| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1150.47 | 155 |
| Intrinsic value (DCF) | 700.42 | 55 |
| Graham-Dodd Method | 1608.47 | 256 |
| Graham Formula | 15.56 | -97 |
Nihon Plast Co., Ltd. (7291.T) is a leading Japanese manufacturer of automotive parts, specializing in safety components, interior and exterior parts, and synthetic resin products. Founded in 1945 and headquartered in Fujinomiya, Japan, the company serves both domestic and international markets with a diversified product portfolio that includes steering wheels, airbag modules, instrument panels, and aero parts. Nihon Plast operates in the Auto - Parts sector, a critical segment of the Consumer Cyclical industry, catering to global automakers with high-quality, precision-engineered components. The company also engages in the production of die-cast metal molds, machinery, and electrical components for the amusement industry, showcasing its versatility. With a market capitalization of approximately ¥6.72 billion, Nihon Plast maintains a stable financial position, supported by strong revenue streams and a commitment to innovation in automotive safety and design.
Nihon Plast presents a stable investment opportunity within the automotive parts sector, supported by its diversified product offerings and established market presence. The company's FY2024 financials indicate solid revenue of ¥124.26 billion and net income of ¥2.48 billion, with a diluted EPS of ¥129.72. Its low beta of 0.563 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the company operates in a highly competitive industry with thin margins, and its reliance on the cyclical automotive sector poses risks during economic downturns. The dividend yield, at ¥15 per share, is modest, which may not attract income-focused investors. Overall, Nihon Plast is suited for investors seeking exposure to the Japanese automotive supply chain with moderate growth potential.
Nihon Plast competes in the global automotive parts market, where differentiation is driven by technological innovation, cost efficiency, and strong OEM relationships. The company's competitive advantage lies in its specialization in safety-critical components like steering wheels and airbag modules, which require stringent quality standards and regulatory compliance. Its vertically integrated operations, including in-house mold and machinery production, enhance cost control and customization capabilities. However, Nihon Plast faces intense competition from larger multinational suppliers with greater economies of scale and R&D budgets. The company's focus on the Japanese market, while providing stability, limits its exposure to faster-growing regions like China and North America. To maintain its position, Nihon Plast must continue investing in lightweight materials and advanced safety technologies to align with evolving automotive trends such as electrification and autonomous driving.