At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
The general evaluation of WEST JAPAN RAILWAY (JP), a company active in the Transportation Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date March 15, 2022, the closing price was JPY 5...
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.
West Japan Railway (JR West) is looking to raise up to US$2.7bn (including over-allocation) in its upcoming Japan follow-on offering. In this note, we take a brief look at fundamentals, recent results, and share our thoughts on deal dynamics. We will also run the deal through our ECM framework.
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....
Global Equities Beginning a New Leg Higher Positive technical developments have continued and global equities are now breaking out to new highs -- something we noted was increasingly likely in last week's Int'l Compass. These breakouts and other technical developments highlighted below argue that this is the beginning of a new leg higher. Now is the time to be playing offense. • MSCI ACWI, EAFE, and STOXX Europe 600 are Breaking Out. The ACWI, EAFE, and STOXX 600 are making bullish inflectio...
West Japan Railway's, or JRW’s, first-half result contained no surprises, with net profit increasing 18.8% (against our forecast of 16.1%) year over year to JPY 67.8 billion on net revenue increasing 3.8% (against our forecast of 3.4%) year over year. Management remains on track to achieve the fiscal 2017 forecast, with net profits increasing by 21% year on year and net revenue increasing by 3.9% year on year. For the six months ended September 2017, the company benefited from higher growth ...
West Japan Railway's, or JRW’s, first-half result contained no surprises, with net profit increasing 18.8% (against our forecast of 16.1%) year over year to JPY 67.8 billion on net revenue increasing 3.8% (against our forecast of 3.4%) year over year. Management remains on track to achieve the fiscal 2017 forecast, with net profits increasing by 21% year on year and net revenue increasing by 3.9% year on year. For the six months ended September 2017, the company benefited from higher growth ...
The first quarter results for Japan’s three largest passenger railway companies did not contain any surprises. The shares appear slightly undervalued after we have incorporated upsides emerging from additional tourist demand for East Japan Railway, or JRE, and West Japan Railway, or JRW. During the quarter, Central Japan Railway, or JRC, announced they have completed the second leg of the JPY 3 trillion government loan package at a minimal coupon rate of 1.0% (versus the comparable market rate...
We are increasing the fair value estimate of West Japan Railway, or JRW, to JPY 8,200 per share from JPY 7,200 per share previously, representing an attractive price/forward earnings of 14 times and an enterprise value/forward EBITDA of 7.4 times. We have incorporated a better-than-expected growth of new property developments after the 70% ownership purchase of Mitsubishi Heavy Industry’s real estate division for JPY 100 billion, lifting the real estate segment revenue, net of amortization and...
West Japan Railway's, or JRW’s, fiscal 2016 result was in line, with net profit increasing 6.3% year over year to JPY 91.2 billion on net revenue falling 0.7% year over year for the first time in seven years. For the year ended March 2017, the mainstay railway operations reported no growth due to declining rural population, underperforming underlying domestic demand growing by 0.5%. We continue to have structural concerns over JRW's larger service territory in rural areas as the company expec...
West Japan Railway's, or JRW’s, fiscal 2016 result was in line, with net profit increasing 6.3% year over year to JPY 91.2 billion on net revenue falling 0.7% year over year for the first time in seven years. For the year ended March 2017, the mainstay railway operations reported no growth due to declining rural population, underperforming underlying domestic demand growing by 0.5%. We continue to have structural concerns over JRW's larger service territory in rural areas as the company expec...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
West Japan Railway, or JRW, is taking a 70% stake in Mitsubishi Heavy Industry’s real estate business for JPY 97 billion, net of the transaction fee. The deal will boost JRW’s total real estate holdings by 10% to JPY 480 billion, or 20% of consolidated assets as of the end of September 2016. The move is somewhat surprising, given that the newly acquired assets are largely residential properties located in the Greater Tokyo Metropolitan, or GTM, area, whereas JRW’s main asset base remains w...
We initiate coverage of West Japan Railway Company, or JRW, with a fair value estimate of JPY 6,600 per share. We rate JRW as no-moat as its unspectacular returns are unlikely to exceed its cost of capital. JRW’s core earnings are tied to its less affluent service territory relative to its larger peers, which leads to lower margins. While JRW’s Shinkansen (high speed bullet trains) services benefit from economies of scale, with strength from routes that serve almost half of the country’s t...
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