ESPEC Corp. (6859): The leader in the environment test sector with growth propelled by EVs and semi, with P/E at 14.3x and P/B at 1.29x (after YTD appreciation of 30%).

Founded in 1947, ESPEC Corp. (“Espec” or the “company”) developed and launched Japan’s first environmental test equipment in 1961 (63 years of history). While small with ¥76 Bn in market cap, Espec dominates the environmental test industry in Japan with a 60% domestic market share. Its global market share has also reached 30% (according to …

ESPEC Corp. (6859): The leader in the environment test sector with growth propelled by EVs and semi, with P/E at 14.3x and P/B at 1.29x (after YTD appreciation of 30%). Read More »

Starts Publishing Corporation (7849): Growing operating profits by 43% via selling books!

Starts Publishing has experienced a fivefold increase in book sales compared to 2016, with a consistent rise in sales outside the Covid-period. The company reported a significant operating profit growth of 43% year-over-year in FY12/23, achieving an operating margin of 27.3%—the highest in the Japanese publishing industry. Additionally, the company boasts ROE of 23% and …

Starts Publishing Corporation (7849): Growing operating profits by 43% via selling books! Read More »

Ahresty Corporation (5852): Data Center and EV benefits with P/E of 8.9x, P/B at 0.33x and a dividend yield of 4%

Ahresty Corporation, with its 80-year legacy in die casting equipment manufacturing, has traditionally been valued at low multiples for good reasons: its fluctuating sales tied to the ebbs and flows of Japanese automakers, modest profit margins, and sporadic substantial asset impairment charges.   Nonetheless, the post-pandemic era brought a stabilization of automotive supply chains, leading …

Ahresty Corporation (5852): Data Center and EV benefits with P/E of 8.9x, P/B at 0.33x and a dividend yield of 4% Read More »

Yamami Company(2820) – Innovating Tradition: The Fusion of Tofu and Tech in a static industry

Summary: Yamami Co., founded in 1975 and headquartered in Hiroshima, Japan specializes in the manufacture and sale of tofu and related products, with a recent focus on automation to modernize the ancient craft. Yamami’s two-decade-long commitment to automation has indeed carved out a significant cost advantage for the company. This strategic move has positioned them …

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Can the Tokyo Stock Exchange Enhance the Quality of Companies in the ‘Growth’ Market Segmen

  On May 21, 2024, the Tokyo Stock Exchange (TSE) released its presentation titled “Status after Market Restructuring and Future Follow-up.” This document reflects on the significant re-segmentation of the exchange into the “Prime,” “Standard,” and “Growth” market segments in 4/2022. The restructuring aims to align markets with clear concepts, enhancing the attractiveness of Japanese …

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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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Yurtec Corporation(1934): Multiple strategies to enhance operating margin or an AI/power construction catch-up trade

Summary: Yurtec is a construction company of electric power facilities. It is a beneficiary of: Increased Power Consumption: The growth of existing and new semiconductor fabrication plants is leading to higher power demands, necessitating the development of additional power generation facilities. Reshoring Manufacturing: In response to the post-Covid environment, Japanese firms are repatriating overseas manufacturing …

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The Bank of Nagoya (8522): P/B of 0.44x does not suggest a broken business model

Summary: The Japanese equity market is currently experiencing a period of transformation. Some analysts are cautioning against potential overvaluation in certain sectors, such as semiconductors and AI-related stocks. However, this perspective does not overshadow the broader market potential, particularly in light of the Tokyo Stock Exchange’s corporate governance reforms and the Bank of Japan’s recent …

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I don’t propose that you rely on management ownership as a sole stock selection parameter. But it is worthwhile to track the performance of the Investor-Management Unite as One ETF (code 2082). One caveat: this fund owns 192 shares which you may find too diversified to consistently generate outperformance over an index.

“Investor-Management United as One” MAY lead to outperformance. There is an intriguing ETF that I believe is worth discussing. While I don’t recommend adding this fund to your portfolio, their investment theory is undeniably fascinating.” 投資家経営者一心同体 (translated as Investor-Management United as One) ETF is created by Simplex Asset Management (a Japanese hedge fund founded in …

I don’t propose that you rely on management ownership as a sole stock selection parameter. But it is worthwhile to track the performance of the Investor-Management Unite as One ETF (code 2082). One caveat: this fund owns 192 shares which you may find too diversified to consistently generate outperformance over an index. Read More »