總覽 > 個股

Funai Soken Holdings Incorporated (JP-9757) Tokyo Stock Exchange First Section ( II )

2019-05-10  提供機構:FISCO  作者:FISCO  點閱次數:1

twitter plurk facebook
字體

◆Performance trends

Delivered higher sales and profits for the seventh straight year in FY12/18. Growth has been driven by the mainstay consulting segment.

1. Review of FY12/18 results trends

The Company reported the following consolidated results for FY12/18: Net sales were ¥21,697mn (+16.1% YoY), operating income was ¥4,946mn, (+6.8%), ordinary income was ¥5,008mn (+7.0%), and profit attributable to owners of parent was ¥3,549mn (+10.7%). The Company recorded higher sales and profits for the seventh straight year. It also steadily achieved its targets for both net sales and profits in FY12/18, the second year of its 2017-2019 Mid-Range Business Plan.

Net sales were favorable, with every segment posting higher sales, beginning with consulting. In the consulting segment, the core business, consulting services such as monthly support and project consulting performed firmly. In addition, listing services, which help client companies to attract customers online, showed strong growth. By industry, sales grew at a rapid pace of around 20% YoY in housing and real estate, and medical, nursing care and welfare, areas where the Company has a strong base. In the logistics segment, logistics consulting, logistics operations, and logistics trading all performed solidly. In the other businesses segment, sales rose by nearly 80% YoY owing to the inclusion of sales from the newly established company HR Force Inc. (direct recruiting business) and Shinwa Computer Service Co., Ltd. (system development business). These sales from the other businesses segment contributed to the Company’s overall sales.

Operating income trended as planned in each segment. The consulting segment continues to generate the bulk of the Company’s profits through its dominant earnings capabilities. This earnings composition remained unchanged in FY12/18. Although it struggled in the first half of FY12/18, the consulting segment drove substantial growth in profits in the second half by actively holding seminars. As a result, profits in the consulting segment increased by 8.5% YoY for FY12/18. In the logistics segment, profits also increased, with growth of 18.5% YoY. In the other businesses segment, most of these businesses are in an investment phase, and the Company’s policy is not to require profits from businesses in this phase.

Stable financial base with an equity ratio of more than 80%

2. Financial position and management indicators

Total assets as of end-December 2018 were ¥26,821mn, an increase of ¥1,170mn from the previous fiscal year-end. Current assets rose by ¥892mn. The main reasons were increases in notes and accounts receivable-trade and cash and deposits. Noncurrent assets increased by ¥278mn. The main reasons were increases in investments and other assets and intangible assets. The Company has abundant cash and deposits, which stood at ¥11,022mn.

Liabilities were ¥4,450mn, an increase of ¥424mn from the previous fiscal year-end. Current liabilities rose by ¥602mn. The main reasons were increases in other current liabilities and current portion of long-term borrowings. Noncurrent liabilities decreased by ¥177mn. The main reasons were decreases in deferred tax liabilities and long-term borrowings. The current portion of long-term borrowings of ¥100mn is the only component of outstanding bank loans.

Management indicators show solid financial soundness as of the end of December 2018. The current ratio stood at 399.9%, far above the 200% threshold for short-term financial soundness. The equity ratio stood at 81.9%, indicating a sound financial position over the medium and long terms as well.

◆Outlook

Projecting a continuation of both record-high net sales and profits in FY12/19. The Company has made a strong start in 1Q FY12/19, the most recent quarter.

• Outlook for FY12/19

Looking at consolidated results for FY12/19, the Company is forecasting net sales of ¥23,500mn (+8.3% YoY), operating income of ¥5,400mn (+9.2%), ordinary income of ¥5,400mn (+7.8%), and profit attributable to owners of parent of ¥3,700mn (+4.2%). It expects higher sales and profits. These forecasts constitute the Company’s targets for the third year of its Mid-Range Business Plan. The Company believes that these targets are slightly conservative based on its actual performance. It will seek to upwardly revise the targets by ensuring that it achieves them at the earliest opportunity.

In the consulting business, the Company will continue to aim for steady adoption of digitalization support. These efforts will be guided by one of the core themes of its business strategy: “Promote the use of IT, digital technology, and cloud technology in solutions.” In FY12/18, the Company suffered a slow start in 1Q. However, the Company has maintained a strong performance in FY12/19 by keeping up its momentum from 4Q FY12/18. In the logistics business, in July 2018 the Company transferred logistics consulting operations from Funai Consulting Inc. to Funai Soken Logistics Inc. via an absorption-type merger. Efforts are currently under way to strengthen logistics consulting operations. In addition, in the other businesses segment, particularly the direct recruiting business, the Company will expand sales of an AI-based solution designed to contain recruitment costs.

◆Medium-to-long-term growth strategy

Steady progress on the priorities of the Mid-Range Business Plan

The Great Value 2020 Mid-Range Business Plan, which started in FY12/17 and will end in FY12/19, has entered its final year. In this three-year period (2017-2019), the Company will complete the 10-year plan laid out by president Takashima’s management team. Accordingly, in this period, the Company aims to realize its vision for becom­ing a “Comprehensive provider of management consulting solutions” with a trusted brand. The Company has already upwardly revised its targets. For FY12/19, the Company has raised its net sales target from ¥22,000mn to ¥23,500mn, and its operating income target from ¥4,500mn to ¥5,400mn, and is seeking to deliver an even higher performance. Until now, the Company has consistently outperformed its business targets and can be trusted to achieve them.

◆Benchmarks

Boasts one of the highest levels of growth, profitability and financial soundness in the management consulting industry

The Company stands out for its business performance in the management consulting industry. The Company has delivered sales growth (compound annual growth rate over the past three years) of 13.8%, the No.1 result among eight major peer companies in the industry. As a long-standing firm in the industry, the Company will mark its 50th anniversary in 2020. Even so, its growth has been accelerating. It also has a high industry ranking in terms of ROE. Out of the eight major peer companies in the industry, the Company had the third-highest ROE of 16.4% (in the past fiscal year). This shows that the Company is efficiently using capital and meeting shareholders’ expectations. In other areas, particularly financial soundness, the Company stands out for its equity ratio of 81.9%. In every benchmark of growth, profitability and financial soundness, the Company is clearly one of the best firms in the industry.

◆Shareholder return policy

Increased dividends in FY12/18. The total return ratio, which takes share buybacks into account, reached 78%.

The Company recognizes appropriate distribution of profit to shareholders as its highest management priority, and intends to continue carrying this out through both “returns through dividends” and “returns through share buybacks” while considering business performance. The Company emphasizes the total return ratio. In conjunction with raising the total amount of dividends sustainably, it is targeting a total return ratio (dividends + share buybacks) of at least 50%. In FY12/18, the Company paid an annual dividend of ¥35 per share, with an interim dividend of ¥15 and a year-end dividend of ¥20 (including a special dividend of ¥2), and the total return ratio was 78.1% (a 50.0% dividend payout ratio). In FY12/19, the current fiscal year, it forecasts an annual dividend of ¥40 per share, with an interim dividend of ¥17 and a year-end dividend of ¥23 (including a 50th anniversary commemorative dividend of ¥3), and a total return ratio of 54.5% (a 54.5% dividend payout ratio).

In addition, the Company conducted stock splits at ratios of 1.2 for 1 in January 2016 and 1.5 for 1 in January 2018.

In FY12/18, the Company conducted a share buyback (¥999mn) as part of returns to shareholders. As a result, the total return ratio reached 78.1%, indicating just how strongly the Company emphasizes shareholder returns. Going forward, the Company plans to continue conducting share buybacks while considering the stock price level.

 

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