| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 601.51 | -26 |
| Intrinsic value (DCF) | 19075960.76 | 2354957 |
| Graham-Dodd Method | 332.85 | -59 |
| Graham Formula | n/a |
Kodama Chemical Industry Co., Ltd. (4222.T) is a Tokyo-based manufacturer specializing in plastic products for automotive and construction applications. Operating in the Auto - Parts sector, the company produces structural materials for vehicle interiors, including rear seat components, door trims, and center console moldings, as well as exterior parts like spoilers. Additionally, Kodama serves the construction and home interiors markets with products such as bathroom vanities, towel racks, and handrails. The company has expanded into innovative agricultural solutions with hydroponic resin transport trays for unmanned cultivation systems. Founded in 1946 and formerly known as Kodama Metal Industry, the company rebranded in 1955 to reflect its shift toward chemical-based manufacturing. Despite a challenging FY2024 with a net loss of ¥244 million, Kodama maintains a niche in Japan’s automotive supply chain and explores growth in sustainable agriculture technologies.
Kodama Chemical Industry presents a mixed investment profile. Its low beta (0.287) suggests lower volatility relative to the market, but FY2024 results reveal financial strain, including a net loss of ¥244 million and negative EPS (-¥31.3). The company’s ¥1.8 billion capital expenditures indicate ongoing investments, potentially in hydroponic systems, a growth area. However, its zero dividend policy and ¥4.7 billion total debt raise liquidity concerns. Investors may weigh its niche automotive expertise and diversification into agriculture against operational challenges and sector competition.
Kodama Chemical Industry competes in Japan’s fragmented auto parts market, where scale and technological innovation are critical. Its competitive edge lies in specialized plastic components for vehicle interiors, a segment requiring precision and compliance with automotive OEM standards. However, the company’s modest ¥14.7 billion revenue and recent losses highlight vulnerability to pricing pressure from larger suppliers and raw material cost fluctuations. Its foray into hydroponic trays differentiates it but remains untested at scale. Kodama’s domestic focus (primary revenue source) limits exposure to global supply chains but also restricts growth opportunities compared to multinational peers. The lack of R&D disclosure raises questions about its ability to compete with innovators in lightweight materials or sustainable plastics. Its debt-to-equity position may further constrain R&D or M&A-driven expansion.