Month: February 2026

Hokkaido Power (9509): 0.6x PB Missing Cost Cuts from Nuclear + DC + Rapidus

Hokkaido Power (9509): 0.6x PB Missing Cost Cuts from Nuclear + DC + Rapidus I wrote a short note on Hokkaido Electric Power (Hepco/Cap Y256 Bn) in October 2024 (note attached), highlighting the potential for a major profitability boost from its nuclear plant restart and data center demand, versus its ultra-low valuation at around 0.29x …

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From Policy Headlines to Actual Funding

Since the LDP’s victory in Japan, industries highlighted by Ms. Takaichi as policy “priorities” have outperformed, reflecting investor expectations of supportive government action. A key question for investors is whether government spending is actually being deployed in line with stated policies — and whether the targeted industries are truly benefiting from those allocations. To assess …

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Sumitomo Soko 9303 – Upside from ongoing unwinding of cross‑shareholdings.

I’ve periodically highlighted the potential upside in stocks with sizable cross‑shareholdings, particularly when there is a credible path to unwinding those positions and redeploying capital to lift ROE and overall capital efficiency. Toyo Keizai recently pointed to Sumitomo Warehouse, which has come under renewed attention following its February 3 earnings release showing: *Booked ¥2.894 billion in …

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KOA Corp. (6999) ROIC recovery from 0.1% via Auto recovery + A1/Data Center to reduce volatility

KOA, with a market cap of ¥58 billion, is a small electronic‑component manufacturer specializing in fixed resistors. Its earnings are highly sensitive to global economic conditions, which makes the business quite volatile. However, the company is currently benefiting from two meaningful tailwinds: the recovery in the automotive sector and the expansion of AI and data‑center demand. …

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