In today’s briefing:
- Hoya (7741) | A Visionary Company with a Blurry Future
- Nissin Foods’ FQ4 Earnings: A Possible 59% Operating Profit Surprise?
- Aeon Will Own Japan’s Two Largest Supermarket Groups with Inageya Purchase
- Alfresa Holdings (2784 JP): FY23 Result Is Expected to Exceed Previous Forecast
Hoya (7741) | A Visionary Company with a Blurry Future
- Hoya has an impressive business model that results in high Returns on Invested Capital
- Hoya reported strong Q4 results but there is little for investors to get excited about in the outlook
- We see a lack of catalysts and an expensive valuation as working against the stock in the short term
Nissin Foods’ FQ4 Earnings: A Possible 59% Operating Profit Surprise?
- Nissin Foods Holdings (2897 JP) to report FQ4 results on May 10th with ¥158.5bn revenue and ¥8.1bn operating profit expected according to revised Feb 2023 guidance.
- Consensus predicts Nissin Foods’ operating profit to be ¥6.6bn from a revenue of ¥167.8bn, which is lower than the company’s latest annual guidance.
- Meanwhile, a higher FQ4 operating profit of ¥10.5bn is expected based on our analysis, exceeding consensus by 59%.
Aeon Will Own Japan’s Two Largest Supermarket Groups with Inageya Purchase
- Last year saw the consolidation of several supermarket chains in Shikoku and Chugoku by Aeon, creating Japan’s largest supermarket group.
- Now, Aeon has now announced that it will expand its existing stake in Inageya, rolling the company into USMH and creating another, even larger food operation and Japan’s biggest yet.
- Aeon is looking for dominance in Tokyo and may seek more acquisitions but rivals are unlikely to give it a free hand nor say no to acquisitions of their own.
Alfresa Holdings (2784 JP): FY23 Result Is Expected to Exceed Previous Forecast
- Alfresa Holdings (2784 JP) revised its consolidated performance forecast for FY23. Revenue, operating profit, and net profit forecast have been raised by 3%, 2%, and 21%, respectively.
- This is attributed to greater-than-expected growth in ethical pharmaceuticals market and the company’s recovery from the bidding nomination suspension from medical institutions stemming from a violation of the Antimonopoly Act.
- In March 2023, Alfresa received a cease and desist order and a surcharge payment order from the Japan Fair Trade Commission (FTC) in relation to violation of the Antimonopoly Act.
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