Japan Deep Value
Japanese Equity Research, Deep Value & Below-Book Opportunities
NEC and Fujitsu were crowded longs on the conglomerate-reform trade, improving shareholder returns and divesting non-core assets and cross-holdings before the SaaS apocalypse hit. From a pure flow perspective, institutional capital should keep selling both, though NEC is the more interesting of the two. x.comÂ
Kyocera offers hidden value most Western investors still miss, as Japanese companies clean up balance sheets under Tokyo Stock Exchange pressure. @Blinklebloop puts it at a look-through EV/EBITDA of 6.5x once it finishes selling cross-shareholdings, with broad but indirect exposure to semiconductors, data centers and optics. That second-order exposure means less volatility than a pure play while still joining the capex supercycle, and automotive and printing act as a free hedge. x.comÂ
NEC holds the subsea cable cycle's least recognized bottleneck, wet plant. Only four companies worldwide can design and integrate subsea repeaters and branching units, three outside China, and only one is listed; it ranks first on the GVM framework yet has re-rated least because the business sits inside a conglomerate. Hyperscalers are ordering at once, with 2025-2027 subsea investment projected at $13 billion, nearly double the prior three years, while fiber and cable are already repriced. … Show more
