Announcement: Kenkyo Premium Membership Site Is Live Now

Summary

  • Kenkyo Premium Membership is live now.
  • Service offering includes: Kenkyo Japan Newsletter (monthly), Premium articles, and Member forum.
  • Premium article posting will start in February 2018.

Continue reading “Announcement: Kenkyo Premium Membership Site Is Live Now”

Expanding Japanese Hotel Concept Employs 60+% Less Labor

Thinking Points

  • A new hotel brand under major travel agency HIS (TSE: 9603) is eyeing rapid expansion over the next 5 years.
  • Dubbed the “strange” hotel, Henn na Hotel is operated by robots and employs less labor compared to peers.
  • Parent company HIS plans on taking a similar approach to its Dutch-inspired theme park.

Continue reading “Expanding Japanese Hotel Concept Employs 60+% Less Labor”

The Future Of Food

Thinking Points

  • My recent trips to several food processing plants in China and Japan has triggered a few thoughts about the food industry.
  • Frozen food quality is improving. This is likely to drive change in how the industry operates.
  • Investors ought to not only pay attention to frozen food companies, but also companies impacted by frozen food (like distributors).

Continue reading “The Future Of Food”

26 Companies Exclusively Listed On The Fukuoka Stock Exchange

Thinking Points

  • In continuation from last week’s difficult-to-access Sapporo Securities Exchange article, here is a list of 26 companies exclusively listed on the Fukuoka Stock Exchange.
  • Fukuoka, the home to Japan’s 4th largest metropolitan area, is a thriving business center in the Kyushu region.
  • The Fukuoka Stock Exchange list contains several interesting companies like fish feed maker Higashimaru (FSE: 2058) and packing material makers Ohishi Sangyo (FSE: 3943) and Maruto Sangyo (FSE: 7894).

Continue reading “26 Companies Exclusively Listed On The Fukuoka Stock Exchange”

17 Companies Exclusively Listed On The Sapporo Securities Exchange

Thinking Points

  • It seems there are opportunities in difficult-to-access stocks.
  • Sapporo Securities Exchange is a small exchange consisting of 58 listed companies; only 17 of which are exclusively listed.
  • I compiled a list of the exclusively listed companies with basic valuation metrics and a brief description of each company.

Continue reading “17 Companies Exclusively Listed On The Sapporo Securities Exchange”

This Drug Wholesaler Looks Attractive If You Can Get Your Hands On It – SSE: 3055 Hokuyaku Takeyama Holdings

Thinking Points

  • Hokuyaku Takeyama Holdings (SSE: 3055) trades at a discount (negative Enterprise Value!) relative to industry peers despite comparable business performance.
  • Unfortunately, the company is out of reach for many investors as it trades on the Sapporo Stock Exchange.
  • Investors serious about Japanese small caps ought to consider opening a brokerage account with one of Japan’s major securities companies that can trade securities on smaller exchanges or in the “green sheet” market (Japanese OTC).

Continue reading “This Drug Wholesaler Looks Attractive If You Can Get Your Hands On It – SSE: 3055 Hokuyaku Takeyama Holdings”

Poking The Convenience Giants – Welcia Holdings (TYO: 3141)

Thinking Points

  • Major drug store operator Welcia (TYO: 3141)  is becoming Japan’s neighborhood pharmacy.
  • In doing so, the company directly competes with the convenience industry.
  • Welcia maintains a strong position against the giants in convenience, thanks to Aeon’s (TYO: 8267) backing.
  • With its 18x EV/EBIT price tag and many moving parts, Welcia does not present a compelling investment opportunity.
  • Investors ought to look at pharmacy and drug store related industries for opportunities.

Continue reading “Poking The Convenience Giants – Welcia Holdings (TYO: 3141)”

20% EBIT CAGR With A Walmart Twist – TYO: 3349 Cosmos Pharmaceuticals

Thinking Points

  • Cosmos Pharmaceuticals (TYO: 3349) operates drug stores with a Walmart and 7-Eleven-like strategy, delivering industry leading growth (20% 10 year EBIT CAGR) over the past decade.
  • The company’s larger than normal stores target small areas and resembles a neighborhood supermarket.
  • At 18x EV/EBIT, Cosmos is a high quality business trading at an even higher price.

Continue reading “20% EBIT CAGR With A Walmart Twist – TYO: 3349 Cosmos Pharmaceuticals”

Drug Stores Inconveniencing 7-Eleven

Thinking Points

  • Drug stores are entering convenience territory, offering goods typically available at convenience stores.
  • Convenience chains are fighting back by slowly working into the more regulated OTC drug market, mostly through partnerships with drug and pharmacy chains.
  • The distinguishing characteristics of the convenience, drug store, and pharmacy industry are less apparent now.

Continue reading “Drug Stores Inconveniencing 7-Eleven”