Marufuji Sheet Piling Co Ltd (8046:TYO)

Recent Share Price: ¥2,200

Accounting: Japanese Accounting Standards

Fiscal Year: Mar. 31st

Market Cap: ¥8.8 billion ($81 million)

Industry: Basic Materials / Construction Material Wholesale

Marufuji Sheet Piling Co., Ltd. is a wholesaler of construction materials. They sell, store and transport items such as, steel sheet piles, steel plates, H-shaped steel, architectural steel processed products and reinforced soil wall products.

It operates through the following divisions: Sales, Factory, and Transportation.

  • The Sales division engages in the procurement and sale of steel and construction materials.
  • The Factory division manages the production, processing, and maintenance of construction-related products.
  • The Transportation (Fuji Transport) division provides product transportation services.
JPY (in Million)2017%2018%
Materials14,81944.7%15,14045.9%
Construction8,86126.7%8,33625.3%
Leasing3,82911.5%3,76911.4%
Transportation Contract3,0099.1%3,1129.4%
Processing Consignment2,6378%2,5907.9%

The company was founded by Ryozo Fujimori in 1926 and is headquartered in Tokyo, Japan.

Their largest customer is Kajima Corporation, (one of oldest and largest constrution companies in Japan), which represented a little over 15% and 10% of total revenue in 2017 and 2018, respectively.

The company has two pieces of investment property on their books (¥1.5 billion) which they do not use in normal operations. One (land only) in the Kanagawa Prefecture and the other (land and building) in Fukushima Prefecture. Company also has ¥1 billion in LT Investments.

The Tokyo Olympics (2020) is putting added doubts in the near-term prospects, as investors may be concerned with possible lack of new projects. Low insider ownership is another concern.

In 2017, did a 1:10 reverse split. In 2018, bought back shares and put in treasury.

In the end, too cheap to ignore.

Financials

Disclosure: We own shares in Marufuji Sheet Piling Co Ltd (8046:TYO

3 thoughts on “Marufuji Sheet Piling Co Ltd (8046:TYO)

    1. Thanks Jonas! Love your blog, by the way. Are you still making posts?

      I know Marufuji has a high F-Score and that you’ve written on F-Scores in the past. Are you still using F-Score as a primary (not secondary) filter, in your net-net basket?

      Like

  1. Thanks! No, stopped blogging 3y ago. Yep F-Score is still very important, however a bit less so in Japan (historically F-Score hasn’t outperformed as much there as in other markets).

    Like

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