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

<ul><li>Improving sales mix lift gross margins – Gross margin increased to 65.9% in Q1 FY6/25 from 52.5% the previous year, demonstrating an improvement in the sales mix at the core Optical business segment which experienced demand for high-precision products with premium pricing.</li><li>While operating losses remained relatively flat YoY, the company is investing in IT systems that will improve its production and sales management which we believe will improve the quality of earnings, as well as assist in new business development.</li><li>Overall, we believe the company performed in line with guidance, with no change regarding expectations of the earnings profile to be concentrated in H2 FY6/25.</li></ul>

Improving sales mix lift gross margins – Gross margin increased to 65.9% in Q1 FY6/25 from 52.5% the previous year, demonstrating an improvement in the sales mix at the core Optical business segment which experienced demand for high-precision products with premium pricing.While operating losses remained relatively flat YoY, the company is investing in IT systems that will improve its production and sales management which we believe will improve the quality of earnings, as well as assist in new business development.Overall, we believe the company performed in line with guidance, with no change regarding expectations of the earnings profile to be concentrated in H2 FY6/25.

JTEC Corp (3446 JP) - Indications of Improving Returns

<ul><li>Q1-4 FY6/24 results were behind guidance, with the Optical business experiencing longer than expected customer inspection periods delaying revenue recognition.</li><li>The Life Science &amp; Equipment segment made some progress with new product sales, but positive earnings contributions are still further down the road in our view.</li><li>The company has lowered guidance for FY6/25 and FY6/26 as previously disclosed in the rolling three-year medium-term plan. </li></ul>

Q1-4 FY6/24 results were behind guidance, with the Optical business experiencing longer than expected customer inspection periods delaying revenue recognition.The Life Science &amp; Equipment segment made some progress with new product sales, but positive earnings contributions are still further down the road in our view.The company has lowered guidance for FY6/25 and FY6/26 as previously disclosed in the rolling three-year medium-term plan. 

JTEC Corp (3446 JP) - Maintaining Long-Term Growth Targets

<ul><li>Lengthening order lead times impacting revenue recognition – Q1-3 FY6/24 results were behind expectations in our view, with sales declining 27.6% YoY.</li><li>Whilst a negative optic, the reason stems from lengthening lead times for shipment, given customer demands for more high-end and exacting technical requirements for custom-made products requiring more time for delivery.</li><li>We believe this highlights the value-added technical expertise of the company and delays in revenue recognition. </li></ul>

Lengthening order lead times impacting revenue recognition – Q1-3 FY6/24 results were behind expectations in our view, with sales declining 27.6% YoY.Whilst a negative optic, the reason stems from lengthening lead times for shipment, given customer demands for more high-end and exacting technical requirements for custom-made products requiring more time for delivery.We believe this highlights the value-added technical expertise of the company and delays in revenue recognition. 

JTEC Corp (3446) - Facing Some Challenges over Lead Times

<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

Japan

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.

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JTEC Corp/Osaka (3446 JP)

JTEC Corp (3446 JP) - Indications of Improving Returns

Gross margin increased to 65.9% in Q1 FY6/25 from 52.5% the previous year, demonstrating an improvement in the sales mix at the core Optical...

Astris Advisory Japan

JTEC Corp (3446 JP) - Maintaining Long-Term Growth Targets

Q1-4 FY6/24 results were behind guidance, with the Optical business experiencing longer than expected customer inspection periods delaying revenue...

Astris Advisory Japan

JTEC Corp (3446) - Facing Some Challenges over Lead Times

Lengthening order lead times impacting revenue recognition – Q1-3 FY6/24 results were behind expectations in our view, with sales declining 27.6% YoY.

Astris Advisory Japan

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

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...

Astris Advisory Japan

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