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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 …

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Koike-ya Inc. (2226): Avoid this low-liquidity, profitability-improving, Japanese potato chip pioneer?

Note 1: This premium potato chip producer is highly illiquid. However, their impressive product strategy and resulting OP margin growth prompted me to prepare a brief memo. Their defensive nature has attracted few foreign buyers (2.3% of total holdings). Nissin Group (2897), a cup noodle giant, owns 45% of the company, contributing to the low …

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Sunwels (9229) – After a 30% drop

Disclaimer: this is NOT an investment recommendation. Before investing in this stock, please do your own research and due diligence. Sunwels (“SW” or the “Company”) operates a specialized nursing facility for Parkinson’s disease called PD House. PD House’s main service is rehabilitation programs but medical attentions are provided by visiting doctors and nurses. I initially …

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