Grand Perfecta, Inc. GPIW
We have a rare occurrence with GPIW this morning; a stock that is both new to our reports, and operates in an industry which is also new to us. Grand Perfecta, through its Link Bit Consulting subsidiary, is in the business of researching, publishing, and disseminating horse racing information in Japan.
Don’t be fooled by the apparent obscurity of the sector; horse racing, and more specifically, betting on horse racing, is actually huge in Japan (the world’s top market). Between the two governing entities in the country, the Japan Racing Association (JRA), and the National Association of Racing (NAR), more than 20,000 horse races take place on Japanese soil every year, including the Japan Cup, which is the world’s most lucrative turf race (Annual purse of $5.6M USD).
Some estimates place the number of active weekly track bettors in the country at 3 million individuals, generating turnover in excess of $25 Billion USD annually. GPIW estimates roughly $8 Billion of that comes from its 1 million subscribers, who access data through sites like uma-jin.net; one of GPIW‘s racing information portals, as well as SMS messaging and traditional print. (Below is an example of the company’s Horse Racing magazine, also called Umajin, which has been in print for 15 years running.)
The company is also planning a move into other markets, including expansion to the US, and they have the manpower to do it. GPIW employs over 70 people, including a management team with several decades of tailored industry experience:
Shuya Watanabe – CEO – With 19 years logged in the business of horse racing, Mr. Watanabe is one of the co-founders of Link Bit Consulting.
Takashi Ozawa – COO – A 16-year industry vet, Mr. Ozawa is in charge of the company’s day-to-day operations.
Masashi Takegaki – CFO – For over two decades, Mr. Takegaki has been working in accounting, with more than 11 of those years being specifically focused on the financial side of horse racing.
Hiroaki Watanabe – VP – Mr. Watanabe operates out of Santa Monica, CA, and is in charge of online expansion and marketing. He’s spent a decade in international business management with a focus on internet solutions.
In addition to the company operating in an interesting market niche and having a solid executive roster, we like the potential of the GPIW chart as well, as we point out below. All in all, we see enough good things about GPIW to make sure we keep it on our radars in the near future.
The company also released its year-end fiscal results yesterday, the highlights of which included annual sales growth of 20%, unadjusted earnings of $3.8M compared to $2.1M in 2013, and net profits of $2.2M, as compared to $426K for the year prior:
TOKYO, Oct. 1, 2014 /PRNewswire/ — Grand Perfecta, Inc. (OTCBB: GPIW) today reported their July 31, 2014 year-end preliminary unaudited financial results. These preliminary results are still subject to adjustment as the company is working with its auditors to transition from Japanese GAAP to US GAAP and prepare audited financial statements for the July 31, 2014 fiscal year end >> VIEW PR
For More Information on GPIW:
www.g-perfecta.com
