Hengdeli Holdings Ltd (3389:HKG) (HENGY:OTC)

Recent Share Price: HK$0.41

Accounting: Hong Kong Accounting Standards

Fiscal Year: Dec. 31st

Market Cap: HK$1.6 billion ($238 million)

5 Year
3 Year

Hengdeli Holdings Limited operates a retail network comprising: Elegant (high-end brands, acquired 2006), Hengdeli/Watchshoppe (mid-end and mid-to-high-end brands) and single-brand boutiques. Hengdeli has 67 retail outlets, selling watches from more than 50 internationally renowned brands in Hong Kong, Macau (2010), Taiwan (2009) and Malaysia (2018). They also provide integrated after-sales warranty maintenance.

Hengdeli has a strong and intergrated relationship with SWATCH Group, LVMH Group, Richemont Group and Kering Group.

Hengdeli is heavily tied to the Hong Kong market, which has recently seen an improvement in demand.

Recent History


Acquired the watch business of Watchshoppe, a well-known local watch retailer in Malaysia, thereby expanding its operations to Southeast Asia.


Announced in late 2016, plans to sell majority of buisiness. The deal was fair-ish for existing shareholders with the deal valued at approximately one times net asset value.

Sold its mainland Chinese business and it low-end watch and jewelry business in Hong Kong (Harvest Max) to Yu Ping Zhang, the chairman and contolling sharehoder for RMB 3.5 billion. The valuation was based on the unaudited net asset value of the Disposal Group of approximately RMB5.1 billion and the minimum Dividend Payout of RMB1.6 billion. Profit before tax for the disposal group in 2014 and 2015 was RMB 678 million and RMB 365 million, or 5x EBT and 9x EBT respectively.

The proceeds were used to retire USD denominated debt and to pay a special dividend of HK$0.20 per share.


Share price was pushed lower following a report in Next magazine which questioned the following:

  1. Some of the store outlets were either nonexistent or not branded as company stores.
  2. There was negative operating cash flow between 2006–2008 and 2010 despite being profitable.
  3. The company had lost key distribution licenses and exclusive rights for brands like Omega, Rado, Bucherer, Audemars Piguet, Fendi, and Dior.
  4. The company raised US$350 million of senior notes despite holding 3.4 billion yuan in cash as of June 30, 2012.
  5. The company has invested in a bond of 259 millon yuan with an interest rate of 13 percent.
  6. The company made three short-term loans amounting to 720 millon yuan at an interest rate of 11–18 percent.
  7. The chairman has pledged its shares to Swatch for a three-year US$100 million loan for his private business

Bloomberg wrote a follow up article in which Nick Hayek, chief executive officer of Swatch, denied the claim that relationship with Hengdeli was compromised.

Insider Ownership

Yu Ping Zhang1,585,556,50134.00%
Jinbing Zhang452,968,0009.71%
The Swatch Group AG437,800,0009.39%
LVMH Moët Hennessy Louis Vuitton SE230,280,4004.94%
Yong Hua Huang52,172,8001.12%



value and opportunity [here]

Disclosure: We own shares in Hengdeli Holdings Ltd (3389:HKG) (HENGY:OTC)


Sasakura Engineering Co Ltd (6303:TYO) (SKENF:OTC)

Recent Share Price: ¥2,550

Accounting: Japanese Accounting Standards

Fiscal Year: Mar. 31st

Market Cap: ¥7.9 billion ($70 million)

Sasakura Engineering Co., Ltd. is a Osaka-based company engaged in the marine vessel equipment business. Founded in 1949, the company operates in five business segments:

  • The Marine Vessel Equipment segment (¥1,240M Revenue, ¥149M OI) manufactures and sells seawater desalination equipment, heat exchangers, sewage treatment equipment, oily water separators, liquefied natural gas (LNG) ship use ultracold butterfly valves and others.
  • The Land Equipment segment (¥1,494M Revenue, ¥145M OI) manufactures and sells air-cooled heat exchangers, land use ultracold butterfly valves, heat pipe cooling rolls and others.
  • The Water Treatment Equipment segment (¥1,177M Revenue, ¥351M OI) manufactures and sells seawater desalination equipment for land use, reverse osmosis water processors, evaporative concentration devices, ozone evolution devices and others.
  • The Sound Deadening and Air Conditioning Equipment (¥1,109M Revnenue, ¥32M OI) segment manufactures and sells noise control equipment, equipment for ice thermal storage tank systems use and others.
  • The Others segment operates parking lots rental business.
Revenue (in Million)2017
Middle East¥1311.30%¥5104.80%
Published 2016

President, Toshihiko Sasakura, age 65, owns ~48% of common stock.

Largest customer, ~11% of total revenue, is Hitachi Zosen Co. Ltd.

Recent History


Established Sasakura Taiwan Co., LTD.

Began manufacture and sales of Fresh Water Generator series X

Obtained an order for rehabilitation of Al-Jobail Phase 2 C4 MSF Desalination Plant from SWCC of Saudi Arabia


Obtained an order for Expansion of the Existing Shoaiba Phase 2 Desalination Plant (MED-TVC–Type Desalination Plant, 91,200T/D×1 unit) from SWCC of Saudi Arabia


Acquired ALQ Environmental Engineering Co., Ltd. (currently Sasakura ALQ Acoustic Engineering Co., Ltd.) as a consolidated subsidiary.

Launched the Association of Radiant Cooling and Heating Systems of Japan (ARCH) with Toyox Co., Ltd., Inter Central, Inc. and Kubota ChemiX Co., Ltd.


Acquired Arabian Company and Sasakura for Water & Power (currently Sasakura Middle East Company) as a subsidiary through further acquisition of shares.

The Vapor-Compression device with distillation tower, developed in cooperation with Nippon Refine Co., Ltd. won both the Technology Award from the Society of Separation Process Engineers, Japan (SSPEJ) in May, and the Chairman’s Award from the Japan Society of Industrial Machinery Manufacturers (JSIM) in June.

Reverse 1:5 stock split


Company states, “to improve asset management and efficiency” the company has liquidated some of its investment holdings. In most recent quarter reported extraordinary gain of ¥898 million on sale of 3 listed securities (11% of current market cap; cash generation on sale was probably in the range of ¥2 billion). Post-liquidation, the balance sheet reports ¥1,480 million of investment securities held.

It appears recent results have been dragged by poor performance in Saudi Arabia, due to, what appears to be, conservative accounting for loss reserves on their large projects. For the first 3 quarters, a y/y comparison shows a loss of -¥64 million last year versus a gain of ¥558 million this year. This variance appears to be primarily due to their write down of loss reserves of ¥348 million; which appears to show up in higher revenue recognition, whereby improving gross margins materially. Their Land Equipment division also materially contributed to their improvement in operating income.

For the first 3 quarters, y/y, core business orders are up 11.2%; sales are up 2.7%; and order backlog is up 11.8%.


The bottom of the shipbuilding industry looks to be 2016; it appears things are improving for LNG and for shipbuilding in general. For Sasakura, the recovery is slow, but hopefully this provides added stability for the segment.

The company is pushing for inroads into the Chinese market for water treatment via their Tawainese subsidiary. This could lead to some areas of unexpected upside.

From what I can gather, there do not appear to be any major projects scheduled for the Middle East.

All told, the company looks safe and cheap and appears to be doing things that will increase shareholder value.



Bargain Hunter [here]

Disclosure: We own shares in Sasakura Engineering Co Ltd (6303:TYO)

Kawagishi Bridge Works Co Ltd (5921:TYO) (KGBGF:OTC)

Recent Share Price: ¥2,500

Accounting: Japanese Accounting Standards

Fiscal Year: Sept 30th

Market Cap: ¥7.5 billion ($68 million)

Kawagishi Bridge Works Co., Ltd. is a Japanese industrial focused on the design, manufacturing, and site construction of steel frames for steel structures. In addition to the site construction work in eastern Japan, the Company is also involved in the manufacture and sale of precast concrete (PC) products.

The company operates 5 plants for Steel Frame and 1 plant for Precast Concrete.

Segment Revenue20172018
Steel Frame¥18,72395.6%¥24,24294.2%
Precast Concrete¥8644.4%¥1,5045.8%
Steel Frame¥17,06491.2%¥15,39497.9%
Precast Concrete¥1,6408.8%¥3372.1%

Recent History


Announced Reverse 1-to-5 stock split effective March 28.

Insider Ownership

Executive Shareholders
Ryuichi Kawagishi (Chairman)82,4002.75%
Hideo Kanamoto (President)3,5000.11%

At fiscal year-end, investments in passive stocks (17) totaled ¥906 billion.

In addition to stock holdings, the company reports that it owns rental property with a fair market value (calculated by the Company based on the property tax valuation) of ¥1.2 billion.

At ¥2.1 billion, this represents approximately 30% of the current market cap. Although company makes no claim for liquidaion, the passive holdings provide sizable financial safety.


Disclosure: We own shares in Kawagishi Bridge Works Co Ltd (5921:TYO)

Nakakita Seisakusho Co Ltd (6496:TYO)

Recent Share Price: ¥2,790

Accounting: Japanese Accounting Standards

Fiscal Year: May 31st

Market Cap: ¥10.7 billion ($97 million)

NAKAKITA SEISAKUSHO CO., LTD. is a Japanese manufacturer of automatic control valves, butterfly valves and remote controllers for ships and power plants. The Company offers three types of products:

  • Automatic Control Valves (41% Revenue)
    • which include auto actuated valves, servo actuated control valves, remote control valves, cylinder valves, safety valves, air purge-type automatic regulatory equipment, actuators, valves for nuclear plants, superheated steam pressure reducers and attemperators, other special automatic control valves and controlling equipment;
  • Butterfly Valves (32% Revenue)
    • which include manual butterfly valves, remote control butterfly valves, and butterfly valves for low-temperature use
  • Remote Control Devices (27% Revenue)
    • which include cargo handling and ballast remote controllers and remote water level indication and warning equipment for ships.
Plant / ShipUseKind of product
For Plant・Power Plant
・Steel Works
・Desalination Plant
・and etc.
・Control / Shut-off Valve
・Butterfly Valve
For Ship・Cargo line
・Ballast line
・Butterfly Valve
・Valve Remote Control System
・Level Gauging System
・In Engine Room ・Control / Shut-off Valve
  • Number of employees : 346 people.

Recent History


1 for 5 reverse stock split

Capital Allocation

The company has a stated goal of a dividend payout ratio of at least 40%. In the past 3 years, the company has paid out ¥1.3 billion (~12%) in dividends and has bought back over ¥330 million (~3%) in stock.

Regarding the distribution of profits to shareholders, we aim to maintain a steady dividend, and we will strive to achieve the results of that period and forecasts for the following year […] In addition, the Company acquires treasury stock as part of returning profits to shareholders. Although we have reviewed and implemented cancellation and retirement, we would like to consider buying tremendous treasury stock in the future.

2018 Annual Report (Google Translate)

Insider Ownership

Insiders own over 30% of shares outstanding.

Miyata Family 442,00011.50%
Kenichi Nakakita,264,4006.90%
Akihisa Miyata,114,0002.97%
Ikuko Watanabe 114,0002.97%
Tomoko Kurota 114,0002.97%
Hiroko Nakakita 114,0002.97%
Kazuko Miyata 109,0002.84%
Hiroaki Miyata 106,0002.77%
Sumitomo Mitsui Financial Group, Inc.86,0002.24%

Equity Holdings

The company holds over $6 million in stock.

Maruichi Steel Tube Ltd (5463) 120,000 $3,765,622 
KOKUYO CO., LTD. (7984) 72,200 $1,049,457 
KIMURA CHEMICAL PLANTS CO., LTD.(6378) 270,000 $860,714 
Kobelco Eco-Solutions Co Ltd (6299) 40,000 $539,757 
HYOKI KAIUN KAISHA, LTD. (9362) 10,300 $124,809 
Mitsui OSK Lines Ltd (9104) 2,693 $58,508 
Sumitomo Mitsui Trust Holdings Inc (8309) 633 $23,057 
JSR Corp (4185) 1,063 $15,932 
Sanoyas Holdings Corp (7022) 2,640 $4,112 
Naikai Zosen Corporation (7018) 100 $1,246 


Disclosure: We own shares in Nakakita Seisakusho Co Ltd (6496:TYO)

Merchant House International Ltd (MHI:ASX)

Recent Share Price: A$0.12

Accounting: International Financial Reporting Standards

Fiscal Year: Mar. 31st

Market Cap: A$10.8 million ($7.8 million)

Merchant House International Ltd. engages in the design, manufacture, and marketing of home textiles and footwear products.  They are incorporated in Bermuda, listed in Australia, and domiciled in Hong Kong.

It operates through the following segments:

  • The Home Textile segment primarily manufactures kitchen textiles and table linens for import and export.  The Group’s Carsan textile factory in Shunde, China is 100% owned, has been in operation since 2002 employing over 600 workers. In 2017, the company acquired a facility in the U.S. to manufacture textiles, (primarily kitchen and bath towels).
  • The Footwear Trading segment exports work boots and safety shoes. In China, the division operates mainly through 2 Tianjin joint venture factories, (listed on the books at A$11 million).
  • The Footwear Manufacturing segment produces work boots and safety shoes in U.S. and sells directly to domestic customers. Their 2014 Tennessee factory supplies safety boots through direct injection molded soles.

The company was founded by Bic Hing Lee in 1978 and is headquartered in Hong Kong.  Loretta Lee owns 52% of the company.

If the company can right the ship on the footwear manufacturing division, the company would return to profitability.

The Bristol facility is also an unknown.

Sales per Businesses    
 2017 2018 
AUD (in Million) % %
Home Textile40.2355.30%40.2463.30%
Footwear Trading31.6843.50%20.4132.10%
Footwear Manufacturing1.031.40%2.874.50%
Sales per Regions    
 2017 2018 
AUD (in Million) % %
United States71.3398%63.299.50%
China/Hong Kong0.1270.20%0.0370.10%

Recent History


Company guides (for FY2019, ending March 31) at a loss of A$1,000,000 (US$750,000) due to execution issues at Footwear Industries in Tennessee (FIT).


Footwear Trading (Forsan shoe division) was down y/y due to the company’s decision to resign from retailers which are having financial difficulties, (which I assume to be Sears), and “giving up on the low-end margin product lines and moving toward higher value, branded products”. Net profit was A$0.27 million.

Footwear Manufacturing (Footwear Industries of Tennessee) suffered a loss of A$3.3 million reflecting “weak management, and lack of worker training and productivity”.

While the loss was as projected, the plan is for Hong Kong management to take a more active role in overseeing this business. […] For Footwear Industries of Tennessee improving the management will be our top priority in 2018. Numerous American brands continue to be interested in our factory, and we currently have more orders than we can fulfill.

Home Segment recorded profit of A$3.2 million in FY2018.

American Merchant Inc, (Bristol, VA facility) placed orders for the major weaving and finishing equipment which will begin to be delivered in the fourth quarter of this year. Some renovation on the existing building is currently taking place; they anticipate production will begin in the first quarter of 2019. [article]

During the year, the Group spent A$3.4 million (2017: A$1.5 million) on acquisition of property, plant and equipment and A$3.0 million (2017: A$nil million) on other assets under development, mainly for land and building and machineries of US wholly-owned subsidiary, American Merchant Inc.


Acquired plant for $1.9 million in Bristol, VA, for textile manufacturing.  The company expects to invest $19.9 million to get the facility up and running.  The 260,000 sq/ft facility is expected to employ 405 employees.


Discontinued Dividend.


Purchased a 40,000 square foot building in the Jefferson City Industrial Park where it produces men’s leather boots and shoes.   The initial investment, to acquire and equip the plant in Jefferson City,  was $5 million and employs 50 people. [WSJ article]


Blog Posts

Disclosure: We own shares in Merchant House Int’l (MHI:ASX).

HG Metal Manufacturing Ltd (BTG:SES)

Recent Share Price: S$0.33

Accounting: Singapore Accounting Standards

Fiscal Year: Dec. 31st

Market Cap: S$42.5 million ($31 million)

HG Metal Manufacturing Ltd. operates as an investment holding company, which engages in manufacturing and trading customized flat steel bars and mild steel lip channels.Unknown

It operates through two segments:

  • The Trading segment involves in supplying steel products and includes the holding of investments in subsidiaries.
  • The Manufacturing segment includes producing steel products and provides related engineering services.

With more than 800,000 square feet of land area, HG Metal is one of the largest steel warehouse and processing facilities in Singapore, storing more than 3,000 varieties of steel products for a wide range of industries and applications.

Metal Manufacturing was founded by Tan Chan Too, Tian Chye Heng, Tan Ah Bee, Kuah Kian Leng, and Tan Teng Hian in 1971 and is headquartered in Singapore.

Sales per Businesses
2016 2017 Delta
SGD (in Million) % SGD (in Million) %
Trading 91.86 84.6% 118.22 72.7% +28.7%
Manufacturing 16.67 15.4% 44.39 27.3% +166.34%
Sales per Regions
2016 2017 Delta
SGD (in Million) % SGD (in Million) %
Myanmar 61.10 56.3% 88.48 54.4% +44.8%
Singapore 36.57 33.7% 66.89 41.1% +82.91%
Indonesia 7.20 6.6% 6.39 3.9% -11.34%
Malaysia 3.50 3.2% 0.846 0.5% -75.84%
Others 0.152 0.1% 0.017 0% -88.82%

Recent History


Announced 51.04% stake in joint-venture with Fortune Peak Investments Pte. Ltd. and YNJ Engineering Co. Ltd., to operate a steel rebar Cut & Bend and Fabrication facility In Myanmar.  It is expected to be operational in the first half of 2019 with 50,000-ton processing capability. [press release] [article] [article]

Our current operation in Myanmar focuses on the sale and distribution of steel products. Since 2015, Myanmar has become an increasingly important market for the Group as the country, with a new government in power, increasingly imported construction steel and related materials to accommodate for its infrastructure boom. During FY2016 and FY2017, Myanmar accounted for more than 50% of the Group’s total sales


Announced capital reduction of (i) a write off of part of the accumulated losses to the extent of S$68,176,921.49 and (ii) a cash distribution at S$0.105 per ordinary share. Following the completion of the Capital Reduction, the issued and paid-up share capital is S$76,493,995.87.

Announced disposal of all 42,145,518 ordinary shares of BRC Asia Limited at the consideration of S$0.925 per share (S$38,984,604) of BRC Asia by Esteel Enterprise Pte. Ltd.

Activist Quartz Capital pushed for recapitalization. [HG Response]


Announced reverse stock split 1:10.


Issued 213,600,000 shares at S$0.069 per share (S$0.69 post-split) in private placement for S$14.68 million

Name Equities %
Sey Liang Foo 28,405,000 21.7%
Regroup Holdings Pte Ltd. 8,608,657 6.59%
Tin Htut Aung 8,010,000 6.13%
Nah Tan 6,500,000 4.98%
Ko Ko Aye 6,500,000 4.98%
HG Metal Manufacturing Ltd. 3,193,630 2.45%
Ling Sing Sia 1,940,733 1.49%
Ah Yen Tan 762,100 0.58%
King Sin Ong 732,000 0.56%
Wai See Tan 655,000 0.50%


  • No options outstanding
  • No pension plan
In Millions 12/31/15 12/31/16 12/31/17 6/30/18
Cash and Short-term Investments  50.51 HK$  30.70 HK$  28.85 HK$  18.97 HK$
(0.85 * Accounts Receivable)  27.16 HK$  29.54 HK$  37.64 HK$  42.25 HK$
(0.60 * Inventory)  3.23 HK$  8.53 HK$  10.55 HK$  18.16 HK$
(0.25 * Other Current)  0.05 HK$  1.84 HK$  4.91 HK$  3.29 HK$
Total Liabilities  23.46 HK$  22.39 HK$  18.63 HK$  27.77 HK$
Preferred Stock  –   HK$  –   HK$  –   HK$  –   HK$
NNWC  57.48 HK$  48.23 HK$  63.32 HK$  54.89 HK$
NCAV  64.57 HK$  64.65 HK$  91.73 HK$  84.31 HK$
NCAV + LT Investments  114.08 HK$  115.50 HK$  91.73 HK$  91.35 HK$
TBV  128.98 HK$  129.36 HK$  104.15 HK$  103.84 HK$
Enterprise Value  12.29 HK$  15.38 HK$  24.17 HK$  24.31 HK$
Retained Earnings  22.71 HK$-  21.82 HK$-  33.79 HK$  33.79 HK$
Dividends Paid  –   HK$  –   HK$  14.02 HK$-  –   HK$
Sale or Purchase of Stock  0.02 HK$-  0.31 HK$-  –   HK$  –   HK$
Shares Outstanding  127,418,566  127,417,735  127,417,735  127,417,735
P / NNWC 86% 82% 79% 74%
P / NCAV 77% 61% 55% 48%
P / NCAV + LT Investments 44% 34% 55% 45%
P / TBV 39% 31% 48% 39%
NCAV Burn Rate -7.2% 0.1% 41.9% -8.1%
Debt / Equity 5.8% 1.8% 0.1% 0.6%
Sloan Accrual Ratio -6.3% 10.1% -21.4%
F-Score 6 6 5
FS-Score 6 6 5
Z-Score  2.3  2.1  3.9
Beneish M-Score  (2.9)
ROIC / Tobin’s Q -14.7% -2.3% -20.8%
EV / EBITDA  N/A  10.14  N/A
EV / Operating Income (5yr)  5.36  (1.19)  NA
EV / Operating Income (10yr)  (0.89)
EV / FCF (3yr)  0.46  0.27  NA
EV / FCF (5yr)  (0.60)  4.53  6.02
EV / FCF (10yr)  0.26
EBITDA (FY)  (6.16) $  1.52  $  (9.78) $
Operating Income (5yr)  2.29  $  (12.98) $  (30.42) $
Operating Income (10yr)  (27.24) $
FCF (3yr)  26.89  $  56.30  $  (21.92) $
FCF (5yr)  (20.44) $  3.40  $  4.02  $
FCF (10yr)  92.12  $


Blog Posts

  • Off-Piste Investing [here]

Disclosure: We own shares in HG Metal Manufacturing Ltd (BTG:SES).

Baoye Group Co Ltd (2355:HKG)

Recent Share Price: HK$4.41 (H Shares)

Accounting: Hong Kong Accounting Standards

Fiscal Year: Dec. 31st

Market Cap: ¥2.16 billion ($316 million)

imagesThe principal activities are construction services, real estate development and manufacturing and distribution of building materials in the PRC.

The company was founded by Bao Gen Pang in 1974 and is headquartered in Shaoxing, China

Sales per Businesses
2016 2017 Delta
HKD (in Million) % HKD (in Million) %
Construction 14,956 70.3% 16,465 75.2% +10.09%
Property Development 3,684 17.3% 3,066 14% -16.79%
Building Materials 2,441 11.5% 2,145 9.8% -12.14%
Others 179.71 0.8% 208.75 1% +16.16%




As of June 4th, Baoye has bought back an additional 22,616,000 H Shares, lowering overall share count to 563,594,053.


During the year ended 31 December 2017, Baoye repurchased 23,500,000 H Shares, representing approximately 8.98% and 3.84% of the total number of H Shares and a total number of issued shares of the Company, respectively. The total amounts paid were HKD133,713,000 (equivalent to RMB118,420,000).  Baoye canceled 26,162,000 H Shares.

Share Repurchases

Beginning in 2014, the company has reduced overall share count by ~15%

Hong Kong $
Chinese RMB
Share Count*
% Reduction
 133,713,000  $
 15,159,000  $
 129,927,000  $
 151,070,000  $
*Based on retired shares; 2018 estimate

Risk of Fraud

For the last 10 years, the company has been profitable every year; in addition, the company has net borrowings of ¥216,781,000, dividends paid of ¥(755,795,000), and share buys backs of over ¥(400,000,000) — for a net outflow of ~¥(1 billion).  The last issuance of shares was in 2007.

Total compensation for executives in 2017 was ¥4,380,000; EBITDA reported in 2017 was ¥852,429,000.  The company does not report any executive loans.

Insiders control over 50% of shares outstanding.

Pang Baogen (Chairman) 193,753,054 34.38%
Wang Jianguo 47,950,291 8.51%
Gao Jiming 12,059,254 2.14%
Gao Lin 9,544,775 1.69%
Xu Gang 5,971,303 1.06%
Gao Jun 5,794,259 1.03%
Lou Zhonghua 4,533,172 0.80%
Wang Rongbiao 2,647,911 0.47%
Jin Jixiang 2,440,527 0.43%

Yi Cai Zhu, via his wife, reports significant holdings in the H Shares.  I do now know what his association is with the company — if any.

Shareholders – H Shares
Name Equities %
Yi Cai Zhu 29,304,000 13.8%
Dimensional Fund Advisors LP 6,618,600 3.12%
Grantham, Mayo, Van Otterloo & Co. LLC 2,044,000 0.96%
AXA Investment Managers Asia (Singapore) Ltd. 1,690,000 0.80%
The Caisse de dépôt et placement du Québec 1,252,000 0.59%
Mackenzie Financial Corp. 539,167 0.25%
Dimensional Fund Advisors Ltd. 446,853 0.21%
CBR Investment AG 250,000 0.12%
Norges Bank Investment Management 179,999 0.085%
Acadian Asset Management LLC 160,156 0.076%


In Millions 12/31/15 12/31/16 12/31/17 6/30/18
Cash and Short-term Investments  ¥3,839.73  ¥4,373.00  ¥2,915.45  ¥3,865.83
(0.85 * Accounts Receivable)  ¥5,061.75  ¥6,183.75  ¥8,409.90  ¥8,757.55
(0.60 * Inventory)  ¥4,288.80  ¥4,308.60  ¥4,959.60  ¥4,629.60
(0.25 * Other Current)  ¥136.72  ¥266.25  ¥699.50  ¥239.58
Total Liabilities  ¥13,622.00  ¥15,881.00  ¥20,646.00  ¥19,608.00
Preferred Stock  ¥-  ¥-  ¥-  ¥-
NNWC  ¥(295.00)  ¥(749.40)  ¥(3,661.55)  ¥(2,115.44)
NCAV  ¥3,867.00  ¥4,012.00  ¥3,227.00  ¥3,236.00
NCAV + LT Investments  ¥4,552.58  ¥4,717.95  ¥4,228.00  ¥4,543.00
TBV  ¥6,358.47  ¥6,810.47  ¥7,301.47  ¥7,887.47
Enterprise Value  ¥(361.52)  ¥(857.83)  ¥1,515.62  ¥546.45
Retained Earnings  ¥4,907.18  ¥5,372.10  ¥5,960.20  ¥6,659.83
Dividends Paid  ¥(61.24)  ¥(61.24)  ¥-  ¥-
Sale or Purchase of Stock  ¥(104.24)  ¥(44.68)  ¥(92.16)  ¥-
Shares Outstanding  612,372,000  612,372,000  586,210,000  563,594,000
P / NNWC -946% -409% -68% -97%
P / NCAV 72% 76% 77% 63%
P / NCAV + LT Investments 61% 65% 59% 45%
P / TBV 44% 45% 34% 26%
NCAV Burn Rate 17.0% 3.7% -19.6% 0.3%
Debt / Equity 8.4% 4.1% 24.0% 27.4%
Sloan Accrual Ratio -4.8% 2.2% 9.4%
F-Score 6 5 3
FS-Score 7 5 3
Z-Score  1.8  1.6  1.3
Beneish M-Score  (1.5)
EV / EBITDA  (0.38)  (1.16)  1.78
EV / Operating Income (5yr)  (0.07)  (0.18)  0.35
EV / Operating Income (10yr)  0.17
EV / FCF (3yr)  (0.16)  (0.33)  NA
EV / FCF (5yr)  (0.21)  (0.27)  5.39
EV / FCF (10yr)  0.92
EBITDA (FY)  946.11  $  738.24  $  852.43  $
Operating Income (5yr)  5,026.97  $  4,716.06  $  4,385.34  $
Operating Income (10yr)  8,778.16  $
FCF (3yr)  2,296.44  $  2,630.62  $  (299.46) $
FCF (5yr)  1,738.42  $  3,223.10  $  280.98  $
FCF (10yr)  1,643.80  $


Write Up

Value Investors Club (skierholic)

Disclosure: We own shares in Baoye Group Co Ltd (2355:HKG).