Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

<ul>
<li>
Over the past decade, the Japanese sportswear brand Mizuno (8022 JP – US$1.9 billion) has compounded at a 16.5% annual rate
<figure class="editor-figure mceNonEditable"></figure>
</li>
<li>
Of course, past performance does not indicate future performance.
</li>
<li>
But it still begs the question: why? And what does the future look like? I've been working with recent graduate Meera Kapoor to understand the company from the inside out. 
</li>
</ul>



Over the past decade, the Japanese sportswear brand Mizuno (8022 JP – US$1.9 billion) has compounded at a 16.5% annual rate



Of course, past performance does not indicate future performance.


But it still begs the question: why? And what does the future look like? I've been working with recent graduate Meera Kapoor to understand the company from the inside out. 



Mizuno (8022 JP): A Japanese Sportswear Brand at 16x P/E

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>Mizuno is demonstrating robust top and bottom-line growth, driven by a strategic focus on core sports like running and football, alongside expansion into high-potential areas such as workwear and 'Sportstyle' fashion.</li>
 <li>The company's strong brand heritage, rooted in Japanese craftsmanship and technological innovation, provides a key competitive advantage, particularly in specialized segments like golf and baseball equipment.</li>
 <li>Despite impressive earnings growth, a key concern is the negative trend in operating and free cash flow over the past several years, alongside a heavy reliance on the mature Japanese domestic market, which exposes the company to local economic and demographic risks.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Mizuno is demonstrating robust top and bottom-line growth, driven by a strategic focus on core sports like running and football, alongside expansion into high-potential areas such as workwear and 'Sportstyle' fashion.
  The company's strong brand heritage, rooted in Japanese craftsmanship and technological innovation, provides a key competitive advantage, particularly in specialized segments like golf and baseball equipment.
  Despite impressive earnings growth, a key concern is the negative trend in operating and free cash flow over the past several years, alongside a heavy reliance on the mature Japanese domestic market, which exposes the company to local economic and demographic risks.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

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. 

Thematic (Sector/Industry)

<ul>
<li>Core inflation rates remain stubbornly high and real wages are still falling. </li>
<li>Surveys suggest one more major round of price hikes in October but the government still thinks prices will stabilise below its 2% target by the end of the year.</li>
<li>The increases are lowering consumer confidence – bad news for most retailers, although major discount chains are making hay while the sun, well, doesn’t shine.</li>
</ul>


Core inflation rates remain stubbornly high and real wages are still falling. 
Surveys suggest one more major round of price hikes in October but the government still thinks prices will stabilise below its 2% target by the end of the year.
The increases are lowering consumer confidence – bad news for most retailers, although major discount chains are making hay while the sun, well, doesn’t shine.


Japanese Prices Rise Again; 60% of Consumers Feeling the Pinch and Looking for Better Value

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

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.

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/129/213/original/File%202020-04-23%205%2019%2052.jpeg?1587587091" class="editor-image img-responsive" data-smartkarma-image-id="129213"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/129/215/original/File%202020-04-23%205%2019%2008.jpeg?1587587183" class="editor-image img-responsive" data-smartkarma-image-id="129215"></figure><div class="content-caption">Source • Marco Piani</div>TIMELINES - The excellent timelines prepared by @Marco_Piani provide a novel interpretation of Japan's 'rank' in the progression of COVID-19 on terms of both cases and deaths. The data confirms that Japan is 'lagging' the World in both respects. Also of note are the 'second waves' that are appearing in several countries, including South Africa, Argentina, Poland and the Philippines. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/129/216/original/2020-04-23_05-29-31.png?1587587408" class="editor-image img-responsive" data-smartkarma-image-id="129216"></figure><div class="content-caption">Source • Arbor Data Science</div>GOING-OUT RELATED - As the hospital system overflows, the government is becoming more strident in its attempts to have greater compliance with the current 'suggestions' on social distancing and working from home diverting attention from their failure to anticipate the breakdown of the medical system.  PM Abe has resorted to pleading with citizens not to make their traditional home-town visits over Golden Week, while the still-crowded supermarkets may be required to limit the number of shoppers at any one time. As is evident from the Google search data above, Japan (and Singapore and latterly Indonesia) are on diverging 'paths' from most European countries, and it is premature to consider any exit strategies. We conclude that the current states of emergency across all Japanese prefectures will be extended beyond the end of Golden Week on 6th May, probably to the end of next month.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/129/259/original/2020-04-23_07-06-14.png?1587593194" class="editor-image img-responsive" data-smartkarma-image-id="129259"></figure><div class="content-caption">Source • Japan Analytics</div>IMPENDING PEAK - The first of the March year-end company results were announced yesterday and will become a deluge over the eight trading days either side of the Golden Week holidays. As many companies are now avoiding interim and annual forecasts, the absolute number of data points will be reduced. In the DETAIL below, we shall review the results, revisions and initial forecast announcements made yesterday.  The positive/neutral/negative balance for the nine results was 5:0:4; and for the 23 revisions/forecasts, the split was 10:1:12. Of the six companies reporting annual results, only one made a forecast for the current year. Dry cleaner <a href="https://www.smartkarma.com/entities/hakuyosha-company-ltd" target="_blank" data-smartkarma-citation="entities:4492:1" rel="noopener">Hakuyosha (9731 JP)</a> withdrew its December year-end forecasts. Three companies cut their dividends; two increased. <blockquote>Everybody talks as if they know what is going to happen - nobody knows what is going to happen - Charlie Munger</blockquote>

Source • Marco PianiTIMELINES - The excellent timelines prepared by @Marco_Piani provide a novel interpretation of Japan's 'rank' in the progression of COVID-19 on terms of both cases and deaths. The data confirms that Japan is 'lagging' the World in both respects. Also of note are the 'second waves' that are appearing in several countries, including South Africa, Argentina, Poland and the Philippines. Source • Arbor Data ScienceGOING-OUT RELATED - As the hospital system overflows, the government is becoming more strident in its attempts to have greater compliance with the current 'suggestions' on social distancing and working from home diverting attention from their failure to anticipate the breakdown of the medical system.  PM Abe has resorted to pleading with citizens not to make their traditional home-town visits over Golden Week, while the still-crowded supermarkets may be required to limit the number of shoppers at any one time. As is evident from the Google search data above, Japan (and Singapore and latterly Indonesia) are on diverging 'paths' from most European countries, and it is premature to consider any exit strategies. We conclude that the current states of emergency across all Japanese prefectures will be extended beyond the end of Golden Week on 6th May, probably to the end of next month.Source • Japan AnalyticsIMPENDING PEAK - The first of the March year-end company results were announced yesterday and will become a deluge over the eight trading days either side of the Golden Week holidays. As many companies are now avoiding interim and annual forecasts, the absolute number of data points will be reduced. In the DETAIL below, we shall review the results, revisions and initial forecast announcements made yesterday.  The positive/neutral/negative balance for the nine results was 5:0:4; and for the 23 revisions/forecasts, the split was 10:1:12. Of the six companies reporting annual results, only one made a forecast for the current year. Dry cleaner Hakuyosha (9731 JP) withdrew its December year-end forecasts. Three companies cut their dividends; two increased. Everybody talks as if they know what is going to happen - nobody knows what is going to happen - Charlie Munger

🇯🇵 JAPAN • Revisions & Results 22nd April - Timelines + JAL/ZOZO/Mizuno/CyberAgent

Japan Specialist

Mark Chadwick

<ul>
<li>City Index built a 5.86% stake in Air Water, targeting governance reform and valuation upside following accounting issues and sector discount. </li>
<li>GMO Asset Management acquired 5.01% of Mizuno, betting operational improvements can narrow profitability gaps and drive a valuation re-rating.</li>
<li>Zennor Asset Management took 5.04% of Katakura, attracted by its undervalued asset-heavy balance sheet and scope for balance sheet optimisation.</li>
</ul>


City Index built a 5.86% stake in Air Water, targeting governance reform and valuation upside following accounting issues and sector discount. 
GMO Asset Management acquired 5.01% of Mizuno, betting operational improvements can narrow profitability gaps and drive a valuation re-rating.
Zennor Asset Management took 5.04% of Katakura, attracted by its undervalued asset-heavy balance sheet and scope for balance sheet optimisation.


Japan Activist Briefs | Air Water, Mizuno, Katakura

Japan

Mizuno Corporation manufactures and sells sporting goods including gear, clothing, and footwear.  The Company has brand recognition, specializing in baseball, ski, tennis, and golf gear.  Mizuno also constructs sport facilities such as track field, tennis court, and golf practice field.

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Mizuno Corp (8022 JP)

Mizuno (8022 JP): A Japanese Sportswear Brand at 16x P/E

Over the past decade, the Japanese sportswear brand Mizuno (8022 JP – US$1.9 billion) has compounded at a 16.5% annual rate Of course, past...

Asian Century Stocks

Primer: Mizuno Corp (8022 JP) - Apr 2026

Mizuno is demonstrating robust top and bottom-line growth, driven by a strategic focus on core sports like running and football, alongside...

αSK Primers

Japanese Prices Rise Again; 60% of Consumers Feeling the Pinch and Looking for Better Value

Japanese consumer markets have three big trends: higher prices/squeezed incomes, doubling of single households and more people feeling the pinch....

Michael Causton

🇯🇵 JAPAN • Revisions & Results 22nd April - Timelines + JAL/ZOZO/Mizuno/CyberAgent

TIMELINES - The excellent timelines prepared by @Marco_Piani provide a novel interpretation of Japan's 'rank' in the progression of COVID-19 on...

Campbell Gunn

Japan Activist Briefs | Air Water, Mizuno, Katakura

Investment firms City Index, GMO Asset Management, and Zennor Asset Management take significant stakes in Air Water, Mizuno, and Katakura...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Mizuno (8022 JP): A Japanese Sportswear Brand at 16x P/E

Over the past decade, the Japanese sportswear brand Mizuno (8022 JP – US$1.9 billion) has compounded at a 16.5% annual rate Of course, past...

Asian Century Stocks

Primer: Mizuno Corp (8022 JP) - Apr 2026

Mizuno is demonstrating robust top and bottom-line growth, driven by a strategic focus on core sports like running and football, alongside...

αSK Primers

Japanese Prices Rise Again; 60% of Consumers Feeling the Pinch and Looking for Better Value

Japanese consumer markets have three big trends: higher prices/squeezed incomes, doubling of single households and more people feeling the pinch....

Michael Causton

🇯🇵 JAPAN • Revisions & Results 22nd April - Timelines + JAL/ZOZO/Mizuno/CyberAgent

TIMELINES - The excellent timelines prepared by @Marco_Piani provide a novel interpretation of Japan's 'rank' in the progression of COVID-19 on...

Campbell Gunn

Japan Activist Briefs | Air Water, Mizuno, Katakura

​Investment firms City Index, GMO Asset Management, and Zennor Asset Management take significant stakes in Air Water, Mizuno, and Katakura...

Mark Chadwick

Investment firms City Index, GMO Asset Management, and Zennor Asset Management take significant stakes in Air Water, Mizuno, and Katakura...