In 2024 and 2025, many regional banks reported stronger net interest income and profit growth, supported by rising policy rates. With Ms. Takaichi now at the helm, the key question is whether this momentum will continue. Japan’s new and first female prime minister, Ms. Takaichi, inherits the economic policy framework of former Prime Minister Shinzo …
Ms. Takaichi and Regional Banks/Kyoto Financial Group 5844 Read More »
The Nikkei Average has surged 48.6% from its April 7 low of ¥30,792 to ¥45,769 as of Oct 3. With bottom-up opportunities harder to uncover in this environment, I tried the net cash ratio* as a fundamental value indicator. Among companies that appear sufficiently large to merit consideration by institutional investors, TOMEN DEVICES (TD) stands …
Tomen Devices 2737 – AI Stock: Safer Bargain or Value Trap? Read More »
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 …
Potential Sale of Nippon Sanso (4091) by Mitsubishi Chemical Group (4188 Read More »
Kohoku Kogyo (KK) is a global niche leader in two specialized segments: Lead terminals for EV and AI applications Optical components for submarine cables These are high-barrier, precision-driven markets where KK holds top global share. Stock Performance: Over the past three years, KK has underperformed the broader market: KK: +24.8% vs. TOPIX: +63.26% This period …
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 …
Kyodo Printing 7914: Turning Point: Committing to Competitive Catch-Up with 2 leaders. Read More »
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 …
Starts Publishing (7849): FY12/24 OPM Rises 11.3% Above 5-Year Average Read More »
The company (GI) went public in 11/24. GI provides AI-driven DX support and consulting-based software solutions to help businesses grow without relying on manual labor. Amid a wave of consulting firm IPOs, the sector is evolving rapidly, with rising demand for specialized service offerings. I wrote a brief note right before the IPO which expressed …
Globe-ing (277A) – Putting my concerns to rest. Evaluating Opportunity After a 17% Drop Read More »
When I first met with the company several years ago, I remember thinking, “I don’t understand this business. Why is an industrial gas company selling food?” That apparent lack of strategic focus may have contributed to the performance gap between Air Water and its peers—Nippon Sanso and Japan Materials. The 10-year price charts below highlight …
Air Water (4088): Business Restructuring: The Turning Point for Margin Growth? Read More »
Back on November 26, 2023, I wrote about Warabeya Nichiyo as part of an exercise to explore the distinction between a value stock and a value trap. At the time, I believed Warabeya was a fitting candidate for this analysis. In hindsight, however, the market has proven me wrong—at least so far. Had we invested …
Value Trap vs. Value Stock Thesis: Warabeya Nichiyo (2918) Read More »
Nippon Signal (¥84Bn market cap) maintains a solid order pipeline across its core operations, reinforcing earnings visibility. Its CBTC (Communications-Based Train Control) platform offers structural upside, aligned with long-term rail automation trends. To unlock capital and enhance shareholder value, the company liquidated cross-shareholdings—raising ¥720M in FY3/24 and ¥410M in FY3/25. These proceeds bolster financial agility, …