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>Stable performance maintained – With demand stemming from technology (chiefly optical connectors), aerospace, and medical sectors, Sodick’s Q1-3 FY12/25 results demonstrated a sustained recovery YoY.</li>
<li>Order visibility for the mainstay EDM units remains high, with Q3 FY12/25 orders rising 18.9% YoY, driven primarily by demand from China.</li>
<li>Quarterly GPM of 36.2% in Q3 FY12/25 indicates progress toward improving the sales mix by selling high-value-added products. </li>
</ul>


Stable performance maintained – With demand stemming from technology (chiefly optical connectors), aerospace, and medical sectors, Sodick’s Q1-3 FY12/25 results demonstrated a sustained recovery YoY.
Order visibility for the mainstay EDM units remains high, with Q3 FY12/25 orders rising 18.9% YoY, driven primarily by demand from China.
Quarterly GPM of 36.2% in Q3 FY12/25 indicates progress toward improving the sales mix by selling high-value-added products. 


Sodick (6143 JP) - Consolidating the Recovery Profile

<ul>
<li>
<strong>Strong opening quarter</strong> – Q1 FY12/25 results were a positive surprise  in our view, with solid sales volume recovery YoY and OPM at 6.8%, marking an 11-quarter high.</li>
<li>Key drivers included continued demand recovery in the key Machine Tool business, driven by demand from China, as well as structural demand for MT connectors.</li>
<li>Additionally, there was significant growth in Food Machinery, stemming from both domestic and overseas demand. </li>
</ul>



Strong opening quarter – Q1 FY12/25 results were a positive surprise  in our view, with solid sales volume recovery YoY and OPM at 6.8%, marking an 11-quarter high.
Key drivers included continued demand recovery in the key Machine Tool business, driven by demand from China, as well as structural demand for MT connectors.
Additionally, there was significant growth in Food Machinery, stemming from both domestic and overseas demand. 


Sodick (6143 JP) - Building Recovery Momentum

<ul><li>It has been an active 12 months for Sodick as it delivered a strong turnaround in FY12/24 driven by structural reform, appointed new President and CEO Yuji Akutsu, and affirmed growth prospects on both the Food Machinery segment and new products such as laser processing machines, metal 3D printers, and ultra-high-precision machining centers.</li><li>Ongoing structural reforms focus on reducing reliance on China, enhancing profitability through business and product selection based on market dynamics, and rebuilding global production and sales systems to adapt to yen depreciation and evolving customer demand.</li><li>Overseas expansion and providing “turnkey” solutions remain high priorities to build sustainable growth.</li></ul>

It has been an active 12 months for Sodick as it delivered a strong turnaround in FY12/24 driven by structural reform, appointed new President and CEO Yuji Akutsu, and affirmed growth prospects on both the Food Machinery segment and new products such as laser processing machines, metal 3D printers, and ultra-high-precision machining centers.Ongoing structural reforms focus on reducing reliance on China, enhancing profitability through business and product selection based on market dynamics, and rebuilding global production and sales systems to adapt to yen depreciation and evolving customer demand.Overseas expansion and providing “turnkey” solutions remain high priorities to build sustainable growth.

Sodick (6143) - From Turnaround to Transformation Towards Growth

<ul><li>A turnaround in progress – Q1-4 FY12/24 results were significantly ahead of guidance and a positive surprise, showing a solid recovery YoY with 9.7% sales growth YoY and a return to positive earnings territory.</li><li>This indicates solid execution of structural reforms, with fixed costs being reduced by streamlining overseas staff and internalizing parts production that were previously outsourced.</li><li>An uptick in demand in Q4 FY12/24 for both Machine Tools and Industrial Machinery was driven by connectors used in high-density fiber optic connections in the data center and telecommunications sectors. </li></ul>

A turnaround in progress – Q1-4 FY12/24 results were significantly ahead of guidance and a positive surprise, showing a solid recovery YoY with 9.7% sales growth YoY and a return to positive earnings territory.This indicates solid execution of structural reforms, with fixed costs being reduced by streamlining overseas staff and internalizing parts production that were previously outsourced.An uptick in demand in Q4 FY12/24 for both Machine Tools and Industrial Machinery was driven by connectors used in high-density fiber optic connections in the data center and telecommunications sectors. 

Sodick (6143 JP) - Signalling a Positive Shift

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>
<a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a> announced a preconditional tender offer from MBK Partners at JPY11,751, a 4.8% premium to last close and a 6.8% premium to Nidec’s withdrawn JPY11,000 offer.</li>
<li>The offer is broadly in line with the midpoint of the IFA DCF valuation range. The tender offer is expected to commence in early December.</li>
<li>Despite the offer resulting from an auction, there remains a medium probability that <a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec Corp (6594 JP)</a> or a spurned white knight bidder (Candidate A) emerges with a higher offer.</li>
</ul>



Makino Milling Machine Co (6135 JP) announced a preconditional tender offer from MBK Partners at JPY11,751, a 4.8% premium to last close and a 6.8% premium to Nidec’s withdrawn JPY11,000 offer.
The offer is broadly in line with the midpoint of the IFA DCF valuation range. The tender offer is expected to commence in early December.
Despite the offer resulting from an auction, there remains a medium probability that Nidec Corp (6594 JP) or a spurned white knight bidder (Candidate A) emerges with a higher offer.


Makino Milling Machine (6135 JP): MBK’s Preconditional Offer Is Not the Likely Endgame

Japan

Sodick Co., Ltd. develops, manufactures, and sells electric machines and equipment.  The Company's product line includes computerized numerical control electrical discharge machine (EDM), super high precision wire cut EDM, CAD/CAM system for mold design and production, injection molding machine, and high speed manual drilling machine.

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Sodick Co Ltd (6143 JP)

Sodick (6143 JP) - Consolidating the Recovery Profile

With demand stemming from technology (chiefly optical connectors), aerospace, and medical sectors, Sodick’s Q1-3 FY12/25 results demonstrated a...

Astris Advisory Japan

Sodick (6143 JP) - Building Recovery Momentum

Q1 FY12/25 results were a positive surprise in our view, with solid sales volume recovery YoY and OPM at 6.8%, marking an 11-quarter high.

Astris Advisory Japan

Sodick (6143) - From Turnaround to Transformation Towards Growth

Ongoing structural reforms focus on reducing reliance on China, enhancing profitability through business and product selection based on market...

Astris Advisory Japan

Sodick (6143 JP) - Signalling a Positive Shift

Q1-4 FY12/24 results were significantly ahead of guidance and a positive surprise, showing a solid recovery YoY with 9.7% sales growth YoY and a...

Astris Advisory Japan

Makino Milling Machine (6135 JP): MBK’s Preconditional Offer Is Not the Likely Endgame

Despite the offer resulting from an auction, there remains a medium probability that Nidec or a spurned white knight bidder (Candidate A) emerges...

Arun George

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