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

Restar Holdings Corporation / Equity Bottom-Up

<ul><li>Some speed bumps at the Device segment – Continuing positive demand from the smartphone sector and sustained growth at the Eco-Solution segment were overshadowed by a loss in earnings momentum at the Devices segment in Q1-2 FY3/25.</li><li>The recovery in demand from the industrial sector remains delayed, together with a sales mix lowering gross margins and FX impact contributing to overall OP falling 3.8% YoY, despite 11.3% sales growth driven primarily by acquisitive growth.</li><li>The current outlook for H2 FY3/25 is assisted by the weak Japanese yen, acquisitive growth, and we expect to see a continuation of the positive demand themes from smartphone and alternative energy.</li></ul>

Some speed bumps at the Device segment – Continuing positive demand from the smartphone sector and sustained growth at the Eco-Solution segment were overshadowed by a loss in earnings momentum at the Devices segment in Q1-2 FY3/25.The recovery in demand from the industrial sector remains delayed, together with a sales mix lowering gross margins and FX impact contributing to overall OP falling 3.8% YoY, despite 11.3% sales growth driven primarily by acquisitive growth.The current outlook for H2 FY3/25 is assisted by the weak Japanese yen, acquisitive growth, and we expect to see a continuation of the positive demand themes from smartphone and alternative energy.

Restar (3156) - Market Challenges but Maintaining Growth Direction

<ul><li>Positive numbers and strategically aligned M&amp;A – Q1 FY3/25 results demonstrated a strong start to the FY, with most business segments performing ahead of plan.</li><li>Positive demand from the auto and smartphone sectors and acquisitive growth drove sales volume and improved profitability YoY.</li><li>The high return Eco-solutions segment also performed solidly, contributing to sales and earnings growth YoY. </li></ul>

Positive numbers and strategically aligned M&amp;A – Q1 FY3/25 results demonstrated a strong start to the FY, with most business segments performing ahead of plan.Positive demand from the auto and smartphone sectors and acquisitive growth drove sales volume and improved profitability YoY.The high return Eco-solutions segment also performed solidly, contributing to sales and earnings growth YoY. 

Restar (3156 JP) - Robust Start to FY3/25 and Key M&A Shift to IT Services

<ul><li>Environmental Energy boosting earnings – Q1-3 FY3/24 results were ahead of expectation, with the company upwardly revising FY3/24 guidance.</li><li>Demand remained firm from the automotive sector for the Procurement segment, but trading remained somewhat mixed in the Semiconductor and Electronic Components.</li><li>The positive surprise was the sustained high levels of profitability in the Environmental Energy segment; we have raised our earnings estimates for FY3/24 and beyond to reflect this as a sustainable business. </li></ul>

Environmental Energy boosting earnings – Q1-3 FY3/24 results were ahead of expectation, with the company upwardly revising FY3/24 guidance.Demand remained firm from the automotive sector for the Procurement segment, but trading remained somewhat mixed in the Semiconductor and Electronic Components.The positive surprise was the sustained high levels of profitability in the Environmental Energy segment; we have raised our earnings estimates for FY3/24 and beyond to reflect this as a sustainable business. 

Restar Holdings (3156) - Factoring in Environmental Energy as a Key Earnings Contributor

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today post-close, <a href="https://www.smartkarma.com/entities/ryoyo-electro-corp" target="_blank" data-smartkarma-citation="entities:16757:1" rel="noopener">Ryoyo Electro (8068 JP)</a> and larger equity affiliate (20.1%) <a href="https://www.smartkarma.com/entities/ryosan-co-ltd" target="_blank" data-smartkarma-citation="entities:7795:1" rel="noopener">Ryosan Co Ltd (8140 JP)</a> announced their final Management Integration Plan (merger by holdco) after signalling a deal May23.</li>
<li>Activist-Ish-Y Silchester sold their stake in Ryosan to Ryoyo in February at a 20% premium. Activist Murakami-san had a top10 Ryosan stake end-March, went substantial 27 June, now owns 10%.</li>
<li>Both low-margin/ROE electronics traders have been subject to activist campaigns over the years. Both "survived". Now they are banding together to be a bigger independent low-margin electronics trader.</li>
</ul>


Today post-close, Ryoyo Electro (8068 JP) and larger equity affiliate (20.1%) Ryosan Co Ltd (8140 JP) announced their final Management Integration Plan (merger by holdco) after signalling a deal May23.
Activist-Ish-Y Silchester sold their stake in Ryosan to Ryoyo in February at a 20% premium. Activist Murakami-san had a top10 Ryosan stake end-March, went substantial 27 June, now owns 10%.
Both low-margin/ROE electronics traders have been subject to activist campaigns over the years. Both "survived". Now they are banding together to be a bigger independent low-margin electronics trader.


Ryoyo (8068) - Ryosan (8140): Recent and Former Activist Targets To Merge

<ul><li>Focus maintained on growth, experiencing temporary headwinds – Q1 FY3/2024 results showcased the company's strong execution in driving growth, with sales increasing by 6.2% YoY. </li><li>Although there was a major improvement in profitability in the Environmental Energy segment, the core Semiconductor and Electronics Components experienced a negative of persistent demand weakness in China.</li><li> There was also reduced spot demand, negative FX translation impact YoY and on inventory valuation, and allowance for doubtful debt related to a key customer. </li></ul>

Focus maintained on growth, experiencing temporary headwinds – Q1 FY3/2024 results showcased the company's strong execution in driving growth, with sales increasing by 6.2% YoY. Although there was a major improvement in profitability in the Environmental Energy segment, the core Semiconductor and Electronics Components experienced a negative of persistent demand weakness in China. There was also reduced spot demand, negative FX translation impact YoY and on inventory valuation, and allowance for doubtful debt related to a key customer. 

Restar Holdings (3156) - Remaining on Course with Business Transformation

Japan

Restar Holdings Corporation is a holding company which manages operations for its subsidiaries.  Group companies wholesale semiconductors, electronic components and equipment.  UKC Holdings also designs semiconductors and software through its subsidiaries.

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

Restar Holdings Corporation (3156 JP)

Restar (3156) - Market Challenges but Maintaining Growth Direction

Continuing positive demand from the smartphone sector and sustained growth at the Eco-Solution segment were overshadowed by a loss in earnings...

Astris Advisory Japan

Restar (3156 JP) - Robust Start to FY3/25 and Key M&A Shift to IT Services

Positive numbers and strategically aligned M&A – Q1 FY3/25 results demonstrated a strong start to the FY, with most business segments performing...

Astris Advisory Japan

Restar Holdings (3156) - Factoring in Environmental Energy as a Key Earnings Contributor

Environmental Energy boosting earnings – Q1-3 FY3/24 results were ahead of expectation, with the company upwardly revising FY3/24 guidance.

Astris Advisory Japan

Ryoyo (8068) - Ryosan (8140): Recent and Former Activist Targets To Merge

City Index Eleventh has issued a press release (link in Discussions) stating it believes the Ryoyo/Ryosan merger ratio disadvantages Ryosan...

Travis Lundy

Restar Holdings (3156) - Remaining on Course with Business Transformation

Focus maintained on growth, experiencing temporary headwinds – Q1 FY3/2024 results showcased the company's strong execution in driving growth, with...

Astris Advisory Japan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)