In today’s briefing:
- Nidec Launches on Makino Milling (6135) – Others Presumably Wait In the Wings
- Mitsubishi Logisnext (7105) – Worth Buying The Dip On Likely Sale
- Paramount Bed Holdings (7817 JP): Guidance Reaffirmed, But Sluggishness To Stay Amid Falling Margins
- It’s Not a Lack of Analyst Coverage that Is Causing the Lack of Trading…..
- Carta Holdings (3688 JP) – A Year Focused on Strengthening Organizational Capabilities
- Onward Holdings (8016 JP): Full-year FY02/25 flash update
Nidec Launches on Makino Milling (6135) – Others Presumably Wait In the Wings
- Nidec Corp (6594 JP) bid ¥11,000 for Makino Milling Machine Co (6135 JP) in December, saying it expected to launch on 4-April. It launched its ¥11,000 bid on 4-April.
- A Nikkei article in March suggested Makino had found multiple competing bidders, some who had put in “legally binding bids.” No news on those yet, but we have a month.
- Earnings are 9-May. Strategy on timing for Makino differs according to its desired outcome. It has to opine on Nidec’s bid by about 18 April. Be long. Carry
.
Mitsubishi Logisnext (7105) – Worth Buying The Dip On Likely Sale
- There was a Nikkei article in December about the Mitsubishi Heavy Industries (7011 JP) selling its interests in Mitsubishi Logisnext Co., Ltd. (7105 JP).
- The stock popped. Then popped some more. It was not expensive yet, but no longer dirt cheap. Now the stock is falling as Trump Tariffs threaten to throttle exports.
- The reasons why this takeout price could be “high” are unchanged. Tariffs meant to drive US-manufacturing don’t reduce need for forklifts. Logisnext is not badly placed.
Paramount Bed Holdings (7817 JP): Guidance Reaffirmed, But Sluggishness To Stay Amid Falling Margins
- During 9MFY25, Paramount Bed Holdings Co Lt (7817 JP) reported 3% YoY revenue growth to ¥75B, mainly driven by the nursing care businesses.
- Due to higher SG&A expenses, operating profit decreased 15% YoY to ¥7.2B and net profit was down 11% YoY to ¥5.9B.
- Paramount Bed has reiterated FY25 guidance, which calls for 2% YoY revenue growth, while higher SG&A is expected to erode operating profit by almost 6% YoY.
It’s Not a Lack of Analyst Coverage that Is Causing the Lack of Trading…..
- 70% of Tokyo market is traded by overseas investors, so even companies with smaller market capitalization need to catch the attention of overseas investors by increasing their return on capital.
- It is possible that the difference in stock valuations over the past few years has been due to a greater difference in return on capital between large-cap and small-cap stocks.
- Skillful IR alone is not enough to raise stock price valuations. The IR department must have management who can execute management strategies and personnel who can formulate persuasive plans.
Carta Holdings (3688 JP) – A Year Focused on Strengthening Organizational Capabilities
- In FY2024/12, CARTA HOLDINGS reported operating profit of JPY 2,139 mn (+64.4% YoY).
- Given the achievement of securing an operating profit of JPY 4,973 mn in FY2021/12, the absolute level remains insufficient.
- However, amid a challenging business environment where the transaction volume of high-margin reservation-based ads declined YoY for 11 consecutive quarters up to the April-June 2024 period, the Company achieved a V-shaped recovery as a result of structural reforms, including the withdrawal from unprofitable businesses and the implementation of a voluntary retirement program.
Onward Holdings (8016 JP): Full-year FY02/25 flash update
- Onward’s FY02/25 sales reached JPY208.4bn (+9.9% YoY), with a net income of JPY8.5bn (+28.8% YoY).
- FY02/26 projections include sales of JPY230bn (+10.4% YoY) and operating profit growth of 13.3% YoY to JPY11.5bn.
- The company plans to introduce an interim dividend system, targeting a total annual dividend of JPY30 per share.
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