In today’s briefing:
- [Quiddity Index Jan25] Nikkei 225 Mar Rebal: 3 IN, 3 OUT, $3bn One Way
- Hisamitsu Pharmaceutical (4530 JP): Growth Momentum Intact; FY25 Guidance Raised
- Growth Policy Score Improved with the Request to Raise P/B, but Other Criteria Are in the Process
- Creek & River (4763 JP): Q3 FY02/25 flash update
- Onward Holdings (8016 JP): Q3 FY02/24 flash update
[Quiddity Index Jan25] Nikkei 225 Mar Rebal: 3 IN, 3 OUT, $3bn One Way
- In December, I thought the March 2025 Nikkei 225 Rebalance was going to be 2 ADDs 2 DELETEs and a double-capping for Fast Retailing.
- Fast Retailing has fallen sharply vs Nikkei 225, and another stock has announced a large-multiple share split, making it a strong candidate for Nikkei 225 ADDITION in March 2025.
- There is short-term path risk on all three ADDs, but they are definitely worth watching. Keep an eye out for separate insights on two of these names.
Hisamitsu Pharmaceutical (4530 JP): Growth Momentum Intact; FY25 Guidance Raised
- Hisamitsu Pharmaceutical Co (4530 JP) reported single-digit revenue growth and net profit growth in low-teens during 9MFY25, on the back of 13% YoY growth in Salonpas focused OTC segment.
- Rx business revenue grew 4% YoY as new products such as Zicthoru, Apohide, Combipatch, Vivelle-Dot etc clocked healthy numbers.
- Hisamitsu raised its FY25 guidance for revenue by 1% to ¥154B, operating profit by 24% to ¥18B, and net profit by 24% to ¥20.5B.
Growth Policy Score Improved with the Request to Raise P/B, but Other Criteria Are in the Process
- It is commendable that more listed companies as a whole are setting ROE and ROIC as their targets. The real value of actually achieving these goals will now be tested.
- Dividend Policy score, Treasury Shares Retirement score, AGM Disclosure score, and IR Disclosure score improved slightly, but the listed companies as a whole have yet to show improvement.
- Even though higher stock prices negatively impacted Policy Stock Holding score, overall improvement has not been achieved for the listed companies. Cash allocation also remains an issue for many companies.
Creek & River (4763 JP): Q3 FY02/25 flash update
- Sales increased by JPY274mn (+0.7% YoY), driven by Creative (Japan) and Other sectors, while operating profit decreased by JPY496mn (-14.2% YoY).
- Revised full-year FY02/25 forecast projects revenue of JPY50.5bn (+1.4% YoY) and operating profit of JPY3.9bn (-6.2% YoY).
- Reduction in projects from major game publishers and structural reforms in Medical Staffing segment decreased operating profit by JPY950mn.
Onward Holdings (8016 JP): Q3 FY02/24 flash update
- Onward Holdings’ sales increased by 6.1% YoY to JPY149.9bn, while operating profit decreased by 11.8% YoY to JPY8.6bn.
- Domestic Business sales rose by 6.5% YoY to JPY136.8bn, but operating profit fell by 14.9% YoY.
- Overseas Business sales increased by 1.3% YoY to JPY13.1bn, with a significant narrowing of operating loss.
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