Momentum in Japan’s banking sector continues as higher policy rates support an expansion in net interest margins and core income. The three megabanks—MUFG, SMFG, and Mizuho—are projecting record net profits for FY3/26, reflecting improved interest revenues and ongoing cost control. Similar dynamics are evident among regional banks, where wider loan–deposit spreads is contributing to steady …
Fuji Seal International (FSG, CapY190 Bn) is a major global manufacturer in the packaging industry, particularly within the specialized markets of labeling and flexible packaging. With foreign ownership already above 30%, the name is hardly undiscovered. Yet at PE 10.3x, PB 1.14x, and EV/EBITDA 4.8x—despite being well into a U-shaped earnings recovery—the valuation still looks …
Fuji Seal International (7894): Entering the Upturn of a U-Shaped Recovery Read More »
Description: A global leader in compact construction machinery (excavators and track loaders). It operates with an extremely high overseas sales ratio (99%). Thesis: Expansion of global infrastructure spend. Market Cap: ¥324 billion. P/E: 12x below industry peer of 13 -14x. P/B: 1.7x Dividend Yield: 3.1% – 3.2% (Forecasted annual dividend: ¥210 up from Y200). 1)10% …
Takeuchi Mfg (6432): 10% stock drop post 1/13 3Q FY2/2026 Results Read More »
I flagged an event‑driven ROE improvement setup at Tokyo Century (TC) back in October 2024, and the stock has since climbed about 30%. The key catalyst was the insurance payout tied to eight aircraft that had been leased to Russia and later seized. Investors were watching closely to see whether TC would use the proceeds …
Gunze (cap Y150 bn) is widely recognized for its men’s underwear, though in recent years it has ceded market leadership to Uniqlo in the innerwear segment. Even so, its long history of reinvention suggests that the company will continue to adapt in response to shifts in industry dynamics and evolving consumer tastes. A recent key …
Jinushi (cap Y66 Bn) is the only publicly traded firm that operates a landowner business that invests solely in land. Since the announcement of a ¥6.21bn public offering on July 11, 2024, the company’s share price has trailed TOPIX. While the fundraising signaled management’s confidence in growth and secured necessary capital, investors remained wary of …
Serendip (7318): One of My Bad Calls in 2025: A Limit-Down on 11/14/25 and Slow Recovery Despite a 25% DCF Discount My serial‑acquirer picks have underperformed: Serendip and f-‑Cord remain weak, though Next Gen 319A is tracking in line. However, my recent meeting with Serendip was constructive. Serendip is a business-succession–focused M&A grower, distinguished by its fully …
I received some constructive feedback on my Link & Motivation (LMI) note, which I had shared with LMI management (please let me know if you have not seen my original LMI note) 1. TOPIX Rebalancing Before sharing LMI’s responses, I need to point out one stock driver which I neglected to point out in my …
The company’s sales grew low double digit y/y since the COVID lows, yet the below peer comp table shows the company is trading at the lowest PE. Based on my SOTP analysis, the company is trading at roughly a 17% discount to its NAV. Management is aware of this disconnect between intrinsic value and market …
For the past six months, I have been trying to understand why NextGen has consistently outperformed other serial acquirers. After recently catching up with the NextGen team, several factors became clearer. 1. Valuation: From 36x to 21x *While the current FY12/25 EV/EBITDA multiple appears high at 36x (based on ¥2,400M EBITDA), this figure is misleading …
Next Generation Tech Group (319A) – Why has Next Gen outperformed so far? Read More »