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

Pan Pacific International Holdings / Equity Bottom-Up

<ul><li>In Q1 FY06/25, sales increased 8.1% YoY to JPY550.6bn, with operating profit up 24.9% YoY to JPY41.1bn.</li><li>The company plans to open 30 new stores in Japan and seven overseas, focusing on Discount Store expansion.</li><li>FY06/25 forecast includes sales of JPY2,220.0bn (+6.0% YoY) and operating profit of JPY150.0bn (+7.0% YoY).</li></ul>

In Q1 FY06/25, sales increased 8.1% YoY to JPY550.6bn, with operating profit up 24.9% YoY to JPY41.1bn.The company plans to open 30 new stores in Japan and seven overseas, focusing on Discount Store expansion.FY06/25 forecast includes sales of JPY2,220.0bn (+6.0% YoY) and operating profit of JPY150.0bn (+7.0% YoY).

Pan Pacific International Holdings (7532 JP): Q1 FY06/25 flash update

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Since the total shares held by Founder Family, trust Banks and FamilyMart exceed 50%, this director appointment proposal will pass unless the shareholders held by the trust banks oppose it.</li>
<li>Challenges will be noted in the function of the nominating committee, which nominated directors with few elements falling under the skills item, and in the disclosure of the skills matrix.</li>
<li>While PPIH's free cash flow is ample and growth is expected, shareholder returns and governance remain challenges, but with overseas investor equity exceeding 30%, much improvement is expected in future.</li>
</ul>


Since the total shares held by Founder Family, trust Banks and FamilyMart exceed 50%, this director appointment proposal will pass unless the shareholders held by the trust banks oppose it.
Challenges will be noted in the function of the nominating committee, which nominated directors with few elements falling under the skills item, and in the disclosure of the skills matrix.
While PPIH's free cash flow is ample and growth is expected, shareholder returns and governance remain challenges, but with overseas investor equity exceeding 30%, much improvement is expected in future.


Governance and Shareholder Return Are Likely to Improve, and Investors Continue to Pay Attention

<ul><li>FY06/24 results: Sales JPY2,095.1bn (+8.2% YoY), operating profit JPY140.2bn (+33.2% YoY), net income JPY88.7bn (+34.1% YoY).</li><li>FY06/25 forecast: Sales JPY2,220.0bn (+6.0% YoY), operating profit JPY150.0bn (+7.0% YoY), net income JPY86.5bn (-2.5% YoY).</li><li>Store count end-June 2024: 742 total, 632 domestic, 110 overseas; 24 new stores in Japan, 12 overseas.</li></ul>

FY06/24 results: Sales JPY2,095.1bn (+8.2% YoY), operating profit JPY140.2bn (+33.2% YoY), net income JPY88.7bn (+34.1% YoY).FY06/25 forecast: Sales JPY2,220.0bn (+6.0% YoY), operating profit JPY150.0bn (+7.0% YoY), net income JPY86.5bn (-2.5% YoY).Store count end-June 2024: 742 total, 632 domestic, 110 overseas; 24 new stores in Japan, 12 overseas.

Pan Pacific International Holdings (7532 JP): Full-year FY06/24 flash update

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>Inflation is encouraging customers to seek out discount chains, led by PPI’s Don Quijote. </li>
<li>Backed by expansion of private brand lines and more food lines, as well as higher sales to tourists, PPI has been posting record results.</li>
<li>There continues to be high expectations for further growth at home and abroad.</li>
</ul>


Inflation is encouraging customers to seek out discount chains, led by PPI’s Don Quijote. 
Backed by expansion of private brand lines and more food lines, as well as higher sales to tourists, PPI has been posting record results.
There continues to be high expectations for further growth at home and abroad.


Customers Flocking to Donki for Both Discounted Daily Necessities and Tourist Toys

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pan-pacific-international-holdings-corporation" target="_blank" data-smartkarma-citation="entities:13475:1" rel="noopener">Pan Pacific International Holdings (7532 JP)'</a> Don Quijote stores rebounded strongly from Covid, despite the lack of inbound tourists, reflecting the hard work done to update stores and merchandise.</li>
<li>This innovation continues and Don Quijote stores recently even began offering several new private brand cosmetics ranges and new electronics, including a new small footprint freezer. </li>
<li>The company expects 15% of domestic sales from private brands alone but rising to 25% in the near term, with significant upside for operating profits.</li>
</ul>



Pan Pacific International Holdings (7532 JP)' Don Quijote stores rebounded strongly from Covid, despite the lack of inbound tourists, reflecting the hard work done to update stores and merchandise.
This innovation continues and Don Quijote stores recently even began offering several new private brand cosmetics ranges and new electronics, including a new small footprint freezer. 
The company expects 15% of domestic sales from private brands alone but rising to 25% in the near term, with significant upside for operating profits.


More Profit for Donki as It Expands Private Label, Even Freezers

Japan

Pan Pacific International Holdings Corporation operates discount stores which sell consumer electronics, daily necessities, groceries, watches, and sporting goods. The Company mostly operates small scale stores based in Tokyo.

Pan Pacific International Holdings (7532 JP)

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Pan Pacific International Holdings (7532 JP)