Four Directors at Insecticides (India) Ltd sold 260,337 shares at 1,000.000INR. The significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two...
The independent financial analyst theScreener just slightly lowered the general evaluation of LAWSON (JP), active in the Food Retailers & Wholesalers industry. As regards its fundamental valuation, the title confirms its rating of 4 out of 4 stars while its market behaviour remains unchanged and can be qualified as defensive. However, a marginally less favourable environment forces theScreener to downgrade slightly the title, which now shows an overall rating of Slightly Positive. As of the anal...
Two Directors at HPF Co. Ltd sold 4,348,600 shares at between 8.090CNY and 8.130CNY. The significance rating of the trade was 70/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the las...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
No-moat Lawson’s first-quarter profits came in above our expectation and the company’s internal target with operating revenue up 3.8% and operating profits up 12%. While we had anticipated positive results of the core C-store business, the robust profit growth posted by the food retailing chain and entertainment subsidies was a surprise. We have maintained our forecasts and the fair value estimate of JPY 5,500 because we suspect that the upward trend of same-store growth was largely inflated...
No-moat Lawson’s first-quarter profits came in above our expectation and the company’s internal target with operating revenue up 3.8% and operating profits up 12%. While we had anticipated positive results of the core C-store business, the robust profit growth posted by the food retailing chain and entertainment subsidies was a surprise. We have maintained our forecasts and the fair value estimate of JPY 5,500 because we suspect that the upward trend of same-store growth was largely inflated...
No-moat Lawson’s fourth-quarter profits came in somewhat above our expectation and the company’s guidance, but the outlook for 2019 remains gloomy with flat profits. Increased investment for the C-store labor-saving technologies and equipment will continue to depress profits while we expect the same-store growth to stay scarce. The results echo our thesis that Lawson is in an inferior position to compete with the top two players and the pressure to expand the chain size could jeopardize C-st...
No-moat Lawson’s fourth-quarter profits came in somewhat above our expectation and the company’s guidance, but the outlook for 2019 remains gloomy with flat profits. Increased investment for the C-store labor-saving technologies and equipment will continue to depress profits while we expect the same-store growth to stay scarce. The results echo our thesis that Lawson is in an inferior position to compete with the top two players and the pressure to expand the chain size could jeopardize C-st...
No-moat Lawson’s fourth-quarter profits came in somewhat above our expectation and the company’s guidance, but the outlook for 2019 remains gloomy with flat profits. Increased investment for the C-store labor-saving technologies and equipment will continue to depress profits while we expect the same-store growth to stay scarce. The results echo our thesis that Lawson is in an inferior position to compete with the top two players and the pressure to expand the chain size could jeopardize C-st...
The merger of FamilyMart with Uny has put Lawson in a less favorable position as the smallest of Japan’s big three convenience-store chains. Although Lawson remains a touch ahead in terms of per-store daily sales, a key indicator of retail profitability, we think the company is forced to invest to sustain growth. Lawson is determined to achieve aggressive growth in per-store sales and new store expansion, but we view the former as unlikely, given industry experience of a negative correlation b...
No-moat Lawson’s third-quarter profits came in largely in line with our expectation. While management claims that sales during evening/nighttime have improved by 3% after enriching product offerings through a revamp of its supply chain, its efforts to lift overall per-store sales has yet to bear fruit. It appears that daytime sales have been affected after management altered deliveries to center on the evening offerings. Same-store sales failed to turn positive, seeing a 0.3% decline. We have ...
No-moat Lawson’s third-quarter profits came in largely in line with our expectation. While management claims that sales during evening/night time have improved by 3% after enriching product offerings through a revamp of its supply chain, its efforts to lift overall per-store sales has yet to bear fruit. It appears that day-time sales have been affected after the deliveries center on the evening offerings. Same-store sales failed to turn positive, seeing a 0.3% decline. We have marginally adjus...
No-moat Lawson's second-quarter profits came in 12%-13% above our expectations and its interim guidance, thanks to cost-cutting and a delay in marketing investment. However, management's effort to lift per-store sales through increased evening/nighttime traffic has yet to bear fruit. Lawson has accordingly reduced its sales guidance by JPY 10 billion or 1.3% but kept its profit targets unchanged. We maintain our forecasts and fair value estimate of JPY 6,100. We reiterate our view that expanding...
No-moat Lawson's second-quarter profits came in 12%-13% above our expectations and its interim guidance, thanks to cost-cutting and a delay in marketing investment. However, management's effort to lift per-store sales through increased evening/nighttime traffic has yet to bear fruit. Lawson has accordingly reduced its sales guidance by JPY 10 billion or 1.3% but kept its profit targets unchanged. We maintain our forecasts and fair value estimate of JPY 6,100. We reiterate our view that expanding...
No-moat Lawson’s first-quarter results were largely in line with our expectation and the company's internal target. A 22% plunge in operating profits was attributable to increased selling expenses and investment of the C-store operation in addition to a same-store sales decline. A widened same-store sales decline in June indicates that new supply-chain initiatives implemented in June has not yet borne fruit. We have maintained our fair value estimate of JPY 6,100 and reiterate our view that ex...
No-moat Lawson’s fourth-quarter results came in significantly below our expectation and the company’s guidance by more than 15%, although we had expected the miss. The unexpected JPY 7 billion cost increase related to IT system investment, along with the strategy of a high pace of store openings, has prompted us to cut our earnings forecasts by 10%-20% from 2018 and onward. We have therefore lowered our fair value estimate to JPY 6,100 from JPY 7,500. The new fair value estimate implies 10% ...
Ten years accounting and valuation data to put today’s numbers into perspective. Revenue growth at food and drug retail companies has slowed to single digits around the world. Moreover, over- investment means asset turns have fallen. Despite this, asset valuations are up even though on-line sales are likely to increase and depress margins. Europe and Asia look particularly vulnerable.
No-moat Lawson’s third-quarter results came in below our expectations and the company’s target. Weak same-store sales, coupled with a deteriorated product mix and rising subsidies for franchisees, weighed on profits. Sluggish earnings indicate that initiatives to boost per-store sales have yet to yield returns, which echoes our view that Lawson is in a less favorable position to compete with the top two players. We have made marginal changes in our forecasts but maintained our fair value est...
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