Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>Although broadcasting is expected to make Y8.2bn in operating profit this year, the industry remains weak and its own viewing ratings are lagging expectations. That said real estate is doing better than expected so it is not impossible that they could make this year’s operating forecast of Y23.5bn. We suspect, however, they will have a small miss. So does the market.</p><p>The shares are, however, too cheap. The real estate business is worth perhaps Y300bn (applying a cap rate of c 4.5% to the real…</p>

Although broadcasting is expected to make Y8.2bn in operating profit this year, the industry remains weak and its own viewing ratings are lagging expectations. That said real estate is doing better than expected so it is not impossible that they could make this year’s operating forecast of Y23.5bn. We suspect, however, they will have a small miss. So does the market.The shares are, however, too cheap. The real estate business is worth perhaps Y300bn (applying a cap rate of c 4.5% to the real…

Fuji Media Holdings

Fuji Media (4676) Far Too Cheap Here