Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This year the company is looking for revenue of Y9.5bn (+19%) and operating profit of Y3.9bn (+23%). The suggestion is that these numbers are, if anything, conservative and that 1Q and 2Q will convince the market that the operating environment and the business is in good health. Having fallen 60%, the shares are now on 22x 9/19 and probably just under 18x next year. This is significantly cheaper than its two listed competitors (Nihon M&amp;A on 39x 3/20 and Strike on 41x 8/20 earnings). The market’s mis-guided reaction to last year’s results is a great opportunity to buy these shares for the longer term. We expect a considerable bounce over the next 6 months.</p>

This year the company is looking for revenue of Y9.5bn (+19%) and operating profit of Y3.9bn (+23%). The suggestion is that these numbers are, if anything, conservative and that 1Q and 2Q will convince the market that the operating environment and the business is in good health. Having fallen 60%, the shares are now on 22x 9/19 and probably just under 18x next year. This is significantly cheaper than its two listed competitors (Nihon M&amp;A on 39x 3/20 and Strike on 41x 8/20 earnings). The market’s mis-guided reaction to last year’s results is a great opportunity to buy these shares for the longer term. We expect a considerable bounce over the next 6 months.

M&A Capital Partners (6080) Recent Sell off Coupled with Today's Drop Is Ideal Time to Buy This Name