Last year they sold 2 properties with a book value of ¥172m for ¥2,552m. That's a gain of ¥2,379m on a 7.2b JPY market cap. They still have ¥18b of land on their balance sheet.
Online translation works well enough. So it's rarely an issue.
I've looked at San and think it's interesting and own a very small position. With names like this logistics company, if they work, I think there's a lot of upside.
I'm also a little biased towards the dirt cheap stuff ideally trading below 0.4x book, but some of my best performers have been a little more expensive like 0.6-0.7x book. Will take a look at BML though!
I do think the logistic companies with hidden assets are great. My experience is that buying the better managed ones with still great value deliver higher returns as well. Not only in Japan;)
Thank you for the amazing write up and analysis. Great find. Do you know where I can find the specific properties/land that they own, would like to do further research lol
I included a full list of their properties in the last part of my post. It was pulled from their last annual securities report. It's under 'Status of major equipment' on page 17 of that report.
Best way to get a good idea of market value is to try finding a JREIT that owns a logistics property nearby. The publicly listed JREITs all have great English websites and almost always show the purchase price and their estimated market value on a property-by-property basis, so it's not hard to get an idea of value. They also helpfully include original purchase announcements on their portfolio pages, which show what % of purchase price was attributed to land vs buildings, so you can just look at land value to be conservative.
Happy hunting! If you find anything useful definitely do share it! I didn't do a property by property assessment, as I didn't need to. I already know this is dirt cheap :)
i have using tochidai.info to assess the value on the book, it seems the are few that have hidden value, BTW most of them are industrial land or zone, which makes it harder to liquid, but it may be a smart choice for those who take a longer view to hold them, thanks so much for the write-up!
Great find again 👏
Really like these companies. Just wondering how do you get proper English translations? 🤔
Have you looked into less asset intensive companies like San Holdings or BML Inc?
Online translation works well enough. So it's rarely an issue.
I've looked at San and think it's interesting and own a very small position. With names like this logistics company, if they work, I think there's a lot of upside.
I'm also a little biased towards the dirt cheap stuff ideally trading below 0.4x book, but some of my best performers have been a little more expensive like 0.6-0.7x book. Will take a look at BML though!
I do think the logistic companies with hidden assets are great. My experience is that buying the better managed ones with still great value deliver higher returns as well. Not only in Japan;)
Let me know what you think of BML :)
Thank you for the amazing write up and analysis. Great find. Do you know where I can find the specific properties/land that they own, would like to do further research lol
Hey Zakariya -
I included a full list of their properties in the last part of my post. It was pulled from their last annual securities report. It's under 'Status of major equipment' on page 17 of that report.
Best way to get a good idea of market value is to try finding a JREIT that owns a logistics property nearby. The publicly listed JREITs all have great English websites and almost always show the purchase price and their estimated market value on a property-by-property basis, so it's not hard to get an idea of value. They also helpfully include original purchase announcements on their portfolio pages, which show what % of purchase price was attributed to land vs buildings, so you can just look at land value to be conservative.
Happy hunting! If you find anything useful definitely do share it! I didn't do a property by property assessment, as I didn't need to. I already know this is dirt cheap :)
Another nice find! Have you tried reaching out to them regarding TSE guidance on capital management?
They reported negative results. Maybe the share price will drop some, hate to buy at ATH.
Forecasting OP to increase. Net income obviously has to decrease as last year had huge gains from asset sale
Thanks for this great write up. Are you still holding Nissin after the major bump?
Yep. I still own it!
i have using tochidai.info to assess the value on the book, it seems the are few that have hidden value, BTW most of them are industrial land or zone, which makes it harder to liquid, but it may be a smart choice for those who take a longer view to hold them, thanks so much for the write-up!
Thank you. That link is quite helpful!