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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 »

KOA, with a market cap of ¥58 billion, is a small electronic‑component manufacturer specializing in fixed resistors. Its earnings are highly sensitive to global economic conditions, which makes the business quite volatile. However, the company is currently benefiting from two meaningful tailwinds: the recovery in the automotive sector and the expansion of AI and data‑center demand. …

KOA Corp. (6999) ROIC recovery from 0.1% via Auto recovery + A1/Data Center to reduce volatility Read More »

Flagging a strong set of results from this ¥98bn traffic‑signal maker, which still has almost no analyst coverage. The stock trades at only about 0.85x P/B, so valuation remains very undemanding. The company recap (my 9/25 note is available for the clients): Nippon Signal (NS) is a top-tier player among Japan’s “Big Three” in railway …

Nippon Signal (6741) – Strong Q3 FY3/26 results -> stock up 7% Read More »

Yurtec Corp (1934): Implied Q4 decline drove a 6% decline of the stock ·      Yurtec reported earnings after market close on January 29, posting consolidated ordinary profit of ¥12.4bn for 9M FY3/26 (April–December), up 21.4% YoY ·      This represents progress of 70.9% toward the full-year forecast of ¥17.5bn, well above the five-year average progress rate of 50.5% …

Yurtec Corp (1934): Implied Q4 decline drove a 6% decline of the stock Read More »

Note: Full‑year FY3/26 guidance remains unchanged despite weaker 2H results. Recent rare‑earth enthusiasm has lifted Iwatani’s share price slightly, so we will monitor how the stock trades following the 2/10 earnings release. Many rare-earth-related stocks have performed well year‑to‑date. Sojitz (2768), a major trader of rare earths, is up roughly 15%, prompting questions about whether …

Iwatani Corp (4088): ROIC Rebound: Rare Earth/Hydrogen Growth + LPG Stability Read More »

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 …

Top 20 regional bank performers in 2025. Read More »

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 »

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 …

Tokyo Century (8439) – Early MT Plan Achievements and a New MT Strategy to Drive ROE Higher Read More »

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 …

Gunze (3002): Beyond restructuring, solid balance sheet strength keeps the stock climbing? Read More »