Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

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

Our analysis of Truedata POS sales of FANCL’s Nutritional Supplements business indicates a 23% YoY growth in 1QFY03/20. A big part of this growth came from new products such as Naishi Support and Nyosan Support. The seasoned products such as Calolimit showed signs of a slowdown on a QoQ basis. However, the growth was still positive for Calolimit in YoY terms.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/094/489/original/1.PNG?1564461970" class="editor-image img-responsive" data-smartkarma-image-id="94489"></figure><div class="content-caption">Source: Truedata POS</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/094/490/original/2.PNG?1564461984" class="editor-image img-responsive" data-smartkarma-image-id="94490"></figure><div class="content-caption">Source: Truedata POS</div>We have used our analysis of POS data to forecast the 1QFY03/20 revenues for the Nutritional Supplements business. Our POS data covers about 4% of FANCL’s Nutritional Supplements Business’ domestic revenue, thus improving the reliability of our forecasts. We have used a linear regression to forecast the segment revenues from POS data and it indicates a YoY growth rate in the high-teens range for 1QFY03/20.

Our analysis of Truedata POS sales of FANCL’s Nutritional Supplements business indicates a 23% YoY growth in 1QFY03/20. A big part of this growth came from new products such as Naishi Support and Nyosan Support. The seasoned products such as Calolimit showed signs of a slowdown on a QoQ basis. However, the growth was still positive for Calolimit in YoY terms.Source: Truedata POSSource: Truedata POSWe have used our analysis of POS data to forecast the 1QFY03/20 revenues for the Nutritional Supplements business. Our POS data covers about 4% of FANCL’s Nutritional Supplements Business’ domestic revenue, thus improving the reliability of our forecasts. We have used a linear regression to forecast the segment revenues from POS data and it indicates a YoY growth rate in the high-teens range for 1QFY03/20.

FANCL: Truedata POS Alternative Data Report: Robust Growth in 1QFY03/20 Via New Products

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Quantitative Analysis

<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/001/original/2019-07-13_16-16-31.png?1563002212" class="editor-image img-responsive" data-smartkarma-image-id="93001"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/005/original/2019-07-13_16-25-24.png?1563002742" class="editor-image img-responsive" data-smartkarma-image-id="93005"></figure>Source: Japan Analytics
</div>MOVING AVERAGE BREAKOUT - Japanese equities have now risen by 5.1% since the low of 4th June and, since July 1st, the Total Market Value has exceeded the 50-Day Moving Average for the first time since 26th April. Over the last two weeks, the Total Market Value has gained 1.7% in both Yen and US dollar times. For the previous twelve months, the equity market has moved in line with the US dollar/Japanese Yen exchange rate. It remains to be seen how the 'gap' that has opened up in the last month will be closed. Any further strength in the Yen from current levels will likely see the market slip below the 50-Day Moving Average again.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/020/original/2019-07-14_06-28-16.png?1563053334" class="editor-image img-responsive" data-smartkarma-image-id="93020"></figure><div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/024/original/2019-07-14_06-45-29.png?1563054338" class="editor-image img-responsive" data-smartkarma-image-id="93024"></figure> Source: Japan Analytics</div>VALUE TRADED RATIO - The Value Traded Ratio (Value Traded/Total Market Value) has seen two new eighteen-month lows. If the three days around Christmas are excluded, the current apathy towards Japanese equities is the most extreme since 2012 and is confirmed by recent BAML investor surveys. In the past, such periods of inactivity (marked"▲"above)  have preceded changes in market direction, more often upwards rather than downwards and suggest the current rally has more 'legs'. <div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/025/original/2019-07-14_06-47-40.png?1563054585" class="editor-image img-responsive" data-smartkarma-image-id="93025"></figure> Source: Japan Analytics</div>TORAKU INDEX - Conversely, the Toraku advance/decline index is suggesting a degree of caution having breached the 120 'overbought' line for only the third time in eighteen months. Combining this analysis with the Value Traded Ratio, there is scope for a short-term upward move akin to that of October 2018 to be followed by a sharper downward trend into the autumn.  <div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/026/original/2019-07-14_06-54-51.png?1563054906" class="editor-image img-responsive" data-smartkarma-image-id="93026"></figure> Source: Japan Analytics</div>VOLUME SCORE TIMELINE - The lull in market turnover is confirmed in the greener 'bias' in our Sector volume timeline. The Retail and Restaurant Sectors are hot as we are in the middle of the quarterly results announcements for February/May/August/November year-end companies. REITs remain the 'go-to' defensive Sector while the Information Technology and Internet Sectors are the 'tema-du-jour' - to mix language metaphors. The 'untouchables' are Metals, Banks, UtilitiesTransportation,  and Multi-Industry.<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/028/original/2019-07-14_07-31-40.png?1563057109" class="editor-image img-responsive" data-smartkarma-image-id="93028"></figure> Source: Japan Analytics</div>3-MONTH SECTOR CONTRIBUTION - Over the last three months, a long Telcos/short Autos strategy would have yielded 82 basis points of performance. The Retail Sector has responded well to the results released so far led by drugstores <a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia (3141 JP)</a> and <a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1" rel="noopener">Tsuruha (3391 JP), </a><a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a><a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1" rel="noopener">, and </a><a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson (2651 JP)</a>. Electrical Equipment has suffered from weakness in component stocks <a href="https://www.smartkarma.com/entities/alps-alpine-co-ltd" target="_blank" data-smartkarma-citation="entities:12001:1" rel="noopener">Alps Alpine (6770 JP)</a> (-38% over one year), <a href="https://www.smartkarma.com/entities/murata-manufacturing-co-ltd" target="_blank" data-smartkarma-citation="entities:11649:1" rel="noopener">Murata (6981 JP)</a> (see <a href="https://www.smartkarma.com/profiles/scott-foster" target="_blank" data-smartkarma-citation="accounts:1134" rel="noopener">Scott Foster</a>'s <a href="https://www.smartkarma.com/insights/murata-mfg-6981-jp-buy-on-decline-for-the-long-term" target="_blank" data-smartkarma-citation="insights:30919" rel="noopener">(Buy on Decline for the Long Term</a>), and <a href="https://www.smartkarma.com/entities/taiyo-yuden-co-ltd" target="_blank" data-smartkarma-citation="entities:9924:1" rel="noopener">Taiyo Yuden (6976 JP)</a>, while <a href="https://www.smartkarma.com/entities/smc-corp" target="_blank" data-smartkarma-citation="entities:20866:1" rel="noopener">SMC (6273 JP)</a>, <a href="https://www.smartkarma.com/entities/fanuc-corp" target="_blank" data-smartkarma-citation="entities:752:1" rel="noopener">Fanuc (6954 JP)</a>, and <a href="https://www.smartkarma.com/entities/komatsu-ltd" target="_blank" data-smartkarma-citation="entities:8416:1" rel="noopener">Komatsu (6301 JP)</a> have weighed on the Machinery Sector.<div class="content-caption">
<figure class="editor-figure mceNonEditable"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/093/031/original/2019-07-14_07-44-47.png?1563057897" class="editor-image img-responsive" data-smartkarma-image-id="93031"></figure></figure> Source: Japan Analytics</div>SECTOR SCORE MATRIX - Arranging our cap-weighted Sector Relative Price Scores and Results &amp; Revisions Scores in a four-quadrant matrix whose extremes are Contrarian Sell, Contrarian Buy, Unrequited Growth, and Ex-Growth suggest profit-taking in Information Technology (<a href="https://www.smartkarma.com/entities/obic-co-ltd" target="_blank" data-smartkarma-citation="entities:1273:1" rel="noopener">OBIC (4684 JP)</a>, Other Commerical Products (<a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya Corp (7741 JP)</a>, and Commercial Services (<a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit 6098 JP).</a> We are not contrarian enough to fall into the banking 'trap', however, the Metals Sector may offer some 'crumbs' of comfort for those in need of a deep value 'fix' (<a href="https://www.smartkarma.com/entities/nippon-steel-sumitomo-metal-corp" target="_blank" data-smartkarma-citation="entities:961:1" rel="noopener">Nippon Steel &amp; Sumitomo Metal (5401 JP)</a>) <div class="content-highlight">In the DETAIL section below, we will review Sector performance, scores and valuation in more detail, as well as Company Results &amp; Revisions and individual stock performance over the previous two weeks, as well as adding some brief comments on <a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia (3141 JP)</a>, <a href="https://www.smartkarma.com/entities/daiseki-co-ltd" target="_blank" data-smartkarma-citation="entities:2330:1" rel="noopener">Daiseki (9793 JP), </a><a href="https://www.smartkarma.com/entities/yaskawa-electric-corp" target="_blank" data-smartkarma-citation="entities:2458:1" rel="noopener">Yaskawa Electric (6506 JP), </a><a href="https://www.smartkarma.com/entities/pola-orbis-holdings-inc" target="_blank" data-smartkarma-citation="entities:2287:1" rel="noopener">Pola Orbis (4927 JP)</a>, <a href="https://www.smartkarma.com/entities/sekisui-house-ltd" target="_blank" data-smartkarma-citation="entities:4508:1" rel="noopener">Sekisui House (1928 JP)</a>, <a href="https://www.smartkarma.com/entities/keyence-corp" target="_blank" data-smartkarma-citation="entities:3077:1" rel="noopener">Keyence (6861 JP)</a>, <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a>, and <a href="https://www.smartkarma.com/entities/obic-co-ltd" target="_blank" data-smartkarma-citation="entities:1273:1" rel="noopener">Obic (4684 JP)</a>.</div>


Source: Japan Analytics
MOVING AVERAGE BREAKOUT - Japanese equities have now risen by 5.1% since the low of 4th June and, since July 1st, the Total Market Value has exceeded the 50-Day Moving Average for the first time since 26th April. Over the last two weeks, the Total Market Value has gained 1.7% in both Yen and US dollar times. For the previous twelve months, the equity market has moved in line with the US dollar/Japanese Yen exchange rate. It remains to be seen how the 'gap' that has opened up in the last month will be closed. Any further strength in the Yen from current levels will likely see the market slip below the 50-Day Moving Average again.
 Source: Japan AnalyticsVALUE TRADED RATIO - The Value Traded Ratio (Value Traded/Total Market Value) has seen two new eighteen-month lows. If the three days around Christmas are excluded, the current apathy towards Japanese equities is the most extreme since 2012 and is confirmed by recent BAML investor surveys. In the past, such periods of inactivity (marked"▲"above)  have preceded changes in market direction, more often upwards rather than downwards and suggest the current rally has more 'legs'. 
 Source: Japan AnalyticsTORAKU INDEX - Conversely, the Toraku advance/decline index is suggesting a degree of caution having breached the 120 'overbought' line for only the third time in eighteen months. Combining this analysis with the Value Traded Ratio, there is scope for a short-term upward move akin to that of October 2018 to be followed by a sharper downward trend into the autumn.  
 Source: Japan AnalyticsVOLUME SCORE TIMELINE - The lull in market turnover is confirmed in the greener 'bias' in our Sector volume timeline. The Retail and Restaurant Sectors are hot as we are in the middle of the quarterly results announcements for February/May/August/November year-end companies. REITs remain the 'go-to' defensive Sector while the Information Technology and Internet Sectors are the 'tema-du-jour' - to mix language metaphors. The 'untouchables' are Metals, Banks, UtilitiesTransportation,  and Multi-Industry.
 Source: Japan Analytics3-MONTH SECTOR CONTRIBUTION - Over the last three months, a long Telcos/short Autos strategy would have yielded 82 basis points of performance. The Retail Sector has responded well to the results released so far led by drugstores Welcia (3141 JP) and Tsuruha (3391 JP), Fast Retailing (9983 JP), and Lawson (2651 JP). Electrical Equipment has suffered from weakness in component stocks Alps Alpine (6770 JP) (-38% over one year), Murata (6981 JP) (see Scott Foster's (Buy on Decline for the Long Term), and Taiyo Yuden (6976 JP), while SMC (6273 JP), Fanuc (6954 JP), and Komatsu (6301 JP) have weighed on the Machinery Sector.
 Source: Japan AnalyticsSECTOR SCORE MATRIX - Arranging our cap-weighted Sector Relative Price Scores and Results &amp; Revisions Scores in a four-quadrant matrix whose extremes are Contrarian Sell, Contrarian Buy, Unrequited Growth, and Ex-Growth suggest profit-taking in Information Technology (OBIC (4684 JP), Other Commerical Products (Hoya Corp (7741 JP), and Commercial Services (Recruit 6098 JP). We are not contrarian enough to fall into the banking 'trap', however, the Metals Sector may offer some 'crumbs' of comfort for those in need of a deep value 'fix' (Nippon Steel &amp; Sumitomo Metal (5401 JP)) In the DETAIL section below, we will review Sector performance, scores and valuation in more detail, as well as Company Results &amp; Revisions and individual stock performance over the previous two weeks, as well as adding some brief comments on Welcia (3141 JP), Daiseki (9793 JP), Yaskawa Electric (6506 JP), Pola Orbis (4927 JP), Sekisui House (1928 JP), Keyence (6861 JP), Japan Post Insurance (7181 JP), and Obic (4684 JP).

🇯🇵 JAPAN • Market Update - Levitating on Thin Air

Equity Capital Markets

Shinnihonseiyaku Co Ltd / Equity Capital Markets

Towards the end of May 2019, Shinnihonseiyaku filed for an IPO on the mothers board of the Tokyo stock exchange. The primary offering is very small in this IPO and most of the shares sold through this offering are from the existing shareholders.Based on the given price range for the stock, Shinnihonseiyaku Co.Ltd would be valued in the range of ¥20-23bn in EV, which implies a FY2018 EV/EBIT range of 8.1-9.1x. The multiples seem cheap considering what the peers in the Japanese cosmetics industry are trading at currently and the fact that the returns on capital are higher than the peers makes it attractive on the surface. However, we see significant red flags that may affect the company's returns over the medium to long term.<table class="table table-striped"><tbody>
<tr>
<td>IPO Details</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Book Building</td>
<td colspan="3">From 2019/06/11 to 2019/06/17</td>
</tr>
<tr>
<td>Offer</td>
<td colspan="3">From 2019/06/19 to 2019/06/24</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Selling Shareholders</td>
<td>4,570,000</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Overallotment Option</td>
<td>730,000</td>
<td></td>
<td></td>
</tr>
<tr>
<td>New Issue</td>
<td>300,000</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Existing Shares</td>
<td>20,581,300</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Shares Outstanding Post IPO</td>
<td>20,881,300</td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>Low</td>
<td>High</td>
<td></td>
</tr>
<tr>
<td>Price Range</td>
<td>1,350</td>
<td>1,470</td>
<td></td>
</tr>
<tr>
<td>Expected Market Cap - in ¥m</td>
<td>28,190</td>
<td>30,696</td>
<td></td>
</tr>
<tr>
<td>Expected EV - in ¥m</td>
<td>20,121</td>
<td>22,596</td>
<td></td>
</tr>
<tr><td colspan="4">*based on March 2019 debt and cash and IPO proceeds</td></tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Implied Multiples- FY2018 </td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>EV/Sales</td>
<td>0.6x</td>
<td>0.7x</td>
<td></td>
</tr>
<tr>
<td>EV/EBIT</td>
<td>8.1x</td>
<td>9.1x</td>
<td></td>
</tr>
<tr>
<td>P/E</td>
<td>16.1x</td>
<td>17.5x</td>
<td></td>
</tr>
</tbody></table>Source: Company Disclosures

Towards the end of May 2019, Shinnihonseiyaku filed for an IPO on the mothers board of the Tokyo stock exchange. The primary offering is very small in this IPO and most of the shares sold through this offering are from the existing shareholders.Based on the given price range for the stock, Shinnihonseiyaku Co.Ltd would be valued in the range of ¥20-23bn in EV, which implies a FY2018 EV/EBIT range of 8.1-9.1x. The multiples seem cheap considering what the peers in the Japanese cosmetics industry are trading at currently and the fact that the returns on capital are higher than the peers makes it attractive on the surface. However, we see significant red flags that may affect the company's returns over the medium to long term.

IPO Details





Book Building
From 2019/06/11 to 2019/06/17


Offer
From 2019/06/19 to 2019/06/24








Selling Shareholders
4,570,000




Overallotment Option
730,000




New Issue
300,000




Existing Shares
20,581,300




Shares Outstanding Post IPO
20,881,300





Low
High



Price Range
1,350
1,470



Expected Market Cap - in ¥m
28,190
30,696



Expected EV - in ¥m
20,121
22,596


*based on March 2019 debt and cash and IPO proceeds







Implied Multiples- FY2018 





EV/Sales
0.6x
0.7x



EV/EBIT
8.1x
9.1x



P/E
16.1x
17.5x


Source: Company Disclosures

Shinnihonseiyaku IPO: Perfect One, Not So Perfect Afterall

FANCL Corporation’s share price gained more than 25% over the last 3 months on the back of the positivity surrounding the Japanese cosmetics industry. The stock may not look cheap at over 30x Forward PE, but considering its long-term growth prospects we are very optimistic about FANCL in the long run.
In our previous insight: <a href="https://www.smartkarma.com/insights/fancl-playing-the-long-game" target="_blank">FANCL: Playing the Long Game</a> we, covered the stock on a traditional investment research angle. In that we expected the company to outperform the competition in the long run. Now we take a more novel approach using alternative data to analyse FANCL’s short to medium term prospects. The results are as good and therefore we maintain our positive view on FANCL prior to the release of their FY03/19 results which is due on the 25th of April 2019.
<ul>
<li>
Consensus estimates reversions on the back of weak inbound sales and maturing Calolimit and Enkin
<ul>
<li>Calolimit – POS data analysis</li>
<li>Enkin – POS data analysis</li>
</ul>
</li>
<li>
Rest of supplements business and cosmetics steady growth- Doesn’t justify estimate reversions 
<ul>
<li>Naishi Support – POS data analysis</li>
<li>Cosmetics expected to grow 8% YoY in 4QFY03/19</li>
</ul>
</li>
<li>FANCL to beat FY03/19 guidance and consensus estimates</li>
<li>We expect even stronger performance in FY03/20</li>
</ul>

FANCL Corporation’s share price gained more than 25% over the last 3 months on the back of the positivity surrounding the Japanese cosmetics industry. The stock may not look cheap at over 30x Forward PE, but considering its long-term growth prospects we are very optimistic about FANCL in the long run.
In our previous insight: FANCL: Playing the Long Game we, covered the stock on a traditional investment research angle. In that we expected the company to outperform the competition in the long run. Now we take a more novel approach using alternative data to analyse FANCL’s short to medium term prospects. The results are as good and therefore we maintain our positive view on FANCL prior to the release of their FY03/19 results which is due on the 25th of April 2019.


Consensus estimates reversions on the back of weak inbound sales and maturing Calolimit and Enkin

Calolimit – POS data analysis
Enkin – POS data analysis



Rest of supplements business and cosmetics steady growth- Doesn’t justify estimate reversions 

Naishi Support – POS data analysis
Cosmetics expected to grow 8% YoY in 4QFY03/19


FANCL to beat FY03/19 guidance and consensus estimates
We expect even stronger performance in FY03/20


FANCL Corporation: What to Expect in FY03/19 Results and Beyond

Thematic (Sector/Industry)

A disappointing January saw almost all the Japanese cosmetic companies face dropping share price. In the meantime, the Nikkei index managed to increase by about 6%. FANCL was the biggest loser among cosmetics in January 2019, as the share price tumbled more than 11% during the month. Shiseido, Kose and Kao all saw their share prices decline during 2019 while Pola Orbis was the only Japanese cosmetics accompany that saw its share price rise during January 2019.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/085/478/original/1.jpg?1555906777" class="editor-image img-responsive" data-smartkarma-image-id="85478"></figure>
<div class="content-caption">Source: Cap IQ</div>
Since the lows of January, Japanese cosmetic stocks have rallied and to date have returned about 30% for investors. Kose, Shiseido and FANCL were the biggest winners as all three companies managed to generate more than 25% upside since their January lows. Other Japanese cosmetics companies also managed to outperform the Nikkei during the months of February, March and April.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/085/479/original/2.jpg?1555906818" class="editor-image img-responsive" data-smartkarma-image-id="85479"></figure>
<div class="content-caption">Source: Cap IQ</div>

A disappointing January saw almost all the Japanese cosmetic companies face dropping share price. In the meantime, the Nikkei index managed to increase by about 6%. FANCL was the biggest loser among cosmetics in January 2019, as the share price tumbled more than 11% during the month. Shiseido, Kose and Kao all saw their share prices decline during 2019 while Pola Orbis was the only Japanese cosmetics accompany that saw its share price rise during January 2019.

Source: Cap IQ
Since the lows of January, Japanese cosmetic stocks have rallied and to date have returned about 30% for investors. Kose, Shiseido and FANCL were the biggest winners as all three companies managed to generate more than 25% upside since their January lows. Other Japanese cosmetics companies also managed to outperform the Nikkei during the months of February, March and April.

Source: Cap IQ

Japan Cosmetic: FANCL, KOSE, Shiseido & Pola Orbis Making Progress as Worries of Weak January Fades

Japan

POLA ORBIS HOLDINGS INC. develops, manufactures and markets cosmetic products, centering in skincare  products. Under its multi-brand strategy, the Company holds nine cosmetic brands including POLA, prestige skincare brand, ORBIS, oil-free skincare brand, H2O PLUS and Jurlique.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Pola Orbis Holdings (4927 JP)

FANCL: Truedata POS Alternative Data Report: Robust Growth in 1QFY03/20 Via New Products

Our analysis of Truedata POS sales of FANCL’s Nutritional Supplements business indicates a 23% YoY growth in 1QFY03/20. A big part of this growth...

Oshadhi Kumarasiri

🇯🇵 JAPAN • Market Update - Levitating on Thin Air

MOVING AVERAGE BREAKOUT - Japanese equities have now risen by 5.1% since the low of 4th June and, since July 1st, the Total Market Value has...

Campbell Gunn

Shinnihonseiyaku IPO: Perfect One, Not So Perfect Afterall

Towards the end of May 2019, Shinnihonseiyaku filed for an IPO on the mothers board of the Tokyo stock exchange. The primary offering is very small...

Oshadhi Kumarasiri

FANCL Corporation: What to Expect in FY03/19 Results and Beyond

FANCL Corporation’s share price gained more than 25% over the last 3 months on the back of the positivity surrounding the Japanese cosmetics...

Oshadhi Kumarasiri

Japan Cosmetic: FANCL, KOSE, Shiseido & Pola Orbis Making Progress as Worries of Weak January Fades

A disappointing January saw almost all the Japanese cosmetic companies face dropping share price. In the meantime, the Nikkei index managed to...

Oshadhi Kumarasiri

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