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.

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