Executive Summary
We are French individual investors representing a group of shareholders holding together 1% of the outstanding shares of the company.
Our target: 4,000+ JPY / share
~X2 on the December 2024 price (campaign start
date)
A full presentation deck is available in English and French:
Previous 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 French investors interested in this action
- Feb 2025: Formal letter sent to the company management (shareholder letter)
- Mar 2025: Response from management to our letter (official email)
- Mar 2025: Second letter sent to follow up on March response (second letter)
- Mar 2025: Launch of this website and public communication
- Apr 30, 2025: Official announcement "Regarding Efforts to Achieve Management Conscious of Capital Costs and Stock Price" issued by the company (EN translation)
- May 1, 2025: Our email to follow up on their announcement (our email)
- Jan 6, 2026: Our email as a follow up (our email)
- Jan 19, 2026: Response from management to our letter (official email)
Why are we doing this?
Our goal is to unlock the hidden value of the company
There is a large discount between book value and market capitalization. In reality, it's underestimated due to the amortization of owned real estate (warehouses) and no reevaluation for years.
The discount is estimated at least 16.9B JPY + 10B JPY, 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 Updated
Feel free to contact us: contact[AT]improve-keihinco.com