In this briefing:
- Yahoo Japan 3Q Update: Consumer Business Drives Mid-Term Growth; Plans to Diversify in the Long Run
- Ghabbour Auto: Hyundai Motor’s Gateway to Egypt & A Major Turnaround Story
1. Yahoo Japan 3Q Update: Consumer Business Drives Mid-Term Growth; Plans to Diversify in the Long Run
Yahoo Japan (4689 JP) reported 3Q FY03/19 financial results last Monday (04th February). Revenue and OP were on par with consensus. YJ revised the lower range of its FY03/19E OP guidance upwards by JPY7bn to JPY140bn mainly due to lower than expected growth related expenses (expenses for new challenges as per the management). Meanwhile, the upper limit of the FY03/19E OP guidance of JPY143bn remains unchanged. The revised OP guidance for FY03/19E is JPY140-143bn.
FY03/17* | FY03/18* | FY03/19E | FY03/20E | FY03/21E | |
Revenue (JPY bn) | 865 | 909 | 956 | 1,022 | 1,095 |
YoY Growth % | – | 5.1% | 5.2% | 6.9% | 7.2% |
OP (JPY bn) | 179 | 186 | 153 | 158 | 168 |
OP Margin % | 20.7% | 20.4% | 16.0% | 15.5% | 15.4% |
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Media Business | |||||
Revenue (JPY bn) | 282 | 288 | 303 | 305 | 307 |
OP Margin % | 57.5% | 58.7% | 48.0% | 50.0% | 52.0% |
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Consumer Business | |||||
Revenue (JPY bn) | 512 | 597 | 652 | 717 | 789 |
OP Margin % | 12.7% | 12.6% | 9.5% | 10.0% | 10.0% |
2. Ghabbour Auto: Hyundai Motor’s Gateway to Egypt & A Major Turnaround Story
- This is a follow-up report to Dylan Waller‘s note Egypt Travel Report: Stock Market Discount Widens Despite Numerous Recovery Signals. This report is the first of several company-specific series of reports on the Egyptian companies. Although I have taken a first crack at analyzing Ghabbour Auto (AUTO EY) (also called GB Auto), most of the other Egyptian company specific reports will be done by Dylan Waller.
- In this report, I provide an analysis about Ghabbour Auto, which is the largest auto manufacturing company Egypt, and it is also a distributor of Hyundai Motor vehicles. This report is aimed at investors with very long-term investment perspectives (3 to 5+ years), rather than those with shorter investment horizons.
- Established in 1960, the Ghabbour Group is an Egyptian manufacturer of automobiles, buses, and motorcycles, with headquarters in Cairo. Ghabbour Auto has partnerships with numerous global auto makers including Hyundai Motor, Mazda, Geely, and Volvo. The company has the exclusive license to assemble and distribute Hyundai and Geely passenger cars. GB Auto is the largest company in the Egyptian passenger car market in terms of market share, sales, and production capacity.
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