Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,925, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 222% over the past three years. New Risk • Jun 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.9b (US$99.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings are forecast to decline by an average of 2.1% per year for the foreseeable future. High level of non-cash earnings (47% accrual ratio). Minor Risk Market cap is less than US$100m (JP¥15.9b market cap, or US$99.3m). Announcement • Jun 01
MINATO HOLDINGS INC. to Report Q1, 2027 Results on Aug 10, 2026 MINATO HOLDINGS INC. announced that they will report Q1, 2027 results on Aug 10, 2026 Announcement • May 28
MINATO HOLDINGS INC. (TSE:6862) announces an Equity Buyback for 100,000 shares, representing 1.34% for ¥350 million. MINATO HOLDINGS INC. (TSE:6862) announces a share repurchase program. Under the program, the company will repurchase up to 100,000 shares, representing 1.34% of its issued share capital (excluding treasury stock), for a total purchase price of ¥130 million. The purpose of the program is to return profits to shareholders, to be used in M&A, to be allocated to restricted stock issued to directors of our company and our subsidiaries, and to enable the implementation of a flexible capital policy in response to changes in the business environment. The program will continue through May 31, 2027. As of March 31, 2026, the company had 7,440,310 issued shares (excluding treasury stock) and 485,404 treasury shares. Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to JP¥2,561, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 354% over the past three years. Reported Earnings • May 13
Full year 2026 earnings: EPS in line with analyst expectations despite revenue beat Full year 2026 results: EPS: JP¥283 (up from JP¥50.25 in FY 2025). Revenue: JP¥36.6b (up 49% from FY 2025). Net income: JP¥2.11b (up 465% from FY 2025). Profit margin: 5.8% (up from 1.5% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 14%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to stay flat during the next 2 years compared to a 7.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 70% per year, which means it is well ahead of earnings. Announcement • May 12
MINATO HOLDINGS INC., Annual General Meeting, Jun 26, 2026 MINATO HOLDINGS INC., Annual General Meeting, Jun 26, 2026. Announcement • May 10
MINATO HOLDINGS INC. to Report Fiscal Year 2026 Results on May 12, 2026 MINATO HOLDINGS INC. announced that they will report fiscal year 2026 results on May 12, 2026 Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,840, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 444% over the past three years. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥2,030, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 277% over the past three years. New Risk • Mar 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.4b (US$96.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (9.1% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risk Market cap is less than US$100m (JP¥15.4b market cap, or US$96.8m). 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: 30 June 2026. Payout ratio is a comfortable 6.7% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥2,337, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 359% over the past three years. Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥156 (vs JP¥21.11 in 3Q 2025) Third quarter 2026 results: EPS: JP¥156 (up from JP¥21.11 in 3Q 2025). Revenue: JP¥11.7b (up 84% from 3Q 2025). Net income: JP¥1.16b (up JP¥1.00b from 3Q 2025). Profit margin: 9.9% (up from 2.5% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 43% per year, which means it is well ahead of earnings. New Risk • Feb 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 9.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (9.1% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (9.9% average weekly change). Earnings are forecast to decline by an average of 9.8% per year for the foreseeable future. Minor Risk Market cap is less than US$100m (JP¥11.3b market cap, or US$73.7m). Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,499, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 208% over the past three years. Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,515, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 285% over the past three years. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to JP¥1,337, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 225% over the past three years. Announcement • Nov 29
MINATO HOLDINGS INC. to Report Q3, 2026 Results on Feb 10, 2026 MINATO HOLDINGS INC. announced that they will report Q3, 2026 results on Feb 10, 2026 Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: JP¥49.87 (vs JP¥26.64 in 2Q 2025) Second quarter 2026 results: EPS: JP¥49.87 (up from JP¥26.64 in 2Q 2025). Revenue: JP¥7.33b (up 2.1% from 2Q 2025). Net income: JP¥373.0m (up 88% from 2Q 2025). Profit margin: 5.1% (up from 2.8% in 2Q 2025). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. New Risk • Nov 12
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 6.1% 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 (0.9% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (JP¥7.42b market cap, or US$47.9m). Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥1,001, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 126% over the past three years. Announcement • Sep 03
MINATO HOLDINGS INC. to Report Q2, 2026 Results on Nov 11, 2025 MINATO HOLDINGS INC. announced that they will report Q2, 2026 results on Nov 11, 2025 Reported Earnings • Aug 10
First quarter 2026 earnings released: EPS: JP¥5.26 (vs JP¥5.00 in 1Q 2025) First quarter 2026 results: EPS: JP¥5.26 (up from JP¥5.00 in 1Q 2025). Revenue: JP¥5.19b (up 11% from 1Q 2025). Net income: JP¥39.0m (up 5.4% from 1Q 2025). Profit margin: 0.8% (in line with 1Q 2025). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. Announcement • Jul 25
MINATO HOLDINGS INC. (TSE:6862) announces an Equity Buyback for 125,000 shares, representing 1.58% for ¥150 million. MINATO HOLDINGS INC. (TSE:6862) announces a share repurchase program. Under the program, the company will repurchase up to 125,000 shares, representing 1.58% of its issued share capital (excluding treasury stock), for a total purchase price of ¥150 million. The purpose of the program is to enhance shareholder returns, utilize shares in M&A activities, allocate shares with transfer restrictions to directors of the company and its subsidiaries, and enable flexible capital policies in response to changes in the business environment, taking into account the market price of the company's shares and its financial situation. The program will continue through December 30, 2025. As of June 30, 2025, the company had 7,925,714 issued shares (excluding treasury stock) and 516,176 treasury shares. Announcement • Jun 14
MINATO HOLDINGS INC. to Report Q1, 2026 Results on Aug 08, 2025 MINATO HOLDINGS INC. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 14
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥50.25 (down from JP¥199 in FY 2024). Revenue: JP¥24.5b (up 29% from FY 2024). Net income: JP¥373.0m (down 75% from FY 2024). Profit margin: 1.5% (down from 7.8% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.7%. Earnings per share (EPS) missed analyst estimates by 25%. Revenue is forecast to grow 3.0% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Announcement • May 12
MINATO HOLDINGS INC., Annual General Meeting, Jun 27, 2025 MINATO HOLDINGS INC., Annual General Meeting, Jun 27, 2025. Announcement • May 02
MINATO HOLDINGS INC. (TSE:6862) acquired unknown minority stake in Brain Inc. and Daiki Sound Co., Ltd. from Media Trust Co.,Ltd. on May 1, 2025. MINATO HOLDINGS INC. (TSE:6862) agreed to acquire an unknown minority stake in Brain Inc. and Daiki Sound Co., Ltd. from Media Trust Co.,Ltd. on April 23, 2025. Upon completion, MINATO HOLDINGS INC. shall own 99% stake in Brain Inc. and 51% stake in Daiki Sound Co., Ltd. The expected completion of the transaction is May 1, 2025.
MINATO HOLDINGS INC. (TSE:6862) completed the acquisition of unknown minority stake in Brain Inc. and Daiki Sound Co., Ltd. from Media Trust Co.,Ltd. on May 1, 2025. New Risk • Apr 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (8.5% average weekly change). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.6% net profit margin). Market cap is less than US$100m (JP¥5.79b market cap, or US$39.6m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥782, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 85% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 28%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Announcement • Mar 01
MINATO HOLDINGS INC. to Report Fiscal Year 2025 Results on May 12, 2025 MINATO HOLDINGS INC. announced that they will report fiscal year 2025 results on May 12, 2025 Announcement • Feb 28
MINATO HOLDINGS INC. (TSE:6862) agreed to acquire 16% stake in Daiki Sound Co., Ltd. from Brain Inc. MINATO HOLDINGS INC. (TSE:6862) agreed to acquire 16% stake in Daiki Sound Co., Ltd. from Brain Inc. on February 27, 2025. Brain Inc. will use the proceeds from the transfer of Daiki Sound shares to make strategic investments necessary for future growth and to expand its business.
The expected completion of the transaction is March 5, 2025. Reported Earnings • Feb 12
Third quarter 2025 earnings released: EPS: JP¥21.11 (vs JP¥27.90 in 3Q 2024) Third quarter 2025 results: EPS: JP¥21.11 (down from JP¥27.90 in 3Q 2024). Revenue: JP¥6.37b (up 33% from 3Q 2024). Net income: JP¥157.0m (down 25% from 3Q 2024). Profit margin: 2.5% (down from 4.4% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 03
MINATO HOLDINGS INC. to Report Q3, 2025 Results on Feb 10, 2025 MINATO HOLDINGS INC. announced that they will report Q3, 2025 results on Feb 10, 2025 Reported Earnings • Nov 14
Second quarter 2025 earnings released: EPS: JP¥26.64 (vs JP¥51.12 in 2Q 2024) Second quarter 2025 results: EPS: JP¥26.64 (down from JP¥51.12 in 2Q 2024). Revenue: JP¥7.18b (up 61% from 2Q 2024). Net income: JP¥198.0m (down 48% from 2Q 2024). Profit margin: 2.8% (down from 8.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Electronic industry in Japan. 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 21% per year. Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to JP¥911, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 95% over the past three years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥715, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 70% over the past three years. Reported Earnings • Aug 11
First quarter 2025 earnings released: EPS: JP¥5.00 (vs JP¥122 in 1Q 2024) First quarter 2025 results: EPS: JP¥5.00 (down from JP¥122 in 1Q 2024). Revenue: JP¥4.70b (down 4.4% from 1Q 2024). Net income: JP¥37.0m (down 96% from 1Q 2024). Profit margin: 0.8% (down from 19% in 1Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to JP¥523, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 25% over the past three years. Announcement • Jun 28
MINATO HOLDINGS INC. to Report Q1, 2025 Results on Aug 09, 2024 MINATO HOLDINGS INC. announced that they will report Q1, 2025 results on Aug 09, 2024 New Risk • May 29
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: 1.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (1.9% operating cash flow to total debt). High level of non-cash earnings (37% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (JP¥5.46b market cap, or US$34.7m). Reported Earnings • May 19
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: JP¥199 (up from JP¥78.32 in FY 2023). Revenue: JP¥19.0b (down 16% from FY 2023). Net income: JP¥1.48b (up 151% from FY 2023). Profit margin: 7.8% (up from 2.6% in FY 2023). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 1.3%. Revenue is forecast to grow 9.5% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 44% 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 16
MINATO HOLDINGS INC., Annual General Meeting, Jun 27, 2024 MINATO HOLDINGS INC., Annual General Meeting, Jun 27, 2024. Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥862, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 107% over the past three years. Announcement • Mar 21
MINATO HOLDINGS INC. to Report Fiscal Year 2024 Results on May 14, 2024 MINATO HOLDINGS INC. announced that they will report fiscal year 2024 results on May 14, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 4.7% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.4%). Announcement • Feb 27
MINATO HOLDINGS INC. (TSE:6862) announces an Equity Buyback for 100,000 shares, representing 1.34% for ¥150 million. MINATO HOLDINGS INC. (TSE:6862) announces a share repurchase program. Under the program, the company will repurchase up to 100,000 shares, representing 1.34% of its issued share capital (excluding treasury stock), for a total purchase price of ¥150 million. The purpose of the program is to enable the execution of flexible capital policies in response to the situation. The program will continue through October 31, 2024. As of December 31, 2023, the company had 7,450,704 issued shares (excluding treasury stock) and 432,010 treasury shares. New Risk • Feb 26
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.9% average weekly change). Earnings are forecast to decline by an average of 5.8% per year for the foreseeable future. Minor Risks High level of debt (44% net debt to equity). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥9.46b market cap, or US$62.7m). Reported Earnings • Feb 11
Third quarter 2024 earnings released: EPS: JP¥27.90 (vs JP¥18.22 in 3Q 2023) Third quarter 2024 results: EPS: JP¥27.90 (up from JP¥18.22 in 3Q 2023). Revenue: JP¥4.78b (down 14% from 3Q 2023). Net income: JP¥208.0m (up 51% from 3Q 2023). Profit margin: 4.4% (up from 2.5% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 46% per year whereas the company’s share price has increased by 45% per year. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥1,513, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 255% over the past three years. Announcement • Nov 27
MINATO HOLDINGS INC. to Report Q3, 2024 Results on Feb 09, 2024 MINATO HOLDINGS INC. announced that they will report Q3, 2024 results on Feb 09, 2024 Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 40% After last week's 40% share price gain to JP¥1,080, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 155% over the past three years. Reported Earnings • Nov 12
Second quarter 2024 earnings released: EPS: JP¥51.12 (vs JP¥26.32 in 2Q 2023) Second quarter 2024 results: EPS: JP¥51.12 (up from JP¥26.32 in 2Q 2023). Revenue: JP¥4.47b (down 20% from 2Q 2023). Net income: JP¥384.0m (up 92% from 2Q 2023). Profit margin: 8.6% (up from 3.6% in 2Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. 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 19% per year, which means it is significantly lagging earnings growth. New Risk • Oct 11
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.4% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.4% average weekly change). Earnings are forecast to decline by an average of 8.8% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (JP¥5.79b market cap, or US$38.9m). Announcement • Sep 28
MINATO HOLDINGS INC. to Report Q2, 2024 Results on Nov 10, 2023 MINATO HOLDINGS INC. announced that they will report Q2, 2024 results on Nov 10, 2023 New Risk • Aug 17
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 8.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 8.8% per year for the foreseeable future. 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 (6.2% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥4.47b market cap, or US$30.7m). Reported Earnings • Aug 16
First quarter 2024 earnings released: EPS: JP¥122 (vs JP¥19.74 in 1Q 2023) First quarter 2024 results: EPS: JP¥122 (up from JP¥19.74 in 1Q 2023). Revenue: JP¥4.92b (down 19% from 1Q 2023). Net income: JP¥911.0m (up JP¥763.0m from 1Q 2023). Profit margin: 19% (up from 2.4% in 1Q 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Jul 26
MINATO HOLDINGS INC. (TSE:6862) announces an Equity Buyback for 200,000 shares, representing 2.68% for ¥140 million. MINATO HOLDINGS INC. (TSE:6862) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 2.68% of its issued share capital (excluding treasury stock), for a total purchase price of ¥140 million. The company will repurchase its shares for the purpose of returning profits to shareholders, utilizing such shares in M&A, allocating restricted shares to be granted to the directors of the Company and its subsidiaries, and enabling the execution of a flexible capital policy in response to changes in the business environment. The program will continue through December 30, 2023. As of June 30, 2023, the company had 7,465,734 issued shares (excluding treasury stock) and 391,980 treasury shares. Announcement • Jun 26
MINATO HOLDINGS INC. to Report Q1, 2024 Results on Aug 14, 2023 MINATO HOLDINGS INC. announced that they will report Q1, 2024 results on Aug 14, 2023 Announcement • Jun 03
SHIFT Growth Capital Inc. completed the acquisition of 90.1% stake in CREIT SOLUTIONS Inc. from MINATO HOLDINGS INC. (TSE:6862). SHIFT Growth Capital Inc. agreed to acquire 90.1% stake in CREIT SOLUTIONS Inc. from MINATO HOLDINGS INC. (TSE:6862) for ¥1.7 billion on May 8, 2023. The remaining 9.9% equity ratio is scheduled to be negotiated with each shareholder for additional acquisitions in the future. The planned stock transfer date is on June 1, 2023.SHIFT Growth Capital Inc. completed the acquisition of 90.1% stake in CREIT SOLUTIONS Inc. from MINATO HOLDINGS INC. (TSE:6862) on June 1, 2023. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥672, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 88% over the past three years. Reported Earnings • May 22
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥78.32 (down from JP¥88.01 in FY 2022). Revenue: JP¥22.6b (down 8.1% from FY 2022). Net income: JP¥590.0m (down 12% from FY 2022). Profit margin: 2.6% (down from 2.7% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 1.6%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • May 21
MINATO HOLDINGS INC., Annual General Meeting, Jun 23, 2023 MINATO HOLDINGS INC., Annual General Meeting, Jun 23, 2023. Announcement • May 10
SHIFT Growth Capital Inc. agreed to acquire 90.1% stake in CREIT SOLUTIONS Inc. from MINATO HOLDINGS INC. (TSE:6862) for ¥1.7 billion. SHIFT Growth Capital Inc. agreed to acquire 90.1% stake in CREIT SOLUTIONS Inc. from MINATO HOLDINGS INC. (TSE:6862) for ¥1.7 billion on May 8, 2023. The remaining 9.9% equity ratio is scheduled to be negotiated with each shareholder for additional acquisitions in the future. The planned stock transfer date is on June 1, 2023. Buying Opportunity • Apr 26
Now 20% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be JP¥642, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last 3 years. Earnings per share has grown by 40%. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to grow by 36% in the next 2 years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 8.9% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.6%). Buying Opportunity • Mar 14
Now 21% undervalued Over the last 90 days, the stock is up 18%. The fair value is estimated to be JP¥646, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last 3 years. Earnings per share has grown by 40%. Revenue is forecast to grow by 12% in 2 years. Earnings is forecast to grow by 36% in the next 2 years. Buying Opportunity • Feb 14
Now 20% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be JP¥646, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last 3 years. Earnings per share has grown by 40%. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥18.22 (vs JP¥12.74 in 3Q 2022) Third quarter 2023 results: EPS: JP¥18.22 (up from JP¥12.74 in 3Q 2022). Revenue: JP¥5.57b (down 4.7% from 3Q 2022). Net income: JP¥138.0m (up 42% from 3Q 2022). Profit margin: 2.5% (up from 1.7% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥523, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 35% over the past three years. Announcement • Jan 19
MINATO HOLDINGS INC. to Report Q3, 2023 Results on Feb 10, 2023 MINATO HOLDINGS INC. announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥26.32 (vs JP¥30.15 in 2Q 2022) Second quarter 2023 results: EPS: JP¥26.32 (down from JP¥30.15 in 2Q 2022). Revenue: JP¥5.59b (up 1.1% from 2Q 2022). Net income: JP¥200.0m (down 14% from 2Q 2022). Profit margin: 3.6% (down from 4.2% 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 47% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Independent Outside Director Junichi Kodama was the last independent director to join the board, commencing their role in 2016. 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¥26.32 (vs JP¥30.15 in 2Q 2022) Second quarter 2023 results: EPS: JP¥26.32 (down from JP¥30.15 in 2Q 2022). Revenue: JP¥5.59b (up 1.1% from 2Q 2022). Net income: JP¥200.0m (down 14% from 2Q 2022). Profit margin: 3.6% (down from 4.2% 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 47% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Oct 27
MINATO HOLDINGS INC. (TSE:6862) announces an Equity Buyback for 200,000 shares, representing 2.61% for ¥120 million. MINATO HOLDINGS INC. (TSE:6862) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 2.61% of its issued share capital (excluding treasury stock), for a total purchase price of ¥120 million. The purpose of the program is enabling the execution of various capital policies. The program will continue through March 31, 2023. As of September 30, 2022, the company had 7,653,234 issued shares (excluding treasury stock) and 166,780 treasury shares. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥19.74 (vs JP¥8.97 in 1Q 2022) First quarter 2023 results: EPS: JP¥19.74 (up from JP¥8.97 in 1Q 2022). Revenue: JP¥6.05b (up 1.2% from 1Q 2022). Net income: JP¥148.0m (up 115% from 1Q 2022). Profit margin: 2.4% (up from 1.2% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Jun 02
MINATO HOLDINGS INC. to Report Q1, 2023 Results on Aug 10, 2022 MINATO HOLDINGS INC. announced that they will report Q1, 2023 results on Aug 10, 2022 Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥482, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 71% over the past three years.