Shinoken (Tokyo listed, 8909)
This week on the Intelligent Investing Podcast, I sat down with Jeremy Raper. One of the companies we discussed was a company called Shinoken. The company is a small cap Japanese part real estate developer, part RE management/recurring revenue stream business unfairly sold down last year to <4x EPS due to temporary dislocation just in the development segment. The business has since stabilized and RE development is likely to returns to growth next year; the recurring rev segments are still growing strongly
Valuation
The business has rerated to 6.5x EPS but fair value on a sum of the parts basis is closer to 11x EPS, so still a near double.
Management
The company has aligned management (30% ownership), they do occasional buybacks, and they pay a decent dividend.
You can listen to the full The Intelligent Investing Podcast episode, here.
You can read Jeremy’s full writeup on the company here.