Company is targetting 1x PBR, Committed to 30% Payout ratio (vs 10-15% historically), + upside if the packaging business can expand margins. NCAV+Investments of ¥5,220 vs a share price of ¥2,885.
Did not include historical long term financial chart data like I usually do as Koyfin's data provider does not provide data for this one. But historical data is easy to look up in the annual reports.
You switch to the JP version of their website and go to IR. Your browser should translate text on foreign sites. On chrome you can just right click translate.
You can get all annual reports for any ticker here
Hi Altay awhile back I wrote a comment on one of your pieces asking about sanoyas holdings (7022) on a ‘‘japan remilitarization theme’’ idea, it has basically doubled since then but of course I did not buy it because I suck lol, I am drinking boxed wine again and had another thought, diapers. I worked in elder care/hospice and had to change poopy diapers all the time, in hospice when they are bed bound have to change their diaper like 3-4 times a day. Obviously a big chunk of Japan’s population is getting to that age so a tailwind for adult diaper sales. Those things get so nasty I cannot imagine people using reusable diapers, pretty sure disposable will be the way most people go for convenience. So maybe Unicharm (8113) will be a winner. But like I said in the last comment, I am too dumb to be able to analyze financials so I suck at investing, but it is fun to share ideas like this with people. So there you go, maybe there is some there there. If you have time, check it out, maybe it is a good idea, or is it overpriced?
Funeral homes are an interesting bet on aging demographics too. Multiples aren't too crazy there either. And wow, Unicharm has gone down quite a bit too. I'll put it on my to look into pile!
Thanks for the great article. Have you looked at Tokyo Printing Ink (4635.T). It is profitable and trading at around 0.38 book value. The company has a dividend payout ratio of 40% and plans to return 3bn yen (~26% of market cap) between 2025-2028. It is in the process of reducing its sizable cross-shareholding investments and receivables. The factories and Tokyo head office are probably worth a lot more than their book values.
BTW Have you also analyzed the Japanese stocks 9776 (Sapporo) and 5974 (ChugokuKogyo Co Ltd)? the stock 9776 has (unfortunately) already risen significantly in price. These tiny stocks are also very cheaply valued based on EV/EBIT and price/book value, etc.
Did not include historical long term financial chart data like I usually do as Koyfin's data provider does not provide data for this one. But historical data is easy to look up in the annual reports.
But where do you get the annual reports? Their home page is in english, but it's without investor relation section.
You did a great job with this report.
I also hope that their forecast for 2026 is conservative, but you explained nicely why the profit will drop.
You switch to the JP version of their website and go to IR. Your browser should translate text on foreign sites. On chrome you can just right click translate.
You can get all annual reports for any ticker here
https://disclosure2.edinet-fsa.go.jp/WEEE0030.aspx?bXVsPTgxODEmY3RmPW9mZiZmbHM9b24mbHByPW9mZiZycHI9b2ZmJm90aD1vZmYmcGZzPTYmeWVyPSZtb249
Edinet is like Edgar in USA.
Nice find, will be putting in tomorrows Best Stock Pitches letter.
Hi Altay awhile back I wrote a comment on one of your pieces asking about sanoyas holdings (7022) on a ‘‘japan remilitarization theme’’ idea, it has basically doubled since then but of course I did not buy it because I suck lol, I am drinking boxed wine again and had another thought, diapers. I worked in elder care/hospice and had to change poopy diapers all the time, in hospice when they are bed bound have to change their diaper like 3-4 times a day. Obviously a big chunk of Japan’s population is getting to that age so a tailwind for adult diaper sales. Those things get so nasty I cannot imagine people using reusable diapers, pretty sure disposable will be the way most people go for convenience. So maybe Unicharm (8113) will be a winner. But like I said in the last comment, I am too dumb to be able to analyze financials so I suck at investing, but it is fun to share ideas like this with people. So there you go, maybe there is some there there. If you have time, check it out, maybe it is a good idea, or is it overpriced?
Funeral homes are an interesting bet on aging demographics too. Multiples aren't too crazy there either. And wow, Unicharm has gone down quite a bit too. I'll put it on my to look into pile!
Thanks for the great article. Have you looked at Tokyo Printing Ink (4635.T). It is profitable and trading at around 0.38 book value. The company has a dividend payout ratio of 40% and plans to return 3bn yen (~26% of market cap) between 2025-2028. It is in the process of reducing its sizable cross-shareholding investments and receivables. The factories and Tokyo head office are probably worth a lot more than their book values.
It's done really well lately, likely off that plan to improve returns! I haven't looked at this one. Will dig into it later, thanks for the heads up!
BTW Have you also analyzed the Japanese stocks 9776 (Sapporo) and 5974 (ChugokuKogyo Co Ltd)? the stock 9776 has (unfortunately) already risen significantly in price. These tiny stocks are also very cheaply valued based on EV/EBIT and price/book value, etc.
I wrote up 9776 some time ago in this Substack. I own it still and have posted about it a couple times on X
Musashi Co Ltd has even a negative enterprise value.
This could be "money for nothing", https://blogs.cfainstitute.org/investor/2013/07/10/returns-on-negative-enterprise-value-stocks-money-for-nothing/
Familiar with that one, but they are also a supplier in the pachinko business and have been over earning like similar names In the space