In today’s briefing:
- Canon Buyback – 18th in a Row at the Same Size, But This Time With a Running Head Start
- Zozo Consolidates Market Share
- Freee: User Acquisition Strategy Paying Off
- Peptidream (4587 JP): 1Q23 Result- Radiopharma Drove Sales; Losses Narrowed; Guidance Reiterated
- Overseas Investor Engagement Plays a Significant Role in Substantive Governance Enhancements
Canon Buyback – 18th in a Row at the Same Size, But This Time With a Running Head Start
- Canon has conducted 18 buybacks in the last 15 years. Every single one has been the same size. And the parameter-setting and how they are executed is… particular.
- For those with Canon to execute, using the information about patterns may be helpful.
- For those interested in a trade, there may be one here.
Zozo Consolidates Market Share
- Zozo managed a 7% gain in GTVs last year which meant it grew its share of the fashion market.
- It now has more than 10 million active users and has laid down plans to reach ¥800 billion in GTVs in the medium term.
- Zozo’s momentum is clear and its targets look realistic. Shame about the performance of Z Holdings.
Freee: User Acquisition Strategy Paying Off
- freee (4478 JP) reported 3QFY06/2023 results. Revenue increased 39.5% YoY to ¥5.1bn (vs consensus ¥4.9bn) while adj. operating losses increased to ¥1.9bn (vs consensus ¥1.9bn) from ¥676m in 3QFY03/2022.
- Widened operating losses is no big surprise as freee had already guided for increased investments related to invoicing system and tax filing season which has helped increase paying user numbers.
- As we continue to emphasise, freee’s business model is superior to that of MF who has resorted to several mediocre businesses (non-BA SAAS) to pursue aggressive top line growth.
Peptidream (4587 JP): 1Q23 Result- Radiopharma Drove Sales; Losses Narrowed; Guidance Reiterated
- In 1Q23, Peptidream Inc (4587 JP) recorded revenue of ¥4,963 million, compared to ¥419 million revenue in year-ago period, driven by radiopharmaceutical business segment, which contributed 80% of total revenue.
- As of March 31, 2023, the company’s pipeline consisted of 127 discovery and development programs (representing a net increase of 1 program from the end of the prior financial year).
- Peptidream reiterated guidance for full-year 2024. Revenue is expected to increase 12% to ¥30B in 2024, while operating and net profits are expected to decline 30% and 64%, respectively.
Overseas Investor Engagement Plays a Significant Role in Substantive Governance Enhancements
- The increase in the number of companies adopting restricted stock is a positive development, but the bias toward fixed remuneration and the non-disclosure of individual director compensation are unsolved issues.
- It’s ironic that 90% investors see ROE as equal to or lower than the cost of capital, while 93% companies know their cost of capital but only 2.3% disclose it.
- If affiliated companies with 20% shareholdings are included, there are still large number of companies covered (36.7% in the prime market), and “parent-subsidiary listings” continue to be a hot topic.
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