CFS, Mitsubishi UFJ, Nomura, Shinsei Bank: Japan Equity Preview

By Akiko Ikeda

Sept. 23 (Bloomberg) -- The following companies may have unusual price changes in Japanese trading on Sept. 24. Stock symbols are in parentheses, and share prices are from the previous close. The information in each item was released after markets shut, unless stated otherwise.

Central Japan Railway Co. (9022 JT): Japan's biggest operator of bullet trains will pay back 74.8 billion yen ($703 million) of long-term debt earlier than scheduled to improve its balance sheet. The purchase won't affect its earnings projections for the year, it said. The stock fell 10,000 yen, or 1 percent, to 1.02 million.

CFS Corp. (8229 JT): The drugstore operator's net income for the six months ended August 20 was about 400 million yen, more than twice its 150 million yen target, it said in a preliminary earnings statement. It cited sales of seasonal products and prescription drugs. The stock fell 10 yen, or 1.4 percent, to 700.

Circle K Sunkus Co. (3337 JT): The convenience store chain raised its full-year profit forecast 32 percent to 8.74 billion yen, from 6.62 billion yen previously. It cited a boost in sales from electronic age identification tobacco vending machines. The stock fell 33 yen, or 2 percent, to 1,642.

First Baking Co. (2215 JT): The baker said it will sell a plant in Sendai for 1.75 billion yen as it withdraws from an unprofitable business. The stock rose 1 yen, or 0.9 percent, to 117.

Hodogaya Chemical Co. (4112 JT): The chemicals maker slashed its full-year profit target 50 percent to 400 million yen, because of competition with cheaper products from other parts of Asia, a slowing economy in Europe and the U.S. and higher raw material and fuel costs. The stock rose 5 yen, or 2.4 percent, to 217.

Jeans Mate Corp. (7448 JT): The casual-wear retailer said August sales at 101 stores open at least 12 months dropped 11 percent, because of a sluggish summer clothing sales. The stock fell 5 yen, or 0.9 percent, to 525.

Mitsubishi UFJ Financial Group Inc. (8306 JT): Japan's largest bank agreed to invest up to 900 billion yen for as much as 20 percent of Morgan Stanley (MS US). The stock rose 36 yen, or 4.2 percent, to 898.

Nomura Holdings Inc. (8604 JT): Japan's biggest investment bank agreed to buy Lehman Brothers Holdings Inc.'s (LEHMQ US) Asian unit for at least 20 billion yen and closed in on purchasing two of the firm's European divisions. The stock rose 125 yen, or 9.6 percent, to 1,430.

Right On Co. (7445 JT): The jeans and casual wear retailer said a full-year net income was about 2.47 billion yen, more than its 1.7 billion yen outlook, as reduction in inventory boosted gross profit, it said in a preliminary earnings statement. The company also said September sales at stores open at least 12 months rose 7.5 percent because of an additional Saturday this year, compared with last year same period. The stock rose 6 yen, or 0.5 percent, to 1,228.

Shinsei Bank Ltd. (8303 JT): The first Japanese bank acquired by overseas investors forecast profit this year to fall 80 percent because of losses on debt to Lehman Brothers Holdings Inc. (LEHMQ US). Net income for the 12 months ending March 31 will likely decline to 12 billion yen, from 60.1 billion yen a year earlier. Its previous forecast was 62 billion yen. The stock rose 13 yen, or 4.3 percent, to 313.

Taiyo Co. (9949 JO): The supermarket chain operator cut its full-year profit forecast 30 percent to 1.6 billion yen, saying recent reports of food safety problems have depressed food sales. The stock was unchanged at 1,090 yen.

Terashima Co. (7586 JQ): The drugstore chain operator said it may accept a buyout bid from bigger rival Growell Holdings Co. (3141 JT). Growell today offered as much as 12 billion yen to acquire at least a 50.18 percent stake in Terashima, or 1,976 yen for each Terashima share. Terashima rose 100 yen, or 10 percent, to 1,100. Growell was unchanged at 2,120.

THK Co. (6481 JT): The industrial machinery maker said it established a subsidiary in Vietnam. The unit, which makes parts for automobiles, is scheduled to start operation in June 2009. The stock rose 85 yen, or 4.8 percent, to 1,855.

Tokai Tokyo Securities Co. (8616 JT): The brokerage said it will pay a midterm dividend of three to five yen, compared with 7.5 yen a year earlier. The company will also spend as much as 2 billion yen to buy back up to 1.13 percent of its outstanding shares beginning on Sept. 24. The stock rose 10 yen, or 2.6 percent, to 395.

To contact the reporter on this story: Akiko Ikeda in Tokyo at iakiko@bloomberg.net