In today’s briefing:
- Kirin Sells The Myanmar JV to MEHL: Not a Fair Valuation But Getting At Least Some Money Is a Bonus
- J Front (3086) | Posts Strong Q1 Numbers as Thesis Plays Out
- Softbank Group – First Look at Q1 22 Performance
- Askul Corp – Q4 22 Results Reaction: Mixed as Growth Looks Appealing but Profits Light
- Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June
- Shimadzu (7701 JP): Weak Yen Supports Guidance
Kirin Sells The Myanmar JV to MEHL: Not a Fair Valuation But Getting At Least Some Money Is a Bonus
- Kirin Holdings (2503 JP) announced yesterday that it will transfer its stake in the Myanmar business (51% of share capital) to its JV partner MEHL, via a share buyback of ¥22.4bn.
- Having disposed most of the other underperforming assets during 2018-21, the Myanmar business was the main issue holding back Kirin’s share price performance.
- With the Myanmar issue resolved better than anticipated, it seems like the right time for Kirin to get a move on.
J Front (3086) | Posts Strong Q1 Numbers as Thesis Plays Out
- J Front reported strong Q1 numbers with OP recovering to +¥7.5b from red ink a year ago
- The company is reaping the benefits of restructuring and better cost control
- A recovery in domestic consumption and the opening of borders will drive further appreciation in the share price
Softbank Group – First Look at Q1 22 Performance
- Vision Fund’s public portfolio lost $10bn in Q1 marking the third time in four quarters that valuation losses were in the tens of billions
- Global tech weaness remains the main challenge as portfolio losses are matched with concerns on the private portfolio, especially ARM
- And worries about ARM also feed into leverage concerns as Softbank’s QoQ decline in reported LTV was driven by an ARM upgrade. Meanwhile, CDS prices are near all-time highs
Askul Corp – Q4 22 Results Reaction: Mixed as Growth Looks Appealing but Profits Light
- Askul posted Q4 results that were largely in-line and issued FY23 targets that are robust for revenue growth (+6%) but accompanied by upfront investment
- Management also announced it would prepare subsidiary AlphaPurchase for a public listing although the timing has not been determined
- The miss on profitability guidance is not ideal but the acceleration of top-line growth is attractive
Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June
- Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)
- All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.
- In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)
Shimadzu (7701 JP): Weak Yen Supports Guidance
- The weak yen should add several billion to operating profit this fiscal year, helping the company meet or exceed guidance.
- Medical Systems, which were once barely profitable, generated a 9.1% operating margin last year due to growing service revenues and a better product mix.
- The share price should continue to hold up in a declining market.
Before it’s here, it’s on Smartkarma
