Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>There are so many businesses here which often dilute earnings growth but for now they look mostly to be going in the right direction. Perhaps a “conglomerate” discount is sensible as a result, but even then the shares are cheap. With earnings looking up, we would buy the shares here.</p><p>Functional plastics make up 20% of sales but about half of profit. In the 9 months to December this division made Y10.9bn (-1%) out of total operating profit of Y24.6bn. This year they expect to make Y15.8bn (+5%)…</p>

There are so many businesses here which often dilute earnings growth but for now they look mostly to be going in the right direction. Perhaps a “conglomerate” discount is sensible as a result, but even then the shares are cheap. With earnings looking up, we would buy the shares here.Functional plastics make up 20% of sales but about half of profit. In the 9 months to December this division made Y10.9bn (-1%) out of total operating profit of Y24.6bn. This year they expect to make Y15.8bn (+5%)…

Kaneka Corp

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