Itochu Corporation

JR East President Yoichi Kisei announced at a regular press conference on the 8th that the company will abolish its company housing and convert it into condominiums and other properties. The company and Itochu Corporation have agreed to establish a new real estate company around October, which will promote the utilization of these properties. Through the development and conversion of company housing sites, the company expects to generate approximately 150 billion yen in revenue from its real estate business by fiscal 2031. Kisei stated, "The company housing we are abolishing is a valuable asset, and we want to create new revenue value with our own hands," also mentioning conversion to rental housing and sales as means of monetization. Since the maximum period for employees to reside in company housing is set at 15 years, some measures will be taken for employees who leave the housing before their period expires.

Berkshire Hathaway CEO Greg Abel said Wednesday that rising bond yields in Japan are not weighing on the major Japanese trading companies in which the conglomerate holds stakes. During an appearance on CNBC's "Squawk Box" while visiting Tokyo, Abel said not a single trading company raised it as a fundamental challenge, noting that Japan's yields, while at multi-decade highs, remain relatively modest compared to other global yields. Japan's 10-year bond yield hit a 30-year high this week, reaching just above 3%, while the U.S. 10-year Treasury yield crossed 4.8% on Tuesday. Berkshire holds stakes exceeding 10% in five major Japanese trading houses — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — and Abel said the company intends to hold these positions for decades and continue tapping the yen bond market when needed. He also discussed Berkshire's investment in Alphabet, viewing Google's parent as a significant player in artificial intelligence, and addressed data center power supply, saying Berkshire is open to supplying power to large computing firms only if it does not raise rates for existing customers.

Itochu announced on the 28th that it will conduct a tender offer for Dentsu Soken, a major system development company, at 2,880 yen per share through a subsidiary. Dentsu Soken plans to agree to the proposal, and Itochu will acquire 38.2% of shares, excluding those held by Dentsu Group, to take the company private. Regarding Dentsu Soken, the parent-subsidiary listing had been criticized by overseas institutional investors, and Dentsu Group had been considering taking it private to improve corporate governance. Dentsu Soken's market capitalization was 535.6 billion yen at the close on the 27th, and the total tender offer is expected to exceed 200 billion yen.

Itochu shares closed at 2,004 yen on the Tokyo Stock Exchange on August 20, 2026, up 27 yen from the previous day, rebounding on a report that the company will enter the data center development business. The company announced its first-quarter results for the fiscal year ending March 2027 on August 3, with revenue up 8.9 percent year on year to 3.875861 trillion yen and net profit up 3.5 percent to 293.763 billion yen, while pretax quarterly profit fell 1.3 percent to 369.999 billion yen due to a decline in securities gains and losses. At the same time, it resolved to buy back up to 300 billion yen of its own shares, of which 150 billion yen will be carried out through a discounted tender offer targeting four non-life insurers. The tender offer price is 1,813 yen per share, a 10 percent discount from the July 31 closing price.

The Nikkei reported that Itochu Corporation is entering data center development. The company envisions power capacity of around 50 megawatts per facility and plans to develop one to two sites per year. By 2030, it aims to invest several hundred billion yen to build about 10 facilities in the Tokyo metropolitan area, Kansai, and Kyushu, leasing them to major U.S. tech companies and others. Itochu sees this as a new revenue source for its real estate business and is also considering collaboration with its partner East Japan Railway Company.

Itochu Corporation announced on the 3rd that it will participate in the management of US aircraft leasing company Aviation Capital Group. The company is wholly owned by a subsidiary of Tokyo Century, and Itochu will acquire a 50% stake in that subsidiary for 1.946 billion dollars, or about 300 billion yen. The move aims to strengthen its business in anticipation of growth in the aircraft leasing market. Itochu currently leases over 90 aircraft and engines to airlines in various countries.

Itochu announced on the 3rd a share buyback of up to 190 million shares, representing 2.7% of its outstanding stock, with a maximum value of 300 billion yen. Of this, up to 150 billion yen will be conducted through a tender offer at a price of 1,813 yen per share, running from the 4th to September 1st. The remaining planned acquisition amount after the tender offer will be used for market purchases, with a buyback period extending through January 29, 2027. The company maintains a shareholder return policy of a total payout ratio of at least 40% and progressive dividends.

Itochu Corporation reported consolidated net profit for the first quarter of the fiscal year ending March 2027, rising 3.5% year-on-year to 293.7 billion yen, marking a record high for the first quarter for the second consecutive year. The machinery, metals, and energy and chemicals segments drove the growth. The company maintained its full-year consolidated net profit forecast of 950 billion yen, up 5.5% from the previous year, but this fell short of the average estimate of 963.6 billion yen from 13 analysts polled by IBES. Itochu also resolved to buy back up to 190 million shares, representing 2.7% of outstanding shares, for a maximum of 300 billion yen, with the repurchase period running from August 4 to January 29, 2027.

Itochu's share price is hovering at elevated levels, with its market capitalization reaching approximately 15 trillion yen. For the fiscal year ending March 2026, net profit is expected to rise 2.3 percent year on year to 900.3 billion yen, and for the fiscal year ending March 2027, it is forecast to increase to 950 billion yen. Return on equity stands at about 14.6 percent, the highest among the five major trading houses, supported by stable earnings from non-resource sectors. With a forecast price-to-earnings ratio of around 14 times and a price-to-book ratio of about 2.1 times, the company's high capital efficiency is well regarded, and its progressive dividend policy also provides reassurance to investors.

The US military launched a new wave of strikes on Iran for the 10th straight day, while President Donald Trump signed three proclamations imposing an additional 50 percent tariff on certain Canadian goods, citing discriminatory trade practices against the United States. Israeli intelligence assesses that Iran has moved thousands of nuclear centrifuges deep underground into the Pickaxe Mountain, making them difficult to target from the air. Japanese Prime Minister Sanae Takaichi announced plans to strengthen ties with the United Kingdom under new Prime Minister Andy Burnham, who won the Labour Party leadership election last week. Meanwhile, Itochu Corporation is set to launch a business in November extracting critical minerals from used smartphones and computers. China continues to enforce Level 4 emergency flood control measures in Guangxi Zhuang, Hubei, and Hunan. In the United States, the grid operator for 14 central states warned of potential rolling blackouts as electricity demand surges to record highs. Indonesia's parliament unanimously passed a bill to establish an international financial center aimed at attracting foreign investment. Japan's Meteorological Agency issued a warning that temperatures could rise to dangerous levels and urged the public to guard against heatstroke. Chinese customs data shows that two-way trade between North Korea and China in the first half of 2026 jumped 19.6 percent to 1.5 billion US dollars, with North Korean exports to China soaring 54.1 percent, although China still runs a trade surplus with North Korea.

Itochu Corporation is set to launch a new business in November to extract critical minerals from used smartphones and computers for resale. A joint venture between Belong Inc., a subsidiary of Itochu, and a major US IT equipment recycling company will begin operations at a comprehensive recycling plant in Zama, southwest of Tokyo. The plant will handle everything from collecting used devices and erasing data to shredding and sorting raw materials, with the extracted materials to be sold to material manufacturers. The move comes amid supply concerns for rare earth minerals due to China's export controls and rising demand for semiconductor materials driven by the growth of artificial intelligence technology.

BHP has approved a $900 million investment to develop the Ministers North iron ore project in Western Australia's Pilbara region. The project will develop the high-grade Brockman ore deposit as a satellite extension of the Yandi mine, leveraging existing infrastructure to reduce costs and improve efficiency. Once fully ramped up, Ministers North is expected to produce 20 million tonnes per annum, supporting BHP's medium-term iron ore production target of 305 million tonnes per year on a 100% basis. Construction is set to begin this month with first ore targeted in fiscal 2029. The joint venture is owned by BHP with 85%, Itochu Corporation with 8%, and Mitsui & Co. with 7%.