Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: JP¥25.38 (vs JP¥42.91 in 2Q 2024) Second quarter 2025 results: EPS: JP¥25.38 (down from JP¥42.91 in 2Q 2024). Revenue: JP¥4.21b (down 9.3% from 2Q 2024). Net income: JP¥352.0m (down 41% from 2Q 2024). Profit margin: 8.4% (down from 13% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, while revenues in the Shipping industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Aug 14
Godo Kaisha JSHD and management of Nippon Concept completed the acquisition of 58.60% stake in Nippon Concept Corporation (TSE:9386) from Takayoshi Matsumoto, M and M Co.,Ltd. and others for ¥24.9 billion. Godo Kaisha JSHD and management of Nippon Concept proposed to acquire 71% stake in Nippon Concept Corporation (TSE:9386) from Takayoshi Matsumoto, M and M Co.,Ltd. and others for ¥30.1 billion on June 30, 2025. Godo Kaisha JSHD intends to make Nippon Concept Corporation a wholly owned subsidiary through the Tender Offer and a series of procedures scheduled thereafter and that the Nippon Concept Corporation shares are scheduled to be delisted. As per the terms Godo Kaisha JSHD will pay ¥3060 per share for 9.845975 million shares.
The tender offer is subject to minimum tender of 5,223,400 shares. The offer period will end on August 13, 2025.
Yebisu Matsumoto Law Office and Nishimura & Asahi acted as legal advisor to Nippon Concept Corporation. Akasaka International Tax & Co., Investment Banking Arm, AGS Consulting Co., Ltd. and WithCore acted as financial advisor to Nippon Concept Corporation. Takayoshi Matsumoto appointed Aoyama Zaisan Networks Co., Ltd. and Aozora Bank as a financial advisor, and TMI Associates as a legal advisor.
Godo Kaisha JSHD and management of Nippon Concept completed the acquisition of 58.60% stake in Nippon Concept Corporation (TSE:9386) from Takayoshi Matsumoto, M and M Co.,Ltd. and others for ¥24.9 billion on August 13, 2025. New Risk • Jul 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 0% Dividend yield: 2.6% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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 Shares are highly illiquid. Minor Risk Dividend is not well covered by cash flows (0% cash payout ratio). 
