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.

Equity Bottom-Up

<ul>
<li>Results fell short of plan in the nine months to September. It looks like the company will miss FY Dec-21 sales and profit guidance by about 3%. </li>
<li>Sales growth is likely to remain high while margins remain under pressure.</li>
<li>If 20% sales growth can be maintained and margins stabilize, the P/E ratio could drop from more than 60x now to 40x over the next 3 years.</li>
</ul>


Results fell short of plan in the nine months to September. It looks like the company will miss FY Dec-21 sales and profit guidance by about 3%. 
Sales growth is likely to remain high while margins remain under pressure.
If 20% sales growth can be maintained and margins stabilize, the P/E ratio could drop from more than 60x now to 40x over the next 3 years.


MonotaRO (3064 JP): Falling Short of Guidance, Interview Takeaways Mixed

Research from Mita Securities, Mita Securities

Mita Securities

Research from Mita Securities

Mita Securities provides a full scale diversified investment banking and financial services. A comprehensive investment banking department, specializes in rights offerings advisory, take-over bids agents, M&A etc. Including a proprietary trading desk, and wealth management department that offers brokerage, custody, real estate, and full proxy services.

<ul>
<li>We have lowered our target price from 2,750 yen to 2,350 yen. We maintain our Hold rating</li>
<li>The sales growth of large corporation business has been remarkable, while the sales growth of monogaro.com business, which accounts for approximately 80% of sales, has been calming down</li>
<li>The company's overseas subsidiaries (South Korea, Indonesia, and India) have not been able to grow sufficiently due to the impact of the pandemic and region-specific factors</li>
</ul>


We have lowered our target price from 2,750 yen to 2,350 yen. We maintain our Hold rating
The sales growth of large corporation business has been remarkable, while the sales growth of monogaro.com business, which accounts for approximately 80% of sales, has been calming down
The company's overseas subsidiaries (South Korea, Indonesia, and India) have not been able to grow sufficiently due to the impact of the pandemic and region-specific factors


MonotaRO: Lowering Our Earnings Forecast and Target Price

<ul><li><p>Adjusted sales growth of 19.1%, no significant change from October</p></li><li><p>Sales to large corporations increased by 47% YoY, 6% above the company’s target.</p></li><li><p>Full-year sales guidance extremely difficult to achieve, but not a surprise</p></li></ul>

Adjusted sales growth of 19.1%, no significant change from OctoberSales to large corporations increased by 47% YoY, 6% above the company’s target.Full-year sales guidance extremely difficult to achieve, but not a surprise

MonotaRO (3064): November Sales Slightly Weak, but No Surprises

<h2>Company profile</h2><p>MonotaRO is an EC company that sells indirect materials (MRO products) used in factories, construction sites, and auto repair shops. The company has over 18 million products and 6.46 million registered accounts (as of the end of September 2021). The company is a consolidated subsidiary of W.W. Grainger.</p>

Company profileMonotaRO is an EC company that sells indirect materials (MRO products) used in factories, construction sites, and auto repair shops. The company has over 18 million products and 6.46 million registered accounts (as of the end of September 2021). The company is a consolidated subsidiary of W.W. Grainger.

MonotaRO (3064): Post-Earnings Interview with MonotaRO

Japan

MonotaRO Co., Ltd. mainly sells machine tools, engine parts, and factory consumable goods on the web site.

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MonotaRO Co Ltd (3064 JP)

MonotaRO (3064 JP): Falling Short of Guidance, Interview Takeaways Mixed

Falling short of guidance, but has been for two quarters. Sales rising at double-digit rates, but margin expansion unlikely. Not cheap at more than...

Scott Foster

MonotaRO: Lowering Our Earnings Forecast and Target Price

We have lowered our target price from 2,750 yen to 2,350 yen. We maintain our Hold rating. The sales growth of large corporation business has been...

Mita Securities

MonotaRO (3064): November Sales Slightly Weak, but No Surprises

Adjusted sales growth of 19.1%, no significant change from October. Sales to large corporations increased by 47% YoY, 6% above the company’s target.

Mita Securities

MonotaRO (3064): October Sales

MonotaRO is an EC company that sells indirect materials (MRO products) used in factories, construction sites, and auto repair shops.

Mita Securities

MonotaRO (3064): Post-Earnings Interview with MonotaRO

MonotaRO is an EC company that sells indirect materials (MRO products) used in factories, construction sites, and auto repair shops.

Mita Securities

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