1921 Tomoe
- Sep 22, 2025
- 1 min read
Tomoe has grown since its founder developed the three-dimensional diamond truss in 1932. It is a pioneer in the construction of large open structures such as gymnasiums and pavilions, and has a proven track record in the construction of power towers. It has strengths in technological development, such as electromagnetic shielding to prevent electromagnetic waves in hospitals, utilizing the rooftops of large open spaces, and jack-up rotary temporary construction methods for bridges. Its rental real estate business, which makes effective use of company-owned land such as former factory sites, is a stable source of income.
Tomoe is working to reduce costs through various measures, such as assembling steel frames in factories, reviewing processes, setting up on-site work, and in-house production of anti-rust coatings for steel structures.
The company's earning guidance, including its dividend plan, is notoriously conservative.
"Tomoe's unrealized realty gain now at 56.9 bil yen, or 90% of market cap as of July 8, after fully consolidating its equity affiliate company Izumi Kousan"
https://x.com/rw30vOr6UKjfiwh/status/1942565891276997096
On April 18, 2025, activist Hibiki Path submitted shareholder proposal, stating in part:
"The Company holds approximately 35.4 bn yen1 in investment securities (primarily cross-shareholdings), accounting for around 30% of total assets and 50% of net assets.
In addition, due to the recognition of approximately 12.1 bn yen2 in extraordinary gains associated with converting an affiliated company into a subsidiary during FY3/25, the company’s net assets have hugely increased. Given that internal reserves have accumulated excessively, while MTMP dated May 15, 2023, sets an ROE target of 10%, the FY3/25 ROE based on NOPAT, which includes only profits derived purely from business operations, is just 3.8%14.
Moreover, P/B ratio based on book value stands at 0.8x3, while the company owns…
at 1511 yen/share, 61.6 bil yen mkt cap vs 12 bil yen net cash
26.6x per / 0.89x pbr / 1.59% yield