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As soon as the news of Japan easing tourist visas for people from China was released, local retail travel stocks surged immediately.
① The Japanese Foreign Minister, Toshimitsu Motegi, announced the relaxation of visa requirements for Chinese tourists to Japan, expected to be implemented in spring 2025. ② After the announcement, retail and tourism-related stocks in Japan rose, with J. Front Retailing Co. soaring by 8.38%, while Isetan Mitsukoshi Holdings and Takashimaya increased by 6.98% and 3.69%, respectively.
Shinwa HD Research Memo (10): Focus on the progress of the Global Strategy.
■Shinwa Holdings <7118>'s Growth Strategy 4. Our Perspective The company covers all food service sectors (restaurants, takeout, and home cooking), and while it is susceptible to trends in personal consumption, it has established a Business model that promotes flexible store expansion and procurement scale advantages by combining the restaurant and retail businesses, leading to stability in earnings. After the impact of the COVID-19 pandemic has passed, sales are on an upward trend driven by the restaurant business.
Shinwa HD Research Memo (9): Shareholder returns are targeted at a consolidated dividend payout ratio of over 30%, commemorative shareholder benefits will be implemented.
■ The growth strategy of Shinho Holdings <7118>. 2. Shareholder Return Policy. The company recognizes the return of profits to shareholders as an important management issue, and aims to secure necessary internal reserves for business development and strengthening management structure, such as new store openings and production capacity enhancement, while reinforcing its management foundation and financial health. The basic policy is to continue stable Dividends based on management performance and financial condition. Currently, the target consolidated dividend payout ratio is set at over 30%.
Shinwa HD Research Memo (7): For the fiscal year ending March 2025, a slight increase in revenue and operating profit is anticipated.
■ Shinwa Holdings <7118> future outlook ● Performance forecast for the fiscal year ending March 2025 The consolidated performance for the fiscal year ending March 2025 is forecasted to have revenue of 6,048 million yen, an increase of 3.0% compared to the previous period, operating profit of 198 million yen, an increase of 5.1% compared to the same period, ordinary profit of 199 million yen, a decrease of 4.7% compared to the same period, and net income attributable to shareholders of the parent company of 141 million yen, an increase of 0.9% compared to the same period. Despite the increase in food ingredient prices and labor costs, revenue from existing stores in the food and merchandise businesses is expected.
Shinwa HD Research Memo (6): The fiscal year ending March 2024 is expected to see a significant increase in operating profit.
■Shinwa Holdings <7118> Performance Trends 1. Overview of the performance for the fiscal year ending March 2024 The consolidated performance for the fiscal year ending March 2024 shows revenue increasing by 9.6% compared to the previous period to 5,871 million yen, operating profit increasing by 250.3% to 188 million yen, ordinary profit decreasing by 23.7% to 208 million yen, and Net income attributable to the parent company shareholders increasing by 1.2% to 140 million yen, resulting in significant operating profit growth. The lifting of restrictions related to COVID-19 has led to a substantial increase in the food and beverage business, and the merchandise sales business also remains strong.
Shinwa HD Research Memo (4): Local production and local consumption Business model.
■ Shinwa Holdings <7118> Business Overview 2. Features and Strengths The company's features and strengths include: 1) Developing its Business with both the restaurant and retail sectors as core elements, 2) Establishing a consistent system from ingredient procurement and Commodity ETF manufacturing to store Operation and sales in-house, 3) Having a locally rooted farm-to-table Business model through the utilization of local ingredients and acquisition of local customers, and 4) Achieving efficient store Operation through dominant store openings.