| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 429.88 | 5 |
| Intrinsic value (DCF) | 168.48 | -59 |
| Graham-Dodd Method | 276.13 | -33 |
| Graham Formula | 115.43 | -72 |
Oriental Shiraishi Corporation (1786.T) is a leading Japanese engineering and construction firm specializing in prestressed concrete products and infrastructure solutions. Headquartered in Tokyo, the company operates across multiple segments, including the construction of pneumatic caissons, seismic-resistant buildings, and infrastructure repair and reinforcement. Additionally, Oriental Shiraishi has expanded into renewable energy, managing solar power plants to generate and supply clean energy. Founded in 1952, the company has established itself as a key player in Japan's construction and industrial sectors, leveraging its expertise in durable and earthquake-resistant structures. With a market capitalization of approximately ¥47.9 billion, Oriental Shiraishi serves critical infrastructure needs while contributing to sustainable energy initiatives. Its diversified business model positions it well in Japan's evolving construction and renewable energy landscape.
Oriental Shiraishi Corporation presents a stable investment opportunity within Japan's industrials sector, supported by its strong foothold in infrastructure construction and renewable energy. The company's low beta (0.48) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a net income of ¥4.63 billion and a diluted EPS of ¥35.69, the firm demonstrates profitability, further reinforced by a healthy operating cash flow of ¥5.27 billion. However, its modest dividend yield (¥14.5 per share) may not attract income-focused investors. The company's expansion into solar energy aligns with Japan's push for sustainability, offering long-term growth potential. Risks include exposure to Japan's cyclical construction sector and potential regulatory changes in renewable energy subsidies.
Oriental Shiraishi Corporation competes in Japan's engineering and construction sector with a niche focus on prestressed concrete and seismic-resistant infrastructure. Its competitive advantage lies in specialized expertise in earthquake-resistant construction—a critical differentiator in Japan's disaster-prone environment. The company's vertical integration, from material sales to project execution, enhances cost efficiency and project control. However, its regional concentration in Japan limits diversification compared to global peers. The solar power segment provides a growth avenue but faces competition from larger renewable energy players. While Oriental Shiraishi maintains a solid balance sheet (¥20.23 billion in cash vs. ¥3.51 billion debt), its smaller scale relative to industry giants may constrain bidding power for mega-projects. The firm's ability to innovate in sustainable construction materials and energy-efficient designs will be key to maintaining its market position amid Japan's infrastructure modernization efforts.