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Hoden Seimitsui Kako Kenkyusho (“HSK”) (6469) – Why Mitsubishi Heavy Is Dropping

My 5/3/26 HSK note (attached), which highlighted the company as an alternative way to gain exposure to the same structural tailwinds benefiting MHI, turned out to be poorly timed. This was especially disappointing given my argument that MHI’s valuation metrics at the time—a P/B of 5.8x, FY3/27 P/E of roughly 53x, and EV/EBITDA of 17.6x—were …

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Kiyohara/Yuka Portfolio Experiment (6/1/26 starting)

Please note that this is for your information only. This is probably one of my craziest experiments. I’ve built an unapologetically value‑heavy portfolio in the middle of an AI/large‑cap/Kioxia‑driven market. You might have heard of the legendary investor Tatsuro Kiyohara. He is one of Japan’s most successful and influential hedge fund managers, having compounded extraordinary …

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Ishihara Sangyo Kaisha 4028 – Delayed but Intact: Margin Expansion and Valuation Catchup with Nissan Chemical

Ishihara Sangyo (ISK, cap Y119 bn) is a chemical company: Core products are agrochemicals and Electric Component (mainly, MLCC/Multilayer Ceramic Capacitor.  MLCC is one of the most common electronic components in the world — every phone, car, PC, and piece of industrial equipment uses them. The stock fell sharply by 18% on 5/23 following weaker‑than‑expected …

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Torishima Pump (6363): Market overreaction? Interpreting the 15% post‑earnings decline

Torishima Pump (6363): Market overreaction? Interpreting the 15% post‑earnings declineTorishima (cap Y80 Bn) fell 19% post‑earnings after missing FY3/26 operating profit and issuing FY3/27 guidance that implies a 15% decline in ordinary profit. The stock has since recovered about 4% as of 5/22. Notably, management’s FY3/27 outlook does not incorporate Shin Nippon Machinery Co., Ltd., …

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Aichi Corp (6345): The Search for “Second-Derivative” Electric Construction Plays

While many electrical construction firms reported record-high profits for FY3/26—fueled by the insatiable power demands of AI data centers—the market has largely “discovered” these names. My previous pick in this space, Yurtec (1106) (first profiled in 4/24), has performed well, but the valuation is still not demanding. I have been hunting for ancillary, undiscovered names …

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Hoden Seimitsui Kako Kenkyusho (“HSK”) (6469) – A short note on Mitsubishi Heavy Alternative.

This note is briefer than my typical institutional reports. While HSK remains a bit small for many clients, I wanted to flag it now because I see meaningful room for growth. To gain exposure to Japan’s defense, shipping, and nuclear sectors, Mitsubishi Heavy Industries (MHI) is the natural first thought. It’s the industry heavyweight, and …

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Yurtec Corp (1934): Post FY3/26 results: -2.7% vs. Kandenko’s +13.6%. What drove this gap?

Both companies reported the FY3/26 on 4/28. Yurtec FY3/26 results: ·      Net sales came to ¥252.3 billion, a ¥4.9 billion decline (‑1.9%) due to slower‑than‑expected progress on large‑scale projects and delays in securing major orders at overseas subsidiaries. ·      But the better project productivity led to ordinary profit of ¥18.9 Bn (+9.2% y/y). ·      While the company’s ordinary profit for …

Yurtec Corp (1934): Post FY3/26 results: -2.7% vs. Kandenko’s +13.6%. What drove this gap? Read More »

Tosei Corp. (8923): Reuse theme + The P/E Re-Rating Play: Scalable Mid-Cap Real Estate & Value-Add Growth

Reuse‑oriented stocks have been outperforming across categories—from used cars (IDOM) to pre‑owned jewelry and consumer goods (Book Off). In an inflationary environment, it makes sense: consumers are prioritizing value and shifting toward high‑quality secondhand options. Pre‑owned housing fits the same pattern. I continue to like the preoccupied‑housing names and highlighted Katitas (8919) in my 11/25 …

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