Daily Brief Japan: Mitsubishi Logisnext Co., Ltd., Frontier Management Inc, Medical Data Vision and more

In today’s briefing:

Mitsubishi Logisnext (7105) – The Next Target in Logistics Space?

A Nikkei article this morning several hours pre-open said that Mitsubishi Heavy Industries (7011 JP) was preparing to sell its listed forklift subsidiary Mitsubishi Logisnext Co., Ltd. (7105 JP).
The story says “Investors had been pressuring Mitsubishi Heavy to spin off or delist Logisnext” and we know the TSE dislikes dual listings. I would have expected a buy-in but…
There are a number of reasons why a buyer could find this asset attractive. I suggest reading all the way through and the tone of the Conclusions.

Frontier Management Inc. (hereafter, the Company) announced Q3 FY2024/12 results on November 13, 2024.
Cumulative Q3 sales in the Management Consulting Business remained strong at JPY 4,444 mn (+18.1% YoY), but other segments suffered.
The Revitalization Support Business posted sales of JPY 1,088 mn (-15.0% YoY), reflecting the completion of a major project.

MDV revised down its full-year FY24 guidance (discussed in more details on p.5) given the Q3 result [Q1~Q3 gross profit [GP] of ¥3,055mil (-12.8% YoY), operating loss of -¥140mil (vs FY23 Q3 OP of ¥1,111mil) on sales of ¥4,125mil (-8.1% YoY)], due to (1) the delay to the onboarding of the firm’s cloud-based health check system solution Alpha Salus as the debugging process continued through to September, and (2) a delay in mobilising potential users of the new content (no-contact vital sensing for cats) for MDV’s personal health management app Karteco, as the planned large-scale advertising campaign was pushed back following a delay in the launch of the content.
The firm is guiding for FY24 annual dividend of ¥6.5/share (unchanged from FY23) and generates a dividend pay-out ratio of 138.0% based on the revised FY24 EPS forecast of ¥4.71.

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