5101: Yokohama Rubber Report (Abridged)

Summary

  • 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.

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7453: Ryohin Keikaku: Exceptionally Simple.

Summary

  • 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.

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2749: JP Holdings Well Positioned For Long-Term Growth

Summary

  • 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.

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