Nippon Investment Bespoke Research UK Ltd

Nippon Investment Bespoke Research UK

Equity Bottom-Up

Medical Data Vision Co.,Ltd. was founded in 2003. The company's line of business includes developing integrated medical information systems, analysis of medical information, and business consulting for medical institutions.

<ul><li>Medical Data Vision’s [MDV] produced FY25 (Dec year-end) Q3 gross profit [GP] of ¥3,248mil (+6.3% YoY) and operating profit [OP]of ¥95mil (vs FY24 Q3’s operating loss of -¥140mil) on sales of ¥4,650mil (+12.7% YoY).</li><li>FY25 is the last year of the ongoing 3-year medium-term management plan [MTP].</li><li>MDV revised down the FY25 guidance on 14 October from OP of ¥2,600mil (vs a recovery from ¥3mil in FY24) on sales of ¥9,000mil (+52.4% YoY) to OP of ¥490mil on sales of ¥6,860mil (+16.1% YoY).</li></ul>

Medical Data Vision’s [MDV] produced FY25 (Dec year-end) Q3 gross profit [GP] of ¥3,248mil (+6.3% YoY) and operating profit [OP]of ¥95mil (vs FY24 Q3’s operating loss of -¥140mil) on sales of ¥4,650mil (+12.7% YoY).FY25 is the last year of the ongoing 3-year medium-term management plan [MTP].MDV revised down the FY25 guidance on 14 October from OP of ¥2,600mil (vs a recovery from ¥3mil in FY24) on sales of ¥9,000mil (+52.4% YoY) to OP of ¥490mil on sales of ¥6,860mil (+16.1% YoY).

Medical Data Vision Co., Ltd (3902 JP): RESEARCH UPDATE

Japan Lifeline Co., Ltd. is a wholesaler of cardiovascular-related medical supplies and equipment.  The Company mainly trades and sells pace makers, artificial organs including artificial heart valves, and disposable catheters.

<ul><li>JLL produced semi-annual record earnings in FY25 1H with 1H OP of ¥6,620mil (+5.7% YoY) on sales of ¥29,285mil (+4.6% YoY).</li><li>Although there were primarily a couple of external negative factors that affected earnings such as, (1) sales of some of JLL’s products were affected by competition with Pulse Field Ablation [PFA] devices, and (2) YoY decline in sale prices of devices in April and May 2025 compared to pre-revision prices.</li><li>The revised reimbursement prices were applied from June 2024.</li></ul>

JLL produced semi-annual record earnings in FY25 1H with 1H OP of ¥6,620mil (+5.7% YoY) on sales of ¥29,285mil (+4.6% YoY).Although there were primarily a couple of external negative factors that affected earnings such as, (1) sales of some of JLL’s products were affected by competition with Pulse Field Ablation [PFA] devices, and (2) YoY decline in sale prices of devices in April and May 2025 compared to pre-revision prices.The revised reimbursement prices were applied from June 2024.

JAPAN LIFELINE CO., LTD (7575 JP): RESEARCH UPDATE

MEC COMPANY LTD. manufactures and markets chemicals and equipment for printed circuit boards.  The Company has sales/manufacturing subsidiaries in Taiwan, Hong Kong, Belgium, and US.

<ul><li>MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY.</li><li>Chemicals sales rose +11.6% YoY to ¥14,559mil while chemical sales volume also gained +10.9% YoY to 34,844ton.</li><li>The gross profit margin [GPM] improved to 62.4% (+1.0ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101.</li></ul>

MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY.Chemicals sales rose +11.6% YoY to ¥14,559mil while chemical sales volume also gained +10.9% YoY to 34,844ton.The gross profit margin [GPM] improved to 62.4% (+1.0ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101.

HIRANO TECSEED Co (Kinzoku) / Equity Bottom-Up

HIRANO TECSEED Co., Ltd. manufactures chemical engineering and textile machinery.  The Company's products include adhesive tape-making machines, magnetic tape laminators, floating dryers, carbon fiber manufacturing machines, and coating machines for textile, paper, and film manufacturers.

<ul><li>Hirano Tecseed (hereinafter HT) reported FY25 1H OP of ¥1,209mil (+18.0% YoY) on sales of ¥18,157mil (-25.5% YoY), generating an OPM of 6.7% – a significant improvement from FY24 1H’s OPM of 4.2%.</li><li>Given the successful passing through of cost increases to customers in the C&LM segment, FY25 1H earnings overshot company guidance which had been revised up with the release of its Q1 results from an OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to an OP of ¥1,000mil (-2.4 YoY) on unchanged sales.</li><li>Full-year FY25 guidance remains unchanged [OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY)] as HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariffs and shifts in global EV market.</li></ul>

Hirano Tecseed (hereinafter HT) reported FY25 1H OP of ¥1,209mil (+18.0% YoY) on sales of ¥18,157mil (-25.5% YoY), generating an OPM of 6.7% – a significant improvement from FY24 1H’s OPM of 4.2%.Given the successful passing through of cost increases to customers in the C&LM segment, FY25 1H earnings overshot company guidance which had been revised up with the release of its Q1 results from an OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to an OP of ¥1,000mil (-2.4 YoY) on unchanged sales.Full-year FY25 guidance remains unchanged [OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY)] as HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariffs and shifts in global EV market.

HIRANO TECSEED (6245 JP): RESEARCH UPDATE

NIPPO LTD. sells electronic parts and materials.  The Company's products include multi-layer printing circuit boards (PCB), hybrid integrated circuits (IC), ceramic products, carbon products, magnet related products, plastic products, supersonic washing equipment, and control equipment.

<ul><li>Nippo produced record earnings in FY25 1H, with OP of ¥946mil (+12.8% YoY) on sales of ¥22,186mil (+0.3% YoY).</li><li>While 1H sales remained flat YoY due to a decline in sales of the Electronics segment (-3.3% YoY), OP hit a semi-annual record, thanks to (1) solid growth of in-house products such as semiconductor wafer grinding carriers and (2) cost reductions in overseas factories.</li><li>FY25 is the final year of Nippo’s medium-term plan [MTP].</li></ul>

Nippo produced record earnings in FY25 1H, with OP of ¥946mil (+12.8% YoY) on sales of ¥22,186mil (+0.3% YoY).While 1H sales remained flat YoY due to a decline in sales of the Electronics segment (-3.3% YoY), OP hit a semi-annual record, thanks to (1) solid growth of in-house products such as semiconductor wafer grinding carriers and (2) cost reductions in overseas factories.FY25 is the final year of Nippo’s medium-term plan [MTP].

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