MatsukiyoCocokara (3088) | Triple Booster of Merger Synergies, Domestic Recovery, & Tourism

Equity Bottom-Up

158 Views, 09 May 2022 09:03

EXECUTIVE SUMMARY

Merger synergies such as integrated purchasing will result in higher gross margins. A more efficient cost structure and sales synergies will boost the bottom line
We expect consumption to normalize in Japan as people get used to "living with covid." Higher foot traffic will drive a resumption of high margin cosmetics
Inbound travel should be partially normalized this year and we believe the market will quickly price this in once borders reopen. We see 21% upside

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