Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 48 views

    Group 1 STOCK PITCH

    Uploaded by

    태하
    Asahi Group Holdings is a Japanese discount retailer operating convenience stores known for long hours, low prices, and unique products. The company benefits from increasing foreign tourism due to a weaker yen and expanded tax exemptions. However, it faces threats from internet competition and potential import price rises from yen depreciation that could undermine its discount business model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Group 1 STOCK PITCH

    Uploaded by

    태하
    48 views19 pages
    Asahi Group Holdings is a Japanese discount retailer operating convenience stores known for long hours, low prices, and unique products. The company benefits from increasing foreign tourism due to a weaker yen and expanded tax exemptions. However, it faces threats from internet competition and potential import price rises from yen depreciation that could undermine its discount business model.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Asahi Group Holdings is a Japanese discount retailer operating convenience stores known for long hours, low prices, and unique products. The company benefits from increasing foreign tourism due to a weaker yen and expanded tax exemptions. However, it faces threats from internet competition and potential import price rises from yen depreciation that could undermine its discount business model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views19 pages

    Group 1 STOCK PITCH

    Uploaded by

    태하
    Asahi Group Holdings is a Japanese discount retailer operating convenience stores known for long hours, low prices, and unique products. The company benefits from increasing foreign tourism due to a weaker yen and expanded tax exemptions. However, it faces threats from internet competition and potential import price rises from yen depreciation that could undermine its discount business model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 19

    アサヒグループホールディングス

    (:)
    Investment Thesis

    Tokyo Stock Exchange


    52 week range : JPY 4,895.0 - JPY 8,190.0
    Market Cap : JPY 622.68B
    Shares : 78.53M

    Recommendation : Buy
    Target Price : JPY 8,856
    Company Introduction - Business Model

    Cv+D+A

    1. Convenience
    : Long business hours and no holidays
    2. Discount
    : Low prices
    3. Amusement
    : New and creative products & Fun shopping
    Sales by Products Category
    Macro Overview

    Increase in foreign visitors

    - Weaker Yen

    - Government policy
    Macro Overview
    Number of foreign tourists trends Additional tax-exemption products
    & Foreign exchange rate (including food, medicines and cosmetics)
    from Oct 1, 2014
    Macro Overview

    Price Sensitivity of Customers

    - Drastic change in spending after


    rise in consumption tax

    - Opportunity for discount retailers

    <Monthly sales increase compared to last year>


    Market Overview
    New Entrants
    Florishing niche market of discount retail in Japan is attractive,
    and there are many competitors with the knowledge and assets
    to enter it
    Buyers Power
    Clients with low fidelity, often young, not attached in any way to the brand

    Substitutes
    Internet services offering lower prices and a higher selection

    Suppliers
    Import of a major parts of its products, and increasing reliance on import
    SWOT Analysis

    Strengths Weaknesses
    - Dependence on the High-Traffic Urban
    - Strong Brand
    Areas
    - Niche-like market
    - Limited core client target
    - Easy Capital Access
    - Difficulty of a growth oversea
    - Both Cost and Differentiation
    - Legacy reputation

    Opportunities Threats
    - Cheap Yen
    - Tokyo Olympics - A near untouched market segment that
    - QE might attract big companies
    - Increased tourism / migration - One man company
    - Reinforcement of Internet based services
    Investment Highlights
    Increasing
    MEGA
    Inbound PB Products
    Don Quijote Majica
    Foreign Increase
    Expansion
    Tourists

    Diverse Increase Reduce


    New Source
    customers Gross Investory
    of Revenue
    (families) Margin Risk

    Revenue Driver Cost Cutter


    Inbound Foreign Tourists
    Influx of foreign tourists
    - 22 Low Cost Carriers operate in and out of Japan
    - 51 daily flights of LCC arrive at three major airports in Japan
    (Kansai International Airport - 25 flights, Narita International Airport - 21 flights
    Haneda International Airports 5 flights)

    - Weaker Yen makes Japan a favorable place to travel

    - Widening in variety of items that are eligible for tax-returns, increasing


    spending of foreign tourists.
    Mega Don Quijote Stores

    New larger format


    Expanding their target to families
    from 2008

    No real estate investment


    Openings at former GMS locations

    New customer segment


    Mainly families and housewives
    PB Brand Sales Increase
    Jonetsu Kakaku
    - Late October 2009

    - 2800 products
    (Daily necessities, food, clothing, appliances)

    - Contribute to annual 7% growth in


    gross profit

    - Contribute to maintaining gross


    profit margin of average 26%
    Introduction of Majica
    Over 120 million people became members of Majica (as of June, 2014) Launched March, 2014
    Revenue Increased
    : membership price on high margin products
    Reduce Inventory Risk
    : display change with consumer purchase information

    +7.7% +5.9%
    Valuation (Comparative Analysis)
    - Mixed result in comparison to peer group.
    - Unable to determine possitive or negative
    Valuation (Discounted Cash Flow Analysis)

    - Fair amount of potential

    - Expect steady growth

    - Favorable situation

    BUY
    Risk Factors
    Cheap Yen
    Higher cost of import
    Yen in Dollars

    Long-run threats
    Reinforcement of the internet competition
    AMZN 5 years

    Import uncertainty
    Higher and higher dependency on imports
    Import Prices
    Questions to CEO

    - Possible foreseeable changes to customers'


    preference toward store concept?

    - If value of Yen drops further, how will the


    company deal with rise in import prices and
    maintain being a discount store?
    Q&A

    You might also like