| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2122.94 | 10 |
| Intrinsic value (DCF) | 836.64 | -57 |
| Graham-Dodd Method | 1473.40 | -24 |
| Graham Formula | 2344.06 | 21 |
Hokuetsu Industries Co., Ltd. (6364.T) is a leading Japanese manufacturer specializing in air compressors and industrial machinery under the renowned AIRMAN brand. Established in 1938 and headquartered in Tsubame, Japan, the company serves both domestic and international markets with a diverse product portfolio, including engine compressors, generators, motor compressors, scissors lifters, mini-excavators, and engine-driven welders. Operating in the Industrial Machinery sector, Hokuetsu Industries plays a critical role in supporting construction, manufacturing, and infrastructure development. The company’s strong brand recognition, technological expertise, and commitment to innovation position it as a key player in Japan’s industrial landscape. With a market capitalization of approximately ¥52.7 billion, Hokuetsu Industries continues to expand its global footprint while maintaining a stable financial foundation.
Hokuetsu Industries presents a stable investment opportunity with moderate growth potential, supported by its strong brand (AIRMAN) and diversified industrial machinery offerings. The company’s low beta (0.523) suggests lower volatility compared to the broader market, making it a defensive play in the Industrials sector. Financials indicate solid profitability (net income of ¥5.1 billion) and a healthy balance sheet (¥11.7 billion in cash vs. ¥1.3 billion in debt). However, revenue growth may be constrained by Japan’s mature industrial market and global competition. The dividend yield (based on ¥57/share) is modest but sustainable. Investors should weigh its steady cash flow against limited near-term catalysts for expansion.
Hokuetsu Industries competes in the industrial machinery segment with a focus on air compressors and related equipment. Its competitive advantage lies in the AIRMAN brand’s strong reputation for reliability in Japan and select international markets. The company’s vertically integrated manufacturing allows for cost control and quality assurance, while its product diversification (compressors, generators, lifters) mitigates sector-specific risks. However, it faces pressure from global giants with broader scale and R&D budgets. Hokuetsu’s niche expertise in engine-driven compressors differentiates it, but its international presence is limited compared to multinational rivals. The company’s financial stability (low debt, positive cash flow) supports continued investment in product development, though it may lack the resources to compete aggressively on pricing or global distribution. Its focus on the Japanese market provides regional resilience but exposes it to domestic economic cycles.