總覽 > 個股

Tanabe Management Consulting Co., Ltd. (JP-9644) Tokyo Stock Exchange First Section ( II )

2018-08-06  提供機構:FISCO  作者:FISCO  點閱次數:2

twitter plurk facebook
字體

◆Business outlook

Is utilizing its strength, that it can provide a variety of consulting services, and the outlook is for the higher sales and profits to continue in FY3/19 also

1. Outlook for FY3/19

The outlook for the FY3/19 results is for the higher sales and profits to continue, with net sales forecast to increase 2.3% YoY to ¥9,000mn, operating profit to rise 3.6% to ¥970mn, ordinary profit to grow 2.6% to ¥990mn, and net profit to increase 0.7% to ¥680mn. In the context of the continued recovery of the Japanese economy, the Company is aiming for stable growth by progressing its “Consulting and Conglomerate (C&C) strategy,” (creating a consulting platform), while aiming to meet various consulting needs, from the viewpoint of “domain (business strategy) x function (organization strategy) x region (regional strategy).”

In both the management consulting business and the SP (sales promotion) consulting business, high-value-added team consulting contacts are expected to grow and the forecast is for the gross profit margin to rise 1.1 percentage points YoY to 46.4%. On the other hand, SG&A expenses are expected to rise 5.0%, which will be mainly due to the introduction of a new personnel system and wage system, and also higher personnel expenses and human resources recruitment expenses alongside the increase in the number of consultants (up 33 on the end of the previous fiscal year to 251 people), so the SG&A expenses ratio is set to rise 0.9 of a percentage point. The operating margin is forecast to increase 0.2 of a percentage point to 10.8% due to the improvement in the gross profit margin.

The 1H forecast is for a decrease in profits, with operating profit to fall 22.7% YoY. But this is mainly because human resources recruitment expenses are concentrated in the 1H, and also due to an expected increase in expenses, including to invest in upgrading offices in order to improve working environments, mainly at the Tokyo Headquarters.

2. Outlook by segment

(1) Management consulting business

The forecasts for FY3/19 are for net sales to increase 2.5% YoY to ¥5,150mn and segment profit to rise 1.4% to ¥1,355mn. Higher sales and profits are expected from the improvement to the “management consulting” added value and the increase in the number of contracts. The main reason for the slight decline in the operating margin is that personnel expenses are expected to rise from the increase in the number of consultants. At the end of FY3/19, the plan is to have increased the number of consultants (management consultants and human resources development consultants) by 26 on the end of the previous fiscal year to 186 people (including 16 consultant candidates from recruited new graduates). The business strategies that the Company will work on from this fiscal period are as follows.

a) Domain and function consulting

In domain (by business domain and industry) and function (by organization and management topic) consulting, the Company will utilize its strength, that it is has business offices at 10 bases nationwide from which it can provide a variety of consulting services all of the same quality, and it will focus on capturing demand by meeting the consulting needs of regional companies. In the “strategy domain & function workshops,” it plans to increase the current 25 topics to 30 topics during FY3/19, while also progressing scrap & build. It has already confirmed a number of topics, including “apparel, recruitment, productivity enhancement consulting, 100 year management, academies (human resources development), stage-up, and promotions,” and the strategy is to attract potential customers by expanding the workshops, which will lead to team consulting contacts. Also, going forward, in addition to creating new workshops, it will form and deploy specialist consulting teams in the Osaka and Tokyo headquarters, with the aim of building a system that can provide high-value expertise to customers throughout the country.

b) Human resources development consulting

In human resources development consulting, the Company is advancing the “FCC academies (corporate uni­versities)” concept as the learning platform for companies that intend to be “first call companies (FCC).” It offers one-stop solutions to supports companies’ human resources development needs through providing three services: “consulting” to support the establishment of corporate universities, including by building education systems, devel­oping educational content, and producing in-company lecturers; “Cloud” to provide a learning environment using digital devices in which the place and time is not selected; and “Real” that provides seminars and made-to-order training. In terms of services for human resources development, various other companies provide e-learning and talent management systems, but each are only partial services and the Company’s strength is that it is one of the very few companies that can respond to companies’ needs for human resources development with total solutions.

The extent of Cloud services contribution to profits is small, as their annual usage fees are set at the low cost of only around a few thousand yen per ID. But if including “Consulting” prior to their introduction and also the “Real” consulting services after their introduction, their sales scale becomes larger, and there are major expectations for their contribution to profits in the future. At the end of FY3/18, the number of companies introducing them had steadily risen to around 50, and the Company is aiming for 100 companies to have introduced them by 2020. Currently, many of the companies introducing them are medium- sized, but the policy going forward is to promote their introduction by major companies also. By industry, they are being introduced by companies in the construction, foods, and healthcare-related (such as dispensing pharmacies) industries. The Company plans to incorporate the case studies of introductions by around 50 companies into the newly established program of workshops in FY3/19, and for the future also, it is investigating building an open platform by industry that will connect introducing companies within the same industry.

c) Alliance consulting

In alliance consulting, in addition to conventional consulting for financial institutions, through alliances with approx­imately 100 financial institutions the Company’s policy is to newly systemize and focus on a menu for “stage-up consulting,” targeting its alliance partners’ approximately 7,000 customer companies (mainly SMEs), and also “M&A consulting” in collaboration with its alliance partners.

In “stage-up consulting,” the Company provides consulting necessary for companies to get beyond the barrier of each stage of sales of ¥100mn, ¥300mn, ¥500mn, and ¥1bn. Also, as a measure to find potential customers, in April 2018 it launched simple diagnostic services on its website. Specifically, it provides simple diagnostic services in order for companies to ascertain their own conditions, such as an organization and personnel diagnosis, a brand survey, and a Web diagnosis, and the results of these diagnoses identify the needs for consulting, which leads to consulting proposals. Up to the present time, the Company has mainly provided consulting for medium-sized companies, but its policy is to also broaden its horizon to target start-ups and SMEs and to strengthen its consulting menu for such companies.

In “M&A consulting,” while coordinating with its alliance partners, the Company introduces candidates for an acquisition to companies that intend to conduct an M&A for growth (the buyer side). Previously also, it provided such a service on an individual basis, but the needs for M&A consulting are strong, so it has organized an “M&A alliance” and has clarified and is providing a menu of services for it. The target customers are medium-sized companies and for FY3/19, the Company is aiming to conclude a few contracts over the year.

(2) SP (sales promotion) consulting business

The forecasts for FY3/19 are net sales to increase 2.0% YoY to ¥3,850mn and segment profit to rise 3.6% to ¥210mn. The Company is aiming to achieve higher sales and profits by strengthening proposals for “sales promotions and Web promotions consulting” and “SP design,” and by improving added value and increasing the number of contracts. By the end of FY3/19, it plans to increase the number of consultants by 7 on the end of the previous fiscal year to 65 people. Diary sales are forecast to be at around the same level as the previous fiscal year.

As the business strategy to be implemented during this fiscal period, the Company will enhance expertise from the viewpoints of domain (industry) and function (promotion topic), and at the same time, it will build a structure that can advance team SP consulting through reviewing business processes. It will also focus on progressing optimal Web promotions and acquiring large-scale design orders, and on supporting customers’ sales promotions through providing one-stop, total solutions. In addition, it plans to widen the sales areas, from the previous four main bases (Osaka Headquarters, Tokyo Headquarters, Chubu Head Office, and Kyushu Head Officer) to branch offices nationwide.

Intends to advance the creation of a consulting domain platform to a nationwide scale, toward realizing sustainable growth from 2020 onwards

3. Medium-term business plan

The Company newly formulated “Tanabe Vision 2020 (2018 to 2020)” with the slogan of “from change to growth” in order to realize sustainable growth from 2020 onwards. It is aiming to advance the “creation of a consulting platform” on a nationwide scale, expand the customer base while collaborating with alliance partners, and grow sales, mainly of team consulting. As previously mentioned, it is expanding the sales area to nationwide for SP consulting as well. To deal with high-level management issues, it is preparing a structure to select and dispatch professional consultants in the relevant field on a nationwide level.

The results targets for FY3/21, which is the final fiscal year of the medium-term management plan, are net sales of ¥9,600mn and ordinary profit of ¥1,060mn. For the average annual growth rates, the policy is to continuously achieve steady growth of 3.0% for net sales and 3.6% for ordinary profit. Also, for the average annual growth rates by business segment, for the management consulting business, the Company is targeting growth rates of 3.1% for net sales and 2.1% for operating profit, and for the SP consulting business, 2.8% for net sales and 4.4% for operating profit.

Team consulting net sales, which is a main KPI, are expected to grow from ¥3,816mn in FY3/18 to ¥4,350mn in FY3/21. This will be an average annual growth rate of 4.5%, slightly above the Company-wide average, while their percentage of total net sales is forecast to rise from 43.4% in FY3/18 to 45.3%. The Company also plans to increase the number of consultants, who will be the driving force behind growth, from 218 people at the end of FY3/18 to 291 people at the end of FY3/21. It intends to train new graduates and recruit mid-career hires with advanced expertise as consultants to further strength its business foundation.

◆Shareholder return policy

Policy is to continuously increase the dividend, with a dividend payout ratio of 60% as the standard

Shareholder returns include dividends and shareholder gifts. Tanabe decides the dividend while taking into account earnings and other factors (excluding extraordinary items) with a goal of a 60% of dividend payout ratio. It plans to raise the dividend by ¥1.0 to ¥42.0 (53.5% payout ratio) in FY3/19, for a seventh straight fiscal year, and to continue lifting sales, profits and the dividend.

It also provides a gift to shareholders on record as of end-September of its original Blue Diary scheduler (worth about ¥3,000). Dividend yield worked out to about 2.0% and investment return comes to roughly 3.4% including the shareholder gift, based on the share price on July 10 (¥2,154).

◆Information security policy

Tanabe uses the Internet to convey various services to members and send all kinds of management data to the financial institutions and other companies that are its alliance partners. The information security measures the Company has put in place to prevent system failure and quickly restore the system in case of a failure include firewalls and other measures to strictly control and monitor outside access, enhanced authentication measures, antivirus software, data backup systems, and server mirroring. To protect the client data on its system from unauthorized access and leaks, Tanabe has a strict data management system using both hardware and software, and constantly reminds employees about the importance of protecting client data.

 

報告內容僅供參考,不得作為任何投資引用之唯一依據,且其投資風險及決定應由投資人自行判斷並自負損益。

TOP

【免責聲明】 本研究報告專區中的資訊均來自於各金融機構授權刊登或是已公開的資訊,鉅亨網對資訊的準確性、完整性和及時性不作任何保證,也不保證上述資訊報告做出的建議在未來不發生修正。在任何情況下,鉅亨網不對本資訊的使用人基於本資訊報告觀點進行的投資所引致的任何損益承擔任何責任。本網研究報告版權均歸各家提供機構所有,不得任意引用、刊發,且不得對原文進行修改或刪除。以上資訊僅供參考。

最近訪問研報

研報點閱排行

雜誌文章點閱排行