Donki’s Overseas Strategy Seeks to Avoid Pitfalls That Hurt Its Retail Compatriots

Don Quijote: Uny Partnership and Growing Inbound Sales Support Donki's Trillion Yen Sales Forecast

Don Quijote Holdings (7532) Long Term Growth Story

Equity Analyst, LightStream Research

Chacko Jacob

Equity Analyst

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

Pan Pacific International Holdings / Equity Bottom-Up

Pan Pacific International Holdings (7532 JP)

<p><a href="https://www.smartkarma.com/entities/13475" target="_blank" data-smartkarma-citation="entities:13475:1">Don Quijote Holdings Co Ltd (7532 JP)</a> announced their 3Q results yesterday, posting YoY revenue growth of 18.8% while OP growth remained flat. For the 9MFY18, revenue was up 13.4% YoY at JPY 703bn and OP 7.9% at JPY 40b. While the company has attributed its strong revenue growth to improving macro conditions in the domestic market, it also implied that aggressive marketing strategies had weighed down on margins. Donki's stock price was down 8% at the time of writing this report. We think this is…</p>

Don Quijote Holdings Co Ltd (7532 JP) announced their 3Q results yesterday, posting YoY revenue growth of 18.8% while OP growth remained flat. For the 9MFY18, revenue was up 13.4% YoY at JPY 703bn and OP 7.9% at JPY 40b. While the company has attributed its strong revenue growth to improving macro conditions in the domestic market, it also implied that aggressive marketing strategies had weighed down on margins. Donki's stock price was down 8% at the time of writing this report. We think this is…

Tourism and New Stores Drive Donki's Revenue in 3Q