Investment Bridge, one of Japan's leading independent IR services companies, has released a "Bridge Report" on HAPPINET CORPORATION (TOKYO First Section, 7552) reviewing fiscal year March 2012 earnings results and fiscal year March 2013 estimates.

Report Highlights

  • HAPPINET CORPORATION was able to exceed the upwardly revised sales and profits estimates during FY3/12 by achieving sales and operating income growth of 3.7% and 70.0%.
  • In addition to a JPY11.25 per share regular dividend, HAPPINET is expected to pay an additional JPY5 per share to commemorate its 20th year of operations in FY3/12.
  • Sales during FY3/13 are expected to remain in line with FY3/12, but anticipatory investments are expected to contribute to a 10.6% decline in ordinary income.
  • The Bridge Report calls attention to the fact that targets of the Fifth Midterm Business Plan including improvements in profitability were achieved. The Report also provides details of the new Sixth Midterm Business Plan (FY3/13 to FY3/15).

HAPPINET CORPORATION is a comprehensive distributor operating in the realm of toys and other entertainment products. The Company conducts operations in a wide range of businesses spanning toys, visual and music software, video games, amusement products (Capsule toys, card games, others), and other product areas, in addition to planning and creating original toy products and visual contents. At the end of FY3/12, NAMCO BANDAI Holdings Inc. was the top shareholder with 5.88 million shares or 26.3% of total voting rights.

In FY3/12 sales rose by 3.7% year-over-year to JPY198.0 billion on strong sales of the mainstay toy business made possible in part by the popularity of Bandai's character products. Also increases in sales composition of amusement business and effective reforms in inventory strategies allowed profitability to improve with gross margin rising by 0.9% point to 12.6%. Despite increases in various variable costs within SG&A expenses, the higher sales and improved gross margins allowed operating income to rise by 70.0% year-over-year to JPY4.85 billion.

In FY3/13, HAPPINET calls for sales to rise by 1.0% year-over-year to JPY200.0 billion. At the same time, anticipatory investments including JPY1.4 billion for purchases and installation of toy vending machines and game equipment are expected to cause operating income to decline by 11.4% year-over-year to JPY4.3 billion.

The Bridge Report calls attention to the start of the Sixth Midterm Business Plan and its theme of "Grow as a comprehensive entertainment trading company and venture into new business domains". The Report also notes that while the Japanese entertainment market is mature, there is still potential for strong growth based on fortification of its existing business, development of new business realms, and capture of market share from other players in the market.

To view the full report, please go to the website at the URL listed below.
http://www.bridge-salon.jp/report_bridge/archives/eng/7552/20120705.html

About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies.

Investment Bridge Co., Ltd.
Kaoru Hosaka, +81-3-5842-5765 (Japanese correspondence only)
happinet@cyber-ir.co.jp (English and Japanese correspondence)