Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>These shares are not cheap but they have corrected and we would buy for the longer term. The existing business looks set to continue to grow. There is a question mark over its foray into private brands and the success or not of the zozosuit (will it prove just a gimmick?) but after the recent share price fall, the shares are now on about 25x earnings for 3/21. This assumes operating profit of about Y65bn vs. just under Y40bn for this year, so decent growth. It may prove a volatile ride but this is a good business and we believe it will deliver over the longer term.</p>

These shares are not cheap but they have corrected and we would buy for the longer term. The existing business looks set to continue to grow. There is a question mark over its foray into private brands and the success or not of the zozosuit (will it prove just a gimmick?) but after the recent share price fall, the shares are now on about 25x earnings for 3/21. This assumes operating profit of about Y65bn vs. just under Y40bn for this year, so decent growth. It may prove a volatile ride but this is a good business and we believe it will deliver over the longer term.

Start Today (3092) Good Growth to Continue, Oversold near Term.

ZOZO Inc

Start Today (3092) Good Growth to Continue, Oversold near Term.