Didn't mention it in the writeup, but this is also a largely underfollowed name in Japan. Yahoo Finance JP board has 2 posts since April. Illiquid, small, ignored. A good hunting ground.
Sanyo Industries (5958) announced earnings today. Important bit is that dividend is doubled to ¥210 (from 105). This is a dirt cheap net net. Market rewards capital returns. This is one of the biggest sized basket positions I own.
Awesome writeup, I am enjoying reading about your Japanese picks, Thank you for writing them up.
I was curious what your thoughts are on this - Sanyo is planning a capex of around 1500 million yen (which is approx their full year's profit) to construct a 3D vibration testing building. This facility will enable Sanyo's products to be used with confidence and will increase corporate value and solve social issues. It looks like their products will get credibility as 'earthquake resistant' or something similar, but I was not sure how this was going to improve their sales or profitability. What was your takeaway from that?
It will help them develop new products designed to withstand earthquakes and other conditions which can be simulated in the facility. A bunch of this was already expensed if I remember correctly.
They've been around long enough for me not to worry too much about cheap foreign competition. Shipping these products would likely cost a ton. Japanese companies in general are good at sourcing their own low cost products. Sanko techno which I wrote about recently has their own manufacturing facility in Thailand. A lot of corporate Japan isn't afraid to outsource and own their own foreign factories when needed.
If you learn anything interesting though, do share!
Didn't mention it in the writeup, but this is also a largely underfollowed name in Japan. Yahoo Finance JP board has 2 posts since April. Illiquid, small, ignored. A good hunting ground.
Sanyo Industries (5958) announced earnings today. Important bit is that dividend is doubled to ¥210 (from 105). This is a dirt cheap net net. Market rewards capital returns. This is one of the biggest sized basket positions I own.
FY2026 Forecast:
Revenue +8.4%
Operating income -3%
Dividend ¥105 -> ¥210
Thanks for the detailed writeup. Interesting. Will put into my watchlist.
Thanks for the writeup.
Awesome writeup, I am enjoying reading about your Japanese picks, Thank you for writing them up.
I was curious what your thoughts are on this - Sanyo is planning a capex of around 1500 million yen (which is approx their full year's profit) to construct a 3D vibration testing building. This facility will enable Sanyo's products to be used with confidence and will increase corporate value and solve social issues. It looks like their products will get credibility as 'earthquake resistant' or something similar, but I was not sure how this was going to improve their sales or profitability. What was your takeaway from that?
It will help them develop new products designed to withstand earthquakes and other conditions which can be simulated in the facility. A bunch of this was already expensed if I remember correctly.
Thanks for sharing !
They've been around long enough for me not to worry too much about cheap foreign competition. Shipping these products would likely cost a ton. Japanese companies in general are good at sourcing their own low cost products. Sanko techno which I wrote about recently has their own manufacturing facility in Thailand. A lot of corporate Japan isn't afraid to outsource and own their own foreign factories when needed.
If you learn anything interesting though, do share!