Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Yesterday, <a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> announced Q2 earnings which were  trifle light, and announced a sharp downward revision to full-year OP despite higher revs on weaker yen.</li>
<li>OP takes a hit because of expenses related to the shutdown of Veran Medical device sales (announced 6 Sep, "causing" a 2.4% share price fall the next day).</li>
<li>They also announced an ¥80bn buyback. That should be worth 3.0-3.5% of shares out, but overhang exists. The label is the label. The details are inside. They matter.</li>
</ul>


Yesterday, Olympus Corp (7733 JP) announced Q2 earnings which were  trifle light, and announced a sharp downward revision to full-year OP despite higher revs on weaker yen.
OP takes a hit because of expenses related to the shutdown of Veran Medical device sales (announced 6 Sep, "causing" a 2.4% share price fall the next day).
They also announced an ¥80bn buyback. That should be worth 3.0-3.5% of shares out, but overhang exists. The label is the label. The details are inside. They matter.


Olympus (7733) - OP Hit but Additional Buyback; Positive Dynamics but Flow Risks Persist

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> announced muted Q1FY24 result. Revenue increased 8% YoY to ¥208B, while operating profit declined 50% YoY to ¥22B. A one-time gain has inflated the net profit.</li>
<li>Revenue missed about 3% compared to the plan. Product shipment hold and parts supply shortages represented about 1.5% points out of the total miss of 3%.</li>
<li>Olympus has reiterated FY24 guidance and expects FY24 revenue of ¥914B (+4% YoY) and operating profit of ¥163B (-13% YoY). In FY23, the company missed operating profit guidance.</li>
</ul>



Olympus Corp (7733 JP) announced muted Q1FY24 result. Revenue increased 8% YoY to ¥208B, while operating profit declined 50% YoY to ¥22B. A one-time gain has inflated the net profit.
Revenue missed about 3% compared to the plan. Product shipment hold and parts supply shortages represented about 1.5% points out of the total miss of 3%.
Olympus has reiterated FY24 guidance and expects FY24 revenue of ¥914B (+4% YoY) and operating profit of ¥163B (-13% YoY). In FY23, the company missed operating profit guidance.


Olympus Corp (7733 JP): Slow Start of FY24; Unfavorable Macro Backdrop Continues to Hurt Business

<ul>
<li>
<a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> announced mixed FY23 result. While revenue was slightly ahead of forecast, both operating and net profits missed guidance. Excluding Fx, revenue increased just 4.5% in FY23.</li>
<li>Operating profit increased 28% YoY to ¥187 billion, below forecast of ¥198 billion, mainly due to high-than-expected SG&amp;A expenses, which accounted for 47.7% of revenue versus forecast of 47.2%.</li>
<li>Due to continuing macroeconomic uncertainties and waning Fx benefit, Olympus expects FY24 revenue to be ¥914B (+4% YoY) and operating profit to be ¥163B (-13% YoY).</li>
</ul>



Olympus Corp (7733 JP) announced mixed FY23 result. While revenue was slightly ahead of forecast, both operating and net profits missed guidance. Excluding Fx, revenue increased just 4.5% in FY23.
Operating profit increased 28% YoY to ¥187 billion, below forecast of ¥198 billion, mainly due to high-than-expected SG&amp;A expenses, which accounted for 47.7% of revenue versus forecast of 47.2%.
Due to continuing macroeconomic uncertainties and waning Fx benefit, Olympus expects FY24 revenue to be ¥914B (+4% YoY) and operating profit to be ¥163B (-13% YoY).


Olympus Corp (7733 JP): FY23 Result Missed Expectation; Initiated Muted FY24 Forecast

<p><a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> is the global market leader in gastrointestinal endoscopic equipment, with 70%+ share. Global GI endoscopic equipment market is expected to have a CAGR of 4–6% during FY21–24. Olympus is expected to outpace the market due to its dominant positioning in Asia market and superior imaging technologies. The company is one of the early entrants in fast growing Asia markets among its peers. Consequently, Olympus witnessed 4.2x jump in medical business revenue from China in the last decade. Last year, Olympus has launched its most advanced endoscopy system to date, EVIS X1, the first new model in about eight years (vs usual product life cycle of 5–6 years). The company estimates 70,000 units potential only for replacing the previous models by EVIS X1. Olympus is transforming itself to become a pure-play global medical devices company and conducted several M&amp;A to augment its medium-term growth. Its medical business is now back to pre-pandemic level. Concerns regarding China business seems to be over and Olympus shares are trading near its highs. Despite some risk due to global semiconductor shortage, we are bullish on the growth potential of the company’s medical business due to ongoing recovery in elective procedures and new product launch. </p>

Olympus Corp (7733 JP) is the global market leader in gastrointestinal endoscopic equipment, with 70%+ share. Global GI endoscopic equipment market is expected to have a CAGR of 4–6% during FY21–24. Olympus is expected to outpace the market due to its dominant positioning in Asia market and superior imaging technologies. The company is one of the early entrants in fast growing Asia markets among its peers. Consequently, Olympus witnessed 4.2x jump in medical business revenue from China in the last decade. Last year, Olympus has launched its most advanced endoscopy system to date, EVIS X1, the first new model in about eight years (vs usual product life cycle of 5–6 years). The company estimates 70,000 units potential only for replacing the previous models by EVIS X1. Olympus is transforming itself to become a pure-play global medical devices company and conducted several M&amp;A to augment its medium-term growth. Its medical business is now back to pre-pandemic level. Concerns regarding China business seems to be over and Olympus shares are trading near its highs. Despite some risk due to global semiconductor shortage, we are bullish on the growth potential of the company’s medical business due to ongoing recovery in elective procedures and new product launch. 

Olympus (7733 JP): Medical Business Is on a Strong Foothold; Buy at Current Level

<ul>
<li>Olympus has been sold down relatively hard in the last couple of months. At the same time, we are at crunch time for the cancellation of the US ADR.</li>
<li>This may create short-term overhang, but the medium-term overhang from substantial foreign net buying in H1 when USDJPY was going up may be larger. </li>
<li>This insight looks at the relative performance vs Peers, vs forward earnings expectations, USDJPY, etc.</li>
</ul>


Olympus has been sold down relatively hard in the last couple of months. At the same time, we are at crunch time for the cancellation of the US ADR.
This may create short-term overhang, but the medium-term overhang from substantial foreign net buying in H1 when USDJPY was going up may be larger. 
This insight looks at the relative performance vs Peers, vs forward earnings expectations, USDJPY, etc.


The Olympus Peer-Relative Crash - Due to ADR Cancellation Overhang?

Japan

OLYMPUS CORPORATION manufactures optoelectronic products.  The Company's products include cameras, video sets, endoscopes for medicine and industrial use, microscopes, analytical equipment, office communication systems, laseroptical scanners, and ionic printers.

52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Olympus Corp (7733 JP)

Olympus (7733) - OP Hit but Additional Buyback; Positive Dynamics but Flow Risks Persist

Olympus reported lower earnings guidance on a revision to due to costs of closing Veran. To offset, and use the proceeds from the Evident sale, we...

Travis Lundy