Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<ul>
<li>Onitsuka Tiger posted record revenues last year at a 37.7% operating margin. </li>
<li>It is, and has been, far outperforming its parent, setting the stage for the full spin-off into a new subsidiary.</li>
<li>The brand is likely to move further upmarket as a full lifestyle brand as it targets ¥200 billion, anchored by six new flagships and a return to the US market.</li>
</ul>


Onitsuka Tiger posted record revenues last year at a 37.7% operating margin. 
It is, and has been, far outperforming its parent, setting the stage for the full spin-off into a new subsidiary.
The brand is likely to move further upmarket as a full lifestyle brand as it targets ¥200 billion, anchored by six new flagships and a return to the US market.


Why Onitsuka Tiger Will Be Better Positioned on Its Own

Japan Specialist

Mark Chadwick

<ul>
<li>ASICS delivered a large top- and bottom-line beat in the June quarter and raised FY26 guidance</li>
<li>Net sales of ¥264.2bn (+35.9% YoY) were +7.8% above consensus (¥245bn), while operating profit of ¥59.7bn (+63% YoY) beat consensus (¥47bn) by +27%</li>
<li>The headline print is clearly strong, with SportStyle and Onitsuka Tiger continuing to drive growth.</li>
</ul>


ASICS delivered a large top- and bottom-line beat in the June quarter and raised FY26 guidance
Net sales of ¥264.2bn (+35.9% YoY) were +7.8% above consensus (¥245bn), while operating profit of ¥59.7bn (+63% YoY) beat consensus (¥47bn) by +27%
The headline print is clearly strong, with SportStyle and Onitsuka Tiger continuing to drive growth.


ASICS (7936 JP) | Broad-Based Beat & Raise

Thematic (Sector/Industry)

<ul>
<li>Japan's tech market sees major movement with Carlyle's 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.</li>
<li>Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.</li>
<li>Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen. </li>
</ul>


Japan's tech market sees major movement with Carlyle's 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.
Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.
Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen. 


Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

<ul>
<li>Asics reported 3Q24 earnings last week. It was yet another strong quarter with sales +16% and OP+47%</li>
<li>They lifted full year guidance on continued strength in core running and another blow-out showing from Sportstyle sneakers and Onitsuka Tigers.</li>
<li>Asics have already exceeded the MTP target for ¥80 billion in operating profit by 2026. That plan will now be revised up at the Nov IR Day.</li>
</ul>


Asics reported 3Q24 earnings last week. It was yet another strong quarter with sales +16% and OP+47%
They lifted full year guidance on continued strength in core running and another blow-out showing from Sportstyle sneakers and Onitsuka Tigers.
Asics have already exceeded the MTP target for ¥80 billion in operating profit by 2026. That plan will now be revised up at the Nov IR Day.


Asics (7936) | Delivers Strong Q3 Performance Amid Challenging Conditions

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.</li>
<li>Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. </li>
<li>Of these, they have a combined stake of over US$1bn in 23 companies.</li>
</ul>


Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.
Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. 
Of these, they have a combined stake of over US$1bn in 23 companies.


Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Japan

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

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ASICS Corp (7936 JP)

Why Onitsuka Tiger Will Be Better Positioned on Its Own

Onitsuka Tiger's record revenues and high operating margin set the stage for a full spin-off , and the plans to move further upmarket as a...

Michael Causton

ASICS (7936 JP) | Broad-Based Beat & Raise

ASICS outperformed expectations in Q2 with a significant increase in sales and profit, leading to a raised guidance for FY26. SportStyle and...

Mark Chadwick

Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

Mark Chadwick

Asics (7936) | Delivers Strong Q3 Performance Amid Challenging Conditions

Asics reported strong 3Q24 earnings, exceeding operating profit targets and lifting full year guidance due to continued strength in core running...

Mark Chadwick

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Why Onitsuka Tiger Will Be Better Positioned on Its Own

​Onitsuka Tiger's record revenues and high operating margin set the stage for a full spin-off , and the plans to move further upmarket as a...

Michael Causton

ASICS (7936 JP) | Broad-Based Beat & Raise

​ASICS outperformed expectations in Q2 with a significant increase in sales and profit, leading to a raised guidance for FY26. SportStyle and...

Mark Chadwick

Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

​Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

Mark Chadwick

Asics (7936) | Delivers Strong Q3 Performance Amid Challenging Conditions

​Asics reported strong 3Q24 earnings, exceeding operating profit targets and lifting full year guidance due to continued strength in core running...

Mark Chadwick

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Onitsuka Tiger's record revenues and high operating margin set the stage for a full spin-off , and the plans to move further upmarket as a...

ASICS outperformed expectations in Q2 with a significant increase in sales and profit, leading to a raised guidance for FY26. SportStyle and...

Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

Asics reported strong 3Q24 earnings, exceeding operating profit targets and lifting full year guidance due to continued strength in core running...