Ahresty Corporation, with its 80-year legacy in die casting equipment manufacturing, has traditionally been valued at low multiples for good reasons: its fluctuating sales tied to the ebbs and flows of Japanese automakers, modest profit margins, and sporadic substantial asset impairment charges.

 

Nonetheless, the post-pandemic era brought a stabilization of automotive supply chains, leading an upturn in Ahresty’s sales trajectory and resulting in operational profits for FY3/24. The company recorded operating losses in FY3/21 and FY3/22 and pretty much zero gains in FY3/23.

 

Looking ahead, investor confidence is poised to improve as continuous profit

growth is anticipated in FY3/25(Operating profit increase guidance +75%). The impetus for this resurgence is multifaceted.  May I suggest that Ahresty’s business model is gradually evolving, with cyclical recovery now being bolstered by the secular expansion of data centers?

 

For those intrigued by Ahresty’s potential, I have compiled an in-depth report of their changing business model, available for purchase. Interested? Please direct message me at JapaneseIPO@gmail.com for further details.