KCR Inc., an independent research and investor relations support company providing reports on various publicly traded Japanese companies, has released a report on Oak Capital Corporation (TOKYO:3113) reviewing its business model and earnings.
- Oak Capital Corporation is a unique independent type investment bank providing financial support mainly to emerging corporations by way of its original approach.
- Focusing on listed corporations with market capitalization of less than 5 billion yen as its investment target, it has been developing the business intensely in a market which is not easy for major corporations to deal with.
- It has turned a good profit by drastic increases both in sales and profit in the settlement of accounts of the previous term. With the on-going trend of drastic increases both in sales and profit still in this period, the composition of business performance has been changed. Possibility of earlier resumption of dividend is increasing.
- Financial composition is extremely good in addition to the superior performance. Without any interest-bearing debt, productivity per employee, in particular, has reached as much as approximately 30 million yen.
- While it has planned to pay main attention for growth to investment banking business, it also intends to focus on business investment section from which stable profit is obtained since investment banking business is exposed to tough changes in market conditions.
- KCR Inc. has set up an immediate target stock price at 500 yen while setting overall evaluation rating as +2 (Buy.) In consideration of its positive stance for IR activity and shareholder return, the stock price is expected to steadily increase.
Read the full research report: http://www.oakcapital.jp/english/news/pdf/20150223.pdf
Oak Capital Corporation is a specialized investment banking corporation. It provides total supports to investment destination corporations in order to enhance their corporate values by taking advantage of its own networks and know-how in addition to acceptance of financing. The characteristics of Oak Capital includes high degree of freedom due to its independence. In consideration of its development style based on "the Few and the Proud" with just 21 employees according to the latest data, its higher handling ability that major investment banks cannot mimic may be advantageous.
The latest third quarter performance of sales, business profit, pretax profit and quarterly net profit was 6.317 billion (increase by 74.2% compared with the same period of last year), 1.687 billion (increase by 133.2% compared with the same period of last year), 1.689 billion (increase by 133.7% compared with the same period of last year), and 1.575 billion yen (increase by 145.8% compared with the same period of last year) respectively. With an assumption of continuing steady performance still in the fourth quarter, both sales and profit is expected to hit a record high since it converted the business model to investment business in 2010.
KCR Inc. predicts Oak capital will be the robust trend of performance to continue even in the fourth quarter. For the settlement of accounts in January-March, 2015, sales is expected to reach 7.917 billion yen (increase by 90.0% compared with the same period of last year) and business profit, pretax profit and net profit to reach 2.375 billion yen (increase by 316.6%, 321.0% and 328.7% respectively compared with the same period of last year).
This report is intended to provide reference information for investment decisions, and is not intended to solicit investment. Although figures and opinions in the report are based on data obtained from sources deemed reliable, KCR Inc. does not guarantee their accuracy. KCR will assume no responsibility for any loss or damage caused by using part or all of these materials. Investors are advised to make investment decisions based on their own judgment and responsibility. Opinions and forecasts described in the report were made as of its preparation date, and we do not make any guarantees about their accuracy and completeness. In addition, these opinions and forecasts may change in the future without prior notice. KCR reserves all rights with respect to the contents. Copying or reproducing the contents without prior approval is prohibited.
Yojiro Kindaichi for Oak Capital Corporation
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