In today’s briefing:
- Huge Change at Sekisui Jushi (4212) – 20% Buyback from Erstwhile Controlling Shareholder
- Mizuho – Strong Balance Sheet Management & With Better Credit Metrics
- Asics (7936) | Q2 Preview; Guidance Revision
- Ono Pharmaceutical (4528 JP): Mixed Q1 Result; Guidance Reiterated; Buyback Plan Announced
Huge Change at Sekisui Jushi (4212) – 20% Buyback from Erstwhile Controlling Shareholder
- In April, Sekisui Jushi (4212 JP) announced lackluster earnings and unsurprising guidance after a year marked by higher costs. It also announced a small (2.5%) buyback, likely for cross-holdings.
- Yesterday, the company announced Q1 results, and a revision to their buyback programme (to buy 20.2% of shares out). This morning their 22+% (#1) shareholder Sekisui Chemical sold 18%.
- Forward PER dropped nearly 20%. The stock is still outrageously cash/securities-rich and if “re-levered” to zero net leverage would get a high 20s ROE. Hmmm…
Mizuho – Strong Balance Sheet Management & With Better Credit Metrics
- Mizuho has well positioned for YCCC relief with its balance sheet management in 1Q24
- Less low yielding cash assets, higher loans, securities, shift into NCDs, from deposits
- Mizuho reports credit costs reversals and better credit metrics are clear in NPL detail
Asics (7936) | Q2 Preview; Guidance Revision
- Asics is due to report on 8th August. We expect another strong quarter and guidance revision
- Recent results from Nike bode well for Asics – declining inventories and strong top line performance in China
- We believe that higher operating margins will be the key stock driver and see 10% upside to fair value
Ono Pharmaceutical (4528 JP): Mixed Q1 Result; Guidance Reiterated; Buyback Plan Announced
- Ono Pharmaceutical (4528 JP) recorded 13% YoY revenue growth to ¥120B in Q1FY24, driven by 12% YoY growth in product revenue. Royalty revenue grew 14% YoY.
- Revenue from Opdivo grew 11% YoY to ¥37.8B, due to expanded use in treatments for gastric cancer, esophageal cancer, urothelial carcinoma, etc. Revenue from Forxiga grew 34% YoY to ¥17.5B.
- For FY24, Ono continues to expect revenue growth of 6% to ¥475B. Operating and net profits are expected to increase 8% and 2% to ¥153B and ¥115B, respectively, for FY24.
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