2659: San A

Summary

  • 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”

2353: Nippon Parking Development

Summary

  • 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”

Tech In Japan: Augmented Reality Keeps Construction Industry Focused On Cutting Once

Summary

  • 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”

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.

Continue reading “7453: Ryohin Keikaku: Exceptionally Simple.”

6023: Daihatsu Diesel Looks Like a Buy Amid Turmoil in Shipping Industry

Summary

  • 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”

4202: Daicel Corporation’s Industry Leading Operations Paves Way for Long-Term Stability

Summary

  • 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”