- 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)”
- 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)”
- 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)”
- 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”