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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.

Equity Bottom-Up

<ul>
<li>We are updating our earnings forecasts for Skylark Holdings (3197, the company) in light of its 3Q FY12/21 results</li>
<li>Earnings forecast for FY12/22 and beyond: Moderate recovery</li>
<li>Our target price is equivalent to 34.2x our FY12/24 EPS forecast of 46.85 yen.</li>
</ul>


We are updating our earnings forecasts for Skylark Holdings (3197, the company) in light of its 3Q FY12/21 results
Earnings forecast for FY12/22 and beyond: Moderate recovery
Our target price is equivalent to 34.2x our FY12/24 EPS forecast of 46.85 yen.


Skylark Holdings (3197): Earnings Forecast Update in Light of Omicron Outbreak

<ul><li>December SSS: Recovery progresses thanks to promotions. Same-store sales rebounded on the back of a recovery in the foot traffic</li><li>Same-store sales were 114.4% vs. December 2020 (December 2020 = 100%; 95.3% for November), and 89.8% vs. December 2019</li><li>Our view on Omicron variant risk. the adverse impact on profits should be mitigated by the expectation of subsidy income if requests for shorter hours are issued</li></ul>

December SSS: Recovery progresses thanks to promotions. Same-store sales rebounded on the back of a recovery in the foot trafficSame-store sales were 114.4% vs. December 2020 (December 2020 = 100%; 95.3% for November), and 89.8% vs. December 2019Our view on Omicron variant risk. the adverse impact on profits should be mitigated by the expectation of subsidy income if requests for shorter hours are issued

Skylark Holdings (3197): December Sales; Industry Update; Omicron

<ul><li>Since the request for shorter hours was lifted in late October, there has been a significant recovery in in-store dining.</li><li>Same-store sales were 95.3% vs. November 2020 (same month last year = 100%; 92.9% for October)</li><li>If restaurants are again asked to shorten their hours of operation, in-store dining sales should be negatively impacted in general</li></ul>

Since the request for shorter hours was lifted in late October, there has been a significant recovery in in-store dining.Same-store sales were 95.3% vs. November 2020 (same month last year = 100%; 92.9% for October)If restaurants are again asked to shorten their hours of operation, in-store dining sales should be negatively impacted in general

Skylark Holdings (3197): November Sales; Industry Update; Our Thoughts on Omicron

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>In June, Skylark (3197) raised 42.8 billion yen through a new share issue. I would like to consider our company since then.</li>
<li>I believe that whether or not a restaurant is chosen by consumers when they enjoy eating out has something to do with the recovery in same-store sales.</li>
<li>I would like to see the effects of the equity finance on whether same-store sales will recover successfully and whether profit structure through the use of digital technology can improve.</li>
</ul>


In June, Skylark (3197) raised 42.8 billion yen through a new share issue. I would like to consider our company since then.
I believe that whether or not a restaurant is chosen by consumers when they enjoy eating out has something to do with the recovery in same-store sales.
I would like to see the effects of the equity finance on whether same-store sales will recover successfully and whether profit structure through the use of digital technology can improve.


Japan's Governance: Equity Finance Update: Skylark (3197)

<ul><li>Skylark HD is Japan’s largest operator of family restaurants, including “Gusto,” and “Bamiyan.” The company had 3,108 stores at the end of June 2021. </li><li>Significant upward revision of full-year OP guidance due to subsidy effect</li><li>The new dividend forecast should be received positively by the market, as investors in the company's shares have high expectations for dividends and shareholder benefits.</li></ul>

Skylark HD is Japan’s largest operator of family restaurants, including “Gusto,” and “Bamiyan.” The company had 3,108 stores at the end of June 2021. Significant upward revision of full-year OP guidance due to subsidy effectThe new dividend forecast should be received positively by the market, as investors in the company's shares have high expectations for dividends and shareholder benefits.

Skylark Holdings (3197): Strong Subsidy Effect; Dividend Guidance Is Good News for the Market

Japan

Skylark Co. Ltd. mainly operates a family restaurant chain across Japan.  The Company offers Japanese-style, Western-style, and Asia-style foods for a wide variety of targeted customer segments.  Skylark also sells food and provides delivery servies.

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Skylark Co Ltd (3197 JP)

Skylark Holdings (3197): Earnings Forecast Update in Light of Omicron Outbreak

We are updating our earnings forecasts for Skylark Holdings (3197, the company) in light of its 3Q FY12/21 results. Earnings forecast for FY12/22...

Mita Securities

Skylark Holdings (3197): December Sales; Industry Update; Omicron

December SSS: Recovery progresses thanks to promotions. Same-store sales rebounded on the back of a recovery in the foot traffic...

Mita Securities

Skylark Holdings (3197): November Sales; Industry Update; Our Thoughts on Omicron

Skylark HD (3197, the company) disclosed monthly data for November (on a preliminary basis). Since the request for shorter hours was lifted in late...

Mita Securities

Japan's Governance: Equity Finance Update: Skylark (3197)

I would like to see the effects of the equity finance on whether same-store sales will recover successfully and whether the profit structure...

Metrical Inc

Skylark Holdings (3197): Strong Subsidy Effect; Dividend Guidance Is Good News for the Market

Skylark HD is Japan’s largest operator of family restaurants, including “Gusto,” and “Bamiyan.” The company had 3,108 stores at the end of June 2021.

Mita Securities

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