| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3098.55 | -22 |
| Intrinsic value (DCF) | 1240.28 | -69 |
| Graham-Dodd Method | 3218.71 | -19 |
| Graham Formula | 1010.05 | -75 |
Hokkaido Coca-Cola Bottling Co., Ltd. is a leading manufacturer and distributor of non-alcoholic beverages in Hokkaido, Japan. Established in 1940 and headquartered in Sapporo, the company operates as a subsidiary of Dai Nippon Printing Co., Ltd. Specializing in the production and sale of Coca-Cola-branded soft drinks, Hokkaido Coca-Cola Bottling plays a crucial role in the regional beverage market, ensuring product availability across Hokkaido. The company operates in the consumer defensive sector, benefiting from stable demand for non-alcoholic beverages. With a market capitalization of approximately ¥44.4 billion, it maintains a strong regional presence while leveraging the global Coca-Cola brand. Its operations include manufacturing, distribution, and marketing, making it a key player in Japan's competitive beverage industry. The company’s financial stability and strategic positioning within a well-established supply chain underscore its resilience in the market.
Hokkaido Coca-Cola Bottling presents a stable investment opportunity within the consumer defensive sector, supported by consistent demand for non-alcoholic beverages. The company’s low beta (0.046) indicates minimal volatility relative to the market, appealing to risk-averse investors. With a revenue of ¥56.86 billion and net income of ¥1.545 billion, it demonstrates steady profitability. However, its regional focus limits growth potential compared to national or global competitors. The dividend yield, with a payout of ¥30 per share, adds income appeal. Risks include dependency on the Coca-Cola brand and potential regional economic downturns affecting consumer spending. The company’s strong cash position (¥10.25 billion) and manageable debt (¥1.09 billion) provide financial flexibility, but capital expenditures (¥2.17 billion) suggest ongoing investment needs.
Hokkaido Coca-Cola Bottling Co. benefits from its exclusive regional bottling rights for Coca-Cola products in Hokkaido, providing a competitive edge in local distribution. Its affiliation with the globally recognized Coca-Cola brand ensures brand loyalty and marketing support. However, the company operates in a highly competitive industry dominated by larger players with national or international reach. Its regional focus limits economies of scale compared to competitors like Suntory Beverage & Food or Ito En, which operate across Japan. The company’s strengths include a stable revenue stream from a well-established product portfolio and strong local distribution networks. Weaknesses include limited diversification beyond Coca-Cola products and vulnerability to regional economic shifts. The company’s competitive positioning relies on maintaining strong relationships with Coca-Cola and optimizing local market penetration, but it lacks the innovation-driven growth seen in larger beverage corporations.