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

Sanyo Trading Co. Ltd. provides international and domestic trading services. The Company imports, exports, and sells a variety of products such as rubbers, chemical products, industrial products, machinery and materials, and scientific instruments.

<div><div><div><div><ul><li>Firm results with a reserved outlook – Q1- 4FY9/24 results were ahead of guidance and highlighted that Q4 FY9/24 trading was in line with expectations, in contrast to a strong start to the year.</li><li>The company made positive developments in improving the sales mix in the Chemicals and Overseas Subsidiaries segments and has increased FY9/24 DPS to ¥55 from the previously guided ¥45, which was a positive surprise.</li><li>Guidance for FY9/25 appears to be conservative in our view. Nevertheless, it telegraphs a slowdown in earnings momentum and mixed earnings visibility with an expected slowdown from life science activity at subsidiary SCRUM Inc., balanced with contributions from large projects in the wood biomass-related business.</li></ul></div></div></div></div>

Firm results with a reserved outlook – Q1- 4FY9/24 results were ahead of guidance and highlighted that Q4 FY9/24 trading was in line with expectations, in contrast to a strong start to the year.The company made positive developments in improving the sales mix in the Chemicals and Overseas Subsidiaries segments and has increased FY9/24 DPS to ¥55 from the previously guided ¥45, which was a positive surprise.Guidance for FY9/25 appears to be conservative in our view. Nevertheless, it telegraphs a slowdown in earnings momentum and mixed earnings visibility with an expected slowdown from life science activity at subsidiary SCRUM Inc., balanced with contributions from large projects in the wood biomass-related business.

Sanyo Trading (3176 JP) - Conservative FY9/25 Guidance with Potential Avenues to Enhance Returns

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

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.

freee K.K. develops software products. The Company produces cloud based accounting softwares, automatic online accounting systems, and other products. freee provides its services throughout Japan.

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<a href="https://www.smartkarma.com/entities/freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">Freee KK (4478 JP)</a> offers cloud-based online accounting and HR/Payroll software to small and medium businesses (SMBs) in Japan. The company operates a subscription-based revenue model.</li>
<li>Freee reported its first-ever profits recently and we expect continued improvement in freee’s profitability driven by its strong business model vs MF whose business model has started to breakdown.</li>
<li>Freee’s current valuation multiples are cheap and there is significant upside to the current share price, hence we recommend making an entry.</li>
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Freee KK (4478 JP) offers cloud-based online accounting and HR/Payroll software to small and medium businesses (SMBs) in Japan. The company operates a subscription-based revenue model.
Freee reported its first-ever profits recently and we expect continued improvement in freee’s profitability driven by its strong business model vs MF whose business model has started to breakdown.
Freee’s current valuation multiples are cheap and there is significant upside to the current share price, hence we recommend making an entry.


2025 High Conviction: Freee KK – Becoming Free From Losses; Significant Upside

Nippon Investment Bespoke Research UK Ltd

Nippon Investment Bespoke Research UK

Sponsored Research Reports

Nippon-IBR was founded to solely provide the MIFID2 compliant “pull” services that fill the gap of the equity research capabilities already available in the Japanese equity market.

DAIDO STEEL CO., LTD. manufactures and markets specialty steel products for automobiles, electronics, and construction use.  The Company also provides engineering services for industrial furnaces and waste disposal facilities, and develops various types of alloy metals.

<ul><li>FY24 GUIDANCE WAS REVISED.</li><li>POST FY24 GROWTH SCENARIO REMAIN UNCHANGED.</li></ul>

FY24 GUIDANCE WAS REVISED.POST FY24 GROWTH SCENARIO REMAIN UNCHANGED.

Daido Steel Co., Ltd (5471 JP) Research Update

<ul><li>FY24業績ガイダンスは下方修正。来期以降の成長シナリオは変わらず。</li></ul>

FY24業績ガイダンスは下方修正。来期以降の成長シナリオは変わらず。

大同特殊鋼株式会社 (5471JP)　リサーチアップデート

Japan Elevator Service Holding / Equity Bottom-Up

Japan Elevator Service Holdings Co. Ltd. offers elevator and escalator maintenance, inspection and renewal services.

<ul><li>Ongoing growth and margin expansion – The company continues to display positive characteristics of a high-quality franchise business with growth opportunities, with Q1-2 FY3/25 results showing sustained double-digit sales (+17.0% YoY) and OP growth (+30.6% YoY).</li><li>Maintenance contracts grew 13.8% YoY organically, and Modernization units remain on a positive trajectory with strong underlying demand given the company’s competitive advantage as an independent provider.</li><li>The company has maintained FY3/25 guidance; we believe the earnings outlook for H2 FY3/25 remains positive given the increasing utilization at the JIK (JES Innovation Center Kansai) and geographic reach, and ongoing productivity enhancement of its engineers resulting in operating leverage.</li></ul>

Ongoing growth and margin expansion – The company continues to display positive characteristics of a high-quality franchise business with growth opportunities, with Q1-2 FY3/25 results showing sustained double-digit sales (+17.0% YoY) and OP growth (+30.6% YoY).Maintenance contracts grew 13.8% YoY organically, and Modernization units remain on a positive trajectory with strong underlying demand given the company’s competitive advantage as an independent provider.The company has maintained FY3/25 guidance; we believe the earnings outlook for H2 FY3/25 remains positive given the increasing utilization at the JIK (JES Innovation Center Kansai) and geographic reach, and ongoing productivity enhancement of its engineers resulting in operating leverage.

Japan Elevator Service Holdings (6544 JP) - Demonstrating High-Quality Characteristics