Shipbuilding and Maritime Infrastructure have emerged as a high-conviction thematic play. Driven by a historic shift in U.S. industrial policy and a massive “All-Japan” consolidation effort, the sector is transitioning from a cyclical laggard to a strategic growth industry powered by AI and green energy. 1.A primary catalyst for the sector is the aggressive revitalization …
A quick note on this relatively small ¥36 bn agri machinery company: it trades at just 0.48x P/B despite forecasting 42% operating profit growth for FY12/26—figures that were already in place before the recent developments that prompted me to write this brief update for my clients. For some investors, the size alone may keep it off …
Torishima Pump (6363) — Water Scarcity as a New Secular Tailwind Japan is entering a phase of structural water stress, with major rivers running low, dams hitting 0% capacity, and water restrictions now active across 15 river systems. The root cause—historic low rainfall and persistent weather anomalies—suggests shortages will persist. Policymakers are accelerating investment in …
Torishima Pump (6363) — Water Scarcity as a New Secular Tailwind Read More »
The data is telling: out of 1,551 Prime-listed companies, 497 play it by the book with quarterly briefings. Meanwhile, 74 Prime companies and nearly half of the Standard Market (759 firms) held no briefings at all last year. Predictably, the giants—those with market caps over 1 trillion yen—all hosted sessions, while 890 smaller firms (under …
NS Group (Cap: Y86 Bn) is a rent guarantor that went public on December 16, 2025, on the TSE Prime market. It features an attractive financial profile, with 53% of recurring revenues, a high EBITDA margin of 44%, and a strong ROE of 27%. I see many long-term investment merits in NS, but there are …
NS group (471A): Steady EBITDA Growth and Expanding TAM at 9.2x P/E Read More »
While interest in the JPX Startup Growth 100 Index launch seems muted, I’d like to highlight AlphaPolis (cap ¥42bn; FY3/27 PE 14.4x; PB 2.79x)—a constituent well aligned with the index’s focus on high-momentum, high-growth names. The stock has been broadly flat since my October 2025 note, but trading activity has strengthened following the February 13 …
Feed One (2060) Most investors ignore Japan’s feed industry. It’s seen as low-margin, commodity-exposed, and structurally stagnant. Yet one overlooked company — Feed One Co., Ltd. — has quietly delivered +56% over the past year, beating the TOPIX. Why? Because the real story isn’t commodity prices. It’s science, capital discipline, and misunderstood risk management. In …
JPX Market Innovation & Research (JPXI), a subsidiary of Japan Exchange Group, officially finalized the constituents and calculation methodology for this new index on February 13, 2026. Designed to spotlight Japan’s high-momentum, high-growth companies. Selection Criteria To qualify, companies must meet rigorous growth and valuation benchmarks: Revenue Growth: Minimum of 20% YoY. Market Cap Momentum: …
Hokkaido Power (9509): 0.6x PB Missing Cost Cuts from Nuclear + DC + Rapidus I wrote a short note on Hokkaido Electric Power (Hepco/Cap Y256 Bn) in October 2024 (note attached), highlighting the potential for a major profitability boost from its nuclear plant restart and data center demand, versus its ultra-low valuation at around 0.29x …
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I’ve periodically highlighted the potential upside in stocks with sizable cross‑shareholdings, particularly when there is a credible path to unwinding those positions and redeploying capital to lift ROE and overall capital efficiency. Toyo Keizai recently pointed to Sumitomo Warehouse, which has come under renewed attention following its February 3 earnings release showing: *Booked ¥2.894 billion in …
Sumitomo Soko 9303 – Upside from ongoing unwinding of cross‑shareholdings. Read More »