3513 Ichikawa
- Japan Guru
- Oct 7
- 1 min read
The company has 1/2 market share for papermaking felt, along with Nippon Felt. In addition to felt, the company also handles papermaking belts and industrial belts for the aluminum sash industry, and is characterized by a high proportion of its sales to overseas markets, including Europe. Papermaking felt is used in the manufacturing process, and is custom-made, requiring a high level of technical expertise. Overseas sales account for 60%.
"Ichikawa (3513.T) looks asset-cheap:
You’re paying ¥8.32bn market cap for ¥21.78bn of TBV, and EV is only ¥2.84bn.
TBV Ratio = 0.38
EV/5Y FCF Ratio = 2.90
P/5Y FCF Ratio = 8.50
The business is FCF positive in 9 out of the last 10 years, with +161.9% upside to liquidation value (TBV vs MC).
What it is: a Japanese industrial materials maker supplying paper-machine clothing and other engineered fabrics/components to pulp & paper and broader industrial customers.
Revenue is driven by replacement cycles and capex in those end-markets.
Why it’s on sale: cyclical demand in paper/printing and “old-economy materials” has weighed on sentiment to a degree; working-capital swings and inventory normalization haven’t helped.
It’s priced for death but it probably…