Thinking points Introduction Matsumoto Yushi-Seiyaku Co., Ltd. (“MFS”) is a small surfactant manufacturer headquartered in Osaka, Japan. It commands a leading share in Japan for surfactants for textiles and thermo expandable microcapsules, which are mainly used in industrial processes. MFS discloses regional segments only by production base, with Japan accounting for 98% of total revenue […] The post Leading Surfactant Manufacturer with Asia Growth Tailwinds Trading at 110% NCAV first appeared on Kenkyo Investing ..read more

Thinking points Introduction KFC (TSE: 3420) is a mid-sized construction engineering company, specializing in development, sales and installation of construction materials such as anchor bolts. The company operates mainly for public projects such as highways and tunnels, commanding strong domestic market shares in rock bolts and impervious sheets. Since FY03/2012 it has been operating under […] The post Profitable Pioneer in Construction Anchor Bolts Trading at 2.3x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points Introduction Sakura KCS (SKCS) is a small system integrator affiliated with the Sumitomo Mitsui Finacial Group. Its business segments are categorized into the financial, public, and industrial sectors. Each segment consists of the same functions:  Business & operating environment Company History Sakura KCS, which started out as Kobe Computer Service, launched operations in […] The post Profitable System Integrator Trading for 68% P/NCAV first appeared on Kenkyo Investing ..read more

Thinking points Japan Reliance Service Corporation (RSC) is a medium-sized security service company primarily providing security services for commercial facilities and offices, building maintenance services, and human resource services. Key challenges for the company include personnel shortages and the need to provide continuous training, as well as the performance of parent company Sunshine City, which […] The post Mitsubishi Estate-backed Security Service Company for 1.4x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points Harima B.Stem Corp. (TSE: 9780) is a mid-sized building maintenance company that manages office buildings as well as commercial/retail, apartment and PFI/PPP facilities.Key challenges for the company include a shortage of qualified maintenance professionals with certifications and skills, as well as its low profit margins stemming from a labor-intensive and fragmented business environment.Key […] The post Mid-size Building Maintenance Co With Diverse Revenues Trading at 1.8x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points Asahi Intelligence Service (TSE: 9799) is a small system integrator specializing in network services and dispatches network engineers to client offices. Key challenges for the company include rapid technological changes in client industries such as the emergence of 5G/IoT and securing talent to keep up with the increasingly diversifying needs of clients while […] The post Growing IT Network Service Operator Trading at 1.6x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points Computer Management (TSE: 4491) is a small IT developer mainly operating in western Japan, with a wide range of clients especially in finance and healthcare. Key challenges for the company include the continuous recruitment and training of IT personnel needed for growth, and the succession of the 78-year-old founder and president. Key opportunities […] The post Independent System Integrator with Steady Growth at 1.4x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points Meiko Network Japan (TSE: 4668) is the 7th largest cram school group in Japan. In recent years, the company has partnered with the 6th largest company in the industry to focus on profitable private tutoring amid a declining birthrate.Key challenges for the company include intensifying competition for students caused by a shrinking market […] The post Profitable Mid-tier Cram School Operator Trading at 3.5x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points KSK Co., Ltd. (TSE: 9687) is a small system integrator specializing in network service, embedded software development, and semiconductor design, with strong business relationships with large IT players and telecommunication companies. Key challenges for the company include rapid technological changes in client industries such as the emergency of 5G/IoT and securing talent to […] The post Small and Profitable System Integrator with 3.66% Dividend Yield Trading at 2.4x EV/EBIT first appeared on Kenkyo Investing ..read more

Thinking points Jedat Inc. (TSE: 3841) is a small software vendor specializing in development and sales of electronic CAD software (EDA) for LSI and LCD panel design.  Key challenges for the company include clients switching away from Jedat’s EDA tools to more versatile and up-to-date products offered by global vendors. Key opportunities include the upward […] The post Specialized Electronic CAD Developer Trading at 97.4% NCAV first appeared on Kenkyo Investing ..read more