Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

Sodick Co., Ltd. develops, manufactures, and sells electric machines and equipment.  The Company's product line includes computerized numerical control electrical discharge machine (EDM), super high precision wire cut EDM, CAD/CAM system for mold design and production, injection molding machine, and high speed manual drilling machine.

<ul><li>An uplift in China orders – Q1 FY12/24 results saw a continued decline in sales by 7.4% YoY and 9.3% QoQ.</li><li>However, the core Machine Tools segment saw flat sales QoQ, and order visibility improved with China orders rising by 39.4% QoQ albeit from a low base.</li><li>Cost reduction efforts have commenced and are set to accelerate into Q2 FY12/24 which should improve the scope for profitability, although ultimately this will be sales volume dependent. </li></ul>

An uplift in China orders – Q1 FY12/24 results saw a continued decline in sales by 7.4% YoY and 9.3% QoQ.However, the core Machine Tools segment saw flat sales QoQ, and order visibility improved with China orders rising by 39.4% QoQ albeit from a low base.Cost reduction efforts have commenced and are set to accelerate into Q2 FY12/24 which should improve the scope for profitability, although ultimately this will be sales volume dependent. 

Sodick (6143 JP) - Incremental Progress Is Being Made

SHOFU INC. manufactures materials used for dental treatment.  The Company also wholesales dental equipment.  Shofu's products include artificial teeth, dental abrasives, dental stone, metal products, and endodontic instruments and materials.

<ul><li>Demonstrating solid execution – Q1-4 FY3/24 results were ahead of company guidance, with Shofu demonstrating solid execution of its strategic initiative for overseas expansion and sales mix improvement.</li><li>By delivering sustained double-digit sales and earnings growth with record-high profitability, we believe the outlook remains positive for the medium to longer term with production capacity increases being a major theme of the company’s new medium-term plan.</li><li>Whilst working capital requirements and capital intensity will rise, we believe this will result in Shofu reaching its target of ¥50bn annual sales with an enduring model for shareholder value generation.</li></ul>

Demonstrating solid execution – Q1-4 FY3/24 results were ahead of company guidance, with Shofu demonstrating solid execution of its strategic initiative for overseas expansion and sales mix improvement.By delivering sustained double-digit sales and earnings growth with record-high profitability, we believe the outlook remains positive for the medium to longer term with production capacity increases being a major theme of the company’s new medium-term plan.Whilst working capital requirements and capital intensity will rise, we believe this will result in Shofu reaching its target of ¥50bn annual sales with an enduring model for shareholder value generation.

Shofu (7979 JP) - A Compounding Franchise Business Stepping up a Gear

<ul><li>Committing to raising production capacity –Shofu announced its fifth medium-term plan, covering the four years from FY3/25 to FY3/28.</li><li>The core message is that the company has competitive products and high demand visibility in overseas markets, and is reaching the point of attaining annual sales volume of ¥50bn.</li><li>The plan will involve significant capital allocation to raise production capacity and other business investments to meet its goals. zed.</li></ul>

Committing to raising production capacity –Shofu announced its fifth medium-term plan, covering the four years from FY3/25 to FY3/28.The core message is that the company has competitive products and high demand visibility in overseas markets, and is reaching the point of attaining annual sales volume of ¥50bn.The plan will involve significant capital allocation to raise production capacity and other business investments to meet its goals. zed.

Shofu (7979 JP) - Hiking Production and Demonstrating Confidence in Future Growth

Simplex Holdings, Inc. provides system information technology solutions. The Company offers system consulting, system development, system operation and maintenance, and other services.  Simplex Holdings serves financial institutions across worldwide.

<ul><li><strong>Positioned for sustained growth</strong> – Q1-4 FY3/24 results were in line with guidance, with the company generating consistent and sustainable double-digit growth for sales and earnings demonstrating the company’s characteristics as a compounding business.</li><li>We believe its brand, human capital, and technological innovation are competitive advantages that generate shareholder value, with free cash flow recovering YoY to ¥7.34bn from ¥3.26bn in FY3/23.</li><li>Future capital allocation points to business investment in staff and R&amp;D and scope for M&amp;A to support growth and improve shareholder returns. </li></ul>

Positioned for sustained growth – Q1-4 FY3/24 results were in line with guidance, with the company generating consistent and sustainable double-digit growth for sales and earnings demonstrating the company’s characteristics as a compounding business.We believe its brand, human capital, and technological innovation are competitive advantages that generate shareholder value, with free cash flow recovering YoY to ¥7.34bn from ¥3.26bn in FY3/23.Future capital allocation points to business investment in staff and R&amp;D and scope for M&amp;A to support growth and improve shareholder returns. 

Simplex Holdings (4373) - Compounding Business with a Consulting Growth Engine

JTEC Corporation of Osaka manufactures bio-technology systems and equipment. The Company produces life science devices, x ray mirrors, and automated cell culture systems. JTEC also develops pharmaceutical products. JTEC serves clients in Japan.

<ul><li>JTEC Corp is a specialist technology innovator, and a global market leader in customized X-ray mirrors used in synchrotron radiation and X-ray free-electron laser facilities worldwide.</li><li>With its competitive advantage in technology through high R&amp;D spending and strong partnerships with academic and research institutions, the company is switching back to a robust growth trajectory driven by 1) normalized business conditions post- COVID-19,</li><li>2) new construction and upgrade demand for synchrotron radiation facilities, particularly from China, and 3) business expansion in the life sciences and semiconductor sectors.</li></ul>

JTEC Corp is a specialist technology innovator, and a global market leader in customized X-ray mirrors used in synchrotron radiation and X-ray free-electron laser facilities worldwide.With its competitive advantage in technology through high R&amp;D spending and strong partnerships with academic and research institutions, the company is switching back to a robust growth trajectory driven by 1) normalized business conditions post- COVID-19,2) new construction and upgrade demand for synchrotron radiation facilities, particularly from China, and 3) business expansion in the life sciences and semiconductor sectors.

JTEC Corp (3446) - Embarking on a Multi-Year Runway of Growth with Technological Advantage