Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

<ul>
<li>On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP - US$131 million) CFO, Kimitaka Hashimoto.</li>
<li>He provided color on Kaonavi’s second-quarter earnings result, which were released on 13 November and led to a negative reaction from the market.</li>
<li>In short, Kaonavi is a Japanese developer of talent management software. It helps companies manage their employees by solving staffing problems, designing their organizational structure, performance reviews, surveys, training, internal recruitment, etc.</li>
</ul>


On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP - US$131 million) CFO, Kimitaka Hashimoto.
He provided color on Kaonavi’s second-quarter earnings result, which were released on 13 November and led to a negative reaction from the market.
In short, Kaonavi is a Japanese developer of talent management software. It helps companies manage their employees by solving staffing problems, designing their organizational structure, performance reviews, surveys, training, internal recruitment, etc.


Has the Kaonavi Story Changed? (4435 JP )

<ul>
<li>Japan's leading developer of talent management software, used by companies to manage their staff. Key selling points include staff deployment, periodic evaluations, surveys, training, internal recruitment</li>
<li>Low valuation at 2.1x EV/Sales, long-term operating margin guidance of 20%+ on top of predictable 20-30% sustainable growth</li>
<li>Near-Term catalysts include the recent releases of labor management service “Roum Mate”, budget control system called “Yojitsutic”</li>
</ul>


Japan's leading developer of talent management software, used by companies to manage their staff. Key selling points include staff deployment, periodic evaluations, surveys, training, internal recruitment
Low valuation at 2.1x EV/Sales, long-term operating margin guidance of 20%+ on top of predictable 20-30% sustainable growth
Near-Term catalysts include the recent releases of labor management service “Roum Mate”, budget control system called “Yojitsutic”


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.

<ul><li>In 1H FY03/25, the company reported revenue of JPY4.6bn, adjusted operating profit of JPY378mn, and net income of JPY259mn.</li><li>The company recorded an impairment loss of JPY30mn due to a decline in investment securities' market value.</li><li>As of end-Q2, consolidated ARR was JPY9.2bn, with Kaonavi’s ARR at JPY8.9bn, increasing 25.1% YoY.</li></ul>

In 1H FY03/25, the company reported revenue of JPY4.6bn, adjusted operating profit of JPY378mn, and net income of JPY259mn.The company recorded an impairment loss of JPY30mn due to a decline in investment securities' market value.As of end-Q2, consolidated ARR was JPY9.2bn, with Kaonavi’s ARR at JPY8.9bn, increasing 25.1% YoY.

Kaonavi Inc (4435 JP): 1H FY03/25 flash update

<ul><li>Q1 FY03/25: Revenue JPY2.3bn, adjusted operating profit JPY203mn, operating profit JPY178mn, recurring profit JPY177mn, net income JPY143mn.</li><li>Impairment loss of JPY20mn recorded as an extraordinary loss due to decline in market value of investment securities.</li><li>ARR increased 29.2% YoY to JPY8.7bn, Kaonavi users increased 19.5% to 3,792, ARPU increased 6.3% to JPY187,000.</li></ul>

Q1 FY03/25: Revenue JPY2.3bn, adjusted operating profit JPY203mn, operating profit JPY178mn, recurring profit JPY177mn, net income JPY143mn.Impairment loss of JPY20mn recorded as an extraordinary loss due to decline in market value of investment securities.ARR increased 29.2% YoY to JPY8.7bn, Kaonavi users increased 19.5% to 3,792, ARPU increased 6.3% to JPY187,000.

Kaonavi Inc (4435 JP): Q1 FY03/25 flash update

Japan Specialist

Mark Chadwick

<div><a href="https://www.smartkarma.com/entities/kaonavi-inc" target="_blank" data-smartkarma-citation="entities:29703:1" rel="noopener">Kaonavi Inc (4435 JP)</a>  operates a cloud-based Human Capital Management (HCM) service that helps companies manage their HR talent from Recruitment to Onboarding, Training to Communication, and Performance reviews to Promotion.  </div><div>The company released its 2Q20 results on Friday 13th, which may be unlucky for some, but not for Kaonavi which reported 30% sales growth.  </div><div>This note will look at the core trends in Q2. For a more in-depth view of the company, please refer to the previous note: <a href="https://www.smartkarma.com/insights/small-cap-growth-kaonavi-4435-turning-talent-into-teams" target="_blank" data-smartkarma-citation="insights:44415" rel="noopener">Small Cap Growth: Kaonavi (4435) – Turning Talent into Teams</a> </div>

Kaonavi Inc (4435 JP)  operates a cloud-based Human Capital Management (HCM) service that helps companies manage their HR talent from Recruitment to Onboarding, Training to Communication, and Performance reviews to Promotion.  The company released its 2Q20 results on Friday 13th, which may be unlucky for some, but not for Kaonavi which reported 30% sales growth.  This note will look at the core trends in Q2. For a more in-depth view of the company, please refer to the previous note: Small Cap Growth: Kaonavi (4435) – Turning Talent into Teams 

Small Cap Growth – Kaonavi (4435) - Talent Factory

Japan

kaonavi,inc. provides human resources management cloud services. The Company offers talent database, organization tree diagram, employee list and questionnaire, and evaluation workflow, as well as employee data graph and information sort, application programming interface cooperation, and other services. kaonavi serves clients across Japan.

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Kaonavi Inc (4435 JP)

Has the Kaonavi Story Changed? (4435 JP )

Its 2QFY2025 result shocked the market. Estimated reading time: 10 minutes. On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP -...

Asian Century Stocks

Kaonavi (4435 JP)

Recruit’s talent management SaaS platform at 2.1x EV/Sales with business model margins of 20%+ and sustainable growth well above 20%

Asian Century Stocks