Tokuden Co (stock code 3437 in Japan and Edinet code E01464, see also KaijiNet/JapanExpress) provides “welding work, welding consumables, steel plates with special welding, welding equipment, welding methods, and applied products derived from these technologies.”
A general problem I see with Japan is the shrinking, aging population. This leads to a decline in demand. There is also hardly any immigration, since Japan is already isolated in terms of language and immigration is rejected. It is difficult for a company to increase its sales, for example, if the population is shrinking and aging. For a global (often larger) company, however, this is less of a problem. Perhaps that is why these small companies are favorably valued.
It is always better to avoid growth. So, do not underestimate the power of investing in companies with slowly shrinking markets. Here is an example of the returns of Japanese telecom operators from 2003 until now: https://twitter.com/Fritz844/status/1623901270745694210
Interesting find. Any clue what the massive capex program is for (FY19 & TTM spend look more than double that of next largest program). And any communication on dividend policy? Payout looks very low even for Japan..
This is for a 30% increase of their production capacity. In total they will spend 2.3 million JPY and it will be completed in October 2023. So they will invest another 1.5 billion JPY until the end of October. Cash balance should be more than enough to cover this investment.
A general problem I see with Japan is the shrinking, aging population. This leads to a decline in demand. There is also hardly any immigration, since Japan is already isolated in terms of language and immigration is rejected. It is difficult for a company to increase its sales, for example, if the population is shrinking and aging. For a global (often larger) company, however, this is less of a problem. Perhaps that is why these small companies are favorably valued.
It is always better to avoid growth. So, do not underestimate the power of investing in companies with slowly shrinking markets. Here is an example of the returns of Japanese telecom operators from 2003 until now: https://twitter.com/Fritz844/status/1623901270745694210
Interesting find. Any clue what the massive capex program is for (FY19 & TTM spend look more than double that of next largest program). And any communication on dividend policy? Payout looks very low even for Japan..
This is for a 30% increase of their production capacity. In total they will spend 2.3 million JPY and it will be completed in October 2023. So they will invest another 1.5 billion JPY until the end of October. Cash balance should be more than enough to cover this investment.