Shifara Samsudeen, ACMA, CGMA

LightStream Research

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a> reported 4QFY03/2022 results last week. Revenue declined 20.5% YoY to JPY6.1bn (vs consensus JPY7.6bn) while OP decreased 60.3% YoY to JPY889m (vs consensus JPY3.1bn)</li>
<li>Revenue for FY03/2022 increased 16.1% YoY to JPY40.4bn (vs guidance JPY39.bn) while OP increased 7.1% YoY to JPY16.4bn (vs guidance JPY18bn).</li>
<li>The company also announced in December last year that there were irregularities in recording sales and the share price has declined 47% since then.</li>
</ul>

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a> reported 3QFY03/2021 results yesterday alongside publication of investigation report over false recording of sales contracts on the internal system between FY03/2019 to 2QFY03/2021.</li>
<li>The company announced on 20th December 2021 that it has commenced an investigation over the above issue and postponed the announcement of its 3Q results.</li>
<li>Revenue for 3QFY03/2021 increased 14.6% YoY to JPY10.85bn (vs consensus JPY12bn) while OP dropped 5.1% YoY to JPY4.0bn (vs consensus JPY6.0bn).</li>
</ul>

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a> , Japan’s largest M&amp;A center, offers various M&amp;A related services. Japan is actively looking to counter the issue of lack of successors in SMEs.</li>
<li>M&amp;As have been identified as a solution which offers Nihon with strong growth opportunity. Nihon is also part of the M&amp;A Intermediaries Association which seeks to improve Japan’s M&amp;A process.</li>
<li>In this insight, we examine the company’s business model, key drivers, outlook, financials and valuation.</li>
</ul>

Steven Chen

<ul>
<li>The aging population is among the most unarguable mega-trends in today's world and can act as both a powerful headwind and a tailwind (for some industries);</li>
<li>In the past, I have touched upon some businesses benefiting drastically from the demographic tailwind, but admittedly, most of them are well recognized, and hence, expensive;</li>
<li>In this episode, I would like to discuss one more name monetizing the aging population in the Far East;</li>
<li>While being lesser-known, Kato Holdings appears to be a decent candidate to beat my 20% hurdle rate and become a multi-bagger in the foreseeable future.</li>
</ul>

Fund Newsletters

<ul><li>Harding Loevner has been investing globally in high-quality, growing businesses based on disciplined industry research since 1989.</li><li>Stock markets fell in the quarter, as the world watched in horror Russia’s invasion of Ukraine.</li><li>While we are optimistic that China will maintain its neutrality in the war, we can’t dismiss the possibility we are wrong.</li><li>With the volatility of stock prices thisquarter, portfolio activitypicked up as a handfulof high-quality growth companies we had long admired, but regarded as too expensive, saw their valuations fall into range.</li></ul>

Japan

Nihon M&A Center Inc. provides M&A advisory services to small and medium-sized enterprises. The Company, established by certified public accountants and tax accountants, offers M&A related services such as reorganization and MBO (Management Buy-Out) as well.

Nihon M&A Center - 2127 JP

Description