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No change in investment thesis As a corporate engagement consulting firm, LMI (MC Y60 bn, TSE P) is structurally positioned to grow regardless of which sectors outperform in Japan. The nationwide labor shortage touches every industry—including AI—ensuring that demand for LMI’s core value proposition (improving employee engagement, retention, and productivity) remains broad‑based. Once the “death …

Link&Motivation (2170): AI Impact Contained; Second and Third Growth Engines Taking Shape — Meeting Update Read More »

Monogatari Corp (MC) is a Y186 market cap operator of yakiniku, sushi/shabu‑shabu, ramen, and okonomiyaki restaurant formats nationwide through both directly managed and franchise (FC) locations, with many stores situated along major suburban roads. It was founded in 1949 as an oden shop called Shubō Genji, but entered Yakiniku (BBQed beef on the table) in …

Monogatari Corp 3097: Success Formula: SSS Rebound + Multi-brands + Int’l Expansion Upside Read More »

The Toyo Keizai article confirms what’s been anecdotal: Japan is becoming a structural winner from the global AI build‑out. The surge in data‑center construction and electricity demand is now visible in trade statistics, not just industry chatter. Amid disruptions in the Strait of Hormuz, Japan’s April crude imports collapsed 67% y/y to the lowest level …

The AI Shovel Sellers: Japan’s Quiet Fortune in the Global Tech Boom Read More »

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 …

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

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 …

Kiyohara/Yuka Portfolio Experiment (6/1/26 starting) Read More »

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 …

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

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., …

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

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 …

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

Seria released solid FY3/26 results on 5/8/28: operating profit rose 24.5% YoY, and the OP margin improved to 8.2% from 7.12% a year earlier. The company raised guidance three times during the fiscal year, and FY3/26 OP ultimately exceeded the most recent upward revision on 1/30/26 by 8%. Even so, the stock gained only about …

Seria (2782): CEO Meeting Note: How Sustainable Is the Current Growth Path Read More »

I would like to highlight the earnings that may shift the trajectory of the company’s share price. I had unfortunate timing writing on Feed One on 3/7/26, as the stock had been trending lower on concerns over rising freight costs amid Iran–U.S. tensions. However, the FY3/26 results likely helped ease those investor concerns. FY3/26 results: …

Feed One (2060): Stock is +13% post results on 5/8/26 Read More »