In today’s briefing:
- Recruit: Labour Markets Continue to Trend Down, but Recruit’s Efforts Pay Off in 1Q
- Nippon Paint (4612 JP): Stable Execution in 2Q24; Outlook Unchanged
- Tokio Marine Holdings – Net Profit +54% YoY, Non Life Premiums & Investment Income Are Drivers
- Alfresa Holdings (2784 JP): Stellar Bottomline Growth in Q1FY25 Will Not Be Replicated in Near-Term
- MARUKA FURUSATO (7128 JP): 1H FY12/24 flash update
- Medinet Co Ltd (2370 JP): Q3 FY09/24 flash update
- Minato Holdings (6862 JP): Q1 FY03/25 flash update
- Kringle Pharma Inc (4884 JP): Q3 FY09/24 flash update
- J Trust Co Ltd (8508 JP): 1H FY12/24 flash update
- Resorttrust Inc (4681 JP): Q1 FY03/25 flash update
Recruit: Labour Markets Continue to Trend Down, but Recruit’s Efforts Pay Off in 1Q
- Recruit Holdings (6098 JP) ’s share price has been up more than 40% YTD driven by better-than-expected earnings and an announcement to buy back ¥600bn worth shares.
- The company’s 1Q earnings beat consensus and showed some recovery across all business segments, however, the labour markets are heading towards a decline.
- It seems that the company has run out of investment options, and we would not rush to make an entry as worst is not over yet for the company.
Nippon Paint (4612 JP): Stable Execution in 2Q24; Outlook Unchanged
- Nippon Paint Holdings (4612 JP)‘s 2Q24 was largely uneventful, with sales up 5.4% yoy and net profit up 7.3% yoy.
- Management maintained its full-year guidance of Y184bn operating profit target in 2024 (10% growth vs. 2023).
- China was a bright spot with operating profit up 30% yoy and made up 35% of total operating profit of the company.
Tokio Marine Holdings – Net Profit +54% YoY, Non Life Premiums & Investment Income Are Drivers
- Giant Japan insurer reports staggering June 2024 quarter YoY growth, not only from securities gains, but also strong delta in core premiums written
- Weak life insurance premiums is more than offset with well controlled costs, non-life premium income, investment income
- Acceleration of cross-shareholding disposals can keep income high, with AFS totaling JPY13.8 trillion with unrealized gains of JPY2.8 trillion
Alfresa Holdings (2784 JP): Stellar Bottomline Growth in Q1FY25 Will Not Be Replicated in Near-Term
- Alfresa Holdings (2784 JP) reported just 2% YoY revenue growth to ¥722B in Q1FY25. However, with 24bps gross profit margin expansion to 6.98%, operating and net profits outpaced revenue growth.
- Alfresa reiterated H1FY25 and FY25 guidance. This calls for mixed financial performance in Q2FY25, with topline growth and bottomline deterioration. Decline in profit is mainly due to higher SG&A expenses.
- Anticipating lower profit this fiscal, the company has guided for dividend of ¥63 per share, compared with ¥70 per share paid in FY24.
MARUKA FURUSATO (7128 JP): 1H FY12/24 flash update
- Revenue decreased to JPY78.8bn (-7.4% YoY), operating profit fell to JPY1.7bn (-46.5% YoY), and recurring profit dropped to JPY2.2bn (-40.5% YoY).
- Domestic machinery sales fell 18.9% YoY, overseas machinery sales declined 35.4% YoY, and equipment tools sales in Japan decreased 1.5% YoY.
- Revenue in the Construction Products segment was JPY21.8bn (-1.6% YoY), with segment profit at JPY745mn (-26.0% YoY).
Medinet Co Ltd (2370 JP): Q3 FY09/24 flash update
- Sales increased by 19.8% YoY to JPY589mn, while operating, recurring, and net losses narrowed compared to Q3 FY09/23.
- Gross profit rose 52.4% YoY to JPY107mn; SG&A expenses decreased by 1.2% YoY to JPY1.1bn.
- Specified Cell Products Manufacturing and CDMO businesses saw sales growth, but segment loss widened due to higher sales expenses.
Minato Holdings (6862 JP): Q1 FY03/25 flash update
- Revenue: JPY4.7bn (-4.4% YoY), Operating profit: JPY53mn (-83.2% YoY), Recurring profit: JPY63mn (-81.5% YoY), Net income: JPY37mn (-95.9% YoY).
- Digital Device Business revenue: JPY2.4bn (+21.4% YoY), Operating profit: JPY361mn (+61.2% YoY), OPM: 14.8%.
- Digital Engineering Business revenue: JPY635mn (-21.0% YoY), Operating loss: JPY84mn, ICT Products Business revenue: JPY1.5bn (-7.7% YoY), Operating loss: JPY11mn.
Kringle Pharma Inc (4884 JP): Q3 FY09/24 flash update
- **Q3 FY09/24 Financial Results:** Revenue JPY61mn (+19.3% YoY), operating loss JPY580mn, net loss JPY518mn, total assets JPY2.9bn.
- **Revised FY09/24 Forecast:** Sales JPY79mn, operating loss JPY1.0bn, recurring loss JPY940mn, net loss JPY942mn, net loss per share JPY147.23.
- **Financial Position Changes:** Current assets JPY2.9bn, current liabilities JPY84mn, fixed liabilities JPY517mn, net assets JPY2.3bn, capital stock JPY516mn.
J Trust Co Ltd (8508 JP): 1H FY12/24 flash update
- Operating revenue increased by JPY11.9bn YoY to JPY65.4bn (+22.2% YoY), driven by growth in financial and real estate businesses.
- Operating profit decreased by JPY7.5bn YoY to JPY2.1bn (-78.4% YoY), with significant declines in the Real Estate Business.
- Profit attributable to owners of parent decreased by 83.6% to JPY2.8bn, impacted by deferred tax liabilities reversal and forex gains.
Resorttrust Inc (4681 JP): Q1 FY03/25 flash update
- Q4 sees increased repair costs and reduced profits due to off-season and intensive facility repairs.
- Sales and profits are higher in quarters when new hotels open, with deferred real estate value recorded as a lump sum.
- Net income attributable to owners declined YoY due to a JPY1.8bn impairment loss, despite higher sales and operating profit.
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