Added to YB: 2024-06-12
Pitch date: 2024-06-11
7276.T [bullish]
Koito Manufacturing Co., Ltd.
+6.59%
current return
Author Info
Slow Turtle is an investment manager who invests in moats, special sits, commodities, deep value, and all caps. Sign up for the newsletter.
Company Info
Koito Manufacturing Co., Ltd. manufactures and markets automotive lighting equipment, aircraft parts, electrical equipment, and other products in Japan.
Market Cap
JPY 652.1B
Pitch Price
JPY 2.2K
Price Target
4.8K (+110%)
Dividend
N/A
EV/EBITDA
4.12
P/E
16.33
EV/Sales
0.43
Sector
Automobile Components
Category
turnaround
Koito Manufacturing (7276.T)
7276.T Koito: Global auto lighting leader w/ 25% share. Toyota-aligned (20% owner). Cyclical biz in downcycle post-2018 peak. Cost reduction via automation to improve margins (10%+ pre-COVID). Oligopoly mkt w/ Hella, Valeo. Superior FCF vs EU peers. ¥335B net cash (50% of mkt cap). ¥550B 5yr OCF outlook: ¥350B capex, ¥350B returns (¥100B div, ¥250B buyback). Cheapest ever at 12% FCF yield. ¥2400-¥4800 price target. Catalyst: ¥350B buyback/div.
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