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Omega Investment Co., Ltd.

Hamee (Company note – Q1 update)

Coverage
Share price (10/13) ￥293 Dividend Yield (27/4 CE) 1.0 %
52weeks high/low ￥1,410/250 ROE(26/4) 6.1 %
Avg Vol (3 month)  54.5 thou shrs Operating margin (26/4) 4.5 %
Market Cap ￥4.78 bn Beta (5Y Monthly) 0.8
Enterprise Value ￥7.99 bn Shares Outstanding 16.3 mn shrs
PER (27/4 CE) 20.4 X Listed market TSE Standard
PBR (26/4 act) 0.7 X    
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FY04/2027 Q1 was, in substance, “higher sales and a narrower operating loss.”

◇ FY04/2027 Q1 results highlights: YoY improvement on a substantive basis

Hamee (hereinafter, the Company) announced its FY04/2027 Q1 results on September 14, 2026, with lower sales YoY and an operating loss. However, on a like-for-like basis excluding NE Inc.’s contribution from the prior-year quarter, the results were, in substance, “higher sales and a narrower operating loss.”

Overview of results: On an accounting basis under which NE Inc. was consolidated in the prior-year quarter, net sales were JPY4.61 billion (down 12.9% YoY), operating loss was JPY10 million (turning to a loss YoY), ordinary loss was JPY10 million (turning to a loss YoY), quarterly net income attributable to owners of parent was JPY60 million (up 133.0% YoY), and basic earnings per share was JPY3.75.

However, considering the impact of the deconsolidation of the subsidiary (NE Inc.) at the end of Q2 of the previous fiscal year, net sales increased 7.2% in substance, while the operating loss narrowed by JPY170 million.

Source: Company material

The assessment of this earnings trend is positive, considering that this was the first quarter of the new medium-term management plan and that the Company is making upfront investments to strengthen its earnings base and drive growth. The key points are as follows.

  • The Mobile Life Business, its longstanding core business, is steadily generating profit
  • The Beauty Business, which the Company has been developing, continues to post higher sales, with business profit remaining positive for consecutive quarters
  • Product development with an emphasis on marginal profit margin is progressing, leading to an improvement in gross profit margin
  • Measures aimed at growth are also being implemented in the other businesses

It should also be noted that factors contributing to the improvement in earnings included a boost to earnings from refunds of U.S. tariffs, the recognition of a gain on reversal of share acquisition rights as extraordinary income following the expiration of the exercise period for the fifth series of share acquisition rights, and the fact that total income taxes were negative due to the impact of deferred income taxes.

On the balance sheet, product inventories increased in preparation for the second-half sales season, while receivables related to refunds of U.S. tariffs also increased. These increases were financed by higher short-term borrowings.

Business-specific highlights:

Mobile Life Business: Stable performance

Net sales of JPY1.80 billion (up 5.8% YoY) and business profit of JPY240 million (down 2.5% YoY). Both EC sales and wholesale sales increased. The Company continued to consolidate its lineup around its core iFace brand and shifted its product mix toward higher-priced products such as “BeBling” and MagSafe-compatible models, maintaining unit sales while increasing the average unit price.

  • Electronic accessories such as portable fans also got off to a solid start.
  • Inventories were at around the same level as the previous year.

Beauty Business: Continued sales growth and firmly established profitability

Net sales were JPY1.33 billion (up 51.0% YoY) and business profit was JPY60 million (up JPY130 million YoY).

  • Base makeup products drove sales; the number of stores carrying the products continued to expand at drugstores and other retailers, and EC sales also remained solid. The renewal of the core cushion foundation product was completed.
  • The product lineup of “ByGLOW,” an inner-beauty brand in a new category, continued to expand. Rollout through existing channels is expected.
  • Inventories were deliberately built up ahead of the fall sales season.

Gaming Accessories Business: Restructuring progressing while maintaining profitability

Net sales were JPY790 million (down 15.2% YoY) and business profit was JPY50 million (down 29.2% YoY).

  • Price competition intensified in monitors, and sales were sluggish.
  • Expansion into monitor arms and peripheral accessories (cables, mouse pads, etc.) has become established. The furniture category, including desks and chairs, has also begun to take off, resulting in a lineup with higher profitability than monitors.
  • Inventories were reduced.
  • While advertising and logistics expenses increased, a temporary decrease in cost of sales due to purchase rebates and other factors contributed to business profit.

Global Business: The Company’s own brands are being rolled out across multiple regions

Net sales of JPY660 million (down 12.6% YoY) and business profit of JPY80 million (up JPY120 million YoY).

  • Sales to customers outside the Group increased YoY at all three locations. In South Korea, sales of gaming monitors (Pixio) continued. In the United States, IP collaboration products such as Otamatone, as well as “ByUR,” were offered.
  • On an accounting basis, net sales declined due to an increase in consolidation adjustments (elimination of intercompany transactions) associated with expanded supply to Japan. Earnings improved as the impact of increased retirement benefit expenses in South Korea ran its course and U.S. tariffs were refunded.

◇ FY04/2027 full-year outlook: Forecast for higher sales and higher earnings in substance maintained

Consolidated earnings forecast: For the full year, net sales are projected at JPY22.82 billion (up 3.4% YoY), operating profit at JPY500 million (down 48.9% YoY), ordinary profit at JPY370 million (down 51.5% YoY), net income attributable to owners of parent at JPY230 million (down 57.4% YoY), basic earnings per share at JPY14.13, and dividend per share at JPY3.00.

It is necessary to take into account that a major factor behind the large rate of earnings decline is that the impact of NE Inc.’s spin-off remains for half of the fiscal year. Excluding this impact, net sales are forecast to increase 13.5% YoY, business profit to increase 33.4% YoY to JPY1.85 billion, and operating profit to increase 92.8% YoY, representing, in substance, a forecast for higher sales and higher earnings.

FY04/2027 is positioned as a period of preparation toward the “next growth phase,” and the Company plans to make proactive upfront investments.

◇ Share price trends and points of focus going forward

The Company’s share price had been declining gradually since October 2025. After reaching a low in June 2026, it has been in the process of bottoming out.

The following factors can be considered to be behind this series of share price movements:

  • Because of the impact of the spin-off of NE Inc. as well, earnings trends in FY04/2026 and FY04/2027 appear weak
  • In some of the Company’s business areas, the business environment has become more severe, and despite sluggish earnings growth, the need to strengthen growth investment has increased
  • Among investors, the recognition spread that it would take more time before it could be confirmed whether the Company would realize the growth depicted in the medium-term management plan

However, more recently,

  • As a result of the sharp fall in the share price, PBR declined to around 0.6x–0.7x, easing downside concerns
  • It was shown that, on a business profit basis for the Commerce Business, which is the continuing business, business profit is expected to return to growth from FY04/2027
  • The new medium-term management plan clearly showed that the Company aims to achieve growth and improve capital efficiency
  • The shareholder benefit program was expanded to attract long-term shareholders who will remain aligned with the Company’s growth
  • The Q1 results were in line with expectations

These factors appear to have begun receiving positive evaluations.

In light of the above, we would like to focus on the following points going forward. The key points for the share price to move from bottoming out to an upward trajectory are as follows.

  • Whether FY04/2027 will progress, as per the Company forecast, with higher sales and higher earnings in substance. If the business environment does not improve, whether the Company can assess the effectiveness of its upfront investments and prioritize those investments accordingly. As a result, whether earnings will grow steadily.
  • In particular, how the Beauty Business’s marginal profit will improve. Whether it will become a second earnings pillar following the Mobile Life Business
  • Whether a new record high in business profit will come into view
  • Whether the number of users and shareholders who become fans of the Company’s businesses will increase, leading to stable growth in earnings and the share price

Company profile

◇Hamee Corp. (hereinafter, the Company) was founded in 1997, listed its shares on the TSE Mothers in 2015, and is currently listed on the TSE Standard Market. It had operated the following two segments through separate companies: the “Commerce Segment,” which develops businesses such as the Mobile Life Business (mobile accessories, etc.), the Beauty Business (cosmetics), the Gaming Accessories Business (gaming monitors, etc.), and the Global Business; and the “Platform Segment,” whose primary business is to provide EC Attractions”Next Engine,” a cloud (SaaS)-based service that automates tasks related to operating online shops for e-commerce operators and centrally manages order processing and inventory status for multiple stores across online marketplaces.

On November 4, 2025, NE Inc., which was responsible for the Platform Segment, was listed. The Company specializes in the Commerce Segment and is promoting the “deepening of Gen Z Culture SPA” and “contribution to a decarbonized society.” In June 2026, it formulated a new medium-term management plan, and the results from that plan are expected.

Key financial data

Unit: million yen 2022/4 2023/4 2024/4 2025/4 2026/4 2027/4
CE
Sales 13,413 14,038 17,612 22,895 22,074 22,817
EBIT 2,202 1,251 1,964 2,346 983 　502
Pretax Income 2,463 1,396 2,009 1,991 733  
Net Profit Attributable to Owner of Parent 1,744 945 1,122 1,278 541 230
Cash & Short-Term Investments 4,026 3,536 4,022 4,994 1,812  
Total assets 10,524 12,392 14,885 17,303 13,574  
Total Debt 544 1,300 2,327 4,076 4,100  
Net Debt -3,482 -2,236 -1,694 -918 2,288  
Total liabilities 2,271 3,431 4,728 6,733 6,255  
Total Shareholders’ Equity 8,253 8,961 10,157 10,570 7,320  
Net Operating Cash Flow 1,186 695 886 827 -108  
Capital Expenditure 1,018 487 477 783 422  
Net Investing Cash Flow -886 -1,507 -877 -922 -479  
Net Financing Cash Flow 298 263 380 1,171 108  
Free Cash Flow 362 405 577 225 -411  
ROA (%) 18.49 8.25 8.22 7.94 3.51  
ROE (%) 23.60 10.98 11.73 12.33 6.05  
EPS (Yen) 109.7 59.4 70.4 80.2 33.9 14.13
BPS (Yen) 519.1 563.0 637.6 662.6 457.5  
Dividend per Share (Yen) 22.50 22.50 22.50 22.50 22.50 3.00
Shares Outstanding (Million shares) 16.27 16.27 16.28 16.29 16.33  

Source: Calculated by Omega Investment based on FactSet’s standard criteria, rounded to the nearest whole number.

Share price

　

Overview of FY04/2027 Q1 results

Overview of company-wide performance

Source: Company material

Hamee Group Strategy

Source: Company material

Medium-term management plan

Source: Company material

Financial data (quarterly basis)

Unit: million yen 2025/4 2026/4 2027/4
　 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
(Income Statement)                  
Sales 4,579 6,099 6,659 5,559 5,290 5,942 5,694 5,147 4,610
Year-on-year 38.1% 41.3% 29.3% 15.1% 15.5% -2.6% -14.5% -7.4% -12.9%
Cost of Goods Sold (COGS) 1,841 2,628 2,668 2,261 2,275 2,315 2,443 2,110 1,671
Gross Income 2,738 3,471 3,991 3,297 3,016 3,627 3,251 3,038 2,939
Gross Income Margin 59.8% 56.9% 59.9% 59.3% 57.0% 61.0% 57.1% 59.0% 63.8%
SG&A Expense 2,505 2,691 3,074 2,882 2,845 3,092 3,157 2,853 2,954
EBIT 233 780 917 416 171 534 94 185 -15
Year-on-year 24.7% 65.9% 21.3% -24.6% -26.5% -31.5% -89.7% -55.6% -108.7%
Operating Income Margin 5.1% 12.8% 13.8% 7.5% 3.2% 9.0% 1.7% 3.6% -0.3%
EBITDA 435 941 1,163 623 376 765 279 371 171
Pretax Income 200 811 702 278 97 422 28 187 51
Consolidated Net Income 101 564 400 212 26 274 -4 245 60
Minority Interest 0 0 0 0 0 0 0 0 0
Net Income ATOP 101 564 400 212 26 274 -4 245 60
Year-on-year -176.6% 68.8% -18.6% -50.5% -74.6% -51.4% -100.9% 15.5% 133.0%
Net Income Margin 2.2% 9.3% 6.0% 3.8% 0.5% 4.6% -0.1% 4.8% 1.3%
                   
(Balance Sheet)                  
Cash & Short-Term Investments 3,642 3,912 4,204 4,994 4,172 5,317 2,329 1,812 1,965
Total assets 15,295 16,838 18,197 17,303 16,416 19,556 14,139 13,574 14,124
Total Debt 3,232 3,980 3,927 4,076 3,850 5,150 4,500 4,100 5,397
Net Debt -410 68 -277 -918 -322 -167 2,171 2,288 3,432
Total liabilities 5,242 6,490 7,553 6,733 5,980 8,449 6,931 6,255 7,145
Total Shareholders’ Equity 10,053 10,348 10,644 10,570 10,437 11,107 7,209 7,320 6,979
                   
(Profitability %)                  
ROA 9.81 10.56 9.22 7.94 7.58 5.01 3.14 3.51 3.77
ROE 14.43 16.26 14.73 12.33 11.74 8.50 5.69 6.05 6.61
(Per-share) Unit: JPY                  
EPS 6.4 35.4 25.1 13.3 1.6 17.1 -0.2 15.3 3.7
BPS 630.7 648.8 667.4 662.6 653.1 694.2 450.5 457.5 436.2
Dividend per Share 0.00 0.00 0.00 22.50 0.00 0.00 0.00 22.50 0.00
Shares Outstanding (million shares) 16.29 16.29 16.29 16.30 16.30 16.33 16.33 16.33 16.33

Source: Calculated by Omega Investment based on FactSet’s standard criteria, rounded to the nearest whole number.

Financial data (full-year basis)

Unit: million yen 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
(Income Statement)                    
Sales 8,503 9,379 10,300 11,325 12,363 13,413 14,038 17,612 22,895 22,074
Year-on-year 30.8% 10.3% 9.8% 10.0% 9.2% 8.5% 4.7% 25.5% 30.0% -3.6%
Cost of Goods Sold 4,485 4,618 5,056 4,894 4,802 4,892 5,563 6,745 9,398 9,143
Gross Income 4,018 4,761 5,244 6,431 7,562 8,522 8,476 10,867 13,497 12,931
Gross Income Margin 47.3% 50.8% 50.9% 56.8% 61.2% 63.5% 60.4% 61.7% 59.0% 58.6%
SG&A Expense 2,916 3,381 4,080 4,686 5,382 6,319 7,225 8,959 11,151 11,947
EBIT 1,102 1,380 1,164 1,745 2,180 2,202 1,251 1,964 2,346 983
Year-on-year 146.8% 25.2% -15.7% 50.0% 24.9% 1.0% -43.2% 57.0% 19.5% -58.1%
Operating Income Margin 13.0% 14.7% 11.3% 15.4% 17.6% 16.4% 8.9% 11.1% 10.2% 4.5%
EBITDA 1,272 1,627 1,525 2,227 2,694 2,840 2,042 2,749 3,162 1,791
Pretax Income 1,010 1,259 1,179 1,582 2,144 2,463 1,396 2,009 1,991 733
Consolidated Net Income 696 873 821 1,069 1,556 1,744 945 1,122 1,278 541
Minority Interest 0 0 0 0 0 0 0 0 0 0
Net Income ATOP 696 873 821 1,069 1,556 1,744 945 1,122 1,278 541
Year-on-year 169.7% 25.4% -5.9% 30.2% 45.5% 12.0% -45.8% 18.6% 13.9% -57.6%
Net Income Margin 8.2% 9.3% 8.0% 9.4% 12.6% 13.0% 6.7% 6.4% 5.6% 2.5%
                     
(Balance Sheet)                    
Cash & Short-Term Investments 1,324 1,695 1,660 3,453 3,355 4,026 3,536 4,022 4,994 1,812
Total assets 4,240 5,042 5,761 8,097 8,342 10,524 12,392 14,885 17,303 13,574
Total Debt 468 298 500 1,740 104 544 1,300 2,327 4,076 4,100
Net Debt -856 -1,397 -1,160 -1,713 -3,251 -3,482 -2,236 -1,694 -918 2,288
Total liabilities 1,484 1,445 1,572 3,272 1,814 2,271 3,431 4,728 6,733 6,255
Total Shareholders’ Equity 2,756 3,597 4,189 4,824 6,528 8,253 8,961 10,157 10,570 7,320
                     
(Cash Flow)                    
Net Operating Cash Flow 576 1,246 651 1,934 1,941 1,186 695 886 827 -108
Capital Expenditure 228 437 291 649 351 1,018 487 477 783 422
Net Investing Cash Flow -433 -674 -671 -1,020 -412 -886 -1,507 -877 -922 -479
Net Financing Cash Flow 69 -230 -7 933 -1,736 298 263 380 1,171 108
Free Cash Flow 464 960 526 1,440 1,760 362 405 577 225 -411
                     
(Profitability)                    
ROA (%) 19.18 18.81 15.21 15.43 18.94 18.49 8.25 8.22 7.94 3.51
ROE (%) 29.30 27.48 21.10 23.73 27.42 23.60 10.98 11.73 12.33 6.05
Net Margin (%) 8.18 9.31 7.97 9.44 12.59 13.00 6.73 6.37 5.58 2.45
Asset Turn 2.34 2.02 1.91 1.63 1.50 1.42 1.23 1.29 1.42 1.43
Assets/Equity 1.53 1.46 1.39 1.54 1.45 1.28 1.33 1.43 1.55 1.73
(Per-share) Unit: JPY                    
EPS 44.2 54.7 51.2 67.4 98.4 109.7 59.4 70.4 80.2 33.9
BPS 174.0 224.1 263.0 305.5 411.1 519.1 563.0 637.6 662.6 457.5
Dividend per Share 4.50 5.50 6.50 7.00 10.00 22.50 22.50 22.50 22.50 22.50
Shares Outstanding(million shares) 15.74 15.94 16.08 16.10 16.21 16.27 16.27 16.28 16.29 16.33

Source: Calculated by Omega Investment based on FactSet’s standard criteria, rounded to the nearest whole number.

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