In today’s briefing:
- Kadokawa – How Much Upside Potential Does Elden Ring Offer?
- About an Article on Job Satisfaction
- Kubota (6326 JP) | US Housing Risk to Big to Ignore
Kadokawa – How Much Upside Potential Does Elden Ring Offer?
- Kadokawa earnings were strong with 4Q OP 56% above consensus despite a meagre 1.5% beat at the revenue line.
- Margin guidance was nonsensically conservative however as despite revenue guidance being in line with consensus the company guided for OP to miss by 25% and actually decline by 3.9% YoY.
- That prompted a 16.3% decline the day after earnings but the stock has rebounded and now sits just 2.1% below its pre-earnings level.
About an Article on Job Satisfaction
- A data showed that “the percentage of employees who feel fulfilled at work is 56% in Japan, 10 ppt below the global average,” indicating the lower motivation of Japanese employees.
- Another survey showed that companies with more employees who feel happiness through their work increased sales more than companies with fewer employees who feel happiness
- The disclosure of “human capital,” which is now the focus of attention, should trigger a shift in management from focus on cost competition to focus on creating high value-added businesses.
Kubota (6326 JP) | US Housing Risk to Big to Ignore
- Kubota’s stock declined in sympathy with agricultural major Deere following a quarterly earnings miss
- Kubota faces similar supply chain and cost pressures, but it is the US housing market that is a bigger concern
- We believe that the market is underestimating the earnings risk for Kubota should the housing market start to cool
Before it’s here, it’s on Smartkarma
