Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

TOYO Corporation mainly imports and distributes measuring instruments used in various research and development fields.  The Company also deals with other IT-related electronic equipment.  The Company's products include scanning probe microscopes, sensors, analyzers, network device testers, computer-aided software engineering (CASE) software, semiconductor test equipment, and controller.

<ul><li>Toyo Corporation is a trading company specializing in measurement technologies.</li><li>With several initiatives and strong structural demand in the electric vehicles space in particular, we expect the company to achieve higher revenue and profitability.</li><li>Higher recurring revenue and proprietary product ratios will support a margin improvement in the future. </li></ul>

Toyo Corporation is a trading company specializing in measurement technologies.With several initiatives and strong structural demand in the electric vehicles space in particular, we expect the company to achieve higher revenue and profitability.Higher recurring revenue and proprietary product ratios will support a margin improvement in the future. 

Toyo Corporation (8151 JP) - Initiating Coverage

INTLOOP Inc. offers professional services. The Company provides business strategy, business reform consulting, project management supporting, professional human resources supporting, temporary staffing, and other services. INTLOOP also offers information technology consulting services.

<ul><li>Q1-3 FY7/24 results were in line with unchanged guidance. Gross margin increased from 22.9% to 24.0% YoY, a positive development as the company selectively raised consultant prices.</li><li>With the scope for further increases, we believe the company can achieve sustainable double-digit sales growth in the medium term.</li><li>Profitability is also set to improve via pricing as well as 1) scaling the newly-established strategic consulting subsidiary with high gross margins and 2) improving the sales mix by growing direct business with customers, as opposed to solely acting as freelancers and providing staff from business partners. </li></ul>

Q1-3 FY7/24 results were in line with unchanged guidance. Gross margin increased from 22.9% to 24.0% YoY, a positive development as the company selectively raised consultant prices.With the scope for further increases, we believe the company can achieve sustainable double-digit sales growth in the medium term.Profitability is also set to improve via pricing as well as 1) scaling the newly-established strategic consulting subsidiary with high gross margins and 2) improving the sales mix by growing direct business with customers, as opposed to solely acting as freelancers and providing staff from business partners. 

INTLOOP (9556 JP) - Preparing for Sustained Growth over the Medium Term

mixi, Inc. operates community style website, mixi.  The Company sells advertising spaces on its website.  mixi also runs online recruiting services for IT related positions.

<ul><li>Approaching a transformational phase – MIXI Inc. is a digital content company generating earnings from its ‘MONSTER STRIKE’ mobile gaming franchise.</li><li>Operating in a mature domestic gaming market, the company has successfully diversified into lifestyle and sports, but to date has experienced limited earnings contribution.</li><li>We believe this is about to change, driven by the new monetization strategy for the ‘FamilyAlbum’ video and photo- sharing service app in FY3/25. </li></ul>

Approaching a transformational phase – MIXI Inc. is a digital content company generating earnings from its ‘MONSTER STRIKE’ mobile gaming franchise.Operating in a mature domestic gaming market, the company has successfully diversified into lifestyle and sports, but to date has experienced limited earnings contribution.We believe this is about to change, driven by the new monetization strategy for the ‘FamilyAlbum’ video and photo- sharing service app in FY3/25. 

MIXI Inc. (2121 JP) - At an Inflection Point to Generate Shareholder Value

GEO Holdings Corporation operates stores that rent and sell videos, CDs, DVDs, games, and books nationwide. The Company also buys and sells used books and CDs. GEO operates its own stores and also franchise stores.

<ul><li>Market leader with growth potential – GEO HOLDINGS operates second-hand store chains 2nd STREET, GEO, OKURA, and off-price chain store Luck Rack.</li><li>Its 2,027 domestic stores give it the leading market share in Japan.</li><li>The company is making significant investments to extend its home advantage and build on its 2018 expansion overseas where it has 81 stores. </li></ul>

Market leader with growth potential – GEO HOLDINGS operates second-hand store chains 2nd STREET, GEO, OKURA, and off-price chain store Luck Rack.Its 2,027 domestic stores give it the leading market share in Japan.The company is making significant investments to extend its home advantage and build on its 2018 expansion overseas where it has 81 stores. 

Geo Holdings (2681 JP) - Investing for Growth

DUSKIN CO., LTD. sells and leases cleaning equipment and commodity. The Company operates food franchise chain as well.

<ul><li>Food Group driving earnings – Q1-4 FY3/24 results were ahead of revised guidance for earnings, driven by solid growth at the Food Group with ‘Mister Donut’ chain restaurant experiencing increasing footfall and price hikes YoY.</li><li>Profits were also boosted by lower- than-planned investment costs at the Direct Selling Group (due in part to delays), although this highlights the challenges of raising sales volume in this mature business.</li><li>With the RFID investment project mostly complete, the company is in a position to benefit from cost savings YoY. </li></ul>

Food Group driving earnings – Q1-4 FY3/24 results were ahead of revised guidance for earnings, driven by solid growth at the Food Group with ‘Mister Donut’ chain restaurant experiencing increasing footfall and price hikes YoY.Profits were also boosted by lower- than-planned investment costs at the Direct Selling Group (due in part to delays), although this highlights the challenges of raising sales volume in this mature business.With the RFID investment project mostly complete, the company is in a position to benefit from cost savings YoY. 

Duskin (4665 JP) - Prospects for Further Progress on Positive Transformation