In today’s briefing:
- Daihatsu Diesel’s (6023) Big Buyback and Quasi Change of Control
- CyberAgent 1Q: Media Business Continues to Show Solid Growth
- Makita (6586) | Powering Up
- Jafco Co Ltd (8595 JP): Q3 FY03/25 flash update
- Jafco- Continues to Perform
- Canon Marketing Japan (8060 JP): Full-year FY12/24 flash update
- Matsui Securities (8628 JP): Q3 FY03/25 flash update
- Pca Corp (9629 JP): Q3 FY03/25 flash update
- Carta Holdings (3688 JP) – Q3 FOLLOW-UP
- Entrust Inc (7191 JP): Q3 FY03/25 flash update
Daihatsu Diesel’s (6023) Big Buyback and Quasi Change of Control
- Yesterday, Daihatsu Diesel Mfg (6023 JP) announced that it would buy back shares in a Tender Offer and that its controlling “parent” would also sell shares to a private company.
- The accretion is significant, and the shareholder structure changes significantly. It is not quite an Exedy-like situation though. The register changes but it doesn’t clear.
- But the backdrop is considerably different than the MTMP, and that means this smallcap is worth a closer look.
CyberAgent 1Q: Media Business Continues to Show Solid Growth
- CyberAgent Inc (4751 JP) reported 1QFY09/2025 results today. 1Q revenues beat consensus but reported OP fell below consensus due to weak gaming margins.
- The key highlight of the quarter was the strong results of the Media business whose revenues saw strong growth with strengthened profitability.
- Though game earnings were slightly weak during 1Q, we would not be too worried as app analysis data reveals that the segment is off to a strong start in 2QFY09/2025.
Makita (6586) | Powering Up
- Margin recovery drives stock higher – Operating profit beat estimates, margins rebounded to 13.6%, and forex gains provided a boost despite weak sales.
- European rebound offers upside – Makita, with 20% market share, is set to benefit from a forecasted 2025 construction sector recovery after two years of contraction.
- Valuation remains attractive – With improving ROIC, inventory normalisation, and steady growth prospects, a DCF model suggests an 18% upside for the stock.
Jafco Co Ltd (8595 JP): Q3 FY03/25 flash update
- Revenue increased by 73.9% YoY to JPY25.4bn, with operating profit rising 149.6% YoY to JPY11.2bn.
- Capital gains reached JPY10.9bn, with JPY7.6bn from IPO-related share sales and JPY3.4bn from unlisted shares.
- Total investment executed in cumulative Q3 FY03/25 was JPY30.6bn, with JPY14.5bn for domestic VC investments.
Jafco- Continues to Perform
- The company has had good 2024 absolute and relative to Topix performance.
- Will Jafco continue this winning streak into 2025 and beyond?
- Results for the quarter ending December 2024 are encouraging with exit multiples increasing
Canon Marketing Japan (8060 JP): Full-year FY12/24 flash update
- Sales increased by 7.3% YoY to JPY653.9bn, driven by IT solutions and maintenance/operations services.
- FY12/25 forecasts: Sales JPY680.0bn (+4.0% YoY), Operating profit JPY56.0bn (+5.4% YoY), Net income JPY39.5bn (+0.5% YoY).
- IT solutions sales expected to grow YoY, with a 7% increase in SI services and 10% in outsourcing.
Matsui Securities (8628 JP): Q3 FY03/25 flash update
- Net operating revenue was JPY9.0bn, with a YoY increase of 4.5% and a QoQ decrease of 9.8%.
- SG&A expenses rose to JPY5.4bn, up 6.8% YoY and 2.2% QoQ, with personnel expenses at JPY999mn.
- Net trading profit reached JPY1.1bn, up 3.6% YoY and down 8.3% QoQ, primarily from FX transactions.
Pca Corp (9629 JP): Q3 FY03/25 flash update
- In Q3 FY03/25, the company reported revenue of JPY12.1bn, operating profit of JPY2.1bn, and net income of JPY1.4bn.
- Revenue by product category showed cloud services increased 28.2% YoY, while conventional software decreased 53.3% YoY.
- FY03/25 forecasts include revenue of JPY16.5bn, operating profit of JPY2.4bn, and a dividend of JPY83.00/share.
Carta Holdings (3688 JP) – Q3 FOLLOW-UP
- CARTA HOLDINGS (hereafter, the Company) announced its Q3 FY2024/12 results on November 13, 2024, which were in line with its upwardly revised forecasts disclosed with Q2 results.
- The Company positioned FY2024/12 as the first year toward its sharp recovery following aggressive cost structure reforms in FY2023/12, and expects full- year operating profit to rise 53.7% YoY to JPY 2,000 mn as a signal to the start of its comeback.
- Q4 is the Company’s busy season, and investors likely have a certain level of interest in where actual results come in.
Entrust Inc (7191 JP): Q3 FY03/25 flash update
- Revenue increased 17.9% YoY to JPY7.8bn, driven by growth in rent guarantee services; operating profit rose 11.0% YoY.
- Total contracts in force reached 475,000 (+4.0% YoY), with Guarantee business contracts increasing 20.7% YoY to 349,000.
- Solution business revenue declined 14.5% YoY as customers switched to guarantee contracts, reducing contracts in force by 24.7% YoY.
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