| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 948.35 | 0 |
| Intrinsic value (DCF) | 697.92 | -27 |
| Graham-Dodd Method | 1365.98 | 43 |
| Graham Formula | 171.06 | -82 |
KING Co., Ltd. (8118.T) is a Tokyo-based textile and apparel manufacturer with a rich history dating back to 1948. Specializing in high-quality leather goods, synthetic fibers, and luxury fashion products, the company operates under well-known brands such as PINORE, CECICA BLUE, JUDY, and MORABITO PREMIER. KING Co. serves both domestic and international markets, offering a diverse product portfolio that includes pleated garments, coats, bags, and shoes. As a key player in Japan's consumer cyclical sector, the company combines traditional craftsmanship with modern textile innovation. With a market capitalization of approximately ¥12.3 billion, KING Co. maintains a strong balance sheet, highlighted by ¥10.8 billion in cash reserves and modest debt levels. The company's vertically integrated operations allow for quality control across its supply chain, positioning it as a reliable manufacturer in the competitive apparel industry.
KING Co., Ltd. presents a stable investment opportunity with low volatility (beta of 0.321) and consistent profitability, evidenced by ¥533 million in net income for FY2024. The company's strong cash position (¥10.8 billion) and conservative debt profile (¥480 million) provide financial flexibility, while its 18 JPY dividend per share offers a modest yield. However, investors should note the company's relatively small market cap and limited international brand recognition compared to global apparel giants. Revenue growth appears stagnant (¥8.55 billion in FY2024), suggesting potential challenges in scaling operations. The positive operating cash flow (¥997 million) and reasonable capital expenditures (-¥238 million) indicate efficient operations, but the company may need to invest more aggressively in brand development and digital channels to compete with larger rivals.
KING Co. occupies a niche position in Japan's apparel manufacturing sector, differentiating itself through brand diversity and vertical integration. The company's competitive advantage lies in its portfolio of mid-tier to premium brands (PINORE, MORABITO) that cater to domestic fashion preferences. Unlike fast-fashion competitors, KING emphasizes quality materials and traditional manufacturing techniques. However, its scale is dwarfed by global apparel manufacturers, limiting R&D budgets and international distribution capabilities. The company's ¥8.55 billion revenue suggests it serves primarily the Japanese market, lacking the geographic diversification of larger peers. Financially, KING's near debt-free balance sheet (¥480 million debt vs ¥10.8 billion cash) provides stability but may indicate under-leveraged growth potential. While the company shows operational efficiency (6.2% net margin), its product lines face intense competition from both luxury European brands and value-oriented Asian manufacturers. The lack of a strong e-commerce presence compared to newer digital-native brands could become a growing vulnerability as consumer behavior shifts online.