2024-12-23
Home
Japanese
Omega Investment Co., Ltd.
Hamee (Company note – Q2 update)
| Share price (1/24) | ￥1,314 | Dividend Yield (25/4 CE) | 1.7 % |
| 52weeks high/low | ￥830/1,425 | ROE(24/4) | 11.8 % |
| Avg Vol (3 month) | 57 thou shrs | Operating margin (24/4) | 10.9 % |
| Market Cap | ￥21.4 bn | Beta (5Y Monthly) | 1.3 |
| Enterprise Value | ￥20.9 bn | Shares Outstanding | 16.3 mn shrs |
| PER (25/4 CE) | 15.4 X | Listed market | TSE Standard |
| PBR (24/4 act) | 2.0 X |
| Click here for the PDF version of this page |
| PDF Version |
Net sales and operating income increased sharply in the first two quarters, exceeding the Company’s plan. Positive expectations for the second half of the fiscal year are growing.
◇ Q2 FY04/2025 financial highlights: Significant increase in revenue and profit
Hamee (hereafter, the Company) announced on December 13, 2024, that its interim results for FY04/2025 had seen a sharp increase in net sales, operating income, ordinary income, and quarterly net income attributable to owner of parent. The results appear to have exceeded the Company’s plan.
Specifically, for the cumulative second quarter, net sales were 10.67 billion yen (+39% YoY), operating income was 1.02 billion yen (+61% YoY), ordinary income was 1.03 billion yen (+ 47% YoY), and net income attributable to owner of parent was 660 million yen (+229% YoY).
By segment, the Commerce Segment saw a 48% increase in revenue and a 51% increase in profit, while the Platform Segment saw a 9% increase in revenue and a 25% increase in profit, with both segments showing steady growth. These are positive outcomes.
Looking at the Commerce Segment in more detail, the Mobile Life Business, the Cosmetics Business, the Gaming Accessories Business, and the Global Business are all steadily increasing their net sales. The Cosmetics Business and the Gaming Accessories Business, which are experiencing high growth, generally increase their quarterly net sales.
Regarding profits for the Commerce Segment, the Mobile Life Business is performing well, with product measures and price revisions paying off and generating solid profits. Meanwhile, the Company is striking an appropriate balance between business development and profit generation in the Cosmetics Business, the Gaming Accessories Business, and the Global Business. Although there are fluctuations in profit on a three-month basis, it is worth noting that the Cosmetics Business and the Gaming Accessories Business both turned profitable YoY in the first half of the year. From a bird’s eye view, a structure is being created in which multiple businesses complement each other and drive growth for the segment as a whole.
In the Platform Segment, the mainstay NextEngine Business continued to be highly profitable. Against the trend of consumers returning to the EC market, the number of orders received from clients with high unit prices increased, and ARPU improved due to the effect of revisions to service prices. As a result, the segment saw an 18% increase in revenue, which drove segment profit. The segment operating income margin was 52.7% for the first half of the year (an improvement of 6.5 points YoY), which is a high level for an EC-related platform provider, and the segment is likely to attract more attention as the time for the spin-off IPO of the segment approaches.
On the balance sheet, notes and accounts receivable, and merchandise increased, and an increase in short-term borrowings covered this.
◇Full-year forecast: No change in the initial guidance
There are no changes to the full-year earnings forecast or dividend. Net sales of 19.74 billion yen (+12% YoY), operating income of 2.08 billion yen (+8% YoY), ordinary income of 2.05 billion yen (+1% YoY), net income attributable to owners of parent of 1.36 billion yen (+21% YoY), net profit per share of 83.69 yen, dividend per share of 22.50 yen (unchanged YoY).
In the second half of the year, the effects of the price revision implemented in November 2023 in the NextEngine Business are expected to subside, and the one-off factors that boosted ARPU in the previous year’s third quarter are also expected to have disappeared. However, given that both the Commerce and Platform Segments enter their peak demand periods in the third and fourth quarters and that progress through the second quarter has exceeded expectations, consolidated earnings are expected to remain steady in the year’s second half.
There are no changes to the plan for reorganization (a share-distribution-type spin-off of NE, which will take charge of the Platform Segment and listing of NE) by 2025.
◇Stock Price Trends and Points to Watch in the Future
Since the announcement of the first quarter results in September, the stock price has generally remained between 1,000 and 1,100 yen. However, after the release of the second quarter results, it rose significantly with increased trading volume and fluctuated between 1,200 and 1,400 yen.
The rise in the stock price can be attributed to several factors: the strong performance in the second quarter, the fact that the Company’s earnings are typically weighted toward the second half in both the Commerce Segment and the Platform Segment, which has heightened expectations for the full-year results, and the anticipation surrounding the upcoming spin-off IPO, which is expected to alleviate the conglomerate discount. The valuation suggests the potential for further reassessment, with PER at 15.6 times based on the Company’s forecasted EPS and PBR of 2.1 times.
Key points of focus in the near term include: 1.Earnings increase steadily beyond the third quarter, the peak demand period, and the Company’s likelihood of achieving the full-year forecast will increase even further. 2.In the Commerce Segment, the establishment of a stable growth structure where not only the Mobile Life Business but also the Cosmetics Business and the Gaming Accessories Business make consistent contributions to profitability, thereby driving the overall segment growth across multiple business areas. 3.In the Platform Segment, leveraging the recovery of the EC market to steadily increase order processing volumes and ARPU, thereby solidifying its position as an EC platform provider while maintaining or even improving profitability. 4.An increasing contribution to earnings from the Global Business. 5.The materialization of plans for organizational restructuring. These factors will be critical in shaping the Company’s trajectory moving forward.
Company profile
◇Hamee Corp. (hereafter referred to as the Company) was founded in 1997, went public on the TSE Mothers in 2015 and is currently listed on the Standard Market. The Company operates through the Spin-off of two segments. The Commerce Segment, which includes Mobile Accessories, the Cosmetics Business, the Gaming Accessories Business, and the Global Business. the Platform Segment is mainly engaged in the provision of cloud-based (SaaS) EC Attractions “NextEngine”, which automates operations related to online shop management and enables cross-mall, multi-store order processing and centralized inventory management.
The Company is planning a reorganization by 2025. It plans to conduct a share-distribution-type spin-off of NE Inc., which is in charge of the Platform Segment, and list NE Inc. on the stock exchange. This series of reorganizations aims to avoid the conglomerate discount, efficiently operate each of the two segments, and appropriately and timely reflect the value of each business in the share price.
Key financial data
| Unit: million yen | 2020/4 | 2021/4 | 2022/4 | 2023/4 | 2024/4 | 2025/4 CE |
| Sales | 11,325 | 12,363 | 13,413 | 14,038 | 17,612 | 19,745 |
| EBIT (Operating Income) | 1,745 | 2,180 | 2,202 | 1,251 | 1,964 | |
| Pretax Income | 1,582 | 2,144 | 2,463 | 1,396 | 2,009 | 2,051 |
| Net Profit Attributable to Owner of Parent | 1,069 | 1,556 | 1,744 | 945 | 1,122 | 1,362 |
| Cash & Short-Term Investments | 3,453 | 3,355 | 4,026 | 3,536 | 4,022 | |
| Total assets | 8,097 | 8,342 | 10,524 | 12,392 | 14,885 | |
| Total Debt | 1,740 | 104 | 544 | 1,300 | 2,327 | |
| Net Debt | -1,713 | -3,251 | -3,482 | -2,236 | -1,694 | |
| Total liabilities | 3,272 | 1,814 | 2,271 | 3,431 | 4,728 | |
| Total Shareholders’ Equity | 4,824 | 6,528 | 8,253 | 8,961 | 10,157 | |
| Net Operating Cash Flow | 1,934 | 1,941 | 1,186 | 695 | 886 | |
| Capital Expenditure | 649 | 351 | 1,018 | 487 | 477 | |
| Net Investing Cash Flow | -1,020 | -412 | -886 | -1,507 | -877 | |
| Net Financing Cash Flow | 933 | -1,736 | 298 | 263 | 380 | |
| Free Cash Flow | 1,440 | 1,760 | 362 | 405 | 577 | |
| ROA (%) | 15.43 | 18.94 | 18.49 | 8.25 | 8.22 | |
| ROE (%) | 23.73 | 27.42 | 23.60 | 10.98 | 11.73 | |
| EPS (Yen) | 67.4 | 98.4 | 109.7 | 59.4 | 70.4 | |
| BPS (Yen) | 305.5 | 411.1 | 519.1 | 563.0 | 637.6 | |
| Dividend per Share (Yen) | 7.00 | 10.00 | 22.50 | 22.50 | 22.50 | 22.50 |
| Shares Outstanding (Million Shares) | 16.10 | 16.21 | 16.27 | 16.27 | 16.28 |
Source: Omega Investment from company data, rounded to the nearest whole number.
Share price
Overview of Q2 FY04/2025
Overview of Company-wide Performance
Source: Company material
Source: Company material
Source: Company material
Overview of the Commerce Segment
Source: Company material
Source: Company material
Financial data (quarterly basis)
| Unit: million yen | 2023/04 | 2024/04 | 2025/04 | ||||||
| 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |
| (Income Statement) | |||||||||
| Sales | 3,527 | 3,909 | 3,496 | 3,317 | 4,315 | 5,151 | 4,829 | 4,579 | 6,099 |
| Year-on-year | 5.9% | -3.0% | 1.8% | 6.8% | 22.3% | 31.8% | 38.1% | 38.1% | 41.3% |
| Cost of Goods Sold (COGS) | 1,428 | 1,410 | 1,517 | 1,279 | 1,631 | 1,858 | 1,977 | 1,841 | 2,628 |
| Gross Income | 2,100 | 2,499 | 1,979 | 2,038 | 2,684 | 3,293 | 2,852 | 2,738 | 3,471 |
| Gross Income Margin | 59.5% | 63.9% | 56.6% | 61.4% | 62.2% | 63.9% | 59.1% | 59.8% | 56.9% |
| SG&A Expense | 1,774 | 1,903 | 1,894 | 1,863 | 2,224 | 2,565 | 2,306 | 2,505 | 2,691 |
| EBIT (Operating Income) | 326 | 595 | 85 | 187 | 470 | 756 | 551 | 233 | 780 |
| Year-on-year | -59.6% | -19.5% | -74.0% | -24.8% | 44.1% | 27.0% | 545.8% | 24.7% | 65.9% |
| Operating Income Margin | 9.2% | 15.2% | 2.4% | 5.6% | 10.9% | 14.7% | 11.4% | 5.1% | 12.8% |
| EBITDA | 618 | 724 | 332 | 377 | 670 | 953 | 749 | 435 | 941 |
| Pretax Income | 439 | 485 | 174 | 205 | 492 | 737 | 576 | 200 | 811 |
| Consolidated Net Income | 288 | 320 | 130 | -133 | 334 | 492 | 428 | 101 | 564 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Income ATOP | 288 | 320 | 130 | -133 | 334 | 492 | 428 | 101 | 564 |
| Year-on-year | -58.2% | -36.6% | -55.8% | -164.0% | 16.1% | 53.6% | 228.4% | -176.6% | 68.8% |
| Net Income Margin | 8.2% | 8.2% | 3.7% | -4.0% | 7.8% | 9.5% | 8.9% | 2.2% | 9.3% |
| (Balance Sheet) | |||||||||
| Cash & Short-Term Investments | 3,468 | 3,396 | 3,536 | 3,176 | 2,983 | 3,430 | 4,022 | 3,642 | 3,912 |
| Total assets | 11,442 | 12,374 | 12,392 | 12,350 | 13,197 | 14,210 | 14,885 | 15,295 | 16,838 |
| Total Debt | 1,020 | 1,008 | 1,300 | 1,700 | 1,650 | 1,928 | 2,327 | 3,232 | 3,980 |
| Net Debt | -2,448 | -2,388 | -2,236 | -1,476 | -1,333 | -1,502 | -1,694 | -410 | 68 |
| Total liabilities | 2,998 | 3,460 | 3,431 | 3,608 | 4,040 | 4,566 | 4,728 | 5,242 | 6,490 |
| Total Shareholders’ Equity | 8,444 | 8,914 | 8,961 | 8,742 | 9,156 | 9,644 | 10,157 | 10,053 | 10,348 |
| (Profitability %) | |||||||||
| ROA | 12.09 | 9.64 | 8.25 | 5.31 | 5.29 | 6.20 | 8.22 | 9.81 | 10.56 |
| ROE | 16.52 | 13.26 | 10.98 | 7.12 | 7.41 | 8.88 | 11.73 | 14.43 | 16.26 |
| (Per-share) Unit: yen | |||||||||
| EPS | 18.1 | 20.1 | 8.2 | -8.3 | 21.0 | 30.9 | 26.9 | 6.4 | 35.4 |
| BPS | 530.9 | 560.4 | 563.0 | 549.2 | 575.0 | 605.6 | 637.6 | 630.7 | 648.8 |
| Dividend per Share | 16.27 | 16.27 | 16.28 | 16.28 | 16.28 | 16.28 | 16.28 | 16.29 | 16.29 |
Source: Omega Investment from company materials
Financial data (full-year basis)
| Unit: million yen | 2016/04 | 2017/04 | 2018/04 | 2019/04 | 2020/04 | 2021/04 | 2022/04 | 2023/04 | 2024/04 |
| (Income Statement) | |||||||||
| Sales | 6,500 | 8,503 | 9,379 | 10,300 | 11,325 | 12,363 | 13,413 | 14,038 | 17,612 |
| Year-on-year | 14.9% | 30.8% | 10.3% | 9.8% | 10.0% | 9.2% | 8.5% | 4.7% | 25.5% |
| Cost of Goods Sold | 3,816 | 4,485 | 4,618 | 5,056 | 4,894 | 4,802 | 4,892 | 5,563 | 6,745 |
| Gross Income | 2,684 | 4,018 | 4,761 | 5,244 | 6,431 | 7,562 | 8,522 | 8,476 | 10,867 |
| Gross Income Margin | 41.3% | 47.3% | 50.8% | 50.9% | 56.8% | 61.2% | 63.5% | 60.4% | 61.7% |
| SG&A Expense | 2,237 | 2,916 | 3,381 | 4,080 | 4,686 | 5,382 | 6,319 | 7,225 | 8,959 |
| EBIT (Operating Income) | 447 | 1,102 | 1,380 | 1,164 | 1,745 | 2,180 | 2,202 | 1,251 | 1,964 |
| Year-on-year | 32.8% | 146.8% | 25.2% | -15.7% | 50.0% | 24.9% | 1.0% | -43.2% | 57.0% |
| Operating Income Margin | 6.9% | 13.0% | 14.7% | 11.3% | 15.4% | 17.6% | 16.4% | 8.9% | 11.1% |
| EBITDA | 521 | 1,272 | 1,627 | 1,525 | 2,227 | 2,694 | 2,840 | 2,042 | 2,749 |
| Pretax Income | 426 | 1,010 | 1,259 | 1,179 | 1,582 | 2,144 | 2,463 | 1,396 | 2,009 |
| Consolidated Net Income | 258 | 696 | 873 | 821 | 1,069 | 1,556 | 1,744 | 945 | 1,122 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Income ATOP | 258 | 696 | 873 | 821 | 1,069 | 1,556 | 1,744 | 945 | 1,122 |
| Year-on-year | 33.8% | 169.7% | 25.4% | -5.9% | 30.2% | 45.5% | 12.0% | -45.8% | 18.6% |
| Net Income Margin | 4.0% | 8.2% | 9.3% | 8.0% | 9.4% | 12.6% | 13.0% | 6.7% | 6.4% |
| (Balance Sheet) | |||||||||
| Cash & Short-Term Investments | 1,103 | 1,324 | 1,695 | 1,660 | 3,453 | 3,355 | 4,026 | 3,536 | 4,022 |
| Total assets | 3,016 | 4,240 | 5,042 | 5,761 | 8,097 | 8,342 | 10,524 | 12,392 | 14,885 |
| Total Debt | 383 | 468 | 298 | 500 | 1,740 | 104 | 544 | 1,300 | 2,327 |
| Net Debt | -720 | -856 | -1,397 | -1,160 | -1,713 | -3,251 | -3,482 | -2,236 | -1,694 |
| Total liabilities | 1,022 | 1,484 | 1,445 | 1,572 | 3,272 | 1,814 | 2,271 | 3,431 | 4,728 |
| Total Shareholders’ Equity | 1,994 | 2,756 | 3,597 | 4,189 | 4,824 | 6,528 | 8,253 | 8,961 | 10,157 |
| (Cash Flow) | |||||||||
| Net Operating Cash Flow | 71 | 576 | 1,246 | 651 | 1,934 | 1,941 | 1,186 | 695 | 886 |
| Capital Expenditure | 189 | 228 | 437 | 291 | 649 | 351 | 1,018 | 487 | 477 |
| Net Investing Cash Flow | -263 | -433 | -674 | -671 | -1,020 | -412 | -886 | -1,507 | -877 |
| Net Financing Cash Flow | -139 | 69 | -230 | -7 | 933 | -1,736 | 298 | 263 | 380 |
| Free Cash Flow | 52 | 464 | 960 | 526 | 1,440 | 1,760 | 362 | 405 | 577 |
| (Profitability %) | |||||||||
| ROA | 8.71 | 19.18 | 18.81 | 15.21 | 15.43 | 18.94 | 18.49 | 8.25 | 8.22 |
| ROE | 13.83 | 29.30 | 27.48 | 21.10 | 23.73 | 27.42 | 23.60 | 10.98 | 11.73 |
| Net Profit Margin | 3.97 | 8.18 | 9.31 | 7.97 | 9.44 | 12.59 | 13.00 | 6.73 | 6.37 |
| Asset Turnover | 2.19 | 2.34 | 2.02 | 1.91 | 1.63 | 1.50 | 1.42 | 1.23 | 1.29 |
| Financial Leverage | 1.59 | 1.53 | 1.46 | 1.39 | 1.54 | 1.45 | 1.28 | 1.33 | 1.43 |
| (Per-share) Unit: JPY | |||||||||
| EPS | 16.6 | 44.2 | 54.7 | 51.2 | 67.4 | 98.4 | 109.7 | 59.4 | 70.4 |
| BPS | 127.2 | 174.0 | 224.1 | 263.0 | 305.5 | 411.1 | 519.1 | 563.0 | 637.6 |
| Dividend per Share | 1.50 | 4.50 | 5.50 | 6.50 | 7.00 | 10.00 | 22.50 | 22.50 | 22.50 |
| Shares Outstanding (Million Shares) |
15.55 | 15.74 | 15.94 | 16.08 | 16.10 | 16.21 | 16.27 | 16.27 | 16.28 |
Source: Omega Investment from company materials