In today’s briefing:
- Abalance (3856 JP): Q1 FY06/25 flash update
- Bluelinx Holdings Inc (BXC) – Friday, Aug 16, 2024
- Careerlink (6070 JP): 1H FY03/25 flash update
- Dai Ichi Cutter Kogyo Kk (1716 JP): Q1 FY06/25 flash update
- en Japan Inc (4849 JP): 1H FY03/25 flash update
- XPON: The RV market recovery remains elusive. Substantially adjusting our valuation target and estimates to reflect significant dilution and recent reverse stock split.
- Suzumo Machinery (6405 JP): 1H FY03/25 flash update
Abalance (3856 JP): Q1 FY06/25 flash update
- Q1 FY06/25 revenue was JPY21.7bn (-62.5% YoY), operating profit JPY1.3bn (-71.5% YoY), net loss JPY578mn.
- Revenue decline due to US import tariff expiration; company plans new production bases in Ethiopia and US.
- FY06/25 forecast: revenue JPY80.0bn (-61.7% YoY), operating profit JPY10.0bn (-57.2% YoY), dividend undecided.
Bluelinx Holdings Inc (BXC) – Friday, Aug 16, 2024
- BlueLinx has seen a significant increase in equity and liquidity due to the homebuilding surge from 2020-2022
- The company has a book value per share of $76.50 and $98 per share in liquidity, indicating a strong balance sheet
- Management plans to use excess capital for M&A, entering new markets, and price-sensitive buybacks, with potential for earnings power to exceed current estimates of $12 EPS
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Careerlink (6070 JP): 1H FY03/25 flash update
- Revenue decreased YoY across BPO and CRM businesses, but operating profit increased due to cost reduction efforts.
- New partnerships with seven local governments expanded client base to 177, focusing on economic stimulus projects.
- Revenue rose in food processing and manufacturing, driven by strong orders and efficient SG&A expense management.
Dai Ichi Cutter Kogyo Kk (1716 JP): Q1 FY06/25 flash update
- Q1 FY06/25 revenue declined 6.7% YoY due to subsidiary exclusion, with operating profit falling 27.9% from increased costs.
- FY06/25 forecast projects revenue of JPY21.0bn (+0.4% YoY) and operating profit of JPY2.5bn (+1.8% YoY).
- Company focuses on expressway projects, sales in building maintenance, and R&D investment to enhance technical capabilities.
en Japan Inc (4849 JP): 1H FY03/25 flash update
- Consolidated sales declined to JPY32.5bn (-1.7% YoY), while net income attributable to owners reached JPY5.2bn (+570.2% YoY).
- HR-Tech engage segment reported sales of JPY4.4bn (+45.3% YoY) with an operating loss of JPY1.6bn.
- Human Resource Platform segment achieved JPY4.1bn in sales (+17.8% YoY) and an operating profit of JPY601mn.
XPON: The RV market recovery remains elusive. Substantially adjusting our valuation target and estimates to reflect significant dilution and recent reverse stock split.
- Expion360’s shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting on September 27, 2024.
- The company’s Board of Directors decided to implement a 1:100 stock reverse stock split effective October 9, 2024.
- The company also reported third quarter 2024 results which again fell short of our forecast.
Suzumo Machinery (6405 JP): 1H FY03/25 flash update
- 1H FY03/25 results: Sales JPY7.9bn (+16.9% YoY), Operating profit JPY1.1bn (+131.1% YoY), Net income JPY795mn (+169.0% YoY).
- FY03/25 forecast: Sales JPY16.0bn (+10.0% YoY), Operating profit JPY1.9bn (+28.8% YoY), Net income JPY1.4bn (+18.3% YoY).
- Domestic sales forecast JPY10.0bn (+4.2% YoY), Overseas sales forecast JPY4.9bn (+20.8% YoY), New businesses JPY983mn (+24.0% YoY).