| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4554.67 | 16 |
| Intrinsic value (DCF) | 1478.72 | -62 |
| Graham-Dodd Method | 4265.21 | 8 |
| Graham Formula | 4388.96 | 11 |
Chori Co., Ltd. (8014.T) is a diversified Japanese conglomerate with a rich history dating back to 1861. Headquartered in Osaka, the company operates across textiles, chemicals, and machinery sectors, serving both domestic and international markets. Chori specializes in high-performance fabrics for automotive, sportswear, and industrial applications, alongside a robust chemicals division offering materials for water treatment, biodegradable plastics, and lithium-ion batteries. As a subsidiary of Toray Industries, Inc., Chori benefits from strong R&D capabilities and supply chain integration. The company's diversified portfolio includes pharmaceutical ingredients, agrochemicals, and machinery exports, positioning it as a key player in Japan's industrial sector. With a market cap of approximately ¥92.3 billion, Chori leverages its long-standing expertise to cater to evolving demands in sustainable materials and advanced textiles, making it a relevant player in Asia's industrial and manufacturing landscape.
Chori Co. presents a stable investment profile with a low beta (0.12), reflecting its resilience to market volatility. The company's ¥116.6 billion net income and consistent dividend (¥122/share) underscore financial stability. However, its modest operating cash flow (¥7.1 billion) and high reliance on textiles/chemicals—cyclical sectors—pose risks. The ¥140.3 billion debt is manageable relative to ¥22.8 billion cash reserves, but capex constraints (-¥2.9 billion) may limit growth. Investors may value its Toray affiliation and niche material expertise, but sector diversification remains limited compared to larger conglomerates.
Chori’s competitive edge lies in its vertical integration with Toray Industries, granting access to advanced material technologies (e.g., waterproof fabrics, lithium-ion battery materials). Its textiles division benefits from specialized applications (e.g., automotive upholstery, sportswear), though it faces pricing pressure from cheaper Asian manufacturers. The chemicals segment’s focus on high-value niches (biodegradable plastics, agrochemicals) differentiates it, but R&D scale lags behind global chemical giants. Machinery exports are a minor contributor, lacking the brand strength of Japanese peers like Komatsu. Chori’s regional dominance in Japan is offset by limited global reach; its revenue (¥311.5 billion) is modest for a conglomerate, suggesting room for strategic expansion or partnerships to compete with diversified industrial leaders.