Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

Pigeon’s China Business to Grow Driven Mainly by Expanding into Tier 3 Cities and Below

Pigeon: Domestic Business Growth Slows Down but Remains a Cash Cow

Unicharm Indonesia IPO: A Charming Business Attractive at the Low-End of Pricing

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

This is the FIRST of a series of reports on Pigeon Corp (7956 JP), where we will be taking a closer look at the company’s core business segments. This insight will mainly focus on the company’s Overseas Business (excluding China). Pigeon based in Japan is the market leader for baby care products in the country while the company also has operations in China, Southeast Asia, the Middle East, Oceania, North America and Europe. The domestic baby care market in Japan is currently going through a decline as a result of decreasing birth rates and as a result, companies such as Pigeon have been increasingly focusing on overseas markets to compensate for the decline in their domestic segments. Pigeon’s three largest business segments are Domestic Baby and Mother Care, China Business and the Overseas Business. The Overseas segment currently accounts for about 23% of consolidated revenues and has grown at a CAGR of about 1.6% over the past five years. Despite the Overseas Business growing at lower rates historically, we expect the segment to drive the company’s future growth. The company has been increasingly focusing on expanding its operations in markets such as Indonesia, India, Nigeria and Vietnam, the markets which will have the highest GDP growth over the next few years coupled with increasing birth rates. While some of these countries have declining birth rates, due to having a large population, even 1-2% birth rates result in several million newborn babies a year.We discuss the details below.

This is the FIRST of a series of reports on Pigeon Corp (7956 JP), where we will be taking a closer look at the company’s core business segments. This insight will mainly focus on the company’s Overseas Business (excluding China). Pigeon based in Japan is the market leader for baby care products in the country while the company also has operations in China, Southeast Asia, the Middle East, Oceania, North America and Europe. The domestic baby care market in Japan is currently going through a decline as a result of decreasing birth rates and as a result, companies such as Pigeon have been increasingly focusing on overseas markets to compensate for the decline in their domestic segments. Pigeon’s three largest business segments are Domestic Baby and Mother Care, China Business and the Overseas Business. The Overseas segment currently accounts for about 23% of consolidated revenues and has grown at a CAGR of about 1.6% over the past five years. Despite the Overseas Business growing at lower rates historically, we expect the segment to drive the company’s future growth. The company has been increasingly focusing on expanding its operations in markets such as Indonesia, India, Nigeria and Vietnam, the markets which will have the highest GDP growth over the next few years coupled with increasing birth rates. While some of these countries have declining birth rates, due to having a large population, even 1-2% birth rates result in several million newborn babies a year.We discuss the details below.

ピジョン（第1部）：海外セグメント（中国を除く）が同社の成長の原動力