, which it positions as a new challenge. This announcement attracted buying interest. The partner company is an end-user, and the company is also in negotiations with multiple other firms. Simultaneously, the company announced it had begun discussions on collaboration in the trade business for "helium and rare gases" with a domestic high-pressure gas sales company as a partner for trade business channels. The company noted that the impact of both matters on its earnings for the fiscal year ending November 2026 would be minimal.

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

Source: MINKABU PRESS