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AlphaPolis 9467: What Asset Management One and Varecs see in this UGC pure play?

AlphaPolis (AP) is a pure user-generated content (UGC) publishing model. Founded in 2000 by Yusuke Kajimoto, formerly of Hakuhodo, AP sources highly rated light novels and manga from its online platform, AlphaPolis: Cyber Space, and selects standout titles for commercial publication. Its flagship series, Gate, has sold over 4.2 million copies. Manga (graphic novels) is …

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Potential Sale of Nippon Sanso (4091) by Mitsubishi Chemical Group (4188

Bottom Line Mitsubishi Chemical Group (MCG) may be considering divesting its 50.5% stake in Nippon Sanso (NS), a high-margin industrial gas subsidiary. While the move could unlock capital for reinvestment into MCG’s core chemical business, it would also remove a major profit engine. The decision hinges on strategic priorities, capital efficiency, and market appetite. Strategic …

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Kyodo Printing 7914: Turning Point: Committing to Competitive Catch-Up with 2 leaders.

Under new leadership, Kyodo is accelerating its pivot from the declining paper-printing business toward higher-margin niches such as high-performance packaging materials, flexible packaging, and tube products. Margin gains in recent years already reflect this shift, and the company’s 10-year plan aims to scale these efforts further. The key question for investors: with DNP and Toppan …

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Starts Publishing (7849): FY12/24 OPM Rises 11.3% Above 5-Year Average

This women’s lifestyle media company has grown its operating profit margin to 27.2% in FY12/24—an 11.4pt increase over its 5-year average of 16%. This shift reflects a disciplined approach to audience engagement, with content strategies shaped directly by user feedback and evolving preferences. While still ultra-small at ¥16.5B in market cap, the margin trajectory and …

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Inforich 9338: Growth uncertainty? With PE at ~10x and ROE 44%

Inforich has hit a rough patch, having missed its earnings guidance. The key question now is whether this is a one-off event or indicative of deeper structural issues. I raised this concern directly with the Inforich management team, who—unsurprisingly—assert that the underperformance in 1H FY2025 was an isolated event. While I’m inclined to agree with …

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Kanro (2216 JP): Not Riding AI Wave, but Solid Earnings Spark Investor Confidence

Kanro, a ¥84.3B market cap Japanese confectioner, rose 6% on July 30 after releasing its 1H FY12/25 results that handily beat company guidance. The main driver was a significant outperformance in operating profit—up 24.5% over guidance. Sales: ¥16,725M (+2.6% vs. guidance, +7.5% y/y) Operating Profit: ¥2,664M (+24.5% vs. guidance, +13.7% y/y) Net Profit: ¥1,874M (+23.3% …

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Profiting from Japan’s Parent-Subsidiary Delisting Wave

In February 2025, the Tokyo Stock Exchange (TSE) issued a statement titled “Investor Perspectives on Parent-Subsidiary Listings,” signaling a clear shift toward discouraging—and ultimately abolishing—these governance structures. The move aligns with growing shareholder unrest, particularly in cases where buyouts are perceived as undervalued. Toyota’s tender offer to Toyota Industries is a prime example. Offered at …

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Judging Management’s Character、alt 260A JP

Judging Management’s Character、alt 260A JP On April 25, Alt (260A) disclosed the possibility of overstating revenue for its primary meeting transcription service. The issue came to light during an investigation by the Securities and Exchange Surveillance Commission, which began in early April. Alt also announced the creation of an independent third-party committee to conduct a …

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PROGRIT (9560): A New Hope for Japan’s English Learners

The Japanese collectively spend ¥165 Bn annually on learning English. Despite this investment, their English proficiency ranks 87th in the world and 15th among the 23 Asian countries and regions (by a 2023 survey by the Swiss international education company EF Education First). In fact, Japan’s ranking has kept decreasing since 2011. This discrepancy suggests …

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Insider insights? is there irreplaceable value in meeting with management

Insider insights? is there irreplaceable value in meeting with management before investing? Warren Buffett has frequently mentioned that he seldom meets with a company’s management team prior to investing in their stock. He believes that management presentations are often biased towards showcasing the company’s strengths. Instead, Buffett relies on his own comprehensive analysis of the …

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