New Risk • May 20
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (JP¥5.89b market cap, or US$37.1m). Reported Earnings • May 20
Second quarter 2026 earnings released: EPS: JP¥0.73 (vs JP¥1.57 in 2Q 2025) Second quarter 2026 results: EPS: JP¥0.73 (down from JP¥1.57 in 2Q 2025). Revenue: JP¥4.02b (up 18% from 2Q 2025). Net income: JP¥59.0m (down 54% from 2Q 2025). Profit margin: 1.5% (down from 3.7% in 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. New Risk • May 18
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.7% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.8% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.1% average weekly change). Market cap is less than US$100m (JP¥5.65b market cap, or US$35.6m). Declared Dividend • May 17
Dividend of JP¥1.20 announced Shareholders will receive a dividend of JP¥1.20. Ex-date: 29th September 2026 Payment date: 29th December 2026 Dividend yield will be 1.5%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (61% earnings payout ratio) and cash flows (88% cash payout ratio). The dividend has increased by an average of 1.8% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 32% to shift the payout ratio to a potentially unsustainable range, which is more than the 22% EPS decline seen over the last 5 years. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥91.00, the stock trades at a trailing P/E ratio of 55.7x. Average trailing P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 12% over the past three years. Reported Earnings • Feb 16
First quarter 2026 earnings released: JP¥0.46 loss per share (vs JP¥0.33 profit in 1Q 2025) First quarter 2026 results: JP¥0.46 loss per share (down from JP¥0.33 profit in 1Q 2025). Revenue: JP¥2.95b (down 8.5% from 1Q 2025). Net loss: JP¥37.0m (down 237% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥105, the stock trades at a trailing P/E ratio of 43.2x. Average trailing P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 14% over the past three years. Reported Earnings • Dec 30
Full year 2025 earnings released: EPS: JP¥2.42 (vs JP¥1.02 in FY 2024) Full year 2025 results: EPS: JP¥2.42 (up from JP¥1.02 in FY 2024). Revenue: JP¥13.1b (up 12% from FY 2024). Net income: JP¥196.0m (up 136% from FY 2024). Profit margin: 1.5% (up from 0.7% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Aankondiging • Dec 27
Recomm Co., Ltd. to Report Q1, 2026 Results on Feb 13, 2026 Recomm Co., Ltd. announced that they will report Q1, 2026 results on Feb 13, 2026 Reported Earnings • Nov 17
Full year 2025 earnings released: EPS: JP¥2.87 (vs JP¥1.02 in FY 2024) Full year 2025 results: EPS: JP¥2.87 (up from JP¥1.02 in FY 2024). Revenue: JP¥13.1b (up 12% from FY 2024). Net income: JP¥232.0m (up 180% from FY 2024). Profit margin: 1.8% (up from 0.7% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Aankondiging • Nov 13
Recomm Co., Ltd., Annual General Meeting, Dec 26, 2025 Recomm Co., Ltd., Annual General Meeting, Dec 26, 2025. Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥93.00, the stock trades at a trailing P/E ratio of 38.9x. Average trailing P/E is 15x in the Electronic industry in Japan. Total loss to shareholders of 7.0% over the past three years. Aankondiging • Oct 07
Recomm Co., Ltd. to Report Fiscal Year 2025 Results on Nov 13, 2025 Recomm Co., Ltd. announced that they will report fiscal year 2025 results on Nov 13, 2025 Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥116, the stock trades at a trailing P/E ratio of 48.5x. Average trailing P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 42% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥1.60 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 29 December 2025. Payout ratio is a comfortable 46% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to JP¥127, the stock trades at a trailing P/E ratio of 53.1x. Average trailing P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 44% over the past three years. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥99.00, the stock trades at a trailing P/E ratio of 41.4x. Average trailing P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 41% over the past three years. Reported Earnings • Aug 10
Third quarter 2025 earnings released: EPS: JP¥0.51 (vs JP¥0.53 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥0.51 (up from JP¥0.53 loss in 3Q 2024). Revenue: JP¥3.29b (up 21% from 3Q 2024). Net income: JP¥41.0m (up JP¥84.0m from 3Q 2024). Profit margin: 1.2% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Jul 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.2% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Market cap is less than US$100m (JP¥7.02b market cap, or US$47.7m). Aankondiging • Jun 27
Recomm Co., Ltd. to Report Q3, 2025 Results on Aug 08, 2025 Recomm Co., Ltd. announced that they will report Q3, 2025 results on Aug 08, 2025 Reported Earnings • May 19
Second quarter 2025 earnings released: EPS: JP¥1.57 (vs JP¥1.02 in 2Q 2024) Second quarter 2025 results: EPS: JP¥1.57 (up from JP¥1.02 in 2Q 2024). Revenue: JP¥3.40b (up 28% from 2Q 2024). Net income: JP¥127.0m (up 53% from 2Q 2024). Profit margin: 3.7% (up from 3.1% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Declared Dividend • May 16
Dividend of JP¥1.60 announced Dividend of JP¥1.60 is the same as last year. Ex-date: 29th September 2025 Payment date: 29th December 2025 Dividend yield will be 2.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is not covered by earnings (137% earnings payout ratio). However, it is well covered by cash flows (29% cash payout ratio). The dividend has increased by an average of 4.8% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 53% to bring the payout ratio under control. However, EPS has declined by 16% over the last 5 years so the company would need to reverse this trend. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥59.00, the stock trades at a trailing P/E ratio of 73.7x. Average trailing P/E is 11x in the Electronic industry in Japan. Total loss to shareholders of 11% over the past three years. Aankondiging • Mar 27
Recomm Co., Ltd. to Report Q2, 2025 Results on May 14, 2025 Recomm Co., Ltd. announced that they will report Q2, 2025 results on May 14, 2025 New Risk • Feb 16
New major risk - Revenue and earnings growth Earnings have declined by 1.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.4% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (137% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (JP¥5.52b market cap, or US$36.3m). Reported Earnings • Feb 16
First quarter 2025 earnings released: EPS: JP¥0.33 (vs JP¥0.55 in 1Q 2024) First quarter 2025 results: EPS: JP¥0.33 (down from JP¥0.55 in 1Q 2024). Revenue: JP¥3.22b (up 13% from 1Q 2024). Net income: JP¥27.0m (down 40% from 1Q 2024). Profit margin: 0.8% (down from 1.6% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Aankondiging • Jan 03
Recomm Co., Ltd. to Report Q1, 2025 Results on Feb 14, 2025 Recomm Co., Ltd. announced that they will report Q1, 2025 results on Feb 14, 2025 New Risk • Dec 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 189% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (JP¥5.36b market cap, or US$34.1m). Reported Earnings • Dec 31
Full year 2024 earnings released: EPS: JP¥1.02 (vs JP¥3.85 in FY 2023) Full year 2024 results: EPS: JP¥1.02 (down from JP¥3.85 in FY 2023). Revenue: JP¥11.7b (up 23% from FY 2023). Net income: JP¥83.0m (down 74% from FY 2023). Profit margin: 0.7% (down from 3.3% in FY 2023). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Aankondiging • Dec 02
Recomm Co., Ltd. (TSE:3323) announces an Equity Buyback for 1,500,000 shares, representing 1.82% for ¥100 million. Recomm Co., Ltd. (TSE:3323) announces a share repurchase program. Under the program, the company will repurchase up to 1,500,000 shares, representing 1.82% for ¥100 million. The company will repurchase its shares in order to return profits to shareholders, improve capital efficiency, and implement agile capital policies in response to changes in the business environment. The program will expire on March 31, 2025. As of November 30, 2024, the company had 82,630,255 shares in issue(including treasury stock) and 1,410,600 shares in treasury. Aankondiging • Nov 14
Recomm Co., Ltd., Annual General Meeting, Dec 26, 2024 Recomm Co., Ltd., Annual General Meeting, Dec 26, 2024. New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.9% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). Market cap is less than US$100m (JP¥5.44b market cap, or US$35.2m). Aankondiging • Sep 27
Recomm Co., Ltd. to Report Fiscal Year 2024 Results on Nov 14, 2024 Recomm Co., Ltd. announced that they will report fiscal year 2024 results at 3:00 PM, Tokyo Standard Time on Nov 14, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥1.60 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 27 December 2024. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). New Risk • Sep 19
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 36% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). Market cap is less than US$100m (JP¥5.85b market cap, or US$40.8m). New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.8% average weekly change). Market cap is less than US$100m (JP¥6.01b market cap, or US$42.2m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥74.00, the stock trades at a trailing P/E ratio of 16.4x. Average trailing P/E is 12x in the Electronic industry in Japan. Total loss to shareholders of 22% over the past three years. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥98.00, the stock trades at a trailing P/E ratio of 21.7x. Average trailing P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 3.4% over the past three years. Aankondiging • Jun 28
Recomm Co., Ltd. to Report Q3, 2024 Results on Aug 09, 2024 Recomm Co., Ltd. announced that they will report Q3, 2024 results on Aug 09, 2024 Aankondiging • Jun 26
Recomm Co., Ltd. (TSE:3323) agreed to acquire 65% stake in Taknet Systems Pte Ltd from Tan Ah Kaw, Tan Yew Khim And Chen Mengjie for SGD 10.3 million. Recomm Co., Ltd. (TSE:3323) agreed to acquire 65% stake in Taknet Systems Pte Ltd from Tan Ah Kaw, Tan Yew Khim And Chen Mengjie for SGD 10.3 million on June 25, 2024. The consideration consists of common equity of Recomm Co., Ltd. having a value of SGD 10.34 million to be issued for common equity of Taknet Systems Pte Ltd. As part of consideration, SGD 10.34 million is paid towards common equity of Taknet Systems Pte Ltd. The expected completion of the transaction is July 5, 2024. Reported Earnings • May 21
Second quarter 2024 earnings released: EPS: JP¥1.02 (vs JP¥1.21 in 2Q 2023) Second quarter 2024 results: EPS: JP¥1.02 (down from JP¥1.21 in 2Q 2023). Revenue: JP¥2.64b (up 9.2% from 2Q 2023). Net income: JP¥83.0m (down 15% from 2Q 2023). Profit margin: 3.1% (down from 4.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Aankondiging • Mar 28
Recomm Co., Ltd. to Report Q2, 2024 Results on May 15, 2024 Recomm Co., Ltd. announced that they will report Q2, 2024 results on May 15, 2024 Reported Earnings • Feb 17
First quarter 2024 earnings released: EPS: JP¥0.55 (vs JP¥0.28 loss in 1Q 2023) First quarter 2024 results: EPS: JP¥0.55 (up from JP¥0.28 loss in 1Q 2023). Revenue: JP¥2.86b (up 33% from 1Q 2023). Net income: JP¥45.0m (up JP¥68.0m from 1Q 2023). Profit margin: 1.6% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Aankondiging • Dec 30
Recomm Co., Ltd. to Report Q1, 2024 Results on Feb 14, 2024 Recomm Co., Ltd. announced that they will report Q1, 2024 results on Feb 14, 2024 New Risk • Dec 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.4% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (JP¥6.90b market cap, or US$49.0m). Reported Earnings • Nov 20
Full year 2023 earnings released: EPS: JP¥3.85 (vs JP¥4.13 in FY 2022) Full year 2023 results: EPS: JP¥3.85 (down from JP¥4.13 in FY 2022). Revenue: JP¥9.51b (up 6.6% from FY 2022). Net income: JP¥313.0m (down 6.8% from FY 2022). Profit margin: 3.3% (down from 3.8% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Aankondiging • Nov 17
Recomm Co., Ltd., Annual General Meeting, Dec 26, 2023 Recomm Co., Ltd., Annual General Meeting, Dec 26, 2023. Aankondiging • Sep 28
Recomm Co., Ltd. to Report Fiscal Year 2023 Results on Nov 14, 2023 Recomm Co., Ltd. announced that they will report fiscal year 2023 results on Nov 14, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥1.60 per share at 1.9% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 25 December 2023. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Reported Earnings • Aug 14
Third quarter 2023 earnings released: EPS: JP¥1.54 (vs JP¥0.43 in 3Q 2022) Third quarter 2023 results: EPS: JP¥1.54 (up from JP¥0.43 in 3Q 2022). Revenue: JP¥2.30b (up 2.0% from 3Q 2022). Net income: JP¥125.0m (up 257% from 3Q 2022). Profit margin: 5.4% (up from 1.6% in 3Q 2022). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 13% per year. Aankondiging • Jun 28
Recomm Co., Ltd. to Report Q3, 2023 Results on Aug 10, 2023 Recomm Co., Ltd. announced that they will report Q3, 2023 results on Aug 10, 2023 New Risk • Jun 14
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 4.3% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (2.3% net profit margin). Market cap is less than US$100m (JP¥9.10b market cap, or US$64.9m). Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to JP¥112, the stock trades at a trailing P/E ratio of 42.5x. Average trailing P/E is 13x in the Electronic industry in Japan. Total loss to shareholders of 23% over the past three years. Reported Earnings • May 18
Second quarter 2023 earnings released Second quarter 2023 results: Net income: (down JP¥126.0m from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 15
First quarter 2023 earnings released: JP¥0.28 loss per share (vs JP¥0.86 profit in 1Q 2022) First quarter 2023 results: JP¥0.28 loss per share (down from JP¥0.86 profit in 1Q 2022). Revenue: JP¥2.15b (up 6.0% from 1Q 2022). Net loss: JP¥23.0m (down 133% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 8% per year and the company’s share price has also fallen by 8% per year. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥83.00, the stock trades at a trailing P/E ratio of 20.1x. Average trailing P/E is 11x in the Electronic industry in Japan. Total loss to shareholders of 11% over the past three years. Aankondiging • Dec 28
Recomm Co., Ltd. to Report Q1, 2023 Results on Feb 13, 2023 Recomm Co., Ltd. announced that they will report Q1, 2023 results on Feb 13, 2023 Reported Earnings • Dec 27
Full year 2022 earnings released: EPS: JP¥4.13 (vs JP¥0.69 loss in FY 2021) Full year 2022 results: EPS: JP¥4.13 (up from JP¥0.69 loss in FY 2021). Revenue: JP¥8.92b (up 35% from FY 2021). Net income: JP¥336.0m (up JP¥392.0m from FY 2021). Profit margin: 3.8% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 10% per year. Reported Earnings • Nov 17
Full year 2022 earnings released: EPS: JP¥4.13 (vs JP¥0.69 loss in FY 2021) Full year 2022 results: EPS: JP¥4.13 (up from JP¥0.69 loss in FY 2021). Revenue: JP¥8.92b (up 35% from FY 2021). Net income: JP¥336.0m (up JP¥392.0m from FY 2021). Profit margin: 3.8% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Aankondiging • Nov 16
Recomm Co., Ltd., Annual General Meeting, Dec 22, 2022 Recomm Co., Ltd., Annual General Meeting, Dec 22, 2022. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 1 highly experienced director. 1 independent director (7 non-independent directors). Director, Managing Executive Officer, CHO & GM of Human Resources Strategy Ken Kinoshita was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥104, the stock trades at a trailing P/E ratio of 21.1x. Average trailing P/E is 11x in the Electronic industry in Japan. Total loss to shareholders of 27% over the past three years. Buying Opportunity • Sep 26
Now 22% undervalued Over the last 90 days, the stock is up 28%. The fair value is estimated to be JP¥110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Meanwhile, the company has become profitable. Buying Opportunity • Sep 06
Now 24% undervalued Over the last 90 days, the stock is up 21%. The fair value is estimated to be JP¥108, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥87.00, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 12x in the Electronic industry in Japan. Total loss to shareholders of 25% over the past three years. Aankondiging • Sep 01
Recomm Co., Ltd. to Report Fiscal Year 2022 Results on Nov 14, 2022 Recomm Co., Ltd. announced that they will report fiscal year 2022 results on Nov 14, 2022 Reported Earnings • Aug 12
Third quarter 2022 earnings released: EPS: JP¥0.44 (vs JP¥1.51 loss in 3Q 2021) Third quarter 2022 results: EPS: JP¥0.44 (up from JP¥1.51 loss in 3Q 2021). Revenue: JP¥2.25b (up 30% from 3Q 2021). Net income: JP¥36.0m (up JP¥159.0m from 3Q 2021). Profit margin: 1.6% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Aankondiging • Jun 29
Recomm Co., Ltd. to Report Q3, 2022 Results on Aug 12, 2022 Recomm Co., Ltd. announced that they will report Q3, 2022 results on Aug 12, 2022 Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 1 highly experienced director. 1 independent director (7 non-independent directors). Director, Managing Executive Officer, CHO & GM of Human Resources Strategy Ken Kinoshita was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Aankondiging • Apr 08
Recomm Co., Ltd. to Report Q2, 2022 Results on May 13, 2022 Recomm Co., Ltd. announced that they will report Q2, 2022 results on May 13, 2022 Reported Earnings • Feb 17
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: JP¥0.86 (up from JP¥1.07 loss in 1Q 2021). Revenue: JP¥2.03b (down 1.5% from 1Q 2021). Net income: JP¥70.0m (up JP¥157.0m from 1Q 2021). Profit margin: 3.4% (up from net loss in 1Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Aankondiging • Jan 20
Recomm Co., Ltd. (JASDAQ:3323) announces an Equity Buyback for 1,500,000 shares, representing 1.82% for ¥100 million. Recomm Co., Ltd. (JASDAQ:3323) announces a share repurchase program. Under the program, the company will repurchase up to 1,500,000 shares, representing 1.82% for ¥100 million. The company will repurchase its shares in order to return profits to shareholders, improve capital efficiency, and implement agile capital policies in response to changes in the business environment. The program will expire on February 18, 2022. As of December 31, 2021, the company had 82,606,255 shares in issue(including treasury stock) and 1,013,000 shares in treasury. Aankondiging • Jan 07
Recomm Co., Ltd. (JASDAQ:3323) agreed to acquire an additional 9.9% stake in RECOMM Business Solutions (Thailand) Co., Ltd. from Japan TSS Co., Ltd. Recomm Co., Ltd. (JASDAQ:3323) agreed to acquire an additional 9.9% stake in RECOMM Business Solutions (Thailand) Co., Ltd. from Japan TSS Co., Ltd. on January 6, 2022. As part of the transaction, Recomm will acquire 99 shares and ending up with total 499 shares equivalent to 49.9% stake in RECOMM Business Solutions. In related transactions, Recomm agreed to acquire additional stake in RECOMM Business Solutions (Asia) Co., Ltd., and PT.FT Group Indonesia. Completion is expected on January 7, 2022. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥2.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 28 December 2021. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.0%). Aankondiging • Aug 31
Recomm Co., Ltd. (JASDAQ:3323) entered into a share transfer agreement to acquire Sin Lian Wah Lighting Sdn. Bhd., from Sin Lian Wah Electric Sdn. Bhd., Chia Khin Shing, Maggie Tan Mei Chee and 3 others for approximately ¥730 million. Recomm Co., Ltd. (JASDAQ:3323) entered into a share transfer agreement to acquire Sin Lian Wah Lighting Sdn. Bhd., from Sin Lian Wah Electric Sdn. Bhd., Chia Khin Shing, Maggie Tan Mei Chee and 3 others for approximately ¥730 million on August 30, 2021. Pursuant to the terms of the agreement, Recomm Co., Ltd., shall acquire 1.3 million shares in Sin Lian Wah Lighting Sdn. Bhd. Sin Lian Wah Electric Sdn. Bhd., will sell 66% stake, Chia Khin Shing and Maggie Tan Mei Chee will sell 15% stake each, whereas three other shareholders will sell a total of the remaining 4% stake in Sin Lian Wah Lighting Sdn. Bhd. For the year ended June 30, 2021, Sin Lian Wah Lighting Sdn. Bhd., had net assets of ¥659 million, total assets of ¥985 million, sales of ¥1.61 billion, operating income of ¥147 million and net income of ¥118 million. The Board of Directors of Recomm Co., Ltd., resolved upon the transaction on August 30, 2021. The execution date of the agreement is expected to be October 8, 2021. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥83.00, the stock trades at a trailing P/E ratio of 39.7x. Average trailing P/E is 14x in the Electronic industry in Japan. Total loss to shareholders of 64% over the past three years. Reported Earnings • May 20
Second quarter 2021 earnings released: JP¥0.16 loss per share (vs JP¥3.59 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: JP¥2.00b (down 11% from 2Q 2020). Net loss: JP¥13.0m (down 105% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 31% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 17
First quarter 2021 earnings released: JP¥1.07 loss per share (vs JP¥2.84 loss in 1Q 2020) The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were weaker. First quarter 2021 results: Revenue: JP¥2.06b (down 14% from 1Q 2020). Net loss: JP¥87.0m (loss narrowed 57% from 1Q 2020). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 31% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 17
New 90-day low: JP¥116 The company is down 5.0% from its price of JP¥122 on 19 November 2020. The Japanese market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 17% over the same period. Aankondiging • Dec 30
Recomm Co., Ltd. to Report Q1, 2021 Results on Feb 12, 2021 Recomm Co., Ltd. announced that they will report Q1, 2021 results on Feb 12, 2021