Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

MonotaRO (3064 JP): Pandemic-Driven Growth Surge Fading

Misumi Group (9962 JP): Upturn in Sales Already Discounted

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​02/​​​​​​​​​​​​​​02 - Aisin, MonotaRO

Japan Retail Review 2019-20 Part II: A Sector by Sector Review of Winners and Losers

Familymart: What's Next? And Will Mitsubishi React?

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>A huge increase in the number of small accounts brought about by COVID-19 is keeping sales growth close to 20% without undermining profit margins. </p><p><span>MonotaRO should meet or exceed FY Dec-20 sales and profit guidance and is well prepared for another 2-3 years of expansion, in our estimation.</span></p><p>Projected valuations look high, but should come down fast on a three-year view and are well within historical ranges.</p><p>We are only five minutes drive from home centre Komeri (8218 JP) and 15 minutes from Cainz Home (privately owned)  [see <a href="https://www.smartkarma.com/insights/japan-retail-review-2019-20-part-ii-a-sector-by-sector-review-of-winners-and-losers" target="_blank" data-smartkarma-citation="insights:43351" rel="noopener">Japan Retail Review 2019-20 Part II: A Sector by Sector Review of Winners and Losers</a> by Michael Causton]. If we were further away or didn't have a car, we would use MonotaRO.</p><section><div id="ember6142"><p></p></div></section>

A huge increase in the number of small accounts brought about by COVID-19 is keeping sales growth close to 20% without undermining profit margins. MonotaRO should meet or exceed FY Dec-20 sales and profit guidance and is well prepared for another 2-3 years of expansion, in our estimation.Projected valuations look high, but should come down fast on a three-year view and are well within historical ranges.We are only five minutes drive from home centre Komeri (8218 JP) and 15 minutes from Cainz Home (privately owned)  [see Japan Retail Review 2019-20 Part II: A Sector by Sector Review of Winners and Losers by Michael Causton]. If we were further away or didn't have a car, we would use MonotaRO.

MonotaRO (3064 JP): COVID-19 Drives Growth, Efficiency Supports Margins

MonotaRO Co Ltd

MonotaRO (3064 JP): COVID-19 Drives Growth, Efficiency Supports Margins