alex

Researcher in theoretical physics and quantum computing, part-time value investor.

[alex @ckl973]

Revenue growth remains strong, it grew nearly 60% in 2025 H1 YoY (~40% excluding M&A), fueled by the B2B segment giftee for Business.

[alex @ckl973]

Giftee Inc (4449), a rapidly growing electronic gift platform at inflection of significant profit growth, trading at 11x pre-tax operating income, adjusted for goodwill amortization. Goodwill amortization in J-GAAP and impairment mask its underlying profitability in screening.

[alex @ckl973]

Given its minimal Capex requirement, most of the EBITDA drops to -pretax FCF. Wasteful M&As and overseas expansion are main concerns, e.g. it recently had a large goodwill impairment for an acquisition in 2021 that did not perform well.

[alex @ckl973]

Unfortunately, capital return has been minimal so far with small buybacks. Management mentioned they are actively reviewing their real estate portfolio, as well as cross-shareholdings and other non-core assets. Hopefully major capital return will come soon.

[alex @ckl973]

Nittoseiko (5957) manufactures fasteners and related machinery. Trading at PE=10 (adjusted for one time M&A expenses), PB=0.68, 3% div. yield. Cash + investment cover more than 40% of market cap. Not the cheapest Japanese small cap, but higher quality IMO.

[alex @ckl973]

Generic fastener business is competitive and low-margin, but its specialized and higher-margin CASE business constitutes roughly 20% of revenue, this share is expected to grow going forward. Recent results are also boosted by demand in gaming consoles and AI data centers.

[alex @ckl973]

@Reignots I believe the RINs from 2021 and 2022 are expired and worthless.

[alex @ckl973]

Dividend payout ratio of 40% and plans to return 3bn yen (~25% of market cap) between 2025-2028. I expect the return will be more as it just bought back 2.7% of the shares last quarter alone. The factories and Tokyo head office are probably worth a lot more than their book values

[alex @ckl973]

Time to join the FinTwit movement. Tokyo Printing Ink ($4635.T), a specialty-chemicals company that manufactures printing inks and color compounds, no net debt and trading at around PB = 0.4 & forward PE = 8.

[alex @ckl973]

It is growing and consistently profitable except 2023 when it was slow to raise prices despite increasing input cost. The stock has moved +25% after I first bought it, but it might be even cheaper now as the company just raised its guidance after a very strong quarter.