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Tauns Laboratories (197A): One of the rare 2024 IPOs which have gone up

While Covid-19 caused significant human suffering, it also unexpectedly boosted certain industries. The medical testing sector, particularly for Covid test kits, experienced substantial market growth during the pandemic. One of the key players in testing markets is Tauns with a market cap of Y63 Bn (yes, small but please read on), PE 10x, and ROE …

Tauns Laboratories (197A): One of the rare 2024 IPOs which have gone up Read More »

Zero Co., Ltd (9028): Stock +90% in 2024, OP growth + 23% y/y in 24, and guidance 25 OP + 30% and still PE of 6-7x due to low OP margin but this issue will be addressed!

Auto OEMs are not the only way to benefit from the resurgence in interest in Japanese autos. There is a cheaper auto distribution company with higher operating growth prospect: Zero. Its major customer is Nissan, although Nissan’s importance is consistently declining. Thus, Zero can be an indirect beneficiary of the Nissan/Honda tie-up. Zero is an …

Zero Co., Ltd (9028): Stock +90% in 2024, OP growth + 23% y/y in 24, and guidance 25 OP + 30% and still PE of 6-7x due to low OP margin but this issue will be addressed! Read More »

TSE is trying to improve its growth market performance

https://www.jpx.co.jp/english/equities/follow-up/b5b4pj000004yqcc-att/dh3otn000000mgt6.pdf The Tokyo Stock Exchange’s Listing Department outlined future measures for the Growth Market on December 10, 2024 (their presentation attached). The focus is on enhancing market functionality by promoting stricter listing criteria, encouraging mergers and acquisitions (M&A) among growing companies, and fostering core companies that represent Japan. The measures aim to ensure companies achieve …

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Toyo Tire (5105): 15.5x ROE + OP CAGR last 10 years (inc. Covid/supply chain issues) at 5.5% + 6x PE + Dividend Yield 4.6%

Toyo Tire has underperformed Topix for the last 12 months: Topix + 17% vs. Toyo -1%. Then, why am I discussing Toyo Tire now? I have always liked the Japanese tire industry, which is often cast in a negative light due to its association with the Japanese auto industry. Japanese automakers are currently experiencing a …

Toyo Tire (5105): 15.5x ROE + OP CAGR last 10 years (inc. Covid/supply chain issues) at 5.5% + 6x PE + Dividend Yield 4.6% Read More »

Kanro Inc. (2216): Japan’s Love for Sweets: Operating Profits +75% in FY 12/23 y/y and Stock Price Quadruples in Four Years

Founded in 1912, Kanro with ¥49 bn market cap, is well-known for its “Kanro Nodo Ame” throat drops. The company entered the gummy candy market 20 years ago which has since grown to become a core profit earner. Candies may not be as trendy as AI, but the confectionery industry is experiencing solid growth, supported …

Kanro Inc. (2216): Japan’s Love for Sweets: Operating Profits +75% in FY 12/23 y/y and Stock Price Quadruples in Four Years Read More »

Sankyo Co., Ltd. (6417): Revisiting: Pachinko and content creation at cash adjusted PE of 8x – a profitable combination

Many investors have avoided Sankyo and other pachinko companies for a long time and for good reasons. The industry is considered risky due to several factors, including demographics, competition, and regulations. Since my original report on Sankyo as of 1/26/24 (available in this site), the stock appreciated by around 20%. The stock was down by …

Sankyo Co., Ltd. (6417): Revisiting: Pachinko and content creation at cash adjusted PE of 8x – a profitable combination Read More »