Outlook on the Japanese Stock Market and Analysis of Notable Stocks from a Web3 Perspective

Current State of the Japanese Stock Market and Future Outlook

The Japanese stock market is forming an upward trend supported by the re-evaluation of corporate value and structural advantages. The main factors are as follows:

• Recovery of PER: from about 12 times to 13 times
• Inflow of overseas funds: The relative undervaluation is attractive.
• Corporate governance reform: Improvement of fundamental strength through dividend increases and share buybacks.
• Recovery of the technology supply chain: Performance improvement in the semiconductor and precision equipment sectors.

In terms of future sustainability, it is necessary to pay attention to the following factors:

• Adjustment of the Bank of Japan's monetary policy
• Changes in global investors' risk preferences

Moreover, the impact of the rise of Web3 technology on Japanese companies is also an important aspect. The introduction of blockchain technology is expected to lead to increased efficiency and the creation of new business models.

Analysis of Notable Tokens from a Web3 Perspective

1. KEYENCE(6861.JP)

• "Hidden Champions" in the field of industrial automation
• Main products: sensors, image processing systems, measuring instruments, etc.
• Financial performance is robust, with key indicators growing year by year.
• Analyst's average target stock price: 74,282.41 yen (upside potential 30%)

Web3 Perspective: Innovation in industrial sensor networks is expected through the integration of IoT devices and blockchain technology.

2. Tokyo Electron (8035.JP )

• Global semiconductor manufacturing equipment leader
• The sales revenue for the fiscal year 2024 is expected to increase by 32.8% to 2.43 trillion yen.
• The overseas market is performing well, accounting for 92.2% of total sales.
• Target stock price: ¥32,000, maintaining a "buy" recommendation

Web3 Perspective: The demand for high-performance chips for quantum computing and AI is expected to increase, and the sophistication of manufacturing equipment is required.

3. Mitsubishi Heavy Industries(7011.JP)

• Leading Japan's defense industry
• For the fiscal year 2025-26, operating profit is expected to increase by 9.6% to 420 billion yen.
• Aerospace and defense business as the main growth driver
• Analyst's average target stock price: 3,743.76 yen (upside potential 17.54%)

Web3 Perspective: The application of blockchain technology to defense systems is gaining attention for enhancing security and improving the efficiency of information sharing.

4. Nintendo(7974.JP)

• A globally renowned gaming company
• The fiscal year 2024 is expected to see a decrease in performance, primarily due to the end of the product lifecycle for the Switch.
• Analysts are optimistic about the long-term growth potential of the gaming industry.
• Average target stock price: 14,035.27 yen

Web3 Perspective: The potential for entering NFTs and blockchain games, as well as the expansion of existing IPs into the metaverse, is attracting attention.

5. Sony Group (6758.JP )

• The music and movie content business is a new driver of profit growth.
• Actively developing countermeasures to the impact of U.S. tariff policies.
• Average analyst target price: 4,389.49 yen (upside potential 21.69%)

Web3 Perspective: The utilization of blockchain technology in content management and the development of metaverse platforms are anticipated.

6. Mitsubishi Corporation (8058.JP )

• One of Japan's five major trading companies, a key investment destination for Warren Buffett.
• The pre-tax profit for the fiscal year 2025 is expected to increase by 2.3% to 1.4 trillion yen.
• It is wise to consider investing while waiting for the stock price to adjust to a fair level.

Web3 Perspective: The use of smart contracts in international transactions and the streamlining of supply chain management are being advanced.

7. Hitachi, Ltd. (6501.JP )

• Actively promote the shift to software service companies
• While maintaining the heavy machinery manufacturing business, focus on digitalization services for the industry.
• A clear transition strategy and strong execution capabilities are well-received by the market.

Web3 Perspective: Development of smart factory solutions is progressing through the integration of industrial IoT and blockchain.

Methods of Investing in Japanese Stocks

1. Direct investment in Japanese stock indices (such as Nikkei 225)
2. Purchase of Japanese companies' ADRs (American Depositary Receipts) in the US market
3. Transactions through Taiwanese securities firms (Yuanta Securities, Fubon Securities, etc.)

Conclusion

The Japanese stock market, while influenced in the short term by macroeconomic policies and international situations, will be driven by long-term factors such as corporate governance reforms, enhanced competitiveness of emerging industries, and improvements in Japan-U.S. economic relations. In particular, as the adoption of Web3 technology progresses, companies that are advancing the integration of traditional industries and digital technologies are attracting attention. Investors must participate in the Japanese stock market with a cautious and strategic approach, taking these factors into account.