IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

Sponsored research focusing on Japanese small cap.

Equity Bottom-Up

Golf Digest Online Inc. an online retailer sells and trades golf products. The Company also provides golf reservation services and delivers golf related news.

<ul><li>9M consolidated EBITDA -17.4% YoY, OP before goodwill amortization, etc. -87.5%, operating loss expanding sharply, and profits on down turning into loss could paint a dire picture.</li><li>However, deployment of MTP upfront investments and volatile swings of the forex rate are masking steady progress in underlying MTP business expansion initiatives, in SIR’s view.</li><li>Regarding the impact of the forex rate on Overseas segment P/L and the consolidated B/S, please refer to our special TOPICS section in the Q1 Follow-up Report (June 3). </li></ul>

9M consolidated EBITDA -17.4% YoY, OP before goodwill amortization, etc. -87.5%, operating loss expanding sharply, and profits on down turning into loss could paint a dire picture.However, deployment of MTP upfront investments and volatile swings of the forex rate are masking steady progress in underlying MTP business expansion initiatives, in SIR’s view.Regarding the impact of the forex rate on Overseas segment P/L and the consolidated B/S, please refer to our special TOPICS section in the Q1 Follow-up Report (June 3). 

Q3 Follow-Up: Golf Digest Online (3319 JP)

MIGALO HOLDINGS Inc. provides information technology services. The Company offers facial recognition platform services, cloud integration services, and contracted system development services. MIGALO HOLDINGS also offers real estate development and sales, rental management, business management, and other services.

<ul><li>On November 7, 2024, Migalo Holdings Inc. (hereafter, the Company) announced its Q2 FY2025/3 earnings results.</li><li>In H1, sales increased 23.3% YoY to JPY 30,001 mn, and operating profit fell 15.6% YoY to JPY 1,935 mn.</li><li>Q1 saw a decline in sales and profit due to the impact from last year’s concentration of new property deliveries.</li></ul>

On November 7, 2024, Migalo Holdings Inc. (hereafter, the Company) announced its Q2 FY2025/3 earnings results.In H1, sales increased 23.3% YoY to JPY 30,001 mn, and operating profit fell 15.6% YoY to JPY 1,935 mn.Q1 saw a decline in sales and profit due to the impact from last year’s concentration of new property deliveries.

Migalo Holdings (5535 Jp) - Upward Earnings Revision Was Within Expectations

D.Western Therapeutics Institute Inc. / Equity Bottom-Up

D.Western Therapeutics Institute Inc.(DWTI) is a biotechnology (bio-venture) company that focuses on development of new drugs. The Company's focus is on protein kinase inhibitors. DWTI discovers and develops several drugs, such as antiglaucoma, antihypertensive, neuroprotective, antithrombogenic, antiatherosclerosis and anticancer.

D.Western Therapeutics Institute Inc. (4576 JP)

<ul><li>DWTI announced topline results from its Phase 2B clinical trial of its H-1337 Ophthalmic Solution, for the treatment of elevated intraocular pressure in patients with primary open-angle glaucoma or ocular hypertension.</li><li>This study was a double-masked, active- controlled, dose-response study in 201 subjects with primary open-angle glaucoma or ocular hypertension, where subjects were dosed for 28 days during the period from August 2023 – August 2024.</li><li>The study was designed to evaluate the ocular safety and hypotensive efficacy of three doses of multi-kinase inhibitor H-1337 Ophthalmic Solution: 0.6% twice-daily, 1.0% twice daily, and 1.0% once-daily. </li></ul>

DWTI announced topline results from its Phase 2B clinical trial of its H-1337 Ophthalmic Solution, for the treatment of elevated intraocular pressure in patients with primary open-angle glaucoma or ocular hypertension.This study was a double-masked, active- controlled, dose-response study in 201 subjects with primary open-angle glaucoma or ocular hypertension, where subjects were dosed for 28 days during the period from August 2023 – August 2024.The study was designed to evaluate the ocular safety and hypotensive efficacy of three doses of multi-kinase inhibitor H-1337 Ophthalmic Solution: 0.6% twice-daily, 1.0% twice daily, and 1.0% once-daily. 

D. Western Therapeutics Institute (4576 JP) - News Flash - November 19, 2024

OHBA CO., LTD. is a civil engineering consultant company.  The Company's services include land and air surveying, designing of parks and roads, and development/redevelopment of urban land.

<ul><li>OHBA (hereafter, the Company) is a general construction consulting firm boasting a leading market share in the field of urban planning, with potential to reap the benefits of the long-term shift to compact and smart cities in rural areas.</li><li>Since its establishment in 1922, the Company has been involved in various stages of public works projects preceding the construction phase, such as urban planning, land readjustment, surveying, and land development, in Japan, where the separation of design and construction is mandatory.</li><li>This commenced with the development of Togoshi New Town (1932), which OHBA undertook in partnership with Mitsui Gomei (currently, Mitsui Fudosan) and Mitsui Trust (currently, Sumitomo Mitsui Trust Bank).</li></ul>

OHBA (hereafter, the Company) is a general construction consulting firm boasting a leading market share in the field of urban planning, with potential to reap the benefits of the long-term shift to compact and smart cities in rural areas.Since its establishment in 1922, the Company has been involved in various stages of public works projects preceding the construction phase, such as urban planning, land readjustment, surveying, and land development, in Japan, where the separation of design and construction is mandatory.This commenced with the development of Togoshi New Town (1932), which OHBA undertook in partnership with Mitsui Gomei (currently, Mitsui Fudosan) and Mitsui Trust (currently, Sumitomo Mitsui Trust Bank).

OHBA (9765 JP): Full Report - October 9, 2024

Carta Holdings, Inc. provides on-line information retrieval services on a contract or fee basis.

<div><div><div><div><ul><li>CARTA HD (hereafter, the Company) strives to become "The Evolution Factory” and operates mainly in the digital marketing field.</li><li>The Company was established in January 2019 through the merger of the former VOYAGE Group, which had expanded earnings by creating a series of new businesses centered on the ad tech domain, and the former Cyber Communications, the largest media rep firm in Japan.</li><li>In 2023, CARTA HD's online advertising transaction volume amounted to approximately JPY120.5 bn, giving it a 3.6% market share in the Japanese online advertising market.</li></ul></div></div></div></div>

CARTA HD (hereafter, the Company) strives to become "The Evolution Factory” and operates mainly in the digital marketing field.The Company was established in January 2019 through the merger of the former VOYAGE Group, which had expanded earnings by creating a series of new businesses centered on the ad tech domain, and the former Cyber Communications, the largest media rep firm in Japan.In 2023, CARTA HD's online advertising transaction volume amounted to approximately JPY120.5 bn, giving it a 3.6% market share in the Japanese online advertising market.

Carta Holdings (3688 Jp) - P/E Ratio Adjusted for Net Cash at 12.5x