- People Co (TYO: 7865) is a toy company that consistently pays out nearly 100% of its income.
- Company strategy is similar to Apple & Keyence (TYO: 6861), focusing on design and outsourcing manufacturing.
- Explosive US growth provides larger non-Japanese revenue exposure.
Continue reading “Idea: 100% Payout Ratio And Still Growing? – TYO: 7865 People Co”
- Nihon Decoluxe’s (NGO: 7950) story is profitable, but as boring as it gets.
- Revenues have only slightly increased over the past 10 years while EBIT delivered 20% CAGR.
- At 0.37x EV/EBIT and a 3.5+% dividend yield, it’s hard to go wrong with Nihon Decoluxe.
Continue reading “Quick Idea: 101% NCAV With 3.5+% Dividend Yield On Consistent Performance – Nihon Decoluxe (NGO: 7950)”
- Japan’s top condom maker, Okamoto (TYO: 5122) is about more than just condoms.
- Okamoto’s active share buybacks that precede Japan’s push for corporate governance reform is particularly encouraging.
- Thanks in part to the buybacks, per share metrics look appealing with 10-year revenue CAGR of 3% and EBIT CAGR of 20%.
Continue reading “Japan’s Leading Condom Manufacturer Protects Other Things Too – Okamoto (TYO: 5122)”
- Oisix Daichi (TYO: 3182) holds a 30% share in a highly niche-y organic vegetable delivery industry in Japan.
- The company is the result of a recent merger between Oisix and Daichi, the #2 and #3 players in the organic vegetable delivery industry.
- With large companies entering the market, competitive pressures are on the rise. The CEO, however, thinks this is a good thing.
Continue reading “Quick Idea: Japan’s Blue Apron Making Moves To Corner The Market – Oisix Daichi (TYO: 3182)”
- Shinetsu Chemicals has healthy exposure to various industries and is an industry-leader in many areas.
- The diversified nature of Shinetsu’s operating businesses helped weather through the 2008/2009 financial mess, though profitability briefly declined.
- Despite a high cash position (net cash at 10% of market cap), Shinetsu delivered respectable low teen ROIC over the past couple of years.
Continue reading “Quick Idea: Global Leader In Silicon Wafers And A Bunch Of Other Stuff – TYO: 4063 Shinetsu Chemicals”
- Rinnai (TYO: 5947) leads the Japanese water heater market with a 40% market share.
- However, Rinnai’s Japan share is not the story. Growth outside of Japan has rapidly gained traction over the past few years – particularly in China and the US.
- As infrastructure in ASEAN countries develop, we can expect Rinnai’s ASEAN revenues to grow as well.
Continue reading “Quick Idea: Japan’s Leading Tankless Water Heater Company With Growth In China & USA – Rinnai (TYO: 5947)”
- 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)”