Nakanishi TSE:7716 Stock Report

Second quarter 2022 earnings released: EPS: JP¥42.02 (vs JP¥26.45 in 2Q 2021)

Second quarter 2022 results: EPS: JP¥42.02 (up from JP¥26.45 in 2Q 2021). Revenue: JP¥12.5b (up 6.9% from 2Q 2021). Net income: JP¥3.61b (up 57% from 2Q 2021). Profit margin: 29% (up from 20% in 2Q 2021). The increase in margin was primarily driven by higher revenue. Over the next year, revenue is forecast to grow 8.0%, compared to a 9.7% growth forecast for the industry in Japan. 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 11% per year, which means it is significantly lagging earnings growth.

Nakanishi Inc. Provides Earnings Guidance for the Full Year Ending December 31, 2022

Consensus revenue estimates increase by 12%

The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from JP¥43.0b to JP¥48.2b. EPS estimate increased from JP¥108 to JP¥122 per share. Net income forecast to grow 5.1% next year vs 5.6% growth forecast for Medical Equipment industry in Japan. Consensus price target up from JP¥3,065 to JP¥3,425. Share price was steady at JP¥2,485 over the past week.

Nakanishi Inc. Announces Establishment of Nomination and Remuneration Committee

Nakanishi Inc. announced that it has resolved at a Board of Directors meeting to establish a Nomination and Remuneration Committee as a voluntary advisory body to the Board of Directors. The Nomination and Remuneration Committee shall consist of at least three Committee Members who are Directors elected by resolution of the Board of Directors, and it shall be comprised of a majority of Independent Outside Directors. The Committee will consist of the following Members at the time of the establishment of the Nomination and Remuneration Committee. Committee Chairperson: Eiichi Nakanishi (Representative Director); Committee Members: Yuji Nonagase (Independent Outside Director); Yukiko Araki (Independent Outside Director). Date of establishment is July 1, 2022.