In today’s briefing:
- JX Advanced Metals (5016 JP) IPO: The Bear Case
- Terumo Corp (4543 JP): Strong Demand Drives Q3FY25 Performance; FY25 Guidance Reiterated
- Poper (5134 JP)
JX Advanced Metals (5016 JP) IPO: The Bear Case
- JX Advanced Metals (5016 JP) is a global leader in the semiconductor and ICT materials sector. It is seeking to raise up to US$2.6 billion.
- In JX Advanced Metals (5016 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on extensive proforma adjustments, the non-focus business remaining the largest profit contributor, margin pressure on the non-focus business and medium-to-long-term targets will likely disappoint.
Terumo Corp (4543 JP): Strong Demand Drives Q3FY25 Performance; FY25 Guidance Reiterated
- Terumo Corp (4543 JP) reported record high revenue, operating profit, and net profit for both Q3FY25 and Q3 YTD. Global demand continues to expand, driven by the U.S.
- In terms of segments, TIS and blood center business drove the growth. Steady progress in pricing measures and profit improvement measures led the bottomline outperforming topline, thereby improving profitability.
- FY25 guidance implies Q4FY25 revenue of ¥238B, flat YoY and down 10% QoQ. Mainstay C&V business revenue is expected to decline 6% YoY to ¥139B due to seasonality.
Poper (5134 JP)
- An emerging leader in online software for the Japanese private education industry, run by a young founder-CEO with skin in the game
- Cheap at just 1.7x EV/Sales with a 20% target operating margin and 20-30% sustainable growth
- Question marks include outsourcing of coding to third-party firms in the PRC, the potential impact of generative AI tools and less-than-ideal capital allocation
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