Report on Increased Demand for Resale in Feminine Care from China

Summary of Unicharm (8113 JP) Equity Research Report Company Overview - Company Name: Unicharm - Industry: Cosmetics, Household & Personal Care - Specialization: Absorbent toiletry products including disposable diapers and sanitary napkins - Market Expansion: Aggressive entry into emerging markets such as India, Brazil, China, Indonesia, and Thailand [19][59] Key Points from the Report - Current Rating: HOLD - Current Price: ¥4,066 - Price Target: ¥4,800, indicating an upside potential of +18% [9][19] - Market Capitalization: ¥2.4 trillion (approximately $16.5 billion) [9] - 52-Week Price Range: ¥3,761 - ¥5,408 [9] Demand Insights - Increased demand for feminine care products has been noted, particularly in the Kanto and Kansai regions of Japan, with large orders placed by stores [9] - The report mentions uncertainty regarding whether these orders are from resellers [9] Risks and Challenges - Potential risks include: - Decline in sales and margins in China - Increased competition and sales slowdown in feminine care, wellness care, and pet care segments, which could negatively impact product mix [19][59] Financial Metrics - Float: 59.0% - Average Daily Volume: 51.25 million USD [9] Valuation Methodology - Price target based on FY12/25 EV/EBITDA of 12x, cross-checked with core operating profit margin correlation and return on equity [19] Historical Rating Changes - Recent rating history shows fluctuations with a previous buy rating at ¥6,200 on June 27, 2024, and a hold rating at ¥4,800 on November 11, 2024 [19][33] Additional Considerations - The report emphasizes the importance of considering various factors, including market conditions and individual investment objectives, before making investment decisions [42][59] - Jefferies' ratings and price targets are subject to change based on market dynamics and company performance [23][42] This summary encapsulates the essential insights and data from the equity research report on Unicharm, providing a comprehensive overview of the company's current standing and future outlook.