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

<ul><li>Revenue in Q1 FY09/25 reached JPY7.3bn, a 131.8% YoY increase, driven by higher average fees per deal.</li><li>Operating profit and recurring profit both increased by 465.1% YoY to JPY3.3bn, with net income rising 465.7% YoY.</li><li>The company revised its dividend policy, increasing the payout ratio target to 30%, raising FY09/25 dividends to JPY51.84.</li></ul>

Revenue in Q1 FY09/25 reached JPY7.3bn, a 131.8% YoY increase, driven by higher average fees per deal.Operating profit and recurring profit both increased by 465.1% YoY to JPY3.3bn, with net income rising 465.7% YoY.The company revised its dividend policy, increasing the payout ratio target to 30%, raising FY09/25 dividends to JPY51.84.

M&A Capital Partners (6080 JP): Q1 FY09/25 flash update

<ul><li>FY09/24 revenue was JPY19.2bn, a decline of 8.1% YoY, with operating profit at JPY6.4bn, down 14.4%.</li><li>FY09/24 net income attributable to owners increased 5.6% YoY to JPY4.5bn, with a 104.4% achievement rate.</li><li>The company targets 376 deals and 405 consultants by FY09/27, with a CAGR of 19.4% and 31.0%.</li></ul>

FY09/24 revenue was JPY19.2bn, a decline of 8.1% YoY, with operating profit at JPY6.4bn, down 14.4%.FY09/24 net income attributable to owners increased 5.6% YoY to JPY4.5bn, with a 104.4% achievement rate.The company targets 376 deals and 405 consultants by FY09/27, with a CAGR of 19.4% and 31.0%.

M&A Capital Partners (6080 JP): Coverage initiation, Full-year FY09/24 flash update

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

The shares are down 28% from their 52-week high, but still selling at 75x management's EPS guidance for FY Mar-22. Is it time to buy into the decline? Over the past month, the shares have rebounded by 8%.Nihon M&amp;A Center is more expensive than listed competitors M&amp;A Capital Partners and Strike, but much larger in terms of sales and many times larger in terms of market cap. If you want a liquid play on M&amp;A, this is it.Annual revenue growth has remained above 12% through the COVID-19 pandemic and margins have remained stable. The number of new M&amp;A mandates increased by 15.5% in FY Mar-21 to a level 24% greater than the number of transactions completed.Management's guidance is usually conservative and looks to be so again this year. On a 3-year view, we expect revenues and profits to rise by about 40%. On a 6-year view, they could double.All in all, we think the M&amp;A opportunity in Japan outweighs the risks, which include another wave of COVID infections and macro-economic difficulties.

The shares are down 28% from their 52-week high, but still selling at 75x management's EPS guidance for FY Mar-22. Is it time to buy into the decline? Over the past month, the shares have rebounded by 8%.Nihon M&amp;A Center is more expensive than listed competitors M&amp;A Capital Partners and Strike, but much larger in terms of sales and many times larger in terms of market cap. If you want a liquid play on M&amp;A, this is it.Annual revenue growth has remained above 12% through the COVID-19 pandemic and margins have remained stable. The number of new M&amp;A mandates increased by 15.5% in FY Mar-21 to a level 24% greater than the number of transactions completed.Management's guidance is usually conservative and looks to be so again this year. On a 3-year view, we expect revenues and profits to rise by about 40%. On a 6-year view, they could double.All in all, we think the M&amp;A opportunity in Japan outweighs the risks, which include another wave of COVID infections and macro-economic difficulties.

Nihon M&A (2127 JP): The Most Liquid Way to Play Japan's Structural M&A Opportunity

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Kato Hong Kong Holdings / Equity Bottom-Up

<ul>
<li>The aging population is among the most unarguable mega-trends in today's world and can act as both a powerful headwind and a tailwind (for some industries);</li>
<li>In the past, I have touched upon some businesses benefiting drastically from the demographic tailwind, but admittedly, most of them are well recognized, and hence, expensive;</li>
<li>In this episode, I would like to discuss one more name monetizing the aging population in the Far East;</li>
<li>While being lesser-known, Kato Holdings appears to be a decent candidate to beat my 20% hurdle rate and become a multi-bagger in the foreseeable future.</li>
</ul>


The aging population is among the most unarguable mega-trends in today's world and can act as both a powerful headwind and a tailwind (for some industries);
In the past, I have touched upon some businesses benefiting drastically from the demographic tailwind, but admittedly, most of them are well recognized, and hence, expensive;
In this episode, I would like to discuss one more name monetizing the aging population in the Far East;
While being lesser-known, Kato Holdings appears to be a decent candidate to beat my 20% hurdle rate and become a multi-bagger in the foreseeable future.


One Hidden Gem Monetizing The Aging Population

Thematic (Sector/Industry)

<ul>
<li>Nihon M&amp;A Center - healthy growth, booming ventures, solid economic moat; </li>
<li>Kakaku.com Inc. - growth momentum has yet to gather;</li>
<li>oRo Co. - resilient growth, continuous shareholder value creation on track.</li>
</ul>


Nihon M&amp;A Center - healthy growth, booming ventures, solid economic moat; 
Kakaku.com Inc. - growth momentum has yet to gather;
oRo Co. - resilient growth, continuous shareholder value creation on track.


Our Takeaways From The Recent Results - Nihon M&A Center, Kakaku.com Inc., ORO Co.

Japan

M&A Capital Partners Co., Ltd. is an M&A advisory firm. The Company provides advisory service in M&A due diligence, business strategy, corporate regeneration, capital increase strategy to support owners of small and medium companies with business succession.

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M&A Capital Partners (6080 JP)