Equity Analyst, LightStream Research

Chacko Jacob

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

As far as the history of Japanese department stores goes, <a href="https://www.smartkarma.com/entities/370" target="_blank" data-smartkarma-citation="entities:370:1">Takashimaya (8233 JP)</a> is one of the newer stores in the country despite being founded nearly 190 years ago. Even in terms of market cap, the company is only the fourth largest among domestic department stores. However, the company is now plotting a new course to increase sales and traffic. In this report, we will analyse the company’s medium and long-term plans to grow revenue while also weighing its performance against that of industry peers.

As far as the history of Japanese department stores goes, Takashimaya (8233 JP) is one of the newer stores in the country despite being founded nearly 190 years ago. Even in terms of market cap, the company is only the fourth largest among domestic department stores. However, the company is now plotting a new course to increase sales and traffic. In this report, we will analyse the company’s medium and long-term plans to grow revenue while also weighing its performance against that of industry peers. 

Takashimaya(8233): ASEAN Projects and Inbound Sales Offer Positive Long-Term Growth Outlook

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

The shares are off 25% since January and have under performed TOPIX by 10%. They trade on just under 0.8x book and yield 2.3%.Operating profit this year is forecast to fall 19% to Y18.4bn (with Y4.7bn in the first half and Y13.7bn in the second) given costs relating to the opening of part of the refurbished Hanshin Umeda store. These are a one off and most will be taken in the first half, thus the reduced operating profit forecast.The company continues to benefit from inbound traffic, as well as…

The shares are off 25% since January and have under performed TOPIX by 10%. They trade on just under 0.8x book and yield 2.3%.Operating profit this year is forecast to fall 19% to Y18.4bn (with Y4.7bn in the first half and Y13.7bn in the second) given costs relating to the opening of part of the refurbished Hanshin Umeda store. These are a one off and most will be taken in the first half, thus the reduced operating profit forecast.The company continues to benefit from inbound traffic, as well as…

H20 (8242) Decent Quality Oversold Kansai Based Retail Name. BUY Here.

H2O released 3/18 results yesterday. They slightly beat expectations. Sales came in at Y921bn (+2%) vs. the forecast of Y915bn and operating profit came in at Y22.8bn (+1%) vs. the Y22.7bn forecast. For this year the company is expecting further sales growth, with sales rising to Y945.5bn (+3%) but operating profits falling to Y18.4bn (-19%).As far as last year is concerned, the department store operations continued to benefit from an improved domestic economy and were further helped by on-going…

H2O released 3/18 results yesterday. They slightly beat expectations. Sales came in at Y921bn (+2%) vs. the forecast of Y915bn and operating profit came in at Y22.8bn (+1%) vs. the Y22.7bn forecast. For this year the company is expecting further sales growth, with sales rising to Y945.5bn (+3%) but operating profits falling to Y18.4bn (-19%).As far as last year is concerned, the department store operations continued to benefit from an improved domestic economy and were further helped by on-going…

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Isetan Mitsukoshi Holdings Ltd / Equity Bottom-Up

Storied Japanese department store chain <a href="https://www.smartkarma.com/entities/18871" target="_blank" data-smartkarma-citation="entities:18871:1">Isetan Mitsukoshi Holdings (3099 JP)</a> is the largest market cap department store chain remaining listed in Japan but performance has been lackluster. Total sales in the year to March 2017 were up 1% over the level 5yrs before, and Operating Profit was up by a whopping 101 million yen (but was still at its lowest since then). In May when the company announced that earnings to March 2018 would fall 33% to 10bn yen despite expectations of the return of foreign…

Storied Japanese department store chain Isetan Mitsukoshi Holdings (3099 JP) is the largest market cap department store chain remaining listed in Japan but performance has been lackluster. Total sales in the year to March 2017 were up 1% over the level 5yrs before, and Operating Profit was up by a whopping 101 million yen (but was still at its lowest since then). In May when the company announced that earnings to March 2018 would fall 33% to 10bn yen despite expectations of the return of foreign…

First quarter sales fell 1% to Y212.3bn but operating profit rose 20% to Y3.6bn. Whilst sales fell slightly short due to weaker than expected sales at Izumiya and Oasis, operating profit was much better (by Y1bn) than expected due to a much better performance at the department store operations. The full year operating profit was left unchanged at Y21bn (-7%) but it looks more than likely that this will be exceeded. Indeed Y25bn is possible. The only thing that could prevent this are costs…

First quarter sales fell 1% to Y212.3bn but operating profit rose 20% to Y3.6bn. Whilst sales fell slightly short due to weaker than expected sales at Izumiya and Oasis, operating profit was much better (by Y1bn) than expected due to a much better performance at the department store operations. The full year operating profit was left unchanged at Y21bn (-7%) but it looks more than likely that this will be exceeded. Indeed Y25bn is possible. The only thing that could prevent this are costs…

H2O (8242) - Department Store Sales Finally Recovering

Japan

H2O RETAILING CORPORATION founded in Osaka in 1929, operates railway terminal department stores.  The Company's main store is located at Hankyu terminal in Umeda (Osaka) and sells clothing, foods, sundry goods, furniture, and household utensils.  H2O Retailing also operates restaurants and coffee shops.

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H2O Retailing (8242 JP)

Takashimaya(8233): ASEAN Projects and Inbound Sales Offer Positive Long-Term Growth Outlook

As far as the history of Japanese department stores goes, Takashimaya (8233 JP) is one of the newer stores in the country despite being founded...

Chacko Jacob

H20 (8242) Decent Quality Oversold Kansai Based Retail Name. BUY Here.

The shares are off 25% since January and have under performed TOPIX by 10%. They trade on just under 0.8x book and yield 2.3%.Operating profit this...

Pearl Hill Advisors

H2O (8242) Buy the Dip

H2O released 3/18 results yesterday. They slightly beat expectations. Sales came in at Y921bn (+2%) vs. the forecast of Y915bn and operating profit...

Pearl Hill Advisors

Isetan-Mitsukoshi: Restructuring Moves

Storied Japanese department store chain Isetan Mitsukoshi Holdings (3099 JP) is the largest market cap department store chain remaining listed in...

Travis Lundy

H2O (8242) - Department Store Sales Finally Recovering

First quarter sales fell 1% to Y212.3bn but operating profit rose 20% to Y3.6bn. Whilst sales fell slightly short due to weaker than expected sales...

Pearl Hill Advisors

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