| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2839.79 | 29 |
| Intrinsic value (DCF) | 1135.02 | -49 |
| Graham-Dodd Method | 1439.58 | -35 |
| Graham Formula | n/a |
Chubu Steel Plate Co., Ltd. is a leading Japanese steel manufacturer specializing in high-quality steel plates and related products. Headquartered in Nagoya, the company operates across four key segments: Steel Related Business, Rental Business, Logistics Business, and Engineering Business. Its steel products cater to diverse industries, including construction machinery, industrial machinery, infrastructure, and transportation, offering solutions like corrosion-resistant alloy steel plates, high-tensile strength steel plates, and carbon steel products for boilers and pressure vessels. Beyond steel manufacturing, Chubu Steel Plate provides rental services for commercial kitchen grease-filters, logistics support, and engineering services for steel-related plant construction and maintenance. Established in 1950, the company has built a strong reputation in Japan's steel sector, leveraging its integrated business model to serve a broad industrial clientele. With a market capitalization of approximately ¥54.1 billion, Chubu Steel Plate remains a key player in Japan's basic materials sector, combining manufacturing expertise with value-added services.
Chubu Steel Plate presents a stable investment opportunity within Japan's steel industry, supported by its diversified business segments and solid financials. The company reported ¥67.8 billion in revenue and ¥7.1 billion in net income for FY 2024, with a diluted EPS of ¥259.31. Its low beta (0.489) suggests lower volatility compared to the broader market, appealing to risk-averse investors. The company maintains a strong balance sheet with ¥13.5 billion in cash and minimal total debt (¥44 million), providing financial flexibility. However, exposure to cyclical steel demand and competitive pricing pressures in the industry pose risks. The dividend yield, with a payout of ¥101 per share, adds income appeal. Investors should monitor global steel market trends and domestic industrial demand for sustained growth.
Chubu Steel Plate competes in Japan's steel industry by focusing on niche high-value steel plates and diversified service offerings. Its competitive advantage lies in its specialized product portfolio, including corrosion-resistant and high-tensile strength steel plates, which cater to demanding industrial applications. The company's integrated model—combining manufacturing with logistics, rental, and engineering services—enhances customer stickiness and revenue stability. However, it faces intense competition from larger steelmakers with greater economies of scale. Chubu Steel Plate's regional focus (primarily in Chubu, Japan) limits its global reach compared to multinational peers, but it benefits from strong local supply chains and customer relationships. The company's ability to maintain profitability (10.5% net margin in FY 2024) despite industry cyclicality underscores its operational efficiency. Its engineering and rental segments provide counter-cyclical balance, reducing reliance on pure steel sales. To sustain competitiveness, Chubu Steel Plate must continue investing in product innovation and cost optimization while navigating raw material price fluctuations.