ACOM CO 8572 JT - Apex of Triangle Consolidation - Upside Breakout Imminent

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This year’s operating profit forecast of Y71.3bn is conservative. The consensus is for Y80bn which we suspect is too high. Management concede that assuming the Kabarai issue is now behind them, the operating environment is such that profits growth will be pedestrian at best (3-5% at the operating level) over the next few years. The resumption in dividend payments may help sentiment but as the shares are on 3x book, we see better alternatives elsewhere in this space.</p><p>3/17 saw the company take a…</p>

This year’s operating profit forecast of Y71.3bn is conservative. The consensus is for Y80bn which we suspect is too high. Management concede that assuming the Kabarai issue is now behind them, the operating environment is such that profits growth will be pedestrian at best (3-5% at the operating level) over the next few years. The resumption in dividend payments may help sentiment but as the shares are on 3x book, we see better alternatives elsewhere in this space.3/17 saw the company take a…

Acom Co Ltd

Acom (8572) - All in the Price for Now