Executive summary
We are 3 French individual investors representing a group of individual investors holding together 1% of the outstanding shares of the company.
Our goal is to unlock the hidden value of the company.
Our target: 4000+ JPY / share ⇔ ~X2 on the December 2024 price (campaign start date)
A full presentation deck is available in English and French:
English Deck - PDF
Présentation en français - PDFPrevious actions
- Nov 2024: Individual contacts to the company management
- Nov 2024: Short email responses from the company management (email 1) (email 2)
- Jan 2025: Regrouping some French investors interested by this action
- Feb 2025: Formal letter sent to the company management (our shareholder letter)
- Mar 2025: Response from the Company management to our letter (email from the company)
- Mar 2025: Our second letter sent to the company management, to follow up on their early March response (our second shareholder letter)
- Mar 2025: opening this website and launching the public communication
Who are we?
We are 3 French individual investors and a legal advisor representing a group of individual investors holding together 1% of the outstanding shares of the company.
Why are we doing this?
Our goal is to unlock the hidden value of the company
There is a large discount between the book value and the market capitalization. Indeed, in reality it’s underestimated due to the amortization of the owned real estate (warehouses) an no reevaluation for years. We think the discount is at least 16.9B JPY + 10B JPY if not more... and it's increasing every year!
Our four suggestions
- Launching a share buyback program
- Increasing the dividend
- Publishing an updated real estate value
- Improving the governance
Suggestion 1: launching a share buyback program
By implementing an opportunistic but substantial share buyback program, it will help the company on two sides:
- Bridge the gap: reducing the current discrepancy between the stock price and the intrinsic value
- Strengthen confidence: send a positive signal to all shareholders or potential shareholders
Suggestion 2: increasing the dividend
Current situation: the company is profitable and operates with no debt. Maintaining excess cash reserves by retaining profits in reserves is unnecessary in the current environment. Following the tender offer, we propose to establish an opportunistic share buyback program. This program would enable the company to repurchase shares monthly, depending on market liquidity. In years when the buyback program cannot be fully executed due to lack of market liquidity or inadequate price, we suggest to aim for a payout of 50%, repurchasing shares or dividends.
Suggestion 3: publishing an updated real estate value
Lands and buildings owned by the company represent a massive value of the company balance sheet. They are the main tangible assets of Keihin Co. A detailed list of them along with their current market value should be published to the shareholders. It will help the market to understand the true value of the company.
Suggestion 4: improving the governance
Although the value of this action cannot be quantified in advance, publishing all company documents in English would offer significant benefits:
- Show the company’s commitment to engaging with all shareholders, including international investors.
- Attract new investors by reaching a broader base of institutional and individual investors, many of whom avoid companies that do not provide information in English.
- a 3-year or 5-year strategic plan,
- all quarterly documents currently shared in Japanese,
- reportings about any progress to match the TSE recommendations
- any documents related to the cost of capital, the cash flow allocation, and any strategic decisions
Stay tuned for the next steps!
Be free to contact us: contact[AT]improve-keihinco.com