- Shoei has a 50% global share in premium motorcycle helmets.
- Made in Japan focus makes the company sensitive to currency fluctuations.
- Key growth areas are in China/SE Asia and US.
Continue reading “Idea: 50% Global Share In Premium Motorcycle Helmets – Shoei (TYO: 7839)”
- First world Asian countries are not particularly crazy about pets.
- That said, more Japanese pets are getting their insurance cards.
- Anicom holds a 60% market share in a Japanese pet insurance industry that’s seen double digit growth over the past several years (at least).
Continue reading “Idea: 60% market share in high growth Japan pet insurance industry – Anicom Holdings (TYO: 8715)”
- Self-driving cars and camera systems are a thing now, and camera systems are replacing automotive mirrors.
- With increased competition, the future is tough but not impossible for Murakami Kaimeido, which holds a 40% domestic and 7% global share in automotive rearview mirrors.
- Murakami’s business performance and price metrics may paint a compelling picture for some investors.
Continue reading “Idea: 40% Domestic Share In Automotive Rearview Mirrors – Murakami Kaimeido (TYO: 7292)”
Here is a quick housekeeping note regarding future posts on Kenkyo.
I am changing things up. Future posts on Kenkyo will be short, sweet, and probably more frequent. I feel that this would serve you better than my previous writeups. The idea here is to shed some light on interesting Japanese companies that nobody hears about in the western world. I hope this becomes a useful idea sourcing platform for you!
- Over the past decade, inventory levels have greatly increased, resulting in a drag in capital efficiency.
- Investing in Takisawa at today’s price entails betting on management to quickly improve operational efficiency while assuming higher capital spending in the automotive industry.
- Overall, Takisawa is technologically competent, but with a few operational problems. With all the pros and cons in mind, Takisawa Machine Tool is worth considering at 114 Yen per share (vs. today’s 177 yen per share).
Continue reading “6121: Takisawa Machine Tool”
- Minebea Mitsumi is currently not a buy at 1,620 yen per share (5/9/2017 closing), but would be a compelling investment as 715 yen per share.
- Key driver for Minebea Mitsumi is its Machine Component segment, particularly its industry-leading miniature ball bearing business.
- Minebea Mitsumi’s investor sentiment is likely driven by explosive revenue growth in smart phone LED backlight business (50% CAGR between 2013-2016).
- Key near-term drivers are: consistent performance in Machine Components, technological tail-end profits from smart phone LED backlights, and healthy Nintendo Switch sales.
- Minebea Mitsumi was recently formed through the merger of Minebea and Mitsumi Electric.
Continue reading “6479: Minebea Mitsumi”
- Okinawa Cellular is not currently a buy, but investors ought to follow share prices periodically for buying opportunities at 2,600 yen per share (vs. current 3,555 yen per share).
- Regional focus provides Okinawa Cellular with a strong market position in an Okinawan mobile carrier market, which accounts for less than 1% of the Japanese mobile carrier market.
- Although the company is focused on being nimble and open to moving into industries unrelated to the mobile carrier market, its primary growth area today is in its fiber internet business.
Continue reading “9436: Okinawa Cellular”
- 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”
- With Japan’s population decline, a labor-intensive Japanese construction industry is facing a labor shortage.
- Japanese construction companies are looking at augmented reality (AR) to eliminate labor waste.
- The Japanese construction industry has an opportunity to convert labor shortage problem into fuel for AR technology advancement.
Continue reading “Tech In Japan: Augmented Reality Keeps Construction Industry Focused On Cutting Once”