| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1828.56 | 29 |
| Intrinsic value (DCF) | 868.12 | -39 |
| Graham-Dodd Method | 2521.66 | 78 |
| Graham Formula | 1800.65 | 27 |
Ohishi Sangyo Co., Ltd. (3943.T) is a Japan-based industrial packaging solutions provider specializing in pulp molds, plastic films, heavy-duty bags, and corrugated boards. Founded in 1947 and headquartered in Kitakyushu, the company serves diverse industries, including agriculture, livestock, chemicals, and food packaging. Ohishi Sangyo's product portfolio includes polystyrene films, polyethylene bags, multi-walled sack kraft bags, and specialized containers like strawberry cradles. With a market capitalization of approximately ¥9.53 billion, the company operates primarily in Japan, leveraging its expertise in sustainable and functional packaging solutions. As part of the Consumer Cyclical sector, Ohishi Sangyo plays a critical role in supply chain efficiency, catering to industrial and agricultural packaging needs. The company maintains a strong balance sheet with ¥7.41 billion in cash and minimal debt, reflecting financial stability in the competitive packaging industry.
Ohishi Sangyo presents a stable investment opportunity with modest growth potential in Japan's industrial packaging sector. The company's financials indicate resilience, with ¥2.20 billion in revenue and ¥1.07 billion in net income for FY 2024, supported by a healthy operating cash flow of ¥1.86 billion. Its low beta (0.048) suggests minimal correlation with broader market volatility, appealing to risk-averse investors. However, the company's domestic focus limits exposure to global growth opportunities, and its small market cap may deter institutional interest. The dividend yield, based on a ¥52 per share payout, is attractive but must be weighed against limited EPS growth (¥137.53 diluted). Investors should monitor Japan's industrial demand trends and potential expansion into higher-margin sustainable packaging solutions.
Ohishi Sangyo competes in Japan's fragmented packaging industry by specializing in niche industrial and agricultural applications. Its competitive advantage lies in its diversified product mix, including pulp molds and heavy-duty bags tailored for chemical and food packaging. The company's strong cash position (¥7.41 billion) and low debt (¥702 million) provide financial flexibility, but its regional focus restricts scalability compared to global peers. Ohishi Sangyo's expertise in functional packaging (e.g., strawberry cradles) differentiates it from generic competitors, though it lacks the scale to compete on cost with multinational giants. The company's reliance on Japan's industrial sector exposes it to domestic economic cycles, while competitors with global footprints benefit from diversified revenue streams. Sustainability trends could favor Ohishi Sangyo if it leverages its pulp mold technology, but innovation investments remain limited relative to larger rivals. Its operational efficiency is evident in positive cash flows, but growth depends on capturing higher-value segments or expanding overseas partnerships.