Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>1H was much worse than expected (Y6.2bn, -27%) but 3Q in isolation was said to be in line. Still the full year operating profit forecast of Y20bn (+40%) for the year to October 2017 will not be met. The consensus of about Y16bn seems more realistic, so the market knows this. With inbound travel now recovering and Huis Ten Bosch also showing signs of picking up, we suspect they will forecast 10/18 operating profit at Y20bn, which is reasonable at this stage we feel.</p><p>The key drivers to profits are…</p>

1H was much worse than expected (Y6.2bn, -27%) but 3Q in isolation was said to be in line. Still the full year operating profit forecast of Y20bn (+40%) for the year to October 2017 will not be met. The consensus of about Y16bn seems more realistic, so the market knows this. With inbound travel now recovering and Huis Ten Bosch also showing signs of picking up, we suspect they will forecast 10/18 operating profit at Y20bn, which is reasonable at this stage we feel.The key drivers to profits are…

HIS (9603) Inbound Travel to Japan Recovering Fast

H.I.S. Co

HIS (9603) Inbound Travel to Japan Recovering Fast