Reported Earnings • May 18
Full year 2026 earnings released: EPS: JP¥49.81 (vs JP¥153 in FY 2025) Full year 2026 results: EPS: JP¥49.81 (down from JP¥153 in FY 2025). Revenue: JP¥58.7b (up 6.0% from FY 2025). Net income: JP¥975.0m (down 67% from FY 2025). Profit margin: 1.7% (down from 5.4% in FY 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Zett Corporation, Annual General Meeting, Jun 25, 2026 Zett Corporation, Annual General Meeting, Jun 25, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.9%). New Risk • Mar 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 5.8% 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). Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (JP¥10.3b market cap, or US$65.5m). Reported Earnings • Feb 15
Third quarter 2026 earnings released: EPS: JP¥7.76 (vs JP¥107 in 3Q 2025) Third quarter 2026 results: EPS: JP¥7.76 (down from JP¥107 in 3Q 2025). Revenue: JP¥13.5b (up 5.9% from 3Q 2025). Net income: JP¥152.0m (down 93% from 3Q 2025). Profit margin: 1.1% (down from 17% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. New Risk • Nov 16
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 37% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (37% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥9.04b market cap, or US$58.5m). Reported Earnings • Aug 09
First quarter 2026 earnings released: EPS: JP¥10.68 (vs JP¥18.19 in 1Q 2025) First quarter 2026 results: EPS: JP¥10.68 (down from JP¥18.19 in 1Q 2025). Revenue: JP¥14.5b (up 6.9% from 1Q 2025). Net income: JP¥209.0m (down 41% from 1Q 2025). Profit margin: 1.4% (down from 2.6% in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 21
Full year 2025 earnings released: EPS: JP¥153 (vs JP¥41.38 in FY 2024) Full year 2025 results: EPS: JP¥153 (up from JP¥41.38 in FY 2024). Revenue: JP¥55.3b (up 6.5% from FY 2024). Net income: JP¥2.99b (up 269% from FY 2024). Profit margin: 5.4% (up from 1.6% in FY 2024). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Zett Corporation, Annual General Meeting, Jun 26, 2025 Zett Corporation, Annual General Meeting, Jun 26, 2025. New Risk • Mar 30
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 5.2% 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 (5.2% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥8.46b market cap, or US$56.5m). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 1.4% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥107 (vs JP¥5.52 in 3Q 2024) Third quarter 2025 results: EPS: JP¥107 (up from JP¥5.52 in 3Q 2024). Revenue: JP¥12.7b (up 6.9% from 3Q 2024). Net income: JP¥2.10b (up JP¥1.99b from 3Q 2024). Profit margin: 17% (up from 0.9% in 3Q 2024). 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 20% per year, which means it is significantly lagging earnings growth. Announcement • Oct 31
BS Investment Corporation Completed the acquisition of remaining 55.6% stake in Descente Ltd. (TSE:8114) from a group of shareholders. BS Investment Corporation proposed to acquire remaining 55.6% stake in Descente Ltd. (TSE:8114) from a group of shareholders for approximately ¥180 billion on August 5, 2024. A cash consideration of ¥182.62 billion will be paid by BS Investment Corporation at a price of ¥4,350 per share. The transaction is subject to minimum tender of 16,793,700 shares. The transaction is subject to approval of merger agreement by board of Descente and subject to antitrust regulations.
Nomura Securities Co., Ltd. acted as financial advisor for BS Investment Corporation. Nagashima Ohno & Tsunematsu acted as legal advisor for BS Investment Corporation. Mori Hamada & Matsumoto LPC acted as legal advisor for Descente Ltd. Daiwa Securities Co. Ltd. acted as financial advisor for Descente Ltd. Anderson Mori & Tomotsune LPC acted as legal advisor for Descente Ltd. Plutus Consulting Co., Ltd. acted as financial advisor for Descente Ltd. Plutus Consulting Co., Ltd. acted as due diligence provider for Descente Ltd. Daiwa Securities Co. Ltd. acted as fairness opinion provider for Descente Ltd.
BS Investment Corporation Completed the acquisition of remaining 55.6% stake in Descente Ltd. (TSE:8114) from a group of shareholders on October 29, 2024. Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥18.19 (vs JP¥13.59 in 1Q 2024) First quarter 2025 results: EPS: JP¥18.19 (up from JP¥13.59 in 1Q 2024). Revenue: JP¥13.5b (up 3.7% from 1Q 2024). Net income: JP¥356.0m (up 34% from 1Q 2024). Profit margin: 2.6% (up from 2.0% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 9% per year. Announcement • Aug 06
BS Investment Corporation proposed to acquire remaining 55.6% stake in Descente Ltd. (TSE:8114) from a group of shareholders for approximately ¥180 billion. BS Investment Corporation proposed to acquire remaining 55.6% stake in Descente Ltd. (TSE:8114) from a group of shareholders for approximately ¥180 billion on August 5, 2024. A cash consideration of ¥182.62 billion will be paid by BS Investment Corporation at a price of ¥4,350 per share.
The transaction is subject to minimum tender of 16,793,700 shares.
The transaction is subject to approval of merger agreement by board of Descente and subject to antitrust regulations.
Nomura Securities Co., Ltd. acted as financial advisor for BS Investment Corporation. Nagashima Ohno & Tsunematsu acted as legal advisor for BS Investment Corporation. Mori Hamada & Matsumoto LPC acted as legal advisor for Descente Ltd. Daiwa Securities Co. Ltd. acted as financial advisor for Descente Ltd. Anderson Mori & Tomotsune LPC acted as legal advisor for Descente Ltd. Plutus Consulting Co., Ltd. acted as financial advisor for Descente Ltd. Plutus Consulting Co., Ltd. acted as due diligence provider for Descente Ltd. Daiwa Securities Co. Ltd. acted as fairness opinion provider for Descente Ltd. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥260, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 10x in the Retail Distributors industry in Japan. Total loss to shareholders of 5.4% over the past three years. Reported Earnings • May 11
Full year 2024 earnings released: EPS: JP¥41.38 (vs JP¥46.24 in FY 2023) Full year 2024 results: EPS: JP¥41.38 (down from JP¥46.24 in FY 2023). Revenue: JP¥52.0b (up 4.1% from FY 2023). Net income: JP¥810.0m (down 11% from FY 2023). Profit margin: 1.6% (down from 1.8% 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 21% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • May 11
Zett Corporation, Annual General Meeting, Jun 27, 2024 Zett Corporation, Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 4.1% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.4%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥5.52 (vs JP¥0.46 in 3Q 2023) Third quarter 2024 results: EPS: JP¥5.52 (up from JP¥0.46 in 3Q 2023). Revenue: JP¥11.9b (flat on 3Q 2023). Net income: JP¥108.0m (up JP¥99.0m from 3Q 2023). Profit margin: 0.9% (up from 0.1% in 3Q 2023). 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 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥8.79 (vs JP¥8.99 in 2Q 2023) Second quarter 2024 results: EPS: JP¥8.79 (down from JP¥8.99 in 2Q 2023). Revenue: JP¥13.1b (up 3.2% from 2Q 2023). Net income: JP¥172.0m (down 2.3% from 2Q 2023). Profit margin: 1.3% (down from 1.4% 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 54% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 11
First quarter 2024 earnings released: EPS: JP¥13.59 (vs JP¥16.45 in 1Q 2023) First quarter 2024 results: EPS: JP¥13.59 (down from JP¥16.45 in 1Q 2023). Revenue: JP¥13.1b (up 6.6% from 1Q 2023). Net income: JP¥266.0m (down 17% from 1Q 2023). Profit margin: 2.0% (down from 2.6% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 14
Full year 2023 earnings released: EPS: JP¥46.23 (vs JP¥36.94 in FY 2022) Full year 2023 results: EPS: JP¥46.23 (up from JP¥36.94 in FY 2022). Revenue: JP¥49.9b (up 11% from FY 2022). Net income: JP¥905.0m (up 25% from FY 2022). Profit margin: 1.8% (up from 1.6% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 74% 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 13
Zett Corporation, Annual General Meeting, Jun 29, 2023 Zett Corporation, Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share at 2.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 5.1% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥319, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 12x in the Retail Distributors industry in Japan. Total returns to shareholders of 88% over the past three years. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥0.46 (vs JP¥4.39 in 3Q 2022) Third quarter 2023 results: EPS: JP¥0.46 (down from JP¥4.39 in 3Q 2022). Revenue: JP¥11.8b (up 11% from 3Q 2022). Net income: JP¥9.00m (down 90% from 3Q 2022). Profit margin: 0.1% (down from 0.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥8.99 (vs JP¥5.88 in 2Q 2022) Second quarter 2023 results: EPS: JP¥8.99 (up from JP¥5.88 in 2Q 2022). Revenue: JP¥12.7b (up 14% from 2Q 2022). Net income: JP¥176.0m (up 53% from 2Q 2022). Profit margin: 1.4% (up from 1.0% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 9 non-independent directors. Independent Outside Director Hitoshi Kuwayama was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Second quarter 2023 earnings released: EPS: JP¥8.99 (vs JP¥5.88 in 2Q 2022) Second quarter 2023 results: EPS: JP¥8.99 (up from JP¥5.88 in 2Q 2022). Revenue: JP¥12.7b (up 14% from 2Q 2022). Net income: JP¥176.0m (up 53% from 2Q 2022). Profit margin: 1.4% (up from 1.0% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥16.45 (vs JP¥13.23 in 1Q 2022) First quarter 2023 results: EPS: JP¥16.45 (up from JP¥13.23 in 1Q 2022). Revenue: JP¥12.2b (up 7.1% from 1Q 2022). Net income: JP¥322.0m (up 24% from 1Q 2022). Profit margin: 2.6% (up from 2.3% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • May 15
Full year 2022 earnings released: EPS: JP¥36.94 (vs JP¥5.57 in FY 2021) Full year 2022 results: EPS: JP¥36.94 (up from JP¥5.57 in FY 2021). Revenue: JP¥44.8b (up 19% from FY 2021). Net income: JP¥723.0m (up JP¥614.0m from FY 2021). Profit margin: 1.6% (up from 0.3% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 2% per year. Announcement • May 14
Zett Corporation, Annual General Meeting, Jun 29, 2022 Zett Corporation, Annual General Meeting, Jun 29, 2022. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 9 non-independent directors. Independent Outside Director Hitoshi Kuwayama was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 6.6% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.4%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥4.39 (down from JP¥10.17 in 3Q 2021). Revenue: JP¥10.6b (up 5.3% from 3Q 2021). Net income: JP¥86.0m (down 57% from 3Q 2021). Profit margin: 0.8% (down from 2.0% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Reported Earnings • Nov 13
Second quarter 2022 earnings released: EPS JP¥5.88 (vs JP¥6.44 in 2Q 2021) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2022 results: Revenue: JP¥11.1b (up 5.3% from 2Q 2021). Net income: JP¥115.0m (down 8.7% from 2Q 2021). Profit margin: 1.0% (down from 1.2% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Aug 09
First quarter 2022 earnings released: EPS JP¥13.23 (vs JP¥17.63 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥11.4b (up 78% from 1Q 2021). Net income: JP¥259.0m (up JP¥604.0m from 1Q 2021). Profit margin: 2.3% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 46% 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 • Jul 26
Investor sentiment improved over the past week After last week's 23% share price gain to JP¥380, the stock trades at a trailing P/E ratio of 68.2x. Average trailing P/E is 12x in the Retail Distributors industry in Japan. Total returns to shareholders of 60% over the past three years. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment improved over the past week After last week's 37% share price gain to JP¥341, the stock trades at a trailing P/E ratio of 61.2x. Average trailing P/E is 13x in the Retail Distributors industry in Japan. Total returns to shareholders of 52% over the past three years. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥5.57 (vs JP¥10.68 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥37.6b (down 10% from FY 2020). Net income: JP¥109.0m (down 48% from FY 2020). Profit margin: 0.3% (down from 0.5% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 62% 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. Is New 90 Day High Low • Feb 24
New 90-day high: JP¥230 The company is up 18% from its price of JP¥195 on 26 November 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is down 2.0% over the same period. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥10.17 (vs JP¥5.77 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥10.1b (up 7.4% from 3Q 2020). Net income: JP¥199.0m (up JP¥312.0m from 3Q 2020). Profit margin: 2.0% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 52% 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. Is New 90 Day High Low • Dec 23
New 90-day high: JP¥217 The company is up 14% from its price of JP¥191 on 24 September 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is down 4.0% over the same period. Is New 90 Day High Low • Dec 07
New 90-day high: JP¥203 The company is up 5.0% from its price of JP¥193 on 08 September 2020. The Japanese market is up 10.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Retail Distributors industry, which is up 2.0% over the same period. Announcement • Nov 26
Zett Corporation (TSE:8135) agreed to acquire Sportswear Wholesale Business of Ben-General Corp. Zett Corporation (TSE:8135) agreed to acquire Sportswear Wholesale Business of Ben-General Corp on November 25, 2020. The directors and employees of Ben-General in connection with the Business who have been interviewed and have agreed to transfer to Zett under the terms and conditions of employment offered by Zett will be transferred after the Transfer Date. The deal is expected to be completed by April 1, 2021. The impact on the consolidated business results for the current fiscal year is insignificant and will not change from the business forecast announced in the Notice of Business Forecast for the fiscal year ending March 31, 2021 on July 15, 2020 
