In today’s briefing:
- Kyocera (6971) – Changes Policies – Will Sell KDDI Faster and Buy Back Shares
- EQD | Nikkei Index Options Weekly (January 27 – 31): USD/JPY and Nikkei at a Stalemate
- La Nina-triggered Floods Make Serious Dent In Thai Rubber Production
- Lasertec: FY25 Guidance Isn’t Revised up Despite a Blockbuster 2Q25. The Stock Is Attractive.
- Sumitomo Pharma (4506 JP): Robust 9MFY25 Revenues; Back in Black; Guidance Revised
- Daiichi Sankyo (4568 JP): Mixed Q3FY25 Result; FY25 Net Profit Guidance Raised; New CEO Appointed
- AS ONE Corporation (7476 JP): Q3 FY03/25 flash update
- Seeing Disappointing Disclosures Raises Question of What Was the Skill Matrix of Board Directors?
- Sms Co Ltd (2175 JP): Q3 FY03/25 flash update
- Takamiya (2445 JP) – Business Model Transition Leads to a Phase of Slower Profit Growth…
Kyocera (6971) – Changes Policies – Will Sell KDDI Faster and Buy Back Shares
- Today, in conjunction with the release of Q3 earnings, Kyocera Corp (6971 JP) announced a change in its Corporate Governance Code doc, a change in Cross-holding Policy, and Buyback Policy.
- Full-Year earnings guidance revision was non-salutary. Revs -1%, OP -69%, Net Profit -72% vs previous predictions from 30 October (those were -1.5%, -38.2%, -36.6% vs April guidance at the time).
- Based on this disappointment, they announced they would speed up the sale of crossholdings and buy back shares this year and over the following three years.
EQD | Nikkei Index Options Weekly (January 27 – 31): USD/JPY and Nikkei at a Stalemate
- This week we add in some additional graphs and commentary highlighting USD/JPY vs Nikkei 225.
- Implied vols were very reactive to spot to open the week with Nikkei dropping almost 1% on Monday.
- Heavier volume on the down days with Puts making up 57.8% of the total weekly volume.
La Nina-triggered Floods Make Serious Dent In Thai Rubber Production
- Rubber production in December suffers a loss of 30%
- Yokohama Rubber plays Good Samaritan in hour of crisis
- CMO enabling FSC Certification for Thai rubber for EUDR
Lasertec: FY25 Guidance Isn’t Revised up Despite a Blockbuster 2Q25. The Stock Is Attractive.
- After 2 very poor quarters (revenue decline YoY), 2Q25 revenue increase 93% YoY, net income 137%. The painfully high volatility will not go away.
- But Lasertec maintains its FY25 guidance which means that the blowout 2Q25 does not indicate higher growth
- The expectation bubble should have completely deflated (SiC for EV, Intel, Samsung). The stock is trading at 18x, at the bottom of its trading range and valuations. Attractive.
Sumitomo Pharma (4506 JP): Robust 9MFY25 Revenues; Back in Black; Guidance Revised
- Sumitomo Pharma (4506 JP) reported 25% YoY revenue growth during 9MFY25, driven by North America.
- Restructuring and streamlining efforts help curb expenses and post a core operating profit of ¥21B during 9MFY25 compared to an operating loss of ¥96B in same period last year.
- Sumitomo is now expecting FY25 revenue to be ¥381B, up by ¥43B from the previous forecast and a core net profit of ¥16B.
Daiichi Sankyo (4568 JP): Mixed Q3FY25 Result; FY25 Net Profit Guidance Raised; New CEO Appointed
- Daiichi Sankyo (4568 JP) reported mixed Q3FY25 result, with revenue increasing 8% YoY to ¥484.8M and net profit decreasing 7% YoY to ¥61.9M. Enhertu revenue increased 39% YoY to ¥143B.
- The company has raised FY25 net profit guidance by 7% to ¥240B (up 20% YoY), to reflect an increase in financial income due to an improvement in foreign exchange gains.
- As Daiichi Sankyo enters the final year of its current five-year business plan, the company has appointed Hiroyuki Okuzawa as Chief Executive Officer effective April 1, 2025.
AS ONE Corporation (7476 JP): Q3 FY03/25 flash update
- Cumulative Q3 FY03/25 sales were JPY75.4bn (+9.8% YoY), operating profit JPY8.4bn (+11.5% YoY), net income JPY6.0bn (+10.2% YoY).
- Research and Industrial Instruments sales reached JPY62.4bn (+11.0% YoY), with Scientific and Industrial sales at JPY46.1bn and JPY16.3bn respectively.
- E-commerce sales rose to JPY24.7bn (+23.8% YoY), overseas business sales were JPY4.1bn (+8.9% YoY), driven by online expansion.
Seeing Disappointing Disclosures Raises Question of What Was the Skill Matrix of Board Directors?
- With about 40% of companies having a P/B of less than 1x, the problem is that many disclosures do not understand management to create value and increase the stock price.
- It’s difficult for investors’ voices to reach small cap companies and companies with still high defensive walls of cross-held shares, which are not easily targeted for investment by institutional investors.
- Independent directors should be appointed with skillset to participate in developing management plans and scrutinize them for reasonableness and whether the projected corporate value is gapped from that of investors.
Sms Co Ltd (2175 JP): Q3 FY03/25 flash update
- Sales increased 14.0% YoY to JPY44.9bn, while operating profit decreased 27.4% YoY to JPY3.6bn.
- Revised FY03/25 forecast: sales JPY61.1bn (+13.1% YoY), operating profit JPY6.3bn (-23.8% YoY), net income JPY6.1bn (-16.3% YoY).
- Kaipoke member locations increased by 9.5% YoY, with 31,150 locations and 54,350 elderly care facilities.
Takamiya (2445 JP) – Business Model Transition Leads to a Phase of Slower Profit Growth…
- H1 FY2025/3 Earnings results summary: Takamiya (hereafter, the Company) reported sales of JPY 21,236 mn (+2.1% YoY), operating profit of JPY 802 mn (-33.5% YoY), ordinary profit of JPY 640 mn (-56.9% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 498 mn (-50.5% YoY), falling short of initial forecasts.
- Sales fell 6.0% short of the initial forecast due to delays in the delivery of certain projects which have been pushed back to Q3 and beyond.
- FY2025/3 Company earnings forecast: The full-year forecasts for FY2025/3: net sales of JPY 49,500 mn (+12.2% YoY), operating profit of JPY 3,600 mn (+5.7% YoY), ordinary profit of JPY 3,220 mn (-10.1% YoY), net profit of JPY 2,000 mn (+5.9%).
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