reports
- Fiona Orford-Williams
Dentsu Group - Still fighting market headwinds
Dentsu posted Q324 organic net revenue growth of 0.3%, making a decline of 1.1% over the nine-month period. This is slightly below expectations at the half-year and, as the market for larger, transformational projects is still stagnant, management has trimmed full year organic revenue growth guidance to 0% (was 1%) and that for adjusted operating profit by 7%. There are positive elements to these figures, in particular continuing progress in Japan and good new business boosted by the ‘one dentsu...
- Pelham Smithers
PSA Strategy: Japan Stock Market Quarterly 2024 Q4
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
6754 ANRITSU CORPORATION
7751 CANON INC.
4519 CHUGAI PHARMACEUTICAL CO. LTD.
4751 CYBERAGENT INC.
4755 RAKUTEN INC.
3107 DAIWABO HOLDINGS CO. LTD.
8473 SBI HOLDINGS INC.
6954 FANUC CORPORATION
4324 DENTSU GROUP INC.
6861 KEYENCE CORPORATION
4902 KONICA MINOLTA INC.
6988 NITTO DENKO CORP.
7752 RICOH COMPANY LTD.
6869 SYSMEX CORPORATION
3064 MONOTARO CO. LTD.
5801 FURUKAWA ELECTRIC CO. LTD.
5715 FURUKAWA CO. LTD.
7205 HINO MOTORS LTD.
6501 HITACHI LTD.
6305 HITACHI CONSTRUCTION MACHINERY CO. LTD.
7267 HONDA MOTOR CO. LTD.
7012 KAWASAKI HEAVY INDUSTRIES LTD.
9107 KAWASAKI KISEN KAISHA LTD.
6971 KYOCERA CORPORATION
8316 SUMITOMO MITSUI FINANCIAL GROUP INC.
6503 MITSUBISHI ELECTRIC CORP.
5632 MITSUBISHI STEEL MANUFACTURING CO. LTD.
5706 MITSUI MINING AND SMELTING COMPANY LIMITED
6966 MITSUI HIGH-TEC INC.
6902 DENSO CORPORATION
6701 NEC CORP.
6594 NIDEC CORPORATION
7201 NISSAN MOTOR CO. LTD.
4666 PARK24 CO. LTD.
6268 NABTESCO CORPORATION
2371 KAKAKU.COM INC.
9984 SOFTBANK GROUP CORP.
8136 SANRIO COMPANY LTD.
6758 SONY CORPORATION
5802 SUMITOMO ELECTRIC INDUSTRIES LTD.
6762 TDK CORPORATION
6976 TAIYO YUDEN CO. LTD.
6315 TOWA CORPORATION
7203 TOYOTA MOTOR CORP.
4208 UBE INDUSTRIES LTD.
8698 MONEX GROUP INC.
3774 INTERNET INITIATIVE JAPAN
3765 GUNGHO ONLINE ENTERTAINMENT INC.
2160 GNI GROUP LTD.
3659 NEXON CO. LTD.
3445 RS TECHNOLOGIES CO. LTD.
6269 MODEC INC
3769 GMO PAYMENT
68900 FERROTEC CORPORATION
9519 RENOVA
4385 MERCARI INC.
3993 PKSHA TECHNOLOGY INC.
3626 JT TIS INC
9434 SOFTBANK CORP.
TXG 10X GENOMICS INC CLASS A
TGIF 1933 INDUSTRIES
7071 AMVIS HOLDINGS
78320 BANDAI NAMCO
45870 PEPTIDREAM INC
4443 JT SANSAN (4443 JT)
3491 JT GA TECHNOLOGIES
3394 JT MONEY FOWARD
4480 MEDLEY
RRRP3 3R PETROLEUM OLEO E GAS
6532 JT BAYCURRENT CONSULTING (6532 JT)
3697 JT SHIFT INCORPORATED (3697 JT)
4483 JMDC
4180 JP APPIER GROUP
TSE: 2980 SRE HOLDINGS CORP
4194 VISIONAL INC
9552 M&A RESEARCH INSTITUTE
123F 123FAHRSCHULE SE
9616 JT KYORITSU MAINTENANCE (9616 JT)
9552 JT M&A RESEARCH INSTITUTE (9552 JT)
6544 JT JAPAN ELEVATOR SERVICES HOLDINGS (6544 JT)
6200 JT INSOURCE (6200 JT)
2154 JT OPEN UP GROUP (2154 JT)
- Fiona Orford-Williams
Dentsu Group - Positive momentum
Dentsu’s H124 figures show sequential quarterly improvements, with the group posting organic growth of 0.2% in Q2. Encouragingly, this is in part ascribed to improved pitch win rates in all four reporting regions, underpinning growth projections through H224 and into FY25, despite the persistent difficult macroeconomic backdrop. The One dentsu initiative is driving collaborative efforts across group capabilities and geographies and we expect this to be at the heart of the new medium-term strateg...
- Fiona Orford-Williams
Dentsu Group - FY24 prospects weighted to H2
Dentsu’s Q1 results indicate a slow start to the year, with organic net revenue down by 3.7%. However, prospects are improving, buoyed by new business wins and weighted to H2, which leave full year expectations (and our forecasts) unchanged. The One dentsu initiative, bringing together skill sets in consulting, technology, media and creative, is supporting improved pitch win rates, and giving greater coherence and consistency to the group product and service offering. We expect this to be a cent...
- Sid Rajeev
- Fiona Orford-Williams
Dentsu Group - Return to organic growth forecast for FY24
Dentsu’s FY23 net revenue was a touch above guidance at Q3, with a better-than-expected operating margin reflecting a good Q4 in Japan, further boosted by a short delay in an IT project pushed out to Q124. The results were accompanied by the news of a change in global CFO, with the role reverting to Yushin Soga, who held the role until January 2023. As anticipated, net revenue outside Japan declined, although there was some trading improvement in the US in Q4. A thorough business review is now i...
- Fiona Orford-Williams
Dentsu Group - One dentsu initiative set to improve efficiency
Dentsu’s Q323 trading update describes demanding trading conditions with continuing spending constraint from customers in technology and finance, and ongoing delays to larger digital transformation projects. Full year organic revenue guidance is revised to -5% (from 0% to -2%), with an operating margin of 13.5%, depressed by one-off factors from 15.0%. The outlook is improving, albeit patchily, and initiatives to streamline the business and structure it more effectively to meet client needs shou...
- Fiona Orford-Williams
Dentsu Group - Set for a stronger H223
Dentsu experienced difficult trading conditions in its first half, with US client hesitancy, poor Chinese macro conditions and a one-off hit from a problematic project in the DACH region, compounded by demanding comparatives. These ease in H223, and trading should also benefit from one-off events like the Rugby World Cup, as well as the contribution from Tag, consolidated from 1 July. FY23 guidance is now for organic net revenue growth of 0% to -2% (was 1–2%) and a 17.0% operating margin (was 17...
- Fiona Orford-Williams
Dentsu Group - FY23 ambitions weighted to second half
Dentsu Group had demanding Q123 on Q122 comparisons and, with the acquisition contributions, we are not too concerned about the read-across for the rest of FY23, with performance skewed to H2. Progress in Customer Transformation and Technology (CT&T), up 6.7% in Q123 and now 35% of group net revenue, should buoy medium-term growth. Tag, the acquisition announced in March and expected to complete in early Q323 (subject to regulatory clearances), is another step towards the 50% CT&T target. We ant...
- Fiona Orford-Williams
Dentsu Group - Record year in FY22
Dentsu reported record full-year headline results in FY22, which were bolstered by a final quarter in which the company delivered organic net revenue growth of 3.5%. Good progress continues to be made in Customer Transformation and Technology (CT&T), which grew 17.5% y-o-y and constituted 32% of revenues in the year. Management forecasts 4% organic revenue growth for FY23, reflecting the tougher macroeconomic environment. Guidance on the underlying operating margin in FY23 is for a retrenchment ...
- Fiona Orford-Williams
Dentsu Group - Solid Q3 and new One dentsu group structure
Dentsu’s Q322 results show an organic net revenue decline of 3.7% (-4.7% including Russia), reflecting a particularly tough comparative with Q321 in Japan. This masks continuing good progress in building revenues from Customer Transformation & Technology (CT&T), which grew over 20% and now constitutes 32.6% of group revenues. Alongside the figures, Dentsu announced a further restructuring from 1 January 2023 that removes the distinction between Dentsu Japan Network (DJN) and Dentsu International...
- Fiona Orford-Williams
Dentsu Group - Edging forecasts to higher end of range
Dentsu has had a strong Q222, reporting organic revenue growth of 8.2% (7.9% including Russia). Customer Transformation & Technology (CT&T) is the main engine of growth and represents 32.3% of group net revenue, up from 31.5% in Q122. We would expect this segment to be more resilient should a deteriorating H222 macro environment stall advertising momentum. Management is now guiding to the top end of the previously cited 4–5% revenue growth range and we have edged our forecasts ahead, with earnin...
- Fiona Orford-Williams
Dentsu Group - Guidance edged up
Dentsu has edged up its FY22 guidance for organic growth to a range of 4–5%, from 4% previously, following a strong Q122 performance, particularly at Dentsu International (DI). Customer Transformation & Technology (CT&T) continues to build, accounting for 31.5% of group net revenues in the period. Management remains confident of a good runway of growth. Group operating margin rose from 20.2% in Q121 to 21.2%, up 140bps at constant currency. FY22 guidance remains for a 17.7% operating margin, imp...
- Pelham Smithers
PSA Strategy: Japan Market Strategy for FY22 Q2
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
6770 ALPS ALPINE CO. LTD.
3407 ASAHI KASEI CORPORATION
4751 CYBERAGENT INC.
9684 SQUARE ENIX HOLDINGS CO. LTD.
4307 NOMURA RESEARCH INSTITUTE LTD.
4324 DENTSU GROUP INC.
6728 ULVAC INC.
6981 MURATA MANUFACTURING CO. LTD.
6723 RENESAS ELECTRONICS CORPORATION
6902 DENSO CORPORATION
7915 NISSHA CO.LTD.
7201 NISSAN MOTOR CO. LTD.
6268 NABTESCO CORPORATION
4063 SHIN-ETSU CHEMICAL CO LTD
6758 SONY CORPORATION
6762 TDK CORPORATION
6857 ADVANTEST CORP.
8035 TOKYO ELECTRON LTD.
7261 MAZDA MOTOR CORP.
7203 TOYOTA MOTOR CORP.
3436 SUMCO CORPORATION
3659 NEXON CO. LTD.
6098 RECRUIT HOLDINGS CO. LTD.
7270 SUBARU CORP
4503 ASTELLAS PHARMA INC.
6506 YASKAWA ELECTRIC CORPORATION
4980 DEXERIALS
68900 FERROTEC CORPORATION
41850 JSR CORPORATION
4385 MERCARI INC.
78320 BANDAI NAMCO
TSE:4477 BASE CO.
3491 JT LTD.
4478 JT GA TECHNOLOGIES
3394 JT FREEE KK
6967 JT MONEY FOWARD
7383 SHINKO ELECTRIC (6967 JT)
4259 JT NET PROTECTIONS HLDGS INC
TSE: 2980 EXAWIZARDS INC
SRE HOLDINGS CORP
- Fiona Orford-Williams
Dentsu Group - Upgrade to organic growth guidance
A strong Q4 performance in recovering markets means Dentsu has posted good figures for FY21 and enters FY22 with positive momentum, particularly in the Customer Transformation and Technology (CT&T) activities. The strategic plan remains to build this area to 50% of revenue less cost of sales (RLCoS), from 29.1% in FY21. Medium-term guidance for group organic growth in RLCoS is upgraded from 3–4% to 4–5%, with 4% guided for FY22. A ¥40bn share buyback is planned, funded from year-end net cash fol...
- Fiona Orford-Williams
Dentsu Group - Upgrade to organic growth guidance
A strong Q4 performance in recovering markets means Dentsu has posted good figures for FY21 and enters FY22 with positive momentum, particularly in the Customer Transformation and Technology (CT&T) activities. The strategic plan remains to build this area to 50% of revenue less cost of sales (RLCoS), from 29.1% in FY21. Medium-term guidance for group organic growth in RLCoS is upgraded from 3–4% to 4–5%, with 4% guided for FY22. A ¥40bn share buyback is planned, funded from year-end net cash fol...
- Joel Scheiman
- Julie Boote
- Lindsay Whipp
- Pelham Smithers
- Thao Nguyen
- William Nestuk
PSA Market Strategy: The Japan Perspective 2022
Although the Japanese economy, politics and stock market seem to be where they were this time last year, there is a seismic shift going on in the way the Japanese stock market behaves that could make investing in Japan in 2022 quite different to previous years. We look at how and why this shift has taken place and what it means for investing in Japan in the coming year.
TTWO TAKE-TWO INTERACTIVE SOFTWARE INC.
TSLA TESLA INC
NVDA NVIDIA CORPORATION
LRCX LAM RESEARCH CORPORATION
JNJ JOHNSON & JOHNSON
FB FACEBOOK INC. CLASS A
AMAT APPLIED MATERIALS INC.
ADBE ADOBE INC.
PRU PRUDENTIAL FINANCIAL INC.
RAND RANDSTAD NV
6770 ALPS ALPINE CO. LTD.
9437 NTT DOCOMO INC.
9697 CAPCOM CO. LTD.
4922 KOSE CORPORATION
4519 CHUGAI PHARMACEUTICAL CO. LTD.
6367 DAIKIN INDUSTRIES LTD.
7735 SCREEN HOLDINGS CO. LTD
9020 EAST JAPAN RAILWAY COMPANY
7717 V-TECHNOLOGY CO. LTD.
4307 NOMURA RESEARCH INSTITUTE LTD.
4324 DENTSU GROUP INC.
7741 HOYA CORPORATION
6861 KEYENCE CORPORATION
6586 MAKITA CORPORATION
4911 SHISEIDO COMPANY LIMITED
4188 MITSUBISHI CHEMICAL HOLDINGS CORPORATION
8002 MARUBENI CORPORATION
8058 MITSUBISHI CORPORATION
6728 ULVAC INC.
6723 RENESAS ELECTRONICS CORPORATION
7974 NINTENDO CO. LTD.
6902 DENSO CORPORATION
6594 NIDEC CORPORATION
7915 NISSHA CO.LTD.
7731 NIKON CORP.
7201 NISSAN MOTOR CO. LTD.
8604 NOMURA HOLDINGS INC.
9984 SOFTBANK GROUP CORP.
4063 SHIN-ETSU CHEMICAL CO LTD
6758 SONY CORPORATION
4502 TAKEDA PHARMACEUTICAL CO. LTD.
6857 ADVANTEST CORP.
8035 TOKYO ELECTRON LTD.
6201 TOYOTA INDUSTRIES CORP.
7203 TOYOTA MOTOR CORP.
9021 WEST JAPAN RAILWAY COMPANY
2413 M3 INC.
6098 RECRUIT HOLDINGS CO. LTD.
6178 JAPAN POST HOLDINGS CO. LTD.
7270 SUBARU CORP
6506 YASKAWA ELECTRIC CORPORATION
TTD TRADE DESK INC. CLASS A
AMZN AMAZON.COM INC.
GM GENERAL MOTORS COMPANY
AAPL APPLE INC.
40978Z HUAWEI TECHNOLOGIES CO
0530153D ALPHABET HOLDING CO INC
VOW VOLKSWAGEN (VOW GR)
9434 SOFTBANK CORP.
4449 GIFTEE
78320 BANDAI NAMCO
3491 JT BASE CO.
TSE:4477 LTD.
6967 JT GA TECHNOLOGIES
BASE INC
SHINKO ELECTRIC (6967 JT)
DENTSU GROUP sees an upgrade to Slightly Positive due to a better fund...
The general evaluation of DENTSU GROUP (JP), a company active in the Media Agencies industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date December 24, 2021, the closing price was J...
- Fiona Orford-Williams
Dentsu Group - Strong Q3 lifts full-year guidance further
Dentsu posted a very strong performance for Q321, with revenue less cost of sales (RLCoS) up 27.8% on an organic basis and a substantial uplift in operating margin to 23.5%, from 12.2% in Q221. Full-year guidance is raised, having been lifted in August, with an indication of a FY21 margin of 18.0% after greater intended investment in Q4. Proposed board changes for the new year split the chairman and CEO roles, with the existing CEO retiring and appointments of independent non-executives planned....
- Fiona Orford-Williams
Dentsu Group - Strong Q3 lifts full-year guidance further
Dentsu posted a very strong performance for Q321, with revenue less cost of sales (RLCoS) up 27.8% on an organic basis and a substantial uplift in operating margin to 23.5%, from 12.2% in Q221. Full-year guidance is raised, having been lifted in August, with an indication of a FY21 margin of 18.0% after greater intended investment in Q4. Proposed board changes for the new year split the chairman and CEO roles, with the existing CEO retiring and appointments of independent non-executives planned....
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