Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>ASICS has demonstrated exceptional brand rejuvenation and profitability improvements, with an ambitious 2026 plan that capitalizes on high-growth lifestyle categories</li>
<li>However, the pivot toward fashion and luxury markets introduces heightened execution risk.</li>
<li>While the upgraded MTP targets are commendable, much of the good news appears to be priced in.</li>
</ul>


ASICS has demonstrated exceptional brand rejuvenation and profitability improvements, with an ambitious 2026 plan that capitalizes on high-growth lifestyle categories
However, the pivot toward fashion and luxury markets introduces heightened execution risk.
While the upgraded MTP targets are commendable, much of the good news appears to be priced in.


Asics (7936) | Upgraded Targets on Fashion Pivot

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.

Equity Capital Markets

Kansai Electric Power / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kansai-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:18907:1" rel="noopener">Kansai Electric Power (9503 JP)</a> plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.</li>
<li>This will be a large deal for the stock to digest and doesn’t appear to have been particularly well flagged.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.
This will be a large deal for the stock to digest and doesn’t appear to have been particularly well flagged.
In this note, we will talk about the placement and run the deal through our ECM framework.


Kansai Electric Placement - A US$3.5bn Raising Which Doesn’t Appear Well Flagged

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. 

<ul>
<li>Goldwin has big plans for both The North Face in the Japanese and Korean markets and for its own brand globally.</li>
<li>But there are worries about saturation for the former in Japan, slowing brand development, and lack of expertise in overseas markets to build its own brand.</li>
<li>Goldwin has had an amazing run but can it build a global brand? If it can, it will feed into high levels of demand for Japan-tech sports brands.</li>
</ul>


Goldwin has big plans for both The North Face in the Japanese and Korean markets and for its own brand globally.
But there are worries about saturation for the former in Japan, slowing brand development, and lack of expertise in overseas markets to build its own brand.
Goldwin has had an amazing run but can it build a global brand? If it can, it will feed into high levels of demand for Japan-tech sports brands.


Goldwin: 50% Growth in 5 Years? Possible but Some Challenges

<ul>
<li>Asics is seeing robust D2C sales growth, now 40% of total sales, driving gross margins to 55.5% (+4.5 pp YoY) in 1H24.</li>
<li>High-Margin models and strong sales in Onitsuka Tiger and Sportsstyle categories support a forecasted 13% YoY sales increase in 2H24.</li>
<li>Asics' strategic transformation, focusing on structural reforms and emerging markets, to drive upgraded MTP though FY26.</li>
</ul>


Asics is seeing robust D2C sales growth, now 40% of total sales, driving gross margins to 55.5% (+4.5 pp YoY) in 1H24.
High-Margin models and strong sales in Onitsuka Tiger and Sportsstyle categories support a forecasted 13% YoY sales increase in 2H24.
Asics' strategic transformation, focusing on structural reforms and emerging markets, to drive upgraded MTP though FY26.


Asics (7936) | Q3 Preview; Revision of MTP

<ul>
<li>
 Strong Q2 performance: Asics delivered impressive profit growth and margin improvement, exceeding expectations with operating profit surging 119% YoY to 25 billion yen.</li>
<li>
 Market share gains: Asics continues outpacing Nike across key regions, with strong growth in Japan, Europe, China, and the US, driven by Sportstyle and Performance Running.</li>
<li>
 Bullish outlook, limited upside: Recent guidance revision and current FX rates cap near-term gains; stock trades at 19x NTM EV/EBIT with 15% upside to fair value.</li>
</ul>



 Strong Q2 performance: Asics delivered impressive profit growth and margin improvement, exceeding expectations with operating profit surging 119% YoY to 25 billion yen.

 Market share gains: Asics continues outpacing Nike across key regions, with strong growth in Japan, Europe, China, and the US, driven by Sportstyle and Performance Running.

 Bullish outlook, limited upside: Recent guidance revision and current FX rates cap near-term gains; stock trades at 19x NTM EV/EBIT with 15% upside to fair value.


Asics (7936) | Raceing Ahead—But Can They Keep Pace?

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)

Asics (7936) | Upgraded Targets on Fashion Pivot

ASICS shows strong brand revival and profit growth but faces risks in shifting to fashion/luxury markets. Ambitious 2026 plan may already be...

Mark Chadwick

Kansai Electric Placement - A US$3.5bn Raising Which Doesn’t Appear Well Flagged

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans. In this note, we...

Sumeet Singh

Goldwin: 50% Growth in 5 Years? Possible but Some Challenges

Goldwin aims to further expand The North Face while building a global brand of its own. There is very strong potential but it faces challenges due...

Michael Causton

Asics (7936) | Q3 Preview; Revision of MTP

Asics' direct-to-consumer sales growth boosts gross margins, with strong sales in high-margin models driving forecasted sales increase and...

Mark Chadwick

Asics (7936) | Raceing Ahead—But Can They Keep Pace?

Asics posts strong Q2 results, outpacing Nike in key regions, but limited near-term upside due to guidance revision and FX rates.

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asics (7936) | Upgraded Targets on Fashion Pivot

​ASICS shows strong brand revival and profit growth but faces risks in shifting to fashion/luxury markets. Ambitious 2026 plan may already be...

Mark Chadwick

Kansai Electric Placement - A US$3.5bn Raising Which Doesn’t Appear Well Flagged

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans. In this note, we...

Sumeet Singh

Goldwin: 50% Growth in 5 Years? Possible but Some Challenges

​Goldwin aims to further expand The North Face while building a global brand of its own. There is very strong potential but it faces challenges due...

Michael Causton

Asics (7936) | Q3 Preview; Revision of MTP

​Asics' direct-to-consumer sales growth boosts gross margins, with strong sales in high-margin models driving forecasted sales increase and...

Mark Chadwick

Asics (7936) | Raceing Ahead—But Can They Keep Pace?

​Asics posts strong Q2 results, outpacing Nike in key regions, but limited near-term upside due to guidance revision and FX rates.

Mark Chadwick

ASICS shows strong brand revival and profit growth but faces risks in shifting to fashion/luxury markets. Ambitious 2026 plan may already be...

Goldwin aims to further expand The North Face while building a global brand of its own. There is very strong potential but it faces challenges due...

Asics' direct-to-consumer sales growth boosts gross margins, with strong sales in high-margin models driving forecasted sales increase and...

Asics posts strong Q2 results, outpacing Nike in key regions, but limited near-term upside due to guidance revision and FX rates.