Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

JTEC Corporation of Osaka manufactures bio-technology systems and equipment. The Company produces life science devices, x ray mirrors, and automated cell culture systems. JTEC also develops pharmaceutical products. JTEC serves clients in Japan.

<ul><li>Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science &amp; Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.</li><li>The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.</li><li>Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term. </li></ul>

Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science &amp; Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term. 

JTEC Corp (3446 JP) -  Continued Uplift in Performance

Mitsubishi Research Institut / Equity Bottom-Up

Mitsubishi Research Institute,Inc. provides consulting and Information Technology solution services.  Consulting service includes research, survey analysis and business management strategy. IT solution service includes management system or software development and business process maintenance.

<ul><li>Slower OP expansion than expected – Consolidated OP declined (-18.7% YoY) in Q2 FY9/25, owing to additional one-off costs for IT Service (ITS).</li><li>These costs lowered the segment OP (-33.9% YoY) and OP margin (Q2 FY9/24 8.9%, Q2 FY9/25 5.8%).</li><li>Think Tank &amp; Consulting Services (TTC) also contributed to the overall weakness in consolidated OP as the segment OP declined (-10.8% YoY), which was triggered by weak revenue growth. </li></ul>

Slower OP expansion than expected – Consolidated OP declined (-18.7% YoY) in Q2 FY9/25, owing to additional one-off costs for IT Service (ITS).These costs lowered the segment OP (-33.9% YoY) and OP margin (Q2 FY9/24 8.9%, Q2 FY9/25 5.8%).Think Tank &amp; Consulting Services (TTC) also contributed to the overall weakness in consolidated OP as the segment OP declined (-10.8% YoY), which was triggered by weak revenue growth. 

Mitsubishi Research Institute (3636 JP) - Posing a Bleak Near-Term Outlook

Japan Elevator Service Holding / Equity Bottom-Up

Japan Elevator Service Holdings Co. Ltd. offers elevator and escalator maintenance, inspection and renewal services.

<ul><li>Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.</li><li>Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.</li><li>With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.</li></ul>

Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

Japan Elevator Service Holdings (6544 JP) - Structural Growth with Cyclical Resilience

Lifenet Insurance Company / Equity Bottom-Up

LIFENET INSURANCE COMPANY provides a wide range of life insurance products and services. The company mainly provides the products and services through the internet. The company also provides asset management services.

<ul><li>LIFENET is a pure-play online life insurance company with a solid track record, revamping its strategy to revitalize growth.</li><li>The company has initiated a three-pronged strategy, encompassing tech &amp; services, rebranding, and an ‘embedded’ strategy to integrate life insurance products seamlessly into partner digital ecosystems with engaged customers.</li><li>Key partnerships with KDDI Group (9433) and SMBC Group provide a competitive advantage, and the group credit life insurance offered to mortgage customers of au Jibun Bank, KDDI Group’s online banking subsidiary, has the hallmarks of a new earnings pillar. </li></ul>

LIFENET is a pure-play online life insurance company with a solid track record, revamping its strategy to revitalize growth.The company has initiated a three-pronged strategy, encompassing tech &amp; services, rebranding, and an ‘embedded’ strategy to integrate life insurance products seamlessly into partner digital ecosystems with engaged customers.Key partnerships with KDDI Group (9433) and SMBC Group provide a competitive advantage, and the group credit life insurance offered to mortgage customers of au Jibun Bank, KDDI Group’s online banking subsidiary, has the hallmarks of a new earnings pillar. 

Lifenet Insurance Company (7157 JP) - Revitalizing Future Growth

Simplex Holdings, Inc. provides system information technology solutions. The Company offers system consulting, system development, system operation and maintenance, and other services.  Simplex Holdings serves financial institutions across worldwide.

<ul><li>Results in line, demonstrating resilience – FY3/25 results were in line with guidance, as Simplex responded effectively in driving a notable earnings recovery in H2 FY3/25.</li><li>Orders and backlog growth were robust, denoting high earnings visibility.</li><li>Management provided clarity over the insurance business, which will continue as part of Financial Retail, and FY3/26 guidance points to sustained sales and earnings growth YoY in the high teens. </li></ul>

Results in line, demonstrating resilience – FY3/25 results were in line with guidance, as Simplex responded effectively in driving a notable earnings recovery in H2 FY3/25.Orders and backlog growth were robust, denoting high earnings visibility.Management provided clarity over the insurance business, which will continue as part of Financial Retail, and FY3/26 guidance points to sustained sales and earnings growth YoY in the high teens. 

Simplex Holdings (4373 JP) - Disciplined Delivery and Expecting Sales Growth Acceleration

Astris Advisory Japan
Japan Experts, Extraordinary Performance

JTEC Corp (3446 JP) - Continued Uplift in Performance

The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a...

Astris Advisory Japan

Mitsubishi Research Institute (3636 JP) - Posing a Bleak Near-Term Outlook

Slower OP expansion than expected – Consolidated OP declined (-18.7% YoY) in Q2 FY9/25, owing to additional one-off costs for IT Service (ITS).

Astris Advisory Japan

Japan Elevator Service Holdings (6544 JP) - Structural Growth with Cyclical Resilience

Defensive growth in motion - We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally...

Astris Advisory Japan

Lifenet Insurance Company (7157 JP) - Revitalizing Future Growth

LIFENET is a pure-play online life insurance company with a solid track record, revamping its strategy to revitalize growth.

Astris Advisory Japan

Simplex Holdings (4373 JP) - Disciplined Delivery and Expecting Sales Growth Acceleration

Results in line, demonstrating resilience – FY3/25 results were in line with guidance, as Simplex responded effectively in driving a notable...

Astris Advisory Japan