In today’s briefing:
- Toyo Construction – YFO Standstill Against TC Hostility
- Asahi Intecc (7747 JP): Recovery From COVID-19 to Drive Double-Digit Revenue Growth in Near-Term
- Komeda Holdings (3543): Solid Wholesale Sales in May; Accelerating Overseas Expansion
- MonotaRO (3064): Positive Impression on May Sales
- Torikizoku Holdings (3193): Izakaya Earnings No Longer Tricky but Predictable
Toyo Construction – YFO Standstill Against TC Hostility
- Three weeks ago, Yamauchi No 10 Family Office (YFO) announced its intentions to launch a Tender Offer by end-June. Toyo Construction (1890 JP) got upset and called YFO names.
- TC announced a Poison Pill, they talked, TC accused YFO in the AGM Convocation of “extreme dishonesty.” They have since met again, and finally signed a long standstill agreement.
- But the Poison Pill will be put to shareholders (ISS recommends against), and shareholders have to decide from the public documents whether they believe Toyo Construction.
Asahi Intecc (7747 JP): Recovery From COVID-19 to Drive Double-Digit Revenue Growth in Near-Term
- Asahi Intecc (7747 JP) reported 27% y/y revenue growth during first nine months of FY22. For full-year FY22 and FY23, the company expects 22% and 11% revenue growth, respectively.
- The company targets a consolidated revenue of more than ¥100 billion in FY26 through continued growth in the existing business and introduction of new business.
- Asahi Intecc enjoys dominant market share in PTCA guide wires in major global markets. The company’s direct distribution strategy is further expanding its market share.
Komeda Holdings (3543): Solid Wholesale Sales in May; Accelerating Overseas Expansion
- Wholesale sales to franchisees (same-store basis) in May were 109.0% vs. May 2021 (103.7% for April), 146.1% vs. May 2020 (195.1% for April), and 104.3% vs. May 2019 (103.6% for April)
- The number of stores at the end of May was 966 (flat MoM). Komeda opened one new store in Japan.
- Menu prices were raised on April 1 for company-owned stores and on April 28 for franchise stores. Wholesale price hikes are scheduled in 2H.
MonotaRO (3064): Positive Impression on May Sales
- Parent company sales in May were 16.401bn yen (+20.9% YoY), above the company’s monthly target
- The number of business days was 19, one day more than in May 2021. The sales growth rate per business day was +14.5% YoY (+23.4% for April)
- The negative impact of the Shanghai lockdown appears to be limited so far.
Torikizoku Holdings (3193): Izakaya Earnings No Longer Tricky but Predictable
- Sales were 13.260bn yen (-6.9% YoY), OP was -2.583bn yen (vs. -2.588bn yen in 1-3Q FY7/21), and RP was 1.817bn yen (vs. -2.027bn yen in 1-3Q FY7/21)
- RP includes subsidy income of 4.404bn yen (vs. 389m yen in 1-3Q FY7/21). Same-store sales growth for company-owned stores was -6.6% YoY.
- On April 28, the company raised the price of all dishes from 327 yen (298 yen without tax) to 350 yen (319 yen without tax) at all Torikizoku stores
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