Research from Mita Securities, Mita Securities

Mita Securities

Research from Mita Securities

Mita Securities provides a full scale diversified investment banking and financial services. A comprehensive investment banking department, specializes in rights offerings advisory, take-over bids agents, M&A etc. Including a proprietary trading desk, and wealth management department that offers brokerage, custody, real estate, and full proxy services.

Equity Bottom-Up

Torikizoku Co. Ltd. operates Japanese style bars serving char-broiled chicken as main foods.  The Company operates franchise stores as well as direct management stores in Japan.

<ul><li>Same-store sales were 643.8% vs. June 2021 (1648.4% for May), 115.9% vs. June 2020 (684.1% for May), and 84.7% vs. June 2019 (83.2% for May)</li><li>Compared to June 2021, the guest count was 601.0% (1591.9% for May), and the average check was 107.1% (103.5% for May)</li><li>The number of stores at the end of June was 617 (flat MoM). The number of company-owned stores was 386 (flat MoM)</li></ul>

Same-store sales were 643.8% vs. June 2021 (1648.4% for May), 115.9% vs. June 2020 (684.1% for May), and 84.7% vs. June 2019 (83.2% for May)Compared to June 2021, the guest count was 601.0% (1591.9% for May), and the average check was 107.1% (103.5% for May)The number of stores at the end of June was 617 (flat MoM). The number of company-owned stores was 386 (flat MoM)

Torikizoku Holdings (3193): June SSS Recovered to 85% of Pre-Pandemic Levels

KURA CORPORATION operates a revolving sushi restaurant chain based in Osaka. The Company operates its own stores.

<ul>
<li>Same-store sales were 108.6% vs. June 2021 (113.6% for May), 101.5% vs. June 2020 (128.0% for May), and 98.9% vs. June 2019 (102.4% for May)</li>
<li>The company ran a Sanrio Characters campaign in June. The prizes featuring popular characters such as "Cinnamoroll" seem to have been well received by the customers</li>
<li>The number of stores at the end of June was 516 in Japan (+2 MoM), 37 in the U.S. (flat MoM), and 46 in Taiwan (+1 MoM). The total number of stores was 599 (+3 MoM)</li>
</ul>


Same-store sales were 108.6% vs. June 2021 (113.6% for May), 101.5% vs. June 2020 (128.0% for May), and 98.9% vs. June 2019 (102.4% for May)
The company ran a Sanrio Characters campaign in June. The prizes featuring popular characters such as "Cinnamoroll" seem to have been well received by the customers
The number of stores at the end of June was 516 in Japan (+2 MoM), 37 in the U.S. (flat MoM), and 46 in Taiwan (+1 MoM). The total number of stores was 599 (+3 MoM)


Kura Sushi (2695): Dominates Sushi Market with Sanrio Power

Skylark Co. Ltd. mainly operates a family restaurant chain across Japan.  The Company offers Japanese-style, Western-style, and Asia-style foods for a wide variety of targeted customer segments.  Skylark also sells food and provides delivery servies.

<ul><li>With the recovery of foot traffic, the company stepped up its promotional activities since late May, which had a positive effect on the guest count in June</li><li>In June, the company opened no new store. The number of stores at the end of June was 3,085 (-5 MoM)</li><li>According to the June 26 Nikkei, Skylark Holdings plans to 1) raise menu prices at its mainstay " Gusto" restaurants at the end of July, and 2) abolish uniform pricing nationwide and limit price hikes for some products at suburban restaurants</li></ul>

With the recovery of foot traffic, the company stepped up its promotional activities since late May, which had a positive effect on the guest count in JuneIn June, the company opened no new store. The number of stores at the end of June was 3,085 (-5 MoM)According to the June 26 Nikkei, Skylark Holdings plans to 1) raise menu prices at its mainstay " Gusto" restaurants at the end of July, and 2) abolish uniform pricing nationwide and limit price hikes for some products at suburban restaurants

Skylark Holdings (3197): Solid Guest Count Recovery Due to Promotions

OHSHO FOOD SERVICE CORP is a Kansai-based operator of Chinese restaurants.  The Company operates directly-run restaurants in Kansai, Chubu, and Kanto regions. Ohsho Food Service also wholesales food material to franchise stores.  The Company mainly sells noodle and gyoza dumpling.

<ul><li>Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)</li><li>All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.</li><li>In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)</li></ul>

Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)

Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June

Money Forward, Inc. develops mobile application software. The Company produces automatic household account book softwares, household account book application softwares, and other products. Money Forward also provides personal financial management, cloud based accounting solutions, and other services.

<ul><li>Our new target price 4,000 yen; Raising our rating to Buy</li><li>We believe that market participants have become increasingly concerned about the sustainability of high growth for loss-making SaaS companies</li><li>We raise our 2Q (Mar-May) FY11/22 sales forecast from 5.102bn yen to 5.145bn yen (+28.8% YoY, company guidance median 4.912 bn yen)</li></ul>

Our new target price 4,000 yen; Raising our rating to BuyWe believe that market participants have become increasingly concerned about the sustainability of high growth for loss-making SaaS companiesWe raise our 2Q (Mar-May) FY11/22 sales forecast from 5.102bn yen to 5.145bn yen (+28.8% YoY, company guidance median 4.912 bn yen)

Money Forward (3994 JP): Raising Our Rating to Buy. Cash Is King