In today’s briefing:
- StubWorld: TBS/Tokyo Electron, Intouch/Gulf, Jardines’ Buybacks
- Japan Small Cap Growth: TeamSpirit (4397) – Expect Brighter Second Half
StubWorld: TBS/Tokyo Electron, Intouch/Gulf, Jardines’ Buybacks
This week in StubWorld …
- Tokyo Electron (8035 JP) outperforms as global carmakers face a chip shortage;
- Gulf Energy Development Public Company (GULF TB) increases its questionable stake in Intouch Holdings (INTUCH TB); and
- Jardine Matheson Holdings (JM SP)‘s ramps up its buybacks.
Preceding my comments on these holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold – the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent – of at least 20%.
Japan Small Cap Growth: TeamSpirit (4397) – Expect Brighter Second Half
Q1 trading update
TeamSpirit Inc (4397 JP) released Q1 results on 12 Jan, which were generally in line with previously released guidance for the full year. Covid restrictions continue to be a negative headwind on contracting new clients, which is impacting top line growth rates. This seems especially true of small and mid-sized companies, where growth has stalled badly, and we believe competition may be heating up in that segment. In response, Team Spirit is shifting its sales focus towards larger enterprises and this mix improvement is a bright spot in the Q1 report, with the number of enterprise licences jumping 44% YoY. The share price remains around 30% below its 52-week high.
Million Yen |
1Q20 |
2Q20 |
3Q20 |
4Q20 |
1Q21 |
Sales |
552 |
606 |
631 |
654 |
671 |
Sales growth |
40% |
35% |
39% |
26% |
22% |
Operating Profit |
44 |
84 |
106 |
50 |
71 |
Operating margin |
8% |
14% |
17% |
8% |
11% |
Net Income |
14 |
42 |
55 |
142 |
36 |
Before it’s here, it’s on Smartkarma