In today’s briefing:
- TKP Corp (3479) – A Second Big Buyback In Short Order
- Money Forward (3994) | SaaS Is Slowing, But So Is the Price
- TV Asahi Placement – Mini Share Buyback Should Buffer Deal
- Neos Corp (3627 JP): Full-year FY02/25 flash update
- J Frontier Co Ltd (2934 JP): Q3 FY03/25 Flash update
- Toumei (4439 JP): 1H FY08/25 flash update
- Attention Should Be Paid to Whether the Pseudo Cross-Shareholdings Will Hinder Management Reform
TKP Corp (3479) – A Second Big Buyback In Short Order
- TKP Corporation (3479 JP) is a fascinating little company. It rents space. From people. To people. Then adds on services. Meeting, recruiting, training, seminar, banquet, party, etc rooms.
- Last year they bought control of two small businesses to add features. Revenues are up. The new FY suggests revenue growth, OP growth, and now a buyback.
- The buyback is the interesting bit. They did one last FY with interesting parameters, and Quiddity has a new tool we are trying out, so we showcase an example here.
Money Forward (3994) | SaaS Is Slowing, But So Is the Price
- Q1 revenue and EBITDA missed expectations, with slowing growth in key business segment and corporate customer adds.
- Macroeconomic risks, including US tariffs, may be weighing on business confidence and new customer acquisition.
- Valuation now looks attractive, trading at a steep discount to global peers despite similar fundamentals.
TV Asahi Placement – Mini Share Buyback Should Buffer Deal
- A group of shareholders are looking to raise US$133m from selling their respective stakes in TV Asahi Holdings (9409 JP) .
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Neos Corp (3627 JP): Full-year FY02/25 flash update
- In FY02/25, TECMIRA’s revenue increased by 27.8% YoY to JPY11.2bn, with all segments achieving growth.
- The company recorded an operating profit of JPY91mn, recovering from a JPY123mn loss in FY02/24, despite a net loss.
- For FY02/26, TECMIRA forecasts revenue of JPY11.5bn, adjusted EBITDA of JPY680mn, and net income of JPY100mn.
J Frontier Co Ltd (2934 JP): Q3 FY03/25 Flash update
- The company reported revenue of JPY16.4bn (+32.1% YoY) and net income of JPY121mn, reversing previous losses.
- Medical Care Sales segment saw strong growth from D2C sales, driven by flagship products and enhanced advertising efficiency.
- Healthcare Marketing business achieved significant EBITDA boost from a profitable corporate project completed in Q3 FY05/25.
Toumei (4439 JP): 1H FY08/25 flash update
- In 1H FY08/25, Toumei reported revenue of JPY14.5bn, operating profit of JPY1.7bn, and net income of JPY1.2bn.
- Revenue grew 31.4% YoY, with significant increases in Office Denki 119 (56.5% YoY) and Office Solutions (84.3% YoY).
- Operating profit rose 86.4% YoY, driven by higher revenue and improved SG&A ratio, despite increased procurement costs.
Attention Should Be Paid to Whether the Pseudo Cross-Shareholdings Will Hinder Management Reform
- An increasing number of companies had eliminated shareholder benefit plans, but reducing cross-shareholdings and caution toward activist investors may have been the motivating factors in the reversal of this trend.
- If managers distract from management reform by gaining the support of individual investors through shareholder benefits, the stock benefit program will become a pseudo cross-shareholding.
- Shareholder benefit programs and shareholder returns cannot be compared in the same manner. Companies shouldn’t underestimate the fact that the problem with this lies in “principle of equality of shareholders.”
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