In today’s briefing:
- Long 7747 Asahi Intec | Short 7733 Olympus
- Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable
- Istyle: Mid-Term Success Could Drive 200% Share Price Surge
- 2024 High Conviction Update: Asahi Intecc (7747 JP)- FY24 Result Tops Guidance; Positive Outlook
- Japan Airport Terminal (9706 JT): Share Price Correction Overdone, Now a Value BUY
- Evolable Asia (6191 JP): Q3 FY09/24 flash update
- MarketEnterprise Co Ltd (3135 JP): Full-year FY06/24 flash update
- Medpeer Inc (6095 JP): Q3 FY09/24 Flash Update, Revision of Full-Year FY09/24 Earnings Forecast
- Mrt Inc/Jp (6034 JP): 1H FY12/24 flash update
- Pigeon Corp (7956 JP): Q2 FY12/24 flash update
Long 7747 Asahi Intec | Short 7733 Olympus
- 7747 Asahi Intec announced FY06/25 OP guidance of Y25.2bn, close to street expectations, pointing to substantial upside. GPM guidance has increased and continuation of strong 4Q YoY sales is expected.
- Seven days of short interest outstanding could lead to a short squeeze; Earnings briefing tomorrow reinforcing these trends should be a further catalyst for upside.
- With short interest now low and limited potential for further gains after the recent rebound, 7733 Olympus appears to be losing momentum, especially with China sales continuing to flag.
Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable
- Freee KK (4478 JP) reported 4QFY06/2024 and full-year results today. Earnings were in line with guidance, but operating losses have declined significantly beating consensus by a huge margin.
- The company has issued guidance which calls for a break-even or an adj. OPM of 3% for FY06/2025E suggesting freee’s investments in marketing and client acquisition have finally paid off.
- Freee’s share price has moved up slightly during the last few weeks, but still trading at a discount to its own multiples and at a steep discount to Money Forward.
Istyle: Mid-Term Success Could Drive 200% Share Price Surge
- Istyle Inc (3660 JP)’s share price surged 17% after strong FQ4 results, surpassing expectations and signaling a potential turnaround.
- Despite past challenges, iStyle’s ambitious mid-term plan promises increased monetization and stronger growth ahead.
- With mid-term revenue and profit far exceeding expectations, istyle’s future looks brighter, with it’s share price potentially rising by more than 200%.
2024 High Conviction Update: Asahi Intecc (7747 JP)- FY24 Result Tops Guidance; Positive Outlook
- Asahi Intecc (7747 JP) reported strong FY24 result, with all key parameters beating estimates. FY24 revenue exceeds ¥100B, a significant milestone of the mid-term management plan.
- For FY25, Asahi Intecc has guided for revenue of ¥117B (up 9% YoY), operating profit of ¥25B (up 14% YoY), and net profit of ¥19B (up 19% YoY).
- Growth will be driven by increase in overseas revenue in medical division despite the impact of stronger yen. Positive environment and strong demand enhance conviction on the long-term growth prospect.
Japan Airport Terminal (9706 JT): Share Price Correction Overdone, Now a Value BUY
- Japan Airport Terminal Co (9706 JP) (JAT) share price was deeply affected by Japan Black Monday rout, and is starting to stage a recovery.
- JAT is now looking cheap against other global airports and also against its own history based on P/E, EV/EBITDA, and P/BV.
- Our fair value is JPY6,050 derived from global airport peers average 2025 EV/EBITDA of 11.6x, this implies an UPSIDE of 21%. Despite the share price run-up, still good upside opportunity.
Evolable Asia (6191 JP): Q3 FY09/24 flash update
- Volume handled increased by 20.2% YoY to JPY87.1bn, with operating revenue up 10.3% YoY to JPY18.5bn.
- Gross profit forecasts for Q3 FY09/24 are JPY1.2bn for July, JPY1.0bn for August, and JPY970mn for September.
- Operating profit for Q3 FY09/24 was JPY2.7bn, maintaining the same level as FY09/23 while executing growth investments.
MarketEnterprise Co Ltd (3135 JP): Full-year FY06/24 flash update
- Revenue reached JPY19.0bn (+24.6% YoY), with operating profit at JPY229mn (+215.7% YoY), and recurring profit at JPY40mn (-85.5% YoY).
- Second-hand Online business revenue was JPY11.0bn (+31.4% YoY), with operating profit at JPY555mn (+68.5% YoY) and OPM at 5.0%.
- Mobile & Telecommunications business revenue was JPY7.4bn (+19.2% YoY), with operating profit at JPY456mn (+0.5% YoY) and OPM at 6.2%.
Medpeer Inc (6095 JP): Q3 FY09/24 Flash Update, Revision of Full-Year FY09/24 Earnings Forecast
- Sales were JPY11.4bn (+7.1% YoY), EBITDA JPY1.5bn (+10.3% YoY), operating profit JPY1.0bn (+24.7% YoY), net income JPY429mn (+5.0% YoY).
- Revised FY09/24 forecast: Sales JPY14.6bn, EBITDA JPY1.8bn, operating profit JPY1.2bn, recurring profit JPY1.1bn, net income JPY1.4bn.
- Segment performance: Collective Intelligence Platform sales JPY9.3bn (+8.5% YoY), Medical Institution Support sales JPY377mn (+2.6% YoY), Preventative Healthcare sales JPY1.7bn (+1.4% YoY).
Mrt Inc/Jp (6034 JP): 1H FY12/24 flash update
- 1H FY12/24 revenue was JPY2.2bn (-31.4% YoY), operating profit JPY97mn (-87.9% YoY), net income JPY32mn (-93.8% YoY).
- Q1 FY12/24 revenue was JPY937mn (-46.9% YoY) with an operating loss of JPY103mn; Q2 revenue increased to JPY1.3bn (-12.9% YoY).
- Medical Personnel Services revenue was JPY1.7bn (-4.8% YoY), Other Services revenue was JPY575mn (-61.9% YoY).
Pigeon Corp (7956 JP): Q2 FY12/24 flash update
- Sales increased 6.9% YoY, with Japan segment sales declining and growth in China, Singapore, and Lansinoh segments.
- Operating profit decreased 10.6% YoY, with increases in Singapore and Lansinoh segments but declines in Japan and China segments.
- Net income attributable to owners fell 21.7% YoY due to a suspicious transaction in China, resulting in a JPY392mn loss.
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