In today’s briefing:
- NHK Spring (5991) – A Cheap Stock With “Hidden Assets” Making It Cheaper
- Japan’s Governance: Kurita Water Industries (6370) ESG Briefing
NHK Spring (5991) – A Cheap Stock With “Hidden Assets” Making It Cheaper
- NHK Spring released an announcement mid-week to the effect that they were selling a golf practice facility they owned. The profit on the sale will exceed 10% of Enterprise Value.
- In addition, the company has another 25-30+% of Enterprise Value in shareholdings which return far less than the Mid-Term Management Plan target ROE of 8%.
- On an Adjusted EV basis (EV less non-operating financial assets), this stock trades at less than 1.5x EBITDA two years out.
Japan’s Governance: Kurita Water Industries (6370) ESG Briefing
- On March 11, I participated in an ESG meeting of Kurita Water Industries (6370). I would like to briefly touch on the content of the meeting.
- Kurita’s commitment to strengthening its executive officer structure requires stronger board oversight and further transparency, and there is considerable room for corporate governance reform.
- Its D&I initiatives are just beginning. Water resources are a very important environmental issue, and Kurita has a very important role to play and is expected to contribute.
Before it’s here, it’s on Smartkarma
