In today’s briefing:
- The Strategy Is More Important than Whether the Mid-Term Business Plan and the Actual Are Blurred
- M3: ELAN Acquisition Drives Top Line Growth; Earnings Growth to Remain Weak
- Urbanet Corp (3242 JP): 1H FY06/25 flash update
- Nihon Nohyaku (4997 JP): Q3 FY03/25 flash update
- Sinanen Holdings (8132 JP): Q3 FY03/25 flash update
- Systems Engineering Consulta (3741 JP): Q3 FY03/25 flash update
- Nichiban Co Ltd (4218 JP): Q3 FY03/25 flash update
- Neturen Co Ltd (5976 JP): Q3 FY03/25 flash update
The Strategy Is More Important than Whether the Mid-Term Business Plan and the Actual Are Blurred
- Investors want to see if management can be entrusted with strategies to increase certainty of achieving plans, to build foundations for growth to expand corporate value, and to manage company.
- The problem is that the disclosed contents of the mid-term management plan do not include necessary information, or the goals themselves are not what investors are looking for.
- Before disclosing medium-term management plans, companies should estimate how much return on capital can be achieved by the plan and how much the corporate value and stock price will be.
M3: ELAN Acquisition Drives Top Line Growth; Earnings Growth to Remain Weak
- M3 Inc (2413 JP) reported 3QFY03/2025 earnings today. Both revenue and OP grew YoY as well as beat consensus estimates. Most of revenue growth came from the ELAN acquisition.
- Medical Platform’s earnings have continued to decline as a result of spending cuts by pharmaceutical companies while there has been a slight improvement in Overseas earnings during the quarter.
- Though the overall declining trend in m3’s earnings has eased, we expect the earnings growth to remain weak. ELAN’s margins have continued to deteriorate.
Urbanet Corp (3242 JP): 1H FY06/25 flash update
- In 1H FY06/25, sales were JPY8.0bn (-30.3% YoY) and operating profit was JPY101mn (-87.9% YoY), with a recurring loss of JPY232mn.
- Real Estate business sales were JPY7.8bn (-30.7% YoY) and segment profit was JPY865mn (-37.6% YoY) in 1H FY06/25.
- Total assets at end-Q2 FY06/25 were JPY57.2bn, liabilities increased to JPY42.4bn, and net assets were JPY14.8bn.
Nihon Nohyaku (4997 JP): Q3 FY03/25 flash update
- Revenue decreased by 3.0% YoY to JPY61.4bn, with agrochemicals revenue at JPY57.2bn, down 3.5% YoY.
- Operating profit increased by 42.4% YoY to JPY3.6bn, driven by improved profitability and yen depreciation.
- Domestic agrochemical sales rose 6.3% YoY, while overseas revenue fell 5.8% YoY due to weather impacts.
Sinanen Holdings (8132 JP): Q3 FY03/25 flash update
- Net sales declined by 11.3% YoY to JPY210.7bn, with improved profitability due to market-linked pricing plans.
- Operating profit reached JPY2.8bn, recovering from a loss of JPY711mn, with recurring profit at JPY3.1bn.
- Net income attributable to owners was JPY1.8bn, supported by impairment losses and subsidiary share sales.
Systems Engineering Consulta (3741 JP): Q3 FY03/25 flash update
- Cumulative Q3 FY03/25 revenue was JPY7.1bn, with gross profit at JPY2.2bn and net income at JPY922mn.
- Orders in cumulative Q3 FY03/25 reached JPY7.5bn, and the order backlog was JPY6.2bn, both record highs.
- SEC revised its full-year FY03/25 forecast to JPY10.1bn revenue, with a year-end dividend of JPY102 per share.
Nichiban Co Ltd (4218 JP): Q3 FY03/25 flash update
- Revenue increased 5.3% YoY to JPY37.4bn, driven by healthcare growth and price revisions in the Tape business.
- Operating profit rose 37.4% YoY to JPY2.4bn, with improved profitability from high-margin products and price adjustments.
- Overseas revenue grew 43.5% YoY to JPY1.7bn, aided by strong sales in Asia and Europe and a weaker yen.
Neturen Co Ltd (5976 JP): Q3 FY03/25 flash update
- Cumulative Q3 FY03/25 revenue was JPY41.9bn, a 2.8% YoY decrease, with operating profit at JPY1.1bn.
- Specialty Steel and Wire Products revenue fell 5.2% YoY, while Induction Heating revenue increased 1.6% YoY.
- Operating profit margin declined 0.3pp YoY to 2.6%, with net income down 32.1% YoY to JPY888mn.
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