Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

<ul><li>FY12/24 sales rose 3.8% YoY to ¥293.31bn while operating profit dropped -22.3% to ¥9.49bn, surpassing previously revised down forecasts.</li><li>Sales growth was boosted by the weak yen. However, the rise was limited by slowing auto production by Japanese, US and European carmakers in China and the impact from new model certification irregularities discovered at domestic automakers in Japan.</li><li>OP was hit by rising costs, especially labor. However, the company is expecting a sharp rebound in OP growth in FY12/25 thanks to starting production of new products in Japan, a recovery in customers’ China output and starting to pass on rises in labor and energy costs, rather than only aluminum price fluctuations.</li></ul>

FY12/24 sales rose 3.8% YoY to ¥293.31bn while operating profit dropped -22.3% to ¥9.49bn, surpassing previously revised down forecasts.Sales growth was boosted by the weak yen. However, the rise was limited by slowing auto production by Japanese, US and European carmakers in China and the impact from new model certification irregularities discovered at domestic automakers in Japan.OP was hit by rising costs, especially labor. However, the company is expecting a sharp rebound in OP growth in FY12/25 thanks to starting production of new products in Japan, a recovery in customers’ China output and starting to pass on rises in labor and energy costs, rather than only aluminum price fluctuations.

Ryobi (5851 JP) - OP Recovery Expected in FY12/25

<ul>
<li>Ryobi is a leading Japanese manufacturer of die casts, predominantly serving the global auto industry, with an estimated top domestic share of about 20%.</li>
<li>As the transition out of internal combustion engines (ICE) and into battery electric-powered vehicles (BEV) gathers pace, Ryobi is well placed to capitalize on the demand for lightweight aluminum auto parts, including chassis, e-axle, and battery cases, door frame hinges, and many more parts.</li>
<li>Although meeting demand generated by this once-in-a -lifetime industrial transformation requires capital expenditures, the company is also focused on improving operating margins over the long term and enhancing shareholder returns, keen to raise its PBR to 1x.</li>
</ul>


Ryobi is a leading Japanese manufacturer of die casts, predominantly serving the global auto industry, with an estimated top domestic share of about 20%.
As the transition out of internal combustion engines (ICE) and into battery electric-powered vehicles (BEV) gathers pace, Ryobi is well placed to capitalize on the demand for lightweight aluminum auto parts, including chassis, e-axle, and battery cases, door frame hinges, and many more parts.
Although meeting demand generated by this once-in-a -lifetime industrial transformation requires capital expenditures, the company is also focused on improving operating margins over the long term and enhancing shareholder returns, keen to raise its PBR to 1x.


Ryobi (5851) - Global Growth Opportunities from Auto Industry Transformation

Japan Specialist

Mark Chadwick

<ul>
<li>Ryobi is a global manufacturer of high-quality aluminum die castings used for transmission cases, engine parts, and other vehicle parts</li>
<li>Ryobi has recently gained market attention following an announcement that the company will produce large electric-vehicle body parts using "gigacasting"</li>
<li>The stock is expected to benefit from EV adoption with improved earnings and increased market recognition</li>
</ul>


Ryobi is a global manufacturer of high-quality aluminum die castings used for transmission cases, engine parts, and other vehicle parts
Ryobi has recently gained market attention following an announcement that the company will produce large electric-vehicle body parts using "gigacasting"
The stock is expected to benefit from EV adoption with improved earnings and increased market recognition


Ryobi (5851) | Re-Rating as Die-Casting Becomes Gigacasting

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Chervon Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (CHL HK)</a> is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.</li>
<li>At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. </li>
<li>However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  </li>
</ul>



Chervon Holdings (CHL HK) is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.
At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. 
However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  


Chervon Holdings IPO Initiation: Not Quite Right

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

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.

Thematic (Sector/Industry)

<div>
<p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/159/736/original/2020-09-18_06-09-24.png?1600376978" class="editor-image img-responsive" data-smartkarma-image-id="159736"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/159/737/original/2020-09-18_06-10-21.png?1600377043" class="editor-image img-responsive" data-smartkarma-image-id="159737"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div>
<p>Our 'best' and 'worst' pairing from Thursday's announcements is home centre Alleanza (3546 JP) (formerly Daiyu-LIC) and <a href="https://www.smartkarma.com/entities/ryobi-ltd" target="_blank" data-smartkarma-citation="entities:7600:1" rel="noopener">Ryobi (5851 JP)</a>.  </p>
</div><div class="content-highlight"><p><strong>DAILY STATS - Only one company of the eleven announcements made yesterday has a negative score. All save the lone negative scorer, Ryobi, have a domestic focus.</strong></p></div>


• BEST &amp; WORST •
Source for all charts &amp; tables: Japan Analytics
Our 'best' and 'worst' pairing from Thursday's announcements is home centre Alleanza (3546 JP) (formerly Daiyu-LIC) and Ryobi (5851 JP).  
DAILY STATS - Only one company of the eleven announcements made yesterday has a negative score. All save the lone negative scorer, Ryobi, have a domestic focus.

🇯🇵 JAPAN • Results & Revisions 09/​​​​​​​​​17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi

Japan

Ryobi Ltd manufactures die casting for autos.  The Company's products include plastic products, printing presses, office furniture, electric appliances, home equipment, medical instruments, and sport and recreational articles.  The Company also operates in US and Europe.

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Ryobi Ltd (5851 JP)

Ryobi (5851 JP) - OP Recovery Expected in FY12/25

FY12/24 sales rose 3.8% YoY to ¥293.31bn while operating profit dropped -22.3% to ¥9.49bn, surpassing previously revised down forecasts.

Astris Advisory Japan

Ryobi (5851) - Global Growth Opportunities from Auto Industry Transformation

Ryobi is a leading Japanese manufacturer of die casts, predominantly serving the global auto industry, with an estimated top domestic share of...

Astris Advisory Japan

Ryobi (5851) | Re-Rating as Die-Casting Becomes Gigacasting

Ryobi gains market attention as it plans to produce large electric-vehicle body parts using "gigacasting," leading to improved earnings and...

Mark Chadwick

Chervon Holdings IPO Initiation: Not Quite Right

Chervon is set to launch an HKEx IPO to raise US$400m-450m, according to press reports. The fundamentals are far from perfect and we are inclined...

Arun George

🇯🇵 JAPAN • Results & Revisions 09/17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi

• BEST & WORST • Our 'best' and 'worst' pairing from Wednesday's announcements is E-commerce office supplies company Askul (2678...

Campbell Gunn

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Ryobi (5851 JP) - OP Recovery Expected in FY12/25

FY12/24 sales rose 3.8% YoY to ¥293.31bn while operating profit dropped -22.3% to ¥9.49bn, surpassing previously revised down forecasts.

Astris Advisory Japan

Ryobi (5851) - Global Growth Opportunities from Auto Industry Transformation

Ryobi is a leading Japanese manufacturer of die casts, predominantly serving the global auto industry, with an estimated top domestic share of...

Astris Advisory Japan

Ryobi (5851) | Re-Rating as Die-Casting Becomes Gigacasting

​Ryobi gains market attention as it plans to produce large electric-vehicle body parts using "gigacasting," leading to improved earnings and...

Mark Chadwick

Chervon Holdings IPO Initiation: Not Quite Right

Chervon is set to launch an HKEx IPO to raise US$400m-450m, according to press reports. The fundamentals are far from perfect and we are inclined...

Arun George

🇯🇵 JAPAN • Results & Revisions 09/​​​​​​​​​17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi

• BEST & WORST • Our 'best' and 'worst' pairing from Wednesday's announcements is E-commerce office supplies company Askul (2678...

Campbell Gunn

Ryobi gains market attention as it plans to produce large electric-vehicle body parts using "gigacasting," leading to improved earnings and...

🇯🇵 JAPAN • Results & Revisions 09/17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi