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

Restar Holdings Corporation / Equity Bottom-Up

<ul><li>Tracking in line, monitoring developments – Q1-3 FY3/26 results were broadly in line, with the core Device Business Unit (BU) driving both sales and earnings growth, although profitability softened modestly.</li><li>Overall earnings visibility is mixed; industrial equipment and auto sectors are showing signs of demand momentum for the Device BU, while heightened competition lowered returns in the System BU’s Eco-solutions sub-segment in the supply–demand adjustment market.</li><li>The company is approaching the final year of its current Medium-Term management Plan in FY3/27, and visibility on the outlook is still developing, given 1) limited time remaining to conduct targeted M&amp;A activity, and 2) sales mix improvements yet to materialize from the IT&amp;SIer and the to-be-established Engineering Business Units.</li></ul>

Tracking in line, monitoring developments – Q1-3 FY3/26 results were broadly in line, with the core Device Business Unit (BU) driving both sales and earnings growth, although profitability softened modestly.Overall earnings visibility is mixed; industrial equipment and auto sectors are showing signs of demand momentum for the Device BU, while heightened competition lowered returns in the System BU’s Eco-solutions sub-segment in the supply–demand adjustment market.The company is approaching the final year of its current Medium-Term management Plan in FY3/27, and visibility on the outlook is still developing, given 1) limited time remaining to conduct targeted M&amp;A activity, and 2) sales mix improvements yet to materialize from the IT&amp;SIer and the to-be-established Engineering Business Units.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>On 15 May, <a href="https://www.smartkarma.com/entities/shinko-shoji-co-ltd" target="_blank" data-smartkarma-citation="entities:2322:1" rel="noopener">Shinko Shoji (8141 JP)</a> announced a tender offer from <a href="https://www.smartkarma.com/entities/kaga-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:14600:1" rel="noopener">Kaga Electronics (8154 JP)</a> at JPY1,580. While Murakami, the largest shareholder, provided an irrevocable, it could sell down. </li>
<li>Murakami <a href="https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y8GB.pdf?sv=2020-08-04&amp;st=2026-06-03T06%3A09%3A17Z&amp;se=2031-06-03T15%3A00%3A00Z&amp;sr=b&amp;sp=rl&amp;sig=6aj9kegCB9T6lczw0%2Bw7uYk3w2nCLTc7gWTKmQeEoYw%3D" target="_blank" rel="noopener">ceased</a> to be a substantial shareholder by reducing its stake from 15.85% to 4.53% of the outstanding shares. There is a high probability that they are no longer shareholders. </li>
<li>The Murakami entities disposed of the shares from 18 to 27 May when the shares were trading through terms, suggesting they were bought by one or more activists. </li>
</ul>


On 15 May, Shinko Shoji (8141 JP) announced a tender offer from Kaga Electronics (8154 JP) at JPY1,580. While Murakami, the largest shareholder, provided an irrevocable, it could sell down. 
Murakami ceased to be a substantial shareholder by reducing its stake from 15.85% to 4.53% of the outstanding shares. There is a high probability that they are no longer shareholders. 
The Murakami entities disposed of the shares from 18 to 27 May when the shares were trading through terms, suggesting they were bought by one or more activists. 


Shinko Shoji (8141 JP): An Increasing Chance for a Bump as Murakami Exits

<ul><li>After conducting a business reorganization and accelerating M&amp;A activity, Restar has embarked on a high-impact medium-term management plan.</li><li>This broadly involves 1) around half of ¥90bn capital allocation directed toward growth investments, with the remainder for working capital requirements in existing operations and post-merger integration (PMI) activities</li><li>2) establishing a new high-value-added Engineering business unit, with these efforts reflecting a clear focus on improving overall profitability. </li></ul>

After conducting a business reorganization and accelerating M&amp;A activity, Restar has embarked on a high-impact medium-term management plan.This broadly involves 1) around half of ¥90bn capital allocation directed toward growth investments, with the remainder for working capital requirements in existing operations and post-merger integration (PMI) activities2) establishing a new high-value-added Engineering business unit, with these efforts reflecting a clear focus on improving overall profitability. 

Restar (3156 JP) - Accelerating Growth Through M&A and High-Value-Added Services

<ul><li>Q1-2 FY3/26 results showed signs of stabilisation, which was a positive development.</li><li>Restar showed clear earnings recovery in Q2 FY3/26, with OPM improving to 2.3% from 1.2% in Q1 FY3/26, signalling that earnings momentum is returning after a weak start to the year.</li><li>Adjusting for yen appreciation, underlying sales rose 3.5% YoY. </li></ul>

Q1-2 FY3/26 results showed signs of stabilisation, which was a positive development.Restar showed clear earnings recovery in Q2 FY3/26, with OPM improving to 2.3% from 1.2% in Q1 FY3/26, signalling that earnings momentum is returning after a weak start to the year.Adjusting for yen appreciation, underlying sales rose 3.5% YoY. 

Restar (3156 JP) - Earnings Momentum Regained

<ul><li>Business scaling and transforming – Q1-4 FY3/25 results were in line with our expectations, with a relatively resilient underlying earnings trend YoY despite FX headwinds and difficult macro conditions.</li><li>Restar’s roll-up strategy contributed to a 9.5% YoY sales growth. Profitability declined due to a deteriorating sales mix in the Device business and intensifying competition in the power supply-demand adjustment market in Eco solutions.</li><li>Progress is evident for business transformation efforts to introduce high-value-added services, with the consolidated PCI Group rebranded as the IT &amp; SIer BU (business unit). F</li></ul>

Business scaling and transforming – Q1-4 FY3/25 results were in line with our expectations, with a relatively resilient underlying earnings trend YoY despite FX headwinds and difficult macro conditions.Restar’s roll-up strategy contributed to a 9.5% YoY sales growth. Profitability declined due to a deteriorating sales mix in the Device business and intensifying competition in the power supply-demand adjustment market in Eco solutions.Progress is evident for business transformation efforts to introduce high-value-added services, with the consolidated PCI Group rebranded as the IT &amp; SIer BU (business unit). F

Restar (3156 JP) - Progress Required to Unlock Full Potential

Japan

Restar Holdings Corporation is a holding company which manages operations for its subsidiaries.  Group companies wholesale semiconductors, electronic components and equipment.  UKC Holdings also designs semiconductors and software through its subsidiaries.

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Restar Holdings Corporation (3156 JP)

Restar (3156 JP) - Monitoring Next Steps

Q1-3 FY3/26 results were broadly in line, with the core Device Business Unit (BU) driving both sales and earnings growth, although profitability...

Astris Advisory Japan

Shinko Shoji (8141 JP): An Increasing Chance for a Bump as Murakami Exits

The offer is light. Murakami's exit increases the odds that an activist will emerge as a substantial shareholder and push for a bump. The first...

Arun George

Restar (3156 JP) - Accelerating Growth Through M&A and High-Value-Added Services

After conducting a business reorganization and accelerating M&A activity, Restar has embarked on a high-impact medium-term management plan.

Astris Advisory Japan

Restar (3156 JP) - Earnings Momentum Regained

Restar showed clear earnings recovery in Q2 FY3/26, with OPM improving to 2.3% from 1.2% in Q1 FY3/26, signalling that earnings momentum is...

Astris Advisory Japan

Restar (3156 JP) - Progress Required to Unlock Full Potential

Q1-4 FY3/25 results were in line with our expectations, with a relatively resilient underlying earnings trend YoY despite FX headwinds and...

Astris Advisory Japan

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