Japan Specialist

Mark Chadwick

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Equity Bottom-Up

<ul>
<li>Q3 sales fell 4% YoY and operating profit dropped 57%, reflecting continued weakness in bicycles and margin compression, though results aligned with lowered guidance. </li>
<li>Elevated channel inventories in Europe and China highlight lingering post-Covid demand normalization, with 2026 guidance likely to remain conservative amid structural headwinds.</li>
<li>ROIC has halved as invested capital outpaced sales growth; despite strong cash and shareholder returns, Shimano faces slow recovery and limited near-term catalysts.</li>
</ul>


Q3 sales fell 4% YoY and operating profit dropped 57%, reflecting continued weakness in bicycles and margin compression, though results aligned with lowered guidance. 
Elevated channel inventories in Europe and China highlight lingering post-Covid demand normalization, with 2026 guidance likely to remain conservative amid structural headwinds.
ROIC has halved as invested capital outpaced sales growth; despite strong cash and shareholder returns, Shimano faces slow recovery and limited near-term catalysts.


Shimano Inc

Shimano (7309 JP) | Digesting the Boom