Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

Kyoto Financial Group  / Equity Bottom-Up

<ul><li>A long tail of earnings growth – Although investor attention on Kyoto FG centers on its significant equity holdings in Kyoto-based companies and the unwinding of those positions we believe the more important story is the improving operating trend at the underlying bank which we think is underappreciated and offers a long tail of earnings growth that is unique among Japan's regional banks as its fixed-rate loan book gradually reprices.</li><li>The equity portfolio is an additional kicker, providing shareholder return optionality well above peers as it is monetized, and together we think they warrant a premium valuation for what the Bank offers.</li><li>Conservative targets, strong start – The new MTP targets net income of ¥90bn+ by FY3/29 (~2x FY3/26 excluding the gain on Nintendo shares), alongside ROE of 8%+, OHR in the 40% range, ¥300bn+ of shareholding reduction, and a total payout of 50%+.</li></ul>

A long tail of earnings growth – Although investor attention on Kyoto FG centers on its significant equity holdings in Kyoto-based companies and the unwinding of those positions we believe the more important story is the improving operating trend at the underlying bank which we think is underappreciated and offers a long tail of earnings growth that is unique among Japan's regional banks as its fixed-rate loan book gradually reprices.The equity portfolio is an additional kicker, providing shareholder return optionality well above peers as it is monetized, and together we think they warrant a premium valuation for what the Bank offers.Conservative targets, strong start – The new MTP targets net income of ¥90bn+ by FY3/29 (~2x FY3/26 excluding the gain on Nintendo shares), alongside ROE of 8%+, OHR in the 40% range, ¥300bn+ of shareholding reduction, and a total payout of 50%+.

Kyoto Financial Group (5844 JP) - Much More Upside Beyond Equity Monetization

Japan

Kyoto Financial Group, Inc. offers financial services. The Company provides commodity securities transaction, securities investment, trust, credit guarantee, banking related services, and other services. Kyoto Financial Group also operates real estate management and leasing, economic research, and other businesses.

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Kyoto Financial Group (5844 JP) - Much More Upside Beyond Equity Monetization

The new MTP targets net income of ¥90bn+ by FY3/29 (~2x FY3/26 excluding the gain on Nintendo shares), alongside ROE of 8%+, OHR in the 40% range...

Astris Advisory Japan