In today’s briefing:
- Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion
- Shimano (7309) | A Slow but Steady Ascent
- Recruit 3Q: Strong Set of Results Despite Slowdown in Labour Markets
- Impress Holdings (9479 JP): Q3 FY03/25 flash update
- Mitsuba Corp (7280 JP): Q3 FY03/25 flash update
- Nhk Spring (5991 JP): Q3 FY03/25 flash update
- Nippon Denko (5563 JP): Full-year FY12/24 flash update
- Nisshinbo Holdings (3105 JP): Full-year FY12/24 flash update
- Oat Agrio (4979 JP): Full-year FY12/24 flash update
- (9076 JP) New Efficiencies and Modernisation in Consumer Goods Shipping
Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion
- Janaghan Jeyakumar, CFA has had Japan Eyewear Holdings (5889 JP) on his watchlist. He wrote on 6 Feb 2025 in his TOPIX Who Is Ready piece he expected Q1 inclusion.
- He also noted that an equity offering might be required. Monday, we got a forecast revision (upward) for the year ended 31 January, an equity offering, and TOPIX inclusion.
- The equity offering proposed is large enough one could consider it a “Second IPO”. This matters in terms of absorption and in thinking about the TOPIX Inclusion event.
Shimano (7309) | A Slow but Steady Ascent
- Cautious but Credible – FY25 guidance underwhelms, but Shimano’s realism is justified. The bike market is recovering, even if 2025 will be a grind.
- Sitting on a Cash Pile – ¥530 billion in net financial assets, yet capital returns remain restrained. Investors will be watching for bolder moves.
- Quality Wins – mid-cycle ROIC north of 20% and end-market inventories normalising – a long-term winner at a fair price.
Recruit 3Q: Strong Set of Results Despite Slowdown in Labour Markets
- Recruit Holdings (6098 JP) reported 3QFY03/2025 results today which were in line with estimates. Despite labour markets cooling off, Recruit managed to report a strong set of results.
- The company also has provided revised guidance for full-year FY03/2025 with an upward revision to revenues while Adj. EBITDA is forecast to be above the midpoint of the previous range.
- Despite the slowdown in labour markets, Recruit’s monetisation efforts have paid off, however, we would not rush to make an entry.
Impress Holdings (9479 JP): Q3 FY03/25 flash update
- Revenue decreased YoY in several segments, with notable declines in Content and Platform Businesses due to market trends.
- Operating losses were reduced across multiple segments, attributed to improved profitability and lower SG&A expenses despite revenue declines.
- Certain segments experienced revenue growth, driven by strong sales in Internet Media services and new platform developments.
Mitsuba Corp (7280 JP): Q3 FY03/25 flash update
- Cumulative Q3 revenue rose 0.2% YoY to JPY257.4bn, with notable growth in the Other business segment.
- Operating profit increased 8.0% YoY to JPY15.6bn, driven by price improvements and growth in core business segments.
- Transportation Equipment-related Operations faced a 23.1% YoY revenue decline in China, despite growth in other regions.
Nhk Spring (5991 JP): Q3 FY03/25 flash update
- Revenue increased YoY across most segments, with Automotive Seating declining; operating profit rose, and GPM improved to 13.7%.
- Revenue increased YoY, narrowing losses; yen depreciation boosted yen-denominated earnings at overseas subsidiaries.
- Semiconductor market recovery increased sales of process components, while high-capacity HDD demand boosted HDD suspensions revenue.
Nippon Denko (5563 JP): Full-year FY12/24 flash update
- In Q1 FY12/24, revenue was JPY78.2bn (-0.2% YoY), operating profit JPY6.9bn (+46.0% YoY), recurring profit JPY4.9bn (+100.8% YoY).
- The company raised its annual dividend forecast to JPY11.0, targeting a payout ratio of about 40%.
- Full-year forecast for FY12/25 remains undecided due to uncertainties in alloy prices and electronic component demand.
Nisshinbo Holdings (3105 JP): Full-year FY12/24 flash update
- FY12/24 sales reached 102.0% of forecast; operating profit 110.5%, recurring profit 128.4%, and net income 102.8%.
- FY12/25 forecast: sales JPY506.0bn (+2.3% YoY), operating profit JPY19.7bn (+18.8% YoY), net income JPY18.3bn (+78.1% YoY).
- Wireless and Communications segment expects increased sales and profit due to demand for disaster prevention systems and defense-related business.
Oat Agrio (4979 JP): Full-year FY12/24 flash update
- FY12/24 revenue was JPY29.8bn, with operating profit at JPY3.1bn, and net income at JPY2.1bn.
- Agrichemicals revenue declined 6.8% YoY, while fertilizers and biostimulants revenue increased 9.3% YoY to JPY18.7bn.
- FY12/25 forecasts project revenue at JPY30.8bn, operating profit at JPY3.3bn, and net income at JPY2.1bn.
(9076 JP) New Efficiencies and Modernisation in Consumer Goods Shipping
- Despite a year passing since the new rules on driver overtime came into force, transport companies are still coming up with ways to keep to the new regulations.
- Seino, one of the largest trucking companies, has consolidated its regional subsidiaries and plans to open new regional hubs to reduce route distances.
- Others will do the same and more collaborations are likely, lowering costs and improving efficiency for consumer distribution.
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