Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Asics absolutely smashed the last MTP; this year they have a more measured approach</li>
<li>Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price</li>
<li>Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers</li>
</ul>


Asics absolutely smashed the last MTP; this year they have a more measured approach
Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price
Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers


Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.</li>
<li>To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.</li>
<li>The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.</li>
</ul>


After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.
To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.
The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.


<ul>
<li>Nike's Q2 results lead to a 12% drop in its shares, affecting sector peers Onon, Skechers, and Asics with significant declines.</li>
<li>Challenging trading conditions in China and Europe, coupled with a subdued digital traffic outlook from Nike, raise broader concerns for the sector.</li>
<li>Asics stock declines 20% post-Nike's fall, presenting an attractive buying opportunity with an estimated 20% upside, positioning Asics as a cost-effective play in the global performance running market.</li>
</ul>


Nike's Q2 results lead to a 12% drop in its shares, affecting sector peers Onon, Skechers, and Asics with significant declines.
Challenging trading conditions in China and Europe, coupled with a subdued digital traffic outlook from Nike, raise broader concerns for the sector.
Asics stock declines 20% post-Nike's fall, presenting an attractive buying opportunity with an estimated 20% upside, positioning Asics as a cost-effective play in the global performance running market.


Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

<ul>
<li>Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026. </li>
<li>The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.</li>
<li>The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside</li>
</ul>


Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026. 
The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.
The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside


Asics (7936) | Stepping Ahead with New MTP

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.</li>
<li>Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. </li>
<li>Of these, they have a combined stake of over US$1bn in 23 companies.</li>
</ul>


Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.
Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. 
Of these, they have a combined stake of over US$1bn in 23 companies.


Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Japan

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

ASICS Corp (7936 JP)

Asics (7936) | Slow Out of the Blocks

Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Mark Chadwick

Asics: Aiming for No. 1

Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Michael Causton

Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Mark Chadwick

Asics (7936) | Stepping Ahead with New MTP

Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

Mark Chadwick

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asics (7936) | Slow Out of the Blocks

​Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Mark Chadwick

Asics: Aiming for No. 1

​Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Michael Causton

Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

​Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Mark Chadwick

Asics (7936) | Stepping Ahead with New MTP

​Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

Mark Chadwick

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...