Monthly Wrap

Dear readers,

This month's wrap features our initiation on Furyu (6238), which was published at the end of February. The firm operates photo sticker machine and photo saving/viewing services. Profit margins are over 15% and operating profit has climbed 50% in the past two years. The firm announced a 3-1 stock split in January.

We also have visit updates on Casio (6952), Hitachi High Tech (8036), Hazama Ando (1719), and Shin-etsu Polymer (7970). Casio has been a noticeable underperformer over the past year. Catalysts include an easy Q4 YoY hurdle, modest currency tailwinds from the stronger euro, and lower restructure costs next year. Casio’s stock has underperformed the TOPIX by about 50%, suffering a downward revision after 1H (November). Of the JPY13bn in OP fall this year, JPY9.5bn is from a stronger yen, which should go away next year. Hitachi High Tech deserves an honorable mention.

Finally, we have compiled a list of our pipeline for both full and espresso reports (15–20 pages). Three of the eight names are non-TSE1 companies. Evolable Asia is particularly interesting, as it just announced last Friday that it will move to the TSE1 from TSE2.

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