Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/kitazato-corp" target="_blank" data-smartkarma-citation="entities:45255:1" rel="noopener">Kitazato (368A JP)</a> manufactures and sells medical devices and products for fertility treatment. It aims to raise around US$130m in its Japan IPO.</li>
<li>Kitazato specializes in artificial insemination, in vitro fertilization, cell cryopreservation and reproductive engineering technologies in regenerative medicine.</li>
<li>In our previous note, we looked at its past performance and other deal dynamics that might impact the listing. In this note, look at the firm’s valuation.</li>
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Kitazato (368A JP) manufactures and sells medical devices and products for fertility treatment. It aims to raise around US$130m in its Japan IPO.
Kitazato specializes in artificial insemination, in vitro fertilization, cell cryopreservation and reproductive engineering technologies in regenerative medicine.
In our previous note, we looked at its past performance and other deal dynamics that might impact the listing. In this note, look at the firm’s valuation.


Kitazato IPO - Isn’t Particularly Enticing Apart from the Dividend Yield

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

<ul><li>Overseas markets driving growth – Shofu demonstrated continued positive developments in overseas markets, driving Q1-2 FY3/25 sales growth of 14.8% YoY.</li><li>Growing demand and market share gains for its Chemical products continue with sales growth here at 28.1% YoY and making up 32.9% of total sales (29.5% in Q1-2 FY3/24).</li><li>The company is experiencing some cost pressures from manufacturing, but profitability remains at elevated levels, and we believe there is scope for further margin expansion through both sales volume growth and mix enhancement.</li></ul>

Overseas markets driving growth – Shofu demonstrated continued positive developments in overseas markets, driving Q1-2 FY3/25 sales growth of 14.8% YoY.Growing demand and market share gains for its Chemical products continue with sales growth here at 28.1% YoY and making up 32.9% of total sales (29.5% in Q1-2 FY3/24).The company is experiencing some cost pressures from manufacturing, but profitability remains at elevated levels, and we believe there is scope for further margin expansion through both sales volume growth and mix enhancement.

Shofu (7979 JP) - Consistent Execution with a Positive Medium- Term Outlook

<ul><li>Q1 FY3/25 results were ahead of our expectations, with Shofu’s solid execution overseas, with overseas sales growth of 20.2% YoY, and making up 60.5% of the total.</li><li>Its competitive and high-margin Chemical products (CAD/CAM resin materials and restorative filling materials) grew 27.9% YoY and made up 32.6% of total sales (29.1% in Q1 FY3/24).</li><li>This combination of overseas growth and sales mix improvement resulted in a record-high quarterly OPM of 16.4%. </li></ul>

Q1 FY3/25 results were ahead of our expectations, with Shofu’s solid execution overseas, with overseas sales growth of 20.2% YoY, and making up 60.5% of the total.Its competitive and high-margin Chemical products (CAD/CAM resin materials and restorative filling materials) grew 27.9% YoY and made up 32.6% of total sales (29.1% in Q1 FY3/24).This combination of overseas growth and sales mix improvement resulted in a record-high quarterly OPM of 16.4%. 

Shofu (7979) - Solid Execution of Overseas Growth and Profitability Expansion

<ul><li>Demonstrating solid execution – Q1-4 FY3/24 results were ahead of company guidance, with Shofu demonstrating solid execution of its strategic initiative for overseas expansion and sales mix improvement.</li><li>By delivering sustained double-digit sales and earnings growth with record-high profitability, we believe the outlook remains positive for the medium to longer term with production capacity increases being a major theme of the company’s new medium-term plan.</li><li>Whilst working capital requirements and capital intensity will rise, we believe this will result in Shofu reaching its target of ¥50bn annual sales with an enduring model for shareholder value generation.</li></ul>

Demonstrating solid execution – Q1-4 FY3/24 results were ahead of company guidance, with Shofu demonstrating solid execution of its strategic initiative for overseas expansion and sales mix improvement.By delivering sustained double-digit sales and earnings growth with record-high profitability, we believe the outlook remains positive for the medium to longer term with production capacity increases being a major theme of the company’s new medium-term plan.Whilst working capital requirements and capital intensity will rise, we believe this will result in Shofu reaching its target of ¥50bn annual sales with an enduring model for shareholder value generation.

Shofu (7979 JP) - A Compounding Franchise Business Stepping up a Gear

<ul><li>Committing to raising production capacity –Shofu announced its fifth medium-term plan, covering the four years from FY3/25 to FY3/28.</li><li>The core message is that the company has competitive products and high demand visibility in overseas markets, and is reaching the point of attaining annual sales volume of ¥50bn.</li><li>The plan will involve significant capital allocation to raise production capacity and other business investments to meet its goals. zed.</li></ul>

Committing to raising production capacity –Shofu announced its fifth medium-term plan, covering the four years from FY3/25 to FY3/28.The core message is that the company has competitive products and high demand visibility in overseas markets, and is reaching the point of attaining annual sales volume of ¥50bn.The plan will involve significant capital allocation to raise production capacity and other business investments to meet its goals. zed.

Shofu (7979 JP) - Hiking Production and Demonstrating Confidence in Future Growth

Japan

SHOFU INC. manufactures materials used for dental treatment.  The Company also wholesales dental equipment.  Shofu's products include artificial teeth, dental abrasives, dental stone, metal products, and endodontic instruments and materials.

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Shofu Inc (7979 JP)

Kitazato IPO - Isn’t Particularly Enticing Apart from the Dividend Yield

Kitazato (368A JP) manufactures and sells medical devices and products for fertility treatment. It aims to raise around US$130m in its Japan IPO.

Sumeet Singh

Shofu (7979 JP) - Consistent Execution with a Positive Medium- Term Outlook

Overseas markets driving growth – Shofu demonstrated continued positive developments in overseas markets, driving Q1-2 FY3/25 sales growth of 14.8%...

Astris Advisory Japan

Shofu (7979) - Solid Execution of Overseas Growth and Profitability Expansion

Q1 FY3/25 results were ahead of our expectations, with Shofu’s solid execution overseas, with overseas sales growth of 20.2% YoY, and making up...

Astris Advisory Japan

Shofu (7979 JP) - A Compounding Franchise Business Stepping up a Gear

Q1-4 FY3/24 results were ahead of company guidance, with Shofu demonstrating solid execution of its strategic initiative for overseas expansion and...

Astris Advisory Japan

Shofu (7979 JP) - Hiking Production and Demonstrating Confidence in Future Growth

Committing to raising production capacity –Shofu announced its fifth medium-term plan, covering the four years from FY3/25 to FY3/28.

Astris Advisory Japan

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