Daily BriefsJapan

Japan: Rakus Co Ltd, Oriental Land, Mazda Motor and more

In today’s briefing:

  • Small Cap Growth: Rakus (3923) – Sayonara Manual Expenses!
  • Oriental Land: A Correction Possible with Q2 Results
  • Mazda – The Return of the Wankel Engine and Its Significance for the EV Transition

Small Cap Growth: Rakus (3923) – Sayonara Manual Expenses!

By Mark Chadwick

EXPENSE DAY THE OLD WAY – A nightmare for both companies and employees. We have all been there – having to keep and painstakingly classify all business trip receipts. Travel, food, client entertainment, accommodation, and the list continues. Back to the office, it takes hours to pick to the pieces, organize and submit to the accounting department, and then wait for sign-off from managers before finally getting reimbursed. And that is only on the user side – the accounting department has its own troubles. Having to account for each expense – with paper receipts, do a myriad of cross checks before entering yet more data and further approvals. The result is significant lost productivity on several ends, potential errors, delayed payments, and of course, weak expense control for the company. This where Rakus Co Ltd (3923 JP)  comes in.  
  
Rakus is a cloud-based Business Spend Management (BSM) solution that helps companies and employees improve efficiency in tracking and settling expenses. Rakus’ expense system facilitates fast and accurate expense reporting that enhances productivity, compliance, and controls overspending. Established in 2001, the TSE Mothers-listed Rakus is a fast-growing small-cap stock that fits squarely into the Digital Transformation theme. 


Oriental Land: A Correction Possible with Q2 Results

By Oshadhi Kumarasiri

Oriental Land (4661 JP), the operator of Tokyo Disney Resorts, is one of the worse affected in Japan from the COVID-19 crisis. However, the share price held up remarkably well despite 94.9% year-on-year revenue decline in 1Q to ¥6.1 billion, the lowest level in the past 20+ years. Quarterly operating loss was ¥15.6 billion. The operating loss would have been 135% higher without the ¥21.1 billion of personnel, outsourcing, D&A and fixed asset tax expenses classified under extraordinary costs.

Prior to Oriental Land’s Q2 results release on 29th October, we update our view on Oriental Land’s business environment and the likelihood of meeting consensus estimates.


Mazda – The Return of the Wankel Engine and Its Significance for the EV Transition

By Mio Kato

On October 8th Mazda launched its new MX-30 crossover in Japan. The vehicle was not especially remarkable, being a gasoline mild-hybrid derived from the CX-3/CX-30 platform but will be followed by a full EV version and more interestingly an electric version with a rotary/Wankel engine used as a range extender. This could have some implications for the PHEV costs relative to BEVs.


Before it’s here, it’s on Smartkarma