Daily Brief Industrials: Hyundai Elevator Co, Kanematsu Corp, Soda Nikka, Nagase & Co Ltd, Nichiban Co Ltd, Carr’s Group PLC, Yamada Consulting Group Co L, Frontier Management Inc, HNI Corp and more

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (9 to 23 May 2025).
• Our top 10 picks in the past two weeks were up on average 5.0% (from 25 April to 9 May), outperforming KOSPI which was up 1.2% in the same period.
• Our top 10 picks in this bi-weekly include HD Hyundai, Hyundai Elevator, KT Corp, Shinsegae, Coway, Hanwha Aerospace, F&F Co, SM Entertainment, and SK Inc. 

• Company revenue reached JPY1.1tn, a 6.6% YoY increase, achieving 95.5% of the full-year forecast.
• Operating profit decreased 4.1% YoY to JPY42.1bn, with SG&A expenses increasing 8.4% YoY to JPY115.1bn.
• Profit attributable to owners rose 18.3% YoY to JPY27.5bn, with ROE at 16.5% and ROIC at 7.6%.

• Revenue increased to JPY65.1bn (+1.6% YoY), with operating profit at JPY2.1bn (-4.7% YoY) and net income at JPY2.2bn (+18.6% YoY).
• FY03/26 forecast anticipates revenue of JPY70.5bn (+8.2% YoY) and operating profit of JPY2.3bn (+11.0% YoY).
• The company raised FY03/27 financial targets, projecting consolidated net income of JPY2.4bn or more, with ROE at 8%.

• In FY03/25, sales rose 5.0% YoY, with operating profit up 27.6% YoY, aided by yen depreciation.
• The company achieved 100.5% of sales target, 100.7% of gross profit target, and 107.1% of operating profit target.
• FY03/25 forecasts assume JPY143.0/USD, with operating profit expected to rise 1.1% YoY to JPY39.5bn.

• For FY03/25, the company reported revenue of JPY49.5bn (+5.5% YoY) and operating profit of JPY2.6bn (+24.7% YoY).
• Revenue growth was driven by the healthcare field, price revisions, and increased demand for CARELEAVES™ and ROIHI-TSUBOKO.
• The company forecasts FY03/26 revenue of JPY51.5bn (+4.1% YoY) and operating profit of JPY3.0bn (+16.0% YoY).

Carr’s Group is now a focused specialist agricultural group. The benefits of the reinvigorated management’s actions are being seen in the UK, providing confidence in the strategy as a specialist branded product animal supplements business. Challenges remain, such as softness in the drought-affected southern US market. With a strong balance sheet, a cash-generative business and growth opportunities in existing and new geographical markets, the group is successfully transitioning from the value realisation of the last few years to a new growth mandate.

• FY03/25 revenue was JPY22.8bn (+2.6% YoY); operating profit JPY4.1bn (+12.8% YoY); net income JPY2.9bn (+0.7% YoY).
• Consulting business FY03/25 revenue JPY20.4bn (+17.2% YoY); Investment business revenue JPY2.4bn (-50.0% YoY); gross profit JPY1.2bn (+33.6% YoY).
• FY03/26 forecast: revenue JPY26.0bn (+14.2% YoY); operating profit JPY3.8bn (-8.0% YoY); dividend JPY77.0 per share.

• Frontier Management (hereafter referred to as “the Company”) is a consulting firm that operates in the three pillars of management consulting, M&A advisory, and business revitalization services, as well as an investment business that began in 2022.
• Founded primarily by Mr. Shoichiro Onishi, a former employees of the Industrial Revitalization Corporation of Japan, the Company has expanded its operations through proactive hiring.
• It is characterized by its lineup of specialists with diverse backgrounds and is able to solve a wide variety of management issues as a one-stop shop.

• 1QFY25 Adj EPS of $0.44 beat our estimate of $0.35 on better-than-expected revenues in both segments and continued margin strength.
• HNI saw growth on the contract side of Workplace Furnishings, with revenue up 4% Y/Y, and in the renovation/retrofit side of Residential Building Products, with sales up 13% Y/Y.
• These gains offset relative weakness in the traditionally more volatile SMB component of Workplace Furnishings, down 5% Y/Y, and in the new construction component of Residential Building Products, which was only up 3% Y/Y.