New Risk • May 13
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 8.0% 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 (8.0% average weekly change). Reported Earnings • May 13
First quarter 2026 earnings released: EPS: JP¥47.53 (vs JP¥21.65 in 1Q 2025) First quarter 2026 results: EPS: JP¥47.53 (up from JP¥21.65 in 1Q 2025). Revenue: JP¥18.2b (up 14% from 1Q 2025). Net income: JP¥2.16b (up 7.1% from 1Q 2025). Profit margin: 12% (in line with 1Q 2025). Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 49% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Apr 11
Final dividend of JP¥20.00 announced Shareholders will receive a dividend of JP¥20.00. Ex-date: 29th June 2026 Payment date: 1st September 2026 Dividend yield will be 3.0%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is well covered by both earnings (41% earnings payout ratio) and cash flows (33% cash payout ratio). The dividend has increased by an average of 22% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 50% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 28
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥130 (up from JP¥94.21 in FY 2024). Revenue: JP¥64.1b (up 15% from FY 2024). Net income: JP¥5.92b (up 32% from FY 2024). Profit margin: 9.2% (up from 8.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 6.7%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 04
Price target increased by 13% to JP¥2,830 Up from JP¥2,500, the current price target is provided by 1 analyst. New target price is 20% above last closing price of JP¥2,368. Stock is up 94% over the past year. The company is forecast to post earnings per share of JP¥162 for next year compared to JP¥130 last year. Announcement • Feb 16
Aucnet Inc., Annual General Meeting, Mar 24, 2026 Aucnet Inc., Annual General Meeting, Mar 24, 2026. Reported Earnings • Feb 16
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥130 (up from JP¥94.21 in FY 2024). Revenue: JP¥64.1b (up 15% from FY 2024). Net income: JP¥5.92b (up 32% from FY 2024). Profit margin: 9.2% (up from 8.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 6.7%. Revenue is forecast to grow 6.5% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥33.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 26 March 2026. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.6%). Announcement • Dec 03
Aucnet Inc. to Report Fiscal Year 2025 Results on Feb 13, 2026 Aucnet Inc. announced that they will report fiscal year 2025 results on Feb 13, 2026 Reported Earnings • Nov 13
Third quarter 2025 earnings released: EPS: JP¥18.95 (vs JP¥21.86 in 3Q 2024) Third quarter 2025 results: EPS: JP¥18.95 (down from JP¥21.86 in 3Q 2024). Revenue: JP¥14.9b (up 7.8% from 3Q 2024). Net income: JP¥859.0m (down 18% from 3Q 2024). Profit margin: 5.7% (down from 7.5% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 02
Aucnet Inc. to Report Q3, 2025 Results on Nov 11, 2025 Aucnet Inc. announced that they will report Q3, 2025 results on Nov 11, 2025 Declared Dividend • Sep 02
First half dividend of JP¥23.00 announced Shareholders will receive a dividend of JP¥23.00. Ex-date: 29th December 2025 Payment date: 26th March 2026 Dividend yield will be 2.4%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (38% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 17% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 31% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 08
Second quarter 2025 earnings released: EPS: JP¥37.36 (vs JP¥24.33 in 2Q 2024) Second quarter 2025 results: EPS: JP¥37.36 (up from JP¥24.33 in 2Q 2024). Revenue: JP¥16.6b (up 6.2% from 2Q 2024). Net income: JP¥1.69b (up 46% from 2Q 2024). Profit margin: 10% (up from 7.4% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 18% per year. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥21.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 02 September 2025. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (4.0%). In line with average of industry peers (2.8%). Announcement • Jun 03
Aucnet Inc. to Report Q2, 2025 Results on Aug 07, 2025 Aucnet Inc. announced that they will report Q2, 2025 results on Aug 07, 2025 New Risk • May 21
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: 2.8% 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. This is currently the only risk that has been identified for the company. Announcement • May 15
Aucnet Inc. (TSE:3964) acquired remaining 51% stake in SG e-Auction Pte Ltd from MoneyMax Capital Pte. Ltd. Aucnet Inc. (TSE:3964) acquired remaining 51% stake in SG e-Auction Pte Ltd from MoneyMax Capital Pte. Ltd. on May 15, 2025.
Aucnet Inc. (TSE:3964) completed the acquisition of remaining 51% stake in SG e-Auction Pte Ltd from MoneyMax Capital Pte. Ltd. on May 15, 2025. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: JP¥86.59 (vs JP¥29.42 in 1Q 2024) First quarter 2025 results: EPS: JP¥86.59 (up from JP¥29.42 in 1Q 2024). Revenue: JP¥16.0b (up 45% from 1Q 2024). Net income: JP¥2.01b (up 45% from 1Q 2024). Profit margin: 13% (in line with 1Q 2024). Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 19% per year. New Risk • May 14
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 7.7% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,438, the stock trades at a trailing P/E ratio of 14.4x. Average trailing P/E is 16x in the Consumer Services industry in Japan. Total returns to shareholders of 77% over the past three years. Buy Or Sell Opportunity • Apr 21
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.4% to JP¥1,203. The fair value is estimated to be JP¥1,507, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 13%. Declared Dividend • Apr 11
Final dividend of JP¥19.00 announced Shareholders will receive a dividend of JP¥19.00. Ex-date: 27th June 2025 Payment date: 2nd September 2025 Dividend yield will be 5.7%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 4.9% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 32% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Apr 04
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥1,125. The fair value is estimated to be JP¥1,436, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 13%. Announcement • Mar 04
Aucnet Inc. to Report Q1, 2025 Results on May 13, 2025 Aucnet Inc. announced that they will report Q1, 2025 results on May 13, 2025 Reported Earnings • Feb 16
Full year 2024 earnings released: EPS: JP¥188 (vs JP¥176 in FY 2023) Full year 2024 results: EPS: JP¥188 (up from JP¥176 in FY 2023). Revenue: JP¥55.9b (up 29% from FY 2023). Net income: JP¥4.49b (up 2.7% from FY 2023). Profit margin: 8.0% (down from 10% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥29.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 05 March 2025. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.8%). New Risk • Dec 04
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: 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 (5.3% average weekly change). Announcement • Dec 04
Aucnet Inc. to Report Fiscal Year 2024 Results on Feb 14, 2025 Aucnet Inc. announced that they will report fiscal year 2024 results on Feb 14, 2025 Reported Earnings • Nov 15
Third quarter 2024 earnings released: EPS: JP¥43.74 (vs JP¥37.81 in 3Q 2023) Third quarter 2024 results: EPS: JP¥43.74 (up from JP¥37.81 in 3Q 2023). Revenue: JP¥13.9b (up 35% from 3Q 2023). Net income: JP¥1.04b (up 17% from 3Q 2023). Profit margin: 7.5% (down from 8.7% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 10% per year. Announcement • Aug 27
Aucnet Inc. to Report Q3, 2024 Results on Nov 12, 2024 Aucnet Inc. announced that they will report Q3, 2024 results on Nov 12, 2024 New Risk • Aug 26
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. 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. Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Reported Earnings • Aug 12
Second quarter 2024 earnings released: EPS: JP¥48.71 (vs JP¥47.19 in 2Q 2023) Second quarter 2024 results: EPS: JP¥48.71. Revenue: JP¥15.6b (up 39% from 2Q 2023). Net income: JP¥1.16b (down 5.7% from 2Q 2023). Profit margin: 7.4% (down from 11% in 2Q 2023). The decrease in margin was driven by higher expenses. Declared Dividend • Aug 10
Dividend of JP¥29.00 announced Shareholders will receive a dividend of JP¥29.00. Ex-date: 27th December 2024 Payment date: 5th March 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 12% per year over the past 7 years. However, payments have been volatile during that time. Earnings per share has grown by 26% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥28.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 04 September 2024. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.6%). Announcement • May 29
Aucnet Inc. to Report Q2, 2024 Results on Aug 08, 2024 Aucnet Inc. announced that they will report Q2, 2024 results on Aug 08, 2024 Reported Earnings • May 17
First quarter 2024 earnings released: EPS: JP¥58.83 (vs JP¥53.23 in 1Q 2023) First quarter 2024 results: EPS: JP¥58.83 (up from JP¥53.23 in 1Q 2023). Revenue: JP¥11.0b (up 2.4% from 1Q 2023). Net income: JP¥1.39b (flat on 1Q 2023). Profit margin: 13% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 20% per year. Announcement • May 01
Aucnet Inc. (TSE:3964) completed the acquisition of Defactostandard, Ltd. and JOYLAB, inc. from BEENOS Inc. (TSE:3328). Aucnet Inc. (TSE:3964) agreed to acquire Defactostandard, Ltd. and JOYLAB, inc. from BEENOS Inc. (TSE:3328) for ¥2.9 billion on February 14, 2024. Under the terms, 8.68 million share were acquired.
Aucnet Inc. (TSE:3964) completed the acquisition of Defactostandard, Ltd. and JOYLAB, inc. from BEENOS Inc. (TSE:3328) on April 30, 2024. Declared Dividend • Apr 11
Final dividend of JP¥28.00 announced Shareholders will receive a dividend of JP¥28.00. Ex-date: 27th June 2024 Payment date: 4th September 2024 Dividend yield will be 2.3%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 9.5% per year over the past 7 years. However, payments have been volatile during that time. Earnings per share has grown by 24% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 27
AUCNET Inc. Receives Validation from Science Based Targets Initiative (SBTi) AUCNET INC. announced that the company has received validation for its greenhouse gas emission-reducing targets from the Science Based Targets initiative (SBTi), an international collaborative organization which certifies that GHG emission reduction targets are scientifically consistent with the goals set forth in the Paris Agreement. The AUCNET GHG emission reduction targets that have obtained validation, using 2021 as the base year, seek to reduce Scope 1 & 2 emissions by 42%, and Scope 3 emissions by 25%, by 2030. Based on its sustainability policy of the "Circulation Engine, circulating valuable goods on a global scale," AUCNET works with its partners throughout the world in a variety of industries to build a circular distribution system that delivers valuable goods from all over the world to those who need them, and since its founding, the company has contributed to the creation of a sustainable regional environment. In 2021, AUCNET established its very own management indicator, the Gross Circulation Value (GCV), which expresses in monetary value the impact of AUCNET's business activities on the economy and on the environment through the distribution of reused goods, and is linking its sustainability policy to concrete actions. Regarding the GCV management indicator, AUCNET is striving to increase its reliability and validity by obtaining third-party perspectives. The company obtained third-party warranty regarding the reliability of its environmental data in April 2023, and in July 2023, it prepared a report on GCV with respect to the evaluation of its validity from an economic perspective. By obtaining at this time the "1.5 C level" validation from the SBTi, AUCNET will be able to more accurately undertake the reduction of GHG emissions from business activities, which is a component of its unique GCV indicator. Announcement • Feb 24
Aucnet Inc. to Report Q1, 2024 Results on May 14, 2024 Aucnet Inc. announced that they will report Q1, 2024 results on May 14, 2024 Announcement • Feb 16
Aucnet Inc., Annual General Meeting, Mar 26, 2024 Aucnet Inc., Annual General Meeting, Mar 26, 2024. Reported Earnings • Feb 16
Full year 2023 earnings released: EPS: JP¥176 (vs JP¥159 in FY 2022) Full year 2023 results: EPS: JP¥176 (up from JP¥159 in FY 2022). Revenue: JP¥43.3b (up 7.0% from FY 2022). Net income: JP¥4.37b (flat on FY 2022). Profit margin: 10% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥27.00 per share at 2.7% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 07 March 2024. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (2.5%). Announcement • Dec 05
Aucnet Inc. to Report Fiscal Year 2023 Results on Feb 14, 2024 Aucnet Inc. announced that they will report fiscal year 2023 results on Feb 14, 2024 Reported Earnings • Nov 18
Third quarter 2023 earnings released: EPS: JP¥37.81 (vs JP¥36.31 in 3Q 2022) Third quarter 2023 results: EPS: JP¥37.81. Revenue: JP¥10.3b (up 4.3% from 3Q 2022). Net income: JP¥893.0m (down 11% from 3Q 2022). Profit margin: 8.7% (down from 10% in 3Q 2022). The decrease in margin was driven by higher expenses. Announcement • Aug 27
Aucnet Inc. to Report Q3, 2023 Results on Nov 14, 2023 Aucnet Inc. announced that they will report Q3, 2023 results on Nov 14, 2023 Reported Earnings • Aug 09
Second quarter 2023 earnings released: EPS: JP¥47.19 (vs JP¥42.14 in 2Q 2022) Second quarter 2023 results: EPS: JP¥47.19 (up from JP¥42.14 in 2Q 2022). Revenue: JP¥11.2b (up 11% from 2Q 2022). Net income: JP¥1.23b (up 5.9% from 2Q 2022). Profit margin: 11% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥24.00 per share at 2.8% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 05 September 2023. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (2.6%). Announcement • May 28
Aucnet Inc. to Report Q2, 2023 Results on Aug 08, 2023 Aucnet Inc. announced that they will report Q2, 2023 results on Aug 08, 2023 Reported Earnings • May 10
First quarter 2023 earnings released: EPS: JP¥53.23 (vs JP¥47.04 in 1Q 2022) First quarter 2023 results: EPS: JP¥53.23 (up from JP¥47.04 in 1Q 2022). Revenue: JP¥10.7b (up 2.2% from 1Q 2022). Net income: JP¥1.39b (up 6.4% from 1Q 2022). Profit margin: 13% (in line with 1Q 2022). Revenue is forecast to grow 5.6% p.a. on average during the next 2 years, compared to a 7.7% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • May 10
Aucnet Inc. (TSE:3964) announces an Equity Buyback for 2,824,500 shares, representing 10.76% for ¥3,897.81 million. Aucnet Inc. (TSE:3964) announces a share repurchase program. Under the program, the company will repurchase up to 2,824,500 shares, representing 10.76% of its issued share capital for ¥3,897.81 million. The purpose of the program is to flexibly return profits to the shareholders. The program will be funded from the company’s own funds. The program is valid till June 30, 2023. As of May 9, 2023, the company has 26,255,784 shares issued (excluding treasury stock) and has 207,416 shares in treasury. Reported Earnings • Apr 01
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥159 (up from JP¥131 in FY 2021). Revenue: JP¥40.5b (up 10% from FY 2021). Net income: JP¥4.35b (up 20% from FY 2021). Profit margin: 11% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 19
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥159 (up from JP¥131 in FY 2021). Revenue: JP¥40.5b (up 10% from FY 2021). Net income: JP¥4.35b (up 20% from FY 2021). Profit margin: 11% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Consumer Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 08 March 2023. Payout ratio is a comfortable 2.7% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.4%). Announcement • Dec 06
Aucnet Inc. to Report Fiscal Year 2022 Results on Feb 14, 2023 Aucnet Inc. announced that they will report fiscal year 2022 results on Feb 14, 2023 Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 5 independent directors. 7 non-independent directors. Independent Outside Director Sasano Handa was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 10
Third quarter 2022 earnings released: EPS: JP¥36.31 (vs JP¥23.96 in 3Q 2021) Third quarter 2022 results: EPS: JP¥36.31 (up from JP¥23.96 in 3Q 2021). Revenue: JP¥9.88b (up 14% from 3Q 2021). Net income: JP¥1.00b (up 50% from 3Q 2021). Profit margin: 10% (up from 7.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Online Retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 11
Now 20% undervalued Over the last 90 days, the stock is up 6.7%. The fair value is estimated to be JP¥2,791, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to grow by 14% in 2 years. Earnings is forecast to grow by 28% in the next 2 years. Announcement • Aug 31
Aucnet Inc. to Report Q3, 2022 Results on Nov 08, 2022 Aucnet Inc. announced that they will report Q3, 2022 results on Nov 08, 2022 Announcement • Aug 26
Aucnet Inc. Announces Dividend for the Second Quarter Ended June 30, 2021, Payable on September 5, 2022 and Provides Dividend Guidance for the Year Ending December 31, 2022 Aucnet Inc. announced dividend for the second quarter ended June 30, 2021 and provided dividend guidance for the year ending December 31, 2022. For the second quarter, the company announced the dividend of JPY 23.00 per share against JPY 19.00 per share for the same period a year ago. Scheduled date of commencing dividend payments: September 5, 2022.For the year ending, the company expected to pay the dividend of JPY 24.00 per share against JPY 21.00 per share a year ago. Buying Opportunity • Aug 22
Now 23% undervalued Over the last 90 days, the stock is up 28%. The fair value is estimated to be JP¥2,870, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to grow by 14% in 2 years. Earnings is forecast to grow by 34% in the next 2 years. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: JP¥42.14 (vs JP¥39.86 in 2Q 2021) Second quarter 2022 results: EPS: JP¥42.14 (up from JP¥39.86 in 2Q 2021). Revenue: JP¥10.1b (up 8.1% from 2Q 2021). Net income: JP¥1.16b (up 5.0% from 2Q 2021). Profit margin: 12% (in line with 2Q 2021). Over the next year, revenue is forecast to grow 7.7%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Aug 10
Aucnet Inc. (TSE:3964) announces an Equity Buyback for 1,650,100 shares, representing 5.96% for ¥2,927.28 million. Aucnet Inc. (TSE:3964) announces a share repurchase program. Under the program, the company will repurchase up to 1,650,100 shares, representing 5.96% of its issued share capital for ¥2,927.28 million. The shares will be repurchased at a price of ¥1,774 per share. The purpose of the program is to flexibly return profits to the shareholders. The program will be funded from the company’s own funds. If the total number of tendered shares exceeds the planned number of shares to be repurchased in the offer, the purchase will be made on a pro-rata basis and the company will acquire a portion of the 1,650,100 shares to be tendered. The program is valid till September 7, 2022. As of August 9, 2022, the company has 27,708,984 shares issued (excluding treasury stock) and 254,216 shares in treasury. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,089, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the Online Retail industry in Japan. Total returns to shareholders of 71% over the past three years. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 01 September 2022. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Announcement • Jun 01
Aucnet Inc. to Report Q2, 2022 Results on Aug 09, 2022 Aucnet Inc. announced that they will report Q2, 2022 results on Aug 09, 2022 Announcement • May 12
Aucnet Inc. Provides Consolidated Earnings Guidance for the Fiscal Year 2022 Aucnet Inc. provided consolidated earnings guidance for the fiscal year 2022. For the period, the company expected net sales of JPY 38,329 million, operating profit of JPY 6,000 million, profit attributable to owners of parent of JPY 4,054 million.