Quick Idea: Japan’s Blue Apron Making Moves To Corner The Market – Oisix Daichi (TYO: 3182)

Thinking Points

  • Oisix Daichi (TYO: 3182) holds a 30% share in a highly niche-y organic vegetable delivery industry in Japan.
  • The company is the result of a recent merger between Oisix and Daichi, the #2 and #3 players in the organic vegetable delivery industry.
  • With large companies entering the market, competitive pressures are on the rise. The CEO, however, thinks this is a good thing.

Continue reading “Quick Idea: Japan’s Blue Apron Making Moves To Corner The Market – Oisix Daichi (TYO: 3182)”

Quick Idea: Global Leader In Silicon Wafers And A Bunch Of Other Stuff – TYO: 4063 Shinetsu Chemicals

Thinking Points

  • Shinetsu Chemicals has healthy exposure to various industries and is an industry-leader in many areas.
  • The diversified nature of Shinetsu’s operating businesses helped weather through the 2008/2009 financial mess, though profitability briefly declined.
  • Despite a high cash position (net cash at 10% of market cap), Shinetsu delivered respectable low teen ROIC over the past couple of years.

Continue reading “Quick Idea: Global Leader In Silicon Wafers And A Bunch Of Other Stuff – TYO: 4063 Shinetsu Chemicals”

Quick Idea: Japan’s Leading Tankless Water Heater Company With Growth In China & USA – Rinnai (TYO: 5947)

Thinking Points

  • Rinnai (TYO: 5947) leads the Japanese water heater market with a 40% market share.
  • However, Rinnai’s Japan share is not the story. Growth outside of Japan has rapidly gained traction over the past few years – particularly in China and the US.
  • As infrastructure in ASEAN countries develop, we can expect Rinnai’s ASEAN revenues to grow as well.

Continue reading “Quick Idea: Japan’s Leading Tankless Water Heater Company With Growth In China & USA – Rinnai (TYO: 5947)”

Quick Idea: Sushi Machine Maker With No Formidable Competitor – Suzumo Machinery (TYO: 6405)

Thinking Points

  • Suzumo Machinery (6405) is well established in a niche sushi machine industry, holding 90% market share globally.
  • Top-line CAGR of 8.7% in the past 9 years, with particularly strong growth in Europe and N. America.
  • Run up in stock price over the past year probably puts Suzumo at fair value today, but further reading on the sushi market is necessary in order to have an educated discussion about continued growth.

Continue reading “Quick Idea: Sushi Machine Maker With No Formidable Competitor – Suzumo Machinery (TYO: 6405)”

Quick Idea: 30% Global Share In Diaper Production Machines – Zuiko (TYO: 6279)

Thinking Points

  • Zuiko accounts for 30+% of global diaper production machine market and 80+% of Japanese market.
  • Emerging economies go from cloth or no diapers to disposable diapers as disposable income increases.
  • Chinese competition puts price pressure on Zuiko, and it doesn’t look like the company has figured out a solution (other than to expand its Shanghai facility).

Continue reading “Quick Idea: 30% Global Share In Diaper Production Machines – Zuiko (TYO: 6279)”