IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

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Equity Bottom-Up

Frontier Management Inc / Equity Bottom-Up

<ul><li>Frontier Management (hereafter referred to as "the company") is a consulting firm that operates in the three pillars of management consulting, M&amp;A advisory, and business revitalization services, as well as an investment business that began in 2022.</li><li>Founded by Mr. Shoichiro Onishi and Mr. Masahiro Matsuoka, both former employees of the Industrial Revitalization Corporation of Japan, the company has expanded its operations through proactive hiring.</li><li>It is characterized by its lineup of specialists with diverse backgrounds and is able to solve a wide variety of management issues as a one-stop shop. Mr. Matsuoka retired as of the shareholders' meeting held on March 27, 2024, leaving Mr. Onishi as the sole leader of the company.</li></ul>

Frontier Management (hereafter referred to as "the company") is a consulting firm that operates in the three pillars of management consulting, M&amp;A advisory, and business revitalization services, as well as an investment business that began in 2022.Founded by Mr. Shoichiro Onishi and Mr. Masahiro Matsuoka, both former employees of the Industrial Revitalization Corporation of Japan, the company has expanded its operations through proactive hiring.It is characterized by its lineup of specialists with diverse backgrounds and is able to solve a wide variety of management issues as a one-stop shop. Mr. Matsuoka retired as of the shareholders' meeting held on March 27, 2024, leaving Mr. Onishi as the sole leader of the company.

Full Report - Frontier Management Inc. | 7038

<ul>
<li>The financial results were strong, as shown in the table below, and exceeded the company's forecasts.</li>
<li>The M&amp;A Advisory Business was particularly strong in the 4Q, recovering from soft sales slightly down in the first 3 quarters, returning to 8% growth YoY in the 4Q.</li>
<li>Sales by other main business segments remained firm, with the Management Consulting Business rising 17% YoY and the Revitalization Support Business up 174% YoY .</li>
</ul>


The financial results were strong, as shown in the table below, and exceeded the company's forecasts.
The M&amp;A Advisory Business was particularly strong in the 4Q, recovering from soft sales slightly down in the first 3 quarters, returning to 8% growth YoY in the 4Q.
Sales by other main business segments remained firm, with the Management Consulting Business rising 17% YoY and the Revitalization Support Business up 174% YoY .


4Q Follow-Up - Frontier Management Inc. (7038 JP)

<ul><li>In 2Q, net sales rose 26%, operating profit rose 28%, and net profit rose 46%.</li><li>The strong growth in net profit is attributed to the absence of the loss on valuation of investment securities recorded in the previous year.</li><li>Management Consulting business continued to perform well with sales rising 16%.</li></ul>

In 2Q, net sales rose 26%, operating profit rose 28%, and net profit rose 46%.The strong growth in net profit is attributed to the absence of the loss on valuation of investment securities recorded in the previous year.Management Consulting business continued to perform well with sales rising 16%.

2Q Follow-Up - Frontier Management Inc. (7038 JP) - Aug. 23, 2023

<ul><li>1Q operating profit rose 18%, on a 19% rise in sales. Net profit rose 10%.</li><li>According to the company's data, the pace of increase in orders has been increasing since around the last week of 1Q, indicating a potential for stronger results in this FY.</li><li>Management Consulting business sales rose 14%.</li></ul>

1Q operating profit rose 18%, on a 19% rise in sales. Net profit rose 10%.According to the company's data, the pace of increase in orders has been increasing since around the last week of 1Q, indicating a potential for stronger results in this FY.Management Consulting business sales rose 14%.

Frontier Management Inc. (7038 JP) - 1Q Follow-Up

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Quantitative Analysis

<div>
<p>When Japanese small-cap stocks listed on JASDAQ, MOTHERS, and the Second Section of the Tokyo Stock Exchange aim at the big leagues and apply for reassignment to the First Section of the Tokyo Stock Exchange and are accepted, it causes significant events to occur.</p>
<p>This triggers inclusion into the TOPIX Index which means passive funds tracking TOPIX need to buy on an inclusion event. This opens up several interesting trading opportunities for investors. </p>
<p>In this insight, I have provided performance updates for 3 "Live" event stocks which have announced their TSE1 move in  October 2020 and 5 "Post" event stocks that completed their Inclusion Events today and some Pre-event trades involving stocks that are likely to become TSE1-promotion candidates in the near future. </p>
</div>


When Japanese small-cap stocks listed on JASDAQ, MOTHERS, and the Second Section of the Tokyo Stock Exchange aim at the big leagues and apply for reassignment to the First Section of the Tokyo Stock Exchange and are accepted, it causes significant events to occur.
This triggers inclusion into the TOPIX Index which means passive funds tracking TOPIX need to buy on an inclusion event. This opens up several interesting trading opportunities for investors. 
In this insight, I have provided performance updates for 3 "Live" event stocks which have announced their TSE1 move in  October 2020 and 5 "Post" event stocks that completed their Inclusion Events today and some Pre-event trades involving stocks that are likely to become TSE1-promotion candidates in the near future. 


Japan

Frontier Management Inc. offers business consulting services. The Company provides management consulting, mergers and acquisitions advisory, management executive support, and business regeneration support services. Frontier Management offers services in Japan.

Frontier Management Inc (7038 JP)

Full Report - Frontier Management Inc. | 7038

Frontier Management (hereafter referred to as "the company") is a consulting firm that operates in the three pillars of management consulting

Sessa Investment Research

4Q Follow-Up - Frontier Management Inc. (7038 JP)

The M&A Advisory Business was particularly strong in the 4Q, recovering from soft sales slightly down in the first 3 quarters, returning to 8%...

Sessa Investment Research

2Q Follow-Up - Frontier Management Inc. (7038 JP) - Aug. 23, 2023

Steady progress against earnings forecast 2Q operating profit at 58% of full-year forecast. In 2Q, net sales rose 26%, operating profit rose 28%,...

Sessa Investment Research