Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

Hokkoku Financial Holdings / Equity Bottom-Up

<ul><li>Consolidated ordinary income decreased by 6.5% YoY to JPY44.9bn, influenced by reduced gains on securities sales.</li><li>Hokkoku Bank's core operating profit increased by 63.0% YoY to JPY4.7bn, driven by higher net interest income.</li><li>Profit attributable to owners of parent fell by 17.3% YoY to JPY5.7bn, with a progress rate of 56.6%.</li></ul>

Consolidated ordinary income decreased by 6.5% YoY to JPY44.9bn, influenced by reduced gains on securities sales.Hokkoku Bank's core operating profit increased by 63.0% YoY to JPY4.7bn, driven by higher net interest income.Profit attributable to owners of parent fell by 17.3% YoY to JPY5.7bn, with a progress rate of 56.6%.

Hokkoku Financial Holdings (7381 JP): 1H FY03/25 flash update

<ul><li>Consolidated ordinary income was JPY21.9bn (-12.7% YoY), ordinary profit JPY3.7bn (-58.8% YoY), and profit attributable to owners JPY2.4bn (-63.8% YoY).</li><li>Consolidated gross profit was JPY8.1bn (-13.5% YoY), with net interest income up JPY196mn, net fees and commissions up JPY418mn, and net other operating income down JPY1.9bn.</li><li>Hokkoku Bank's core gross profit was JPY9.2bn (+8.1% YoY), core operating profit JPY1.9bn (+41.3% YoY), and ordinary profit JPY3.3bn (-62.8% YoY).</li></ul>

Consolidated ordinary income was JPY21.9bn (-12.7% YoY), ordinary profit JPY3.7bn (-58.8% YoY), and profit attributable to owners JPY2.4bn (-63.8% YoY).Consolidated gross profit was JPY8.1bn (-13.5% YoY), with net interest income up JPY196mn, net fees and commissions up JPY418mn, and net other operating income down JPY1.9bn.Hokkoku Bank's core gross profit was JPY9.2bn (+8.1% YoY), core operating profit JPY1.9bn (+41.3% YoY), and ordinary profit JPY3.3bn (-62.8% YoY).

Hokkoku Financial Holdings (7381 JP): Q1 FY03/25 flash update

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Juroku Financial Group / Equity Bottom-Up

<ul>
<li>We update twelve Japanese regional banks, and add two new names, to target beneficiaries of the improving interest rate outlook; also banks with attractive credit quality, capital adequacy and valuations</li>
<li>We identify the value of equity holdings for disposal among these banks; the lack of near-term easing prospects at the US Fed should support JGB yields and domestic bank valuations</li>
<li>We add smaller cap Juroku Financial to our buy list of Tokyo Kiraboshi Financial, Gunma Bank and higher risk option Suruga Bank</li>
</ul>


We update twelve Japanese regional banks, and add two new names, to target beneficiaries of the improving interest rate outlook; also banks with attractive credit quality, capital adequacy and valuations
We identify the value of equity holdings for disposal among these banks; the lack of near-term easing prospects at the US Fed should support JGB yields and domestic bank valuations
We add smaller cap Juroku Financial to our buy list of Tokyo Kiraboshi Financial, Gunma Bank and higher risk option Suruga Bank


Japanese Regional Banks – Adding a Smaller Cap to Our Key Positive Picks

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Japan Petroleum Exploration / Event-Driven

<ul>
<li>Japanese companies are buying back more stock than ever before, and recent moves by the TSE and METI are effectively pushing for more.</li>
<li>The new goal is to lift PBR and ROE. The easiest way to lift ROE is reduce E. Low-PBR Cos with excess assets and cross-holdings (outbound and inbound) are targets.</li>
<li>In this insight I look at several possible rankings for potential large buyback targets.</li>
</ul>


Japanese companies are buying back more stock than ever before, and recent moves by the TSE and METI are effectively pushing for more.
The new goal is to lift PBR and ROE. The easiest way to lift ROE is reduce E. Low-PBR Cos with excess assets and cross-holdings (outbound and inbound) are targets.
In this insight I look at several possible rankings for potential large buyback targets.


JAPAN GOVERNANCE CHANGES II - Who Could Surprise on Buybacks? Quant Rankings

<ul>
<li>So far, 10 regional banks have upgraded guidance since Q1 results. One of them (Iyogin) twice. The average gain is +71.7% vs original H1 guidance (if we count Iyogin once).</li>
<li>This week will be the big push for new guidance ahead of a flood earnings reports the following week. Election results will cause concern, and the BOJ meets Thursday.</li>
<li>I expect a move in December (positive for banks), but it may be US Fed and $/¥-dependent. In the meantime banks enjoy tailwinds.</li>
</ul>


So far, 10 regional banks have upgraded guidance since Q1 results. One of them (Iyogin) twice. The average gain is +71.7% vs original H1 guidance (if we count Iyogin once).
This week will be the big push for new guidance ahead of a flood earnings reports the following week. Election results will cause concern, and the BOJ meets Thursday.
I expect a move in December (positive for banks), but it may be US Fed and $/¥-dependent. In the meantime banks enjoy tailwinds.


Japan 2024 H1 Bank Guidance: Interest/Fees ⬆︎, Expenses/Credit Costs⬇︎ - Opportunity Good Still

Japan

The Hokkoku Bank, Ltd. is a regional bank based in Ishikawa prefecture.  The Bank provides banking services such as deposits, loans, and foreign exchange transactions.  Hokkoku Bank also provides other financial services including securities brokerage, letter of credit, lease, credit cards, and real estate services.

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Hokkoku Financial Holdings (7381 JP)