Shares of Howa Machinery, Ltd. <6203> hit their daily limit up as buying interest intensified. While the company manufactures defense-related products including firearms, market participants have increasingly focused on a drone equipped with a dropping mechanism jointly developed with Prodrone, an unlisted drone maker visited by Defense Minister Shinjiro Koizumi on May 20. Although some time has elapsed since the inspection, news emerged on May 28 of an Iranian drone attack on Kuwait. Amid growing recognition of potential demand for drones as a key defense capability, investment funds rushed into Howa Machinery on speculation of expanding demand for defense drones, driving the sharp rally. Japan Drone 2026, the nation's largest drone exhibition, is scheduled to begin on June 3, fueling expectations for further industry-related news.

NADEX CO., LTD. <7435> shares surged to hit their daily limit in the afternoon session. The company announced on Thursday that it has launched a project to accelerate its initiatives in the manufacturing process domain within the expanding semiconductor and generative AI-related markets, boosting investor sentiment. Leveraging its technological foundation cultivated in the automotive, factory automation (FA), and machine tool sectors, NADEX aims to provide proposals that drive higher precision, miniaturization, productivity, and energy savings in the manufacturing processes of semiconductor and generative AI-related devices. The company plans to provide end-to-end support from preliminary verification to mass production start-up, optimizing the entire process.

Bitcoin Japan Corporation <8105> hit its daily limit up with unfilled buy orders remaining. After the market close on May 27, the company announced it will invest in U.S.-based SpaceX through a fund, triggering strong buying interest. The planned investment amount is approximately 2.042 billion yen, with a principal investment of around 1.688 billion yen. The company stated it is currently evaluating the impact on its earnings for the fiscal year ending March 2027.

NIKKATO CORPORATION <5367> shares hit their daily limit up amid concentrated speculative interest, trading in a price range not seen since November 2018, approximately seven and a half years ago. The stock price has surged significantly due to successive waves of investment inflows. After a slight pullback the previous day, buying on dips was strong, and today the stock rebounded sharply, jumping 150 yen to hit its daily limit up at 1,149 yen. Against the backdrop of surging demand for multilayer ceramic capacitors (MLCCs) for AI servers, top global suppliers such as Murata Manufacturing Co.,Ltd. <6981> have seen their stock prices rally. NIKKATO derives 70% of its sales from ceramics, with over 60% of that related to electronic devices, making it a target for investment funds as a hidden AI server-related stock. With no signs of overvaluation based on indicators such as price-to-earnings (PER) and price-to-book (PBR) ratios, the momentum-driven rally is accelerating.

EDP Corporation <7794> shares temporarily hit their daily limit up. After the close of trading on May 27, the company announced the successful development of mosaic crystals for producing 2-inch wafers. It also released its medium-term management plan, setting targets for the fiscal year ending March 2029 of 2.08 billion yen in sales (versus a 1.1 billion yen forecast for the fiscal year ending March 2027) and an operating profit of 195 million yen (versus an operating loss of 283 million yen). These announcements attracted strong buying interest. EDP published a roadmap in November 2024 regarding diamond wafer development, aiming to develop 2-inch wafers. With the completion of mosaic crystals, the company plans to produce seed crystals for fabricating 2-inch wafers using replication technology with ion implantation. If progress continues smoothly, the company plans to establish mass production capabilities in the second half of the fiscal year ending March 2027. EDP also announced the issuance of new shares and stock acquisition rights with an exercise price adjustment clause through a third-party allotment. The company will issue a total of 483,000 new shares to Takeuchi Kogyo (Nakagawa-ku, Nagoya) and Tsuchiya (Naka-ku, Nagoya), and will issue stock acquisition rights to Okasan Securities, a subsidiary of OKASAN SECURITIES GROUP INC. <8609>. The potential number of shares from the stock acquisition rights is 3,000,000. The maximum dilution rate based on total issued shares is 22.51%. The pricing date will be one of the days between June 1 and June 3. The raised funds will be allocated to development investments, increased production of lab-grown diamond rough stones, and the establishment of a jewelry sales system.

* Unconfirmed information may be included. Please make your own judgment regarding stock trading at your own risk.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.