IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

Sponsored research focusing on Japanese small cap.

Equity Bottom-Up

Golf Digest Online Inc. an online retailer sells and trades golf products. The Company also provides golf reservation services and delivers golf related news.

<ul><li>GDO announced 1H FY24/12 consolidated financial results at 15:00 on Thursday 8/8, and it held a results briefing at 16:00 via Zoom webinar, hosted by CEO Ishizaka, COO Yoshikawa and CFO Nakamura.</li><li>Headline figures were net sales +10.2% YoY, EBITDA -26.9%, the operating loss expanding and profit attributable to owners of parent dropping into loss.</li><li>While headline numbers on the surface appear to indicate an extremely challenging environment, it is worth noting that the trend for 2Q-only profit improved sequentially at all levels (see red circles in the table below), and management is confident that profit will return to profitability in the 2H as measures to improve GPM and control costs contribute going forward.</li></ul>

GDO announced 1H FY24/12 consolidated financial results at 15:00 on Thursday 8/8, and it held a results briefing at 16:00 via Zoom webinar, hosted by CEO Ishizaka, COO Yoshikawa and CFO Nakamura.Headline figures were net sales +10.2% YoY, EBITDA -26.9%, the operating loss expanding and profit attributable to owners of parent dropping into loss.While headline numbers on the surface appear to indicate an extremely challenging environment, it is worth noting that the trend for 2Q-only profit improved sequentially at all levels (see red circles in the table below), and management is confident that profit will return to profitability in the 2H as measures to improve GPM and control costs contribute going forward.

Golf Digest Online (3319 JP) - 2Q Follow-Up

TAKACHIHO KOHEKI CO., LTD. is a trading company specializing in electronics equipment, software, and semiconductors.  The Company provides information networks, industrial products, surveillance systems, and automated mailing systems.  Takachiho Koheki provides installation, maintenance, management services for its products as well.

<ul><li>Takachiho Koheki (hereafter, the Company) is a trading company highly specialized in electronics technology that has identified the underlying needs of its customers to introduce the world's cutting-edge electronics products to Japan ahead of competitors.</li><li>With engineering employees accounting for 42.5% of its workforce, the Company is a highly specialized technical organization with a total of about 25,000 customer accounts, and its solid customer base is one of its assets</li><li>The Company's wide range of electronics products and IT solution services help solve modern social issues of great concern such as labor shortages and labor savings, crime control and prevention, hybrid work and work style reforms, and climate change and disasters.</li></ul>

Takachiho Koheki (hereafter, the Company) is a trading company highly specialized in electronics technology that has identified the underlying needs of its customers to introduce the world's cutting-edge electronics products to Japan ahead of competitors.With engineering employees accounting for 42.5% of its workforce, the Company is a highly specialized technical organization with a total of about 25,000 customer accounts, and its solid customer base is one of its assetsThe Company's wide range of electronics products and IT solution services help solve modern social issues of great concern such as labor shortages and labor savings, crime control and prevention, hybrid work and work style reforms, and climate change and disasters.

Full Report - Takachiho Koheki  (2676 JP)

STELLA CHEMIFA CORPORATION produces and markets various kinds of high purity chemical products.  The Company's products include fluorine compounds which are used as cleansing agents for semiconductors, and lithium for batteries.  Stella Chemifa exports its products to Korea, Taiwan, Malaysia, and US.

<ul><li>Stella Chemifa Corporation (hereafter referred to as "the Company") specializes in the manufacture and sale of hydrofluoric acid and fluorine- related compounds.</li><li>Hydrofluoric acid is highly functional and used in a wide range of applications, as well as being extremely toxic and corrosive, making it extremely difficult to handle.</li><li>In particular, ultra-high purity hydrofluoric acid is required for semiconductor manufacturing, and the Company, with its strong R&amp;D and technological capabilities, has enjoyed great success in this area. </li></ul>

Stella Chemifa Corporation (hereafter referred to as "the Company") specializes in the manufacture and sale of hydrofluoric acid and fluorine- related compounds.Hydrofluoric acid is highly functional and used in a wide range of applications, as well as being extremely toxic and corrosive, making it extremely difficult to handle.In particular, ultra-high purity hydrofluoric acid is required for semiconductor manufacturing, and the Company, with its strong R&amp;D and technological capabilities, has enjoyed great success in this area. 

Stella Chemifa (4109 JP) - Showing Signs of Early Growth

Japan System Techniques Co / Equity Bottom-Up

Japan System Techniques Co., Ltd. develops application software upon request for business, engineering, event, and Internet uses.  The Company also develops and sells packaged software.  Japan System Techniques manages and provides maintenance services for its clients' computer systems.

<ul><li>Japan System Techniques Co., Ltd. (hereafter, the “Company”) posted an increase of sales and profits in all four business segments for FY2024/3.</li><li>In particular, operating profit of the Medical Big Data business and the Global business in total, increased sharply by 49.5% YoY.</li><li>Net sales saw an increase for 13 consecutive years, and ordinary profit for 9 consecutive years with a record high, leading to 17.8% of ROE. </li></ul>

Japan System Techniques Co., Ltd. (hereafter, the “Company”) posted an increase of sales and profits in all four business segments for FY2024/3.In particular, operating profit of the Medical Big Data business and the Global business in total, increased sharply by 49.5% YoY.Net sales saw an increase for 13 consecutive years, and ordinary profit for 9 consecutive years with a record high, leading to 17.8% of ROE. 

4Q Follow-Up - Japan System Techniques (4323 JP)

NITTO KOGYO CORPORATION manufactures and sells a variety of power switchboards. The Company also manufactures metal/resin parts for power switchboards, and circuit breakers.

<ul><li>NITTO KOGYO Corporation (hereafter, the Company) announced its earnings results for FY2024/3 on May 15, 2024.</li><li>In addition to posting record net sales, the Company recorded profit growth for all three of its segments.</li><li>While the price of raw materials and parts rose, the Company’s gross profit margin improved 1.4 ppt YoY to 26.8%. </li></ul>

NITTO KOGYO Corporation (hereafter, the Company) announced its earnings results for FY2024/3 on May 15, 2024.In addition to posting record net sales, the Company recorded profit growth for all three of its segments.While the price of raw materials and parts rose, the Company’s gross profit margin improved 1.4 ppt YoY to 26.8%. 

Nitto Kogyo Corporation (6651 JP) - 4Q Follow-Up