Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 44% After last week's 44% share price gain to JP¥2,273, the stock trades at a trailing P/E ratio of 77.1x. Average trailing P/E is 17x in the Communications industry in Japan. Total returns to shareholders of 776% over the past three years. Reported Earnings • May 19
First quarter 2026 earnings released: EPS: JP¥8.63 (vs JP¥4.93 in 1Q 2025) First quarter 2026 results: EPS: JP¥8.63 (up from JP¥4.93 in 1Q 2025). Revenue: JP¥3.89b (up 13% from 1Q 2025). Net income: JP¥262.0m (up 76% from 1Q 2025). Profit margin: 6.7% (up from 4.3% in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 70% per year, which means it is well ahead of earnings. Announcement • May 17
Future Innovation Group, Inc. to Report Q2, 2026 Results on Aug 07, 2026 Future Innovation Group, Inc. announced that they will report Q2, 2026 results on Aug 07, 2026 Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥429, the stock trades at a trailing P/E ratio of 16.6x. Average trailing P/E is 13x in the Communications industry in Japan. Total returns to shareholders of 60% over the past three years. Board Change • Apr 18
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Yoshiaki Kinoshita was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 15
Full year 2025 earnings released: EPS: JP¥25.82 (vs JP¥46.72 loss in FY 2024) Full year 2025 results: EPS: JP¥25.82 (up from JP¥46.72 loss in FY 2024). Revenue: JP¥13.3b (up 11% from FY 2024). Net income: JP¥783.0m (up JP¥2.20b from FY 2024). Profit margin: 5.9% (up from net loss in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Announcement • Feb 13
Future Innovation Group, Inc., Annual General Meeting, Mar 30, 2026 Future Innovation Group, Inc., Annual General Meeting, Mar 30, 2026. New Risk • Jan 23
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 49% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (5.3% average weekly change). Market cap is less than US$100m (JP¥10.7b market cap, or US$67.2m). Upcoming Dividend • Dec 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 31 March 2026. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.9%). Announcement • Dec 03
Future Innovation Group, Inc. to Report Fiscal Year 2025 Results on Feb 13, 2026 Future Innovation Group, Inc. announced that they will report fiscal year 2025 results at 3:00 PM, Tokyo Standard Time on Feb 13, 2026 New Risk • Nov 22
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 3.4% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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 47% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (JP¥9.05b market cap, or US$57.9m). Declared Dividend • Aug 10
Dividend of JP¥5.00 announced Dividend of JP¥5.00 is the same as last year. Ex-date: 29th December 2025 Payment date: 1st January 1970 Dividend yield will be 1.7%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (6% cash payout ratio). The dividend has not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. Announcement • Aug 09
Future Innovation Group, Inc. to Report Q3, 2025 Results on Nov 14, 2025 Future Innovation Group, Inc. announced that they will report Q3, 2025 results on Nov 14, 2025 Reported Earnings • May 19
First quarter 2025 earnings released: EPS: JP¥4.93 (vs JP¥9.01 in 1Q 2024) First quarter 2025 results: EPS: JP¥4.93 (down from JP¥9.01 in 1Q 2024). Revenue: JP¥3.45b (up 13% from 1Q 2024). Net income: JP¥149.0m (down 45% from 1Q 2024). Profit margin: 4.3% (down from 8.9% in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 93 percentage points per year, which is a significant difference in performance. Announcement • May 15
Future Innovation Group, Inc. to Report Q2, 2025 Results on Aug 08, 2025 Future Innovation Group, Inc. announced that they will report Q2, 2025 results on Aug 08, 2025 New Risk • Apr 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 5.7% 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 3.1% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (162% payout ratio). Share price has been volatile over the past 3 months (5.7% average weekly change). Market cap is less than US$100m (JP¥6.38b market cap, or US$43.7m). Reported Earnings • Apr 05
Full year 2024 earnings released: JP¥46.72 loss per share (vs JP¥6.97 profit in FY 2023) Full year 2024 results: JP¥46.72 loss per share (down from JP¥6.97 profit in FY 2023). Revenue: JP¥12.0b (down 11% from FY 2023). Net loss: JP¥1.41b (down JP¥1.62b from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 65 percentage points per year, which is a significant difference in performance. Announcement • Mar 21
Hakuhodo Co., Ltd. agreed to acquire OPTSP Co., Ltd. from Future Innovation Group, Inc. (TSE:4392) for approximately ¥210 million. Hakuhodo Co., Ltd. agreed to acquire OPTSP Co., Ltd. from Future Innovation Group, Inc. (TSE:4392) for approximately ¥210 million on March 19, 2025. A cash consideration of ¥213 million will be paid by Hakuhodo for 420 shares.
For the period ending December 31, 2024, OPTSP Co., Ltd. reported total revenue of ¥411 million, operating loss of ¥10 million and net loss of ¥11 million. As of December 31, 2024, OPTSP Co., Ltd. reported total assets of ¥228 million and total common equity of ¥106 million. The expected completion of the transaction is April 1, 2025. Reported Earnings • Feb 20
Full year 2024 earnings released: JP¥46.72 loss per share (vs JP¥6.97 profit in FY 2023) Full year 2024 results: JP¥46.72 loss per share (down from JP¥6.97 profit in FY 2023). Revenue: JP¥12.0b (down 11% from FY 2023). Net loss: JP¥1.41b (down JP¥1.62b from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Announcement • Feb 20
Future Innovation Group, Inc. to Report Q1, 2025 Results on May 14, 2025 Future Innovation Group, Inc. announced that they will report Q1, 2025 results on May 14, 2025 Announcement • Feb 19
Future Innovation Group, Inc., Annual General Meeting, Mar 28, 2025 Future Innovation Group, Inc., Annual General Meeting, Mar 28, 2025. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.7%). Announcement • Dec 03
Future Innovation Group, Inc. to Report Fiscal Year 2024 Results on Feb 14, 2025 Future Innovation Group, Inc. announced that they will report fiscal year 2024 results on Feb 14, 2025 Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to JP¥363, the stock trades at a trailing P/E ratio of 67.4x. Average trailing P/E is 11x in the Communications industry in Japan. Total returns to shareholders of 40% over the past three years. Reported Earnings • Aug 14
Second quarter 2024 earnings released: EPS: JP¥0.76 (vs JP¥5.18 in 2Q 2023) Second quarter 2024 results: EPS: JP¥0.76 (down from JP¥5.18 in 2Q 2023). Revenue: JP¥2.80b (down 21% from 2Q 2023). Net income: JP¥23.0m (down 85% from 2Q 2023). Profit margin: 0.8% (down from 4.4% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Declared Dividend • Aug 11
Dividend of JP¥5.00 announced Dividend of JP¥5.00 is the same as last year. Ex-date: 27th December 2024 Payment date: 27th March 2025 Dividend yield will be 1.9%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (51% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has not increased over the past 10 years but has been stable with no material reductions to payments, indicating a long track record of dividend stability. The company's earnings per share (EPS) would need to decline by 43% to shift the payout ratio to a potentially unsustainable range, which is more than the 7.1% EPS decline seen over the last 5 years. Announcement • Aug 10
Future Innovation Group, Inc. to Report Q3, 2024 Results on Nov 12, 2024 Future Innovation Group, Inc. announced that they will report Q3, 2024 results on Nov 12, 2024 Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 26% After last week's 26% share price decline to JP¥229, the stock trades at a trailing P/E ratio of 23.4x. Average trailing P/E is 12x in the Communications industry in Japan. Total loss to shareholders of 14% over the past three years. New Risk • Aug 02
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% 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: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.3% net profit margin). Market cap is less than US$100m (JP¥8.93b market cap, or US$59.8m). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: JP¥9.01 (vs JP¥6.18 in 1Q 2023) First quarter 2024 results: EPS: JP¥9.01 (up from JP¥6.18 in 1Q 2023). Revenue: JP¥3.06b (down 12% from 1Q 2023). Net income: JP¥272.0m (up 46% from 1Q 2023). Profit margin: 8.9% (up from 5.4% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • May 17
Future Innovation Group, Inc. to Report Q2, 2024 Results on Aug 09, 2024 Future Innovation Group, Inc. announced that they will report Q2, 2024 results on Aug 09, 2024 New Risk • Apr 22
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 6.3% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Market cap is less than US$100m (JP¥11.9b market cap, or US$76.8m). Reported Earnings • Feb 17
Full year 2023 earnings released: EPS: JP¥6.97 (vs JP¥23.33 in FY 2022) Full year 2023 results: EPS: JP¥6.97 (down from JP¥23.33 in FY 2022). Revenue: JP¥13.5b (up 4.8% from FY 2022). Net income: JP¥210.0m (down 69% from FY 2022). Profit margin: 1.6% (down from 5.3% in FY 2022). Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 6% per year. Announcement • Feb 16
Future Innovation Group, Inc. to Report Q1, 2024 Results on May 14, 2024 Future Innovation Group, Inc. announced that they will report Q1, 2024 results on May 14, 2024 Announcement • Feb 14
Future Innovation Group, Inc., Annual General Meeting, Mar 26, 2024 Future Innovation Group, Inc., Annual General Meeting, Mar 26, 2024. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥5.00 per share at 1.5% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 29 March 2024. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (3.0%). Announcement • Dec 05
Future Innovation Group, Inc. to Report Fiscal Year 2023 Results on Feb 14, 2024 Future Innovation Group, Inc. announced that they will report fiscal year 2023 results on Feb 14, 2024 Reported Earnings • Nov 20
Third quarter 2023 earnings released: EPS: JP¥2.32 (vs JP¥3.57 in 3Q 2022) Third quarter 2023 results: EPS: JP¥2.32 (down from JP¥3.57 in 3Q 2022). Revenue: JP¥3.27b (up 5.6% from 3Q 2022). Net income: JP¥70.0m (down 33% from 3Q 2022). Profit margin: 2.1% (down from 3.4% 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 33% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. New Risk • Oct 26
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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (5.3% average weekly change). Shareholders have been diluted in the past year (2.7% increase in shares outstanding). Market cap is less than US$100m (JP¥9.63b market cap, or US$64.1m). Reported Earnings • Aug 14
Second quarter 2023 earnings released: EPS: JP¥5.68 (vs JP¥6.55 in 2Q 2022) Second quarter 2023 results: EPS: JP¥5.68 (down from JP¥6.55 in 2Q 2022). Revenue: JP¥3.50b (up 20% from 2Q 2022). Net income: JP¥171.0m (down 11% from 2Q 2022). Profit margin: 4.9% (down from 6.6% in 2Q 2022). The decrease in margin was driven by higher expenses. 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 7% per year, which means it is significantly lagging earnings growth. Announcement • Aug 12
Future Innovation Group, Inc. to Report Q3, 2023 Results on Nov 14, 2023 Future Innovation Group, Inc. announced that they will report Q3, 2023 results on Nov 14, 2023 Announcement • May 12
Future Innovation Group, Inc. to Report Q2, 2023 Results on Aug 10, 2023 Future Innovation Group, Inc. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • May 12
First quarter 2023 earnings released: EPS: JP¥6.18 (vs JP¥8.10 in 1Q 2022) First quarter 2023 results: EPS: JP¥6.18 (down from JP¥8.10 in 1Q 2022). Revenue: JP¥3.47b (down 2.1% from 1Q 2022). Net income: JP¥186.0m (down 22% from 1Q 2022). Profit margin: 5.4% (down from 6.7% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: JP¥23.33 (vs JP¥15.09 in FY 2021) Full year 2022 results: EPS: JP¥23.33 (up from JP¥15.09 in FY 2021). Revenue: JP¥12.9b (up 5.3% from FY 2021). Net income: JP¥685.0m (up 55% from FY 2021). Profit margin: 5.3% (up from 3.6% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 76% 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 • Feb 12
Full year 2022 earnings released: EPS: JP¥23.33 (vs JP¥15.09 in FY 2021) Full year 2022 results: EPS: JP¥23.33 (up from JP¥15.09 in FY 2021). Revenue: JP¥12.9b (up 5.3% from FY 2021). Net income: JP¥685.0m (up 55% from FY 2021). Profit margin: 5.3% (up from 3.6% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥313, the stock trades at a trailing P/E ratio of 13x. Average trailing P/E is 12x in the Communications industry in Japan. Total returns to shareholders of 14% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 30 March 2023. Payout ratio is a comfortable 21% but the company is paying out more than the cash it is generating. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.1%). Announcement • Dec 06
Future Innovation Group, Inc. to Report Fiscal Year 2022 Results on Feb 09, 2023 Future Innovation Group, Inc. announced that they will report fiscal year 2022 results on Feb 09, 2023 Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: JP¥3.57 (vs JP¥1.03 in 3Q 2021) Third quarter 2022 results: EPS: JP¥3.57 (up from JP¥1.03 in 3Q 2021). Revenue: JP¥3.10b (up 14% from 3Q 2021). Net income: JP¥105.0m (up 250% from 3Q 2021). Profit margin: 3.4% (up from 1.1% in 3Q 2021). 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 9% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors 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. 3 experienced directors. 3 highly experienced directors. No independent directors (7 non-independent directors). Director Masaaki Morimoto 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: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: JP¥3.57 (vs JP¥1.03 in 3Q 2021) Third quarter 2022 results: EPS: JP¥3.57 (up from JP¥1.03 in 3Q 2021). Revenue: JP¥3.10b (up 14% from 3Q 2021). Net income: JP¥105.0m (up 250% from 3Q 2021). Profit margin: 3.4% (up from 1.1% in 3Q 2021). 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 9% per year, which means it is significantly lagging earnings growth. Announcement • Aug 17
Future Innovation Group, Inc. Provides Consolidated Earnings Guidance for the Year Ending December 31, 2022 Future Innovation Group, Inc. provided consolidated earnings guidance for the year ending December 31, 2022. For the year, the company expected net sales of JPY 13,000 million, operating income of JPY 900 million, net income attributable to owners of parent of JPY 574 million or JPY 18.41 per basic share. Announcement • Aug 16
Future Innovation Group, Inc. Provides Dividend Guidance for the Year Ending December 31, 2022 Future Innovation Group, Inc. provided dividend guidance for the year ending December 31, 2022. For the year, the company expects to pay dividend of JPY 5.00 against JPY 5.00 a year ago. Reported Earnings • Aug 12
Second quarter 2022 earnings released: EPS: JP¥6.55 (vs JP¥3.56 in 2Q 2021) Second quarter 2022 results: EPS: JP¥6.55 (up from JP¥3.56 in 2Q 2021). Revenue: JP¥2.92b (down 1.2% from 2Q 2021). Net income: JP¥192.0m (up 85% from 2Q 2021). Profit margin: 6.6% (up from 3.5% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Aug 12
Future Innovation Group, Inc. to Report Q3, 2022 Results on Nov 11, 2022 Future Innovation Group, Inc. announced that they will report Q3, 2022 results on Nov 11, 2022 Announcement • Jul 15
Future Innovation Group, Inc. announced that it has received ¥4.33 million in funding On July 13, 2022, Future Innovation Group, Inc. closed the transaction. Announcement • Jun 29
Future Innovation Group, Inc. announced that it expects to receive ¥4.33 million in funding Future Innovation Group, Inc. announced a private placement of 20,000 2nd stock acquisition rights at ¥200 per stock acquisition right for gross proceeds of ¥4,000,000, 5,000 3rd stock acquisition rights at ¥45 per stock acquisition right for gross proceeds of ¥225,000, 5,000 4th stock acquisition rights at ¥21 per stock acquisition right for gross proceeds of ¥105,000, for aggregate gross proceeds of ¥4,330,000 on June 27, 2022. The potential shares from the issuance of 2nd stock acquisition rights will be 2,000,000 shares, 3rd stock acquisition rights will be 500,000 shares and 4th stock acquisition rights will be 500,000 shares. The initial exercise price is ¥400 for the 2nd stock acquisition rights, ¥550 for the 3rd stock acquisition rights, and ¥650 for the 4th stock acquisition rights for a period from July 14, 2022 to July 16, 2024. The transaction will happen through third party allocation. The company will incur issuance expenses with respect to the transaction including stock acquisition rights calculation and evaluation fees, change registration costs, and attorney's fees for ¥4,750,000. The issue date for stock acquisition rights will be July 13, 2022. The transaction has been approved at board of directors’ meeting of the company. Announcement • May 18
Future Innovation Group, Inc. Provides Consolidated Earnings Guidance for the Year Ending December 31, 2022 Future Innovation Group, Inc. provided consolidated earnings guidance for the year ending December 31, 2022. For the year, the company expected net sales of JPY 13,000 million, operating income of JPY 750 million, net income attributable to owners of parent of JPY 474 million or JPY 16.20 per basic share. Reported Earnings • May 16
First quarter 2022 earnings released: EPS: JP¥8.10 (vs JP¥4.53 in 1Q 2021) First quarter 2022 results: EPS: JP¥8.10 (up from JP¥4.53 in 1Q 2021). Revenue: JP¥3.54b (up 18% from 1Q 2021). Net income: JP¥237.0m (up 80% from 1Q 2021). Profit margin: 6.7% (up from 4.4% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • May 14
Future Innovation Group, Inc. to Report Q2, 2022 Results on Aug 10, 2022 Future Innovation Group, Inc. announced that they will report Q2, 2022 results on Aug 10, 2022 Board Change • Apr 27
No independent directors 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. 5 experienced directors. 3 highly experienced directors. No independent directors (9 non-independent directors). Director Masaaki Morimoto 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: Lack of independent directors. Insufficient board refreshment. Announcement • Feb 19
Future Innovation Group, Inc. Provides Dividend Guidance for the Year Ending December 31, 2022; Announces Cash Dividend for the Year Ended December 31, 2021, Payable on March 30, 2022 Future Innovation Group, Inc. provided dividend guidance for the year ending December 31, 2022. For the year, the company expects to pay dividend of JPY 5.00 against JPY 5.00 a year ago. For the year ended December 31, 2021, the company announced cash dividend of JPY 5.00 against JPY 5.00 a year ago. The dividend will be payable on March 30, 2022. Announcement • Feb 18
Future Innovation Group, Inc. Provides Consolidated Earnings Guidance for the Year Ending December December 31, 2022 Future Innovation Group, Inc. provided consolidated earnings guidance for the year ending December December 31, 2022. For the year, the company expects net sales of JPY 13,000 million, operating profit of JPY 750 million, profit attributable to owners of parent of JPY 474 million or JPY 16.20 per basic share. Reported Earnings • Feb 14
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥15.09 (up from JP¥5.84 in FY 2020). Revenue: JP¥12.3b (up 19% from FY 2020). Net income: JP¥441.0m (up 161% from FY 2020). Profit margin: 3.6% (up from 1.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 30 March 2022. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (3.0%). Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥350, the stock trades at a trailing P/E ratio of 13.7x. Average trailing P/E is 11x in the Communications industry in Japan. Total loss to shareholders of 4.3% over the past three years. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS JP¥1.03 (vs JP¥3.88 loss in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥2.72b (down 1.2% from 3Q 2020). Net income: JP¥30.0m (up JP¥143.0m from 3Q 2020). Profit margin: 1.1% (up from net loss in 3Q 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 8% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS JP¥4.04 (vs JP¥1.25 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥2.98b (up 17% from 2Q 2020). Net income: JP¥118.0m (up JP¥154.0m from 2Q 2020). Profit margin: 4.0% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 6% per year and the company’s share price has also fallen by 6% per year. Announcement • May 21
Future Innovation Group, Inc. Provides Earnings Guidance for the Fiscal Year Ending December 31, 2021 Future Innovation Group, Inc. provided earnings guidance for the Fiscal Year Ending December 31, 2021. For the year, the company expects Net sales of JPY 11,000 million, Operating profit of JPY 500 million, Ordinary profit of JPY 468 million and basic earnings per share of JPY 10.15. Announcement • May 20
Future Innovation Group, Inc. Provides Dividend Guidance for the Year Ended December 31, 2021 Future Innovation Group, Inc. provided dividend guidance for the year ended December 31, 2021. For the year, the company expects to pay a dividend of JPY 5.00 against JPY 5.00 paid a year ago. Reported Earnings • Apr 04
Full year 2020 earnings released: EPS JP¥5.84 (vs JP¥1.85 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥10.3b (up 8.7% from FY 2019). Net income: JP¥169.0m (up 225% from FY 2019). Profit margin: 1.6% (up from 0.5% in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Announcement • Feb 14
Future Innovation Group, Inc. to Report Q1, 2021 Results on May 14, 2021 Future Innovation Group, Inc. announced that they will report Q1, 2021 results on May 14, 2021 Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥5.84 (vs JP¥1.85 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: JP¥10.3b (up 8.7% from FY 2019). Net income: JP¥169.0m (up 225% from FY 2019). Profit margin: 1.6% (up from 0.5% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 68% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Dec 11
New 90-day high: JP¥282 The company is up 8.0% from its price of JP¥261 on 11 September 2020. The Japanese market is also up 8.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Communications industry, which is up 5.0% over the same period.