In today’s briefing:
- Nidec | Pragmatism Shines; Q3 Results
- Chiba Bank – Net Interest Income Up, Expect More with BOJ Hike, Credit Metrics Allow Flow Through
- Hogy Medical (3593 JP): Results Reflect Macro Slackness, Not Much Recovery In Sight In Near Term
- Hopefully, CSDDD Mandates Will Advance Human Rights Efforts, the Weakest Area for Japanese Companies
Nidec | Pragmatism Shines; Q3 Results
- Q3 net sales reached ¥652,153 million, up 1.0% quarter-on-quarter, driven by strong demand for power generators and battery energy storage systems. Operating profit of ¥54,536 million (-10.1% QoQ) missed expectations.
- There has been a notable vibe-shift since Kishida took over as CEO – more focus on operational improvements and hopefully margin accretion.
- Strategic M&A remains a driver and the Makino Milling deal makes sense. At 14x EV / EBIT, the stock should be on the radar of value or GARP investors
Chiba Bank – Net Interest Income Up, Expect More with BOJ Hike, Credit Metrics Allow Flow Through
- Chiba Bank shows good gains in net interest income through 1H25 YoY
- There should be more of this with rising BOJ rates during 2H25.
- Flow through to net profit can be strong, given credit metrics.
Hogy Medical (3593 JP): Results Reflect Macro Slackness, Not Much Recovery In Sight In Near Term
- Hogy Medical (3593 JP) reported flat sales of ¥30B in 9MFY25. Sales of surgical kit products rose 3.2%, to ¥20B, of which Premium Kit sales climbed 7.8%, to ¥13.2B.
- Higher costs dented operating margin by 40 bps while net profit rose 5% YoY to ¥2.7B due to an extraordinary gain from sale of investment.
- The company reiterated guidance for FY25 of a rise in sales of 5% to ¥40.9B, with profits also witnessing double digit growth.
Hopefully, CSDDD Mandates Will Advance Human Rights Efforts, the Weakest Area for Japanese Companies
- Many companies have established policies on human capital but haven’t yet implemented specific measures. Solving issues related to human capital is an area in which Japanese companies lag far behind.
- With even the understanding of diversity within the company in jeopardy, it is unlikely to reach a solution to human rights in the supply chain.
- Japanese companies have traditionally been active in investing in goods, but have been reluctant to invest in people. Many companies need to start with an understanding of people.
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