- San A is not currently a buy, but investors ought to follow share prices periodically for buying opportunities at 3,200 yen per share (vs. current 5,010 yen per share).
- Strong regional moat provides San A with Japanese retail industry-leading business performance with ROE at 10.35% (10 Year Average: 9%).
- Franchising opportunities likely to lead to continued earnings growth.
Continue reading “2659: San A”
- NPD has a solid track record for business performance (10 year ROIC 16%).
- Recently, Parking Lot business has been relatively stable, Ski resort business experienced short term headwinds, and Theme park business is just getting started.
- Long term competitive advantage for NPD’s Parking Lot business is unclear and competition in the industry is only intensifying.
- At today’s 155 yen per share, NPD isn’t a buy. However, I will revisit NPD at 100 yen per share, or at signs of meaningful improvement in NPD’s Parking Lot business’ competitive positioning.
Continue reading “2353: Nippon Parking Development”
- New tire manufacturers (mostly from China) have taken significant market share from the low to mid tier tire markets over the past 10 years.
- Yokohama is expanding into industrial tires, increasing production capacity, and focusing on OE business to fend off the new and strengthening competitors.
- Overall, Yokohama’s financials are healthy and business performance is decent (10-Year average ROE roughly 9%).
- However, shares are not particularly cheap or expensive at today’s 1,974 yen per share price.
- Yokohama will look more interesting at 1,400 yen per share.
Continue reading “5101: Yokohama Rubber Report (Abridged)”
- Seasoned corporate culture and a purely functional product focus has driven rapid growth, both domestically and internationally, for Ryohin.
- Balance sheet is squeaky clean and business performance metrics like ROE remains strong (15% – ish ) compared to peers.
- Exceptional corporate culture, clean balance sheet, and strong business performance is already built into share price – the bet is on continued rapid growth.
Continue reading “7453: Ryohin Keikaku: Exceptionally Simple.”
- Focus on parts and service business likely to drive high margin revenue over the long-haul.
- Healthy balance sheet provides for stability during difficult times.
- Daihatsu Diesel has remained stable and profitable despite increased competitive pressure from Chinese and South Korean companies.
Continue reading “6023: Daihatsu Diesel Looks Like a Buy Amid Turmoil in Shipping Industry”
- Who is cleaning up after Takata’s airbag recall mess?
- “The Daicel Way” is the chemical industry equivalent of the Toyota Production System.
- Daicel trades at a discount relative to its peers, despite its industry-leading operations.
Continue reading “4202: Daicel Corporation’s Industry Leading Operations Paves Way for Long-Term Stability”
- JP Holdings operates the largest chain of day care centers in Japan
- Macro tailwinds support further growth of JP Holdings
- Japan’s birthrate problem may be a function of insufficient childcare infrastructure.
Continue reading “2749: JP Holdings Well Positioned For Long-Term Growth”
At this point exploring our site you’ve probably seen a lot of nice verbose rhetoric with plenty of adjectives describing how attractive we think Japanese stocks are. If you are as skeptical as I am though, you’d think that’s a load of BS until we substantiate it with some data and logical arguments.
We did introduce an argument in our first article and About page where we said there is no natural buyer for Japanese stocks, but until now, that’s been about it. Not very compelling. This article will attempt to introduce the case for Japan.
Continue reading “The Opportunity in Japan”
Brian here. This being our first post, I want to cover a few basic things:
- What is Kenkyo Investing?
- Why are we doing it?
- Who are we?
We’ve included a lot of this information in the “About” section on the site, but I’ll go into a bit more detail here.
Continue reading “Welcome!”