In today’s briefing:
- The Key to Japanese Equity Outperformance Is a Step Beyond Shareholder Returns
- Mani (7730 JP): Guidance Reiterated; Dental Loosing Shine And Dented Margins Remain Concerns
The Key to Japanese Equity Outperformance Is a Step Beyond Shareholder Returns
- A benefit of inflation was expected to shift from management that accumulates cash to management that proactively uses cash. However, it’s been used for shareholder returns but less for apex.
- Hitachi is one of few companies that manage business in disciplined manner and execute the necessary growth investments. This is more result of overseas investor engagement than corporate governance reform.
- The key to Japanese equities outperformance is whether management can change to mindset that investors want to see “positive investment and the ability to implement measures to expand corporate value.”
Mani (7730 JP): Guidance Reiterated; Dental Loosing Shine And Dented Margins Remain Concerns
- Mani Inc (7730 JP) H1FY25 revenue rose 6.5% YoY, mainly driven by surgical segment, eyeless needles segment, while margins remained under pressure.
- Despite the underperformance of dental segment, management reiterated FY25 guidance. Expecting Yen appreciation against the USD, the company expects just mid-single-digit sales and operating income growth for FY25.
- Mani shares plunged 5% since it published its H1 results. Investors should avoid Mani due to its uncertain revenue outlook and deteriorating profitability in short-term.
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