5105 Toyo Tire
- Japan Guru
- May 30, 2025
- 1 min read
Japan's 4th largest tire maker. Strong in large-diameter SUV tires in North America. Also produces automotive rubber products. Mitsubishi Corporation holds 20% as the largest shareholder.
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Just in -- Toyo Tire revises upwards all profit forecasts for the fiscal year ending December 2025. It has also raised its full-year dividend forecast from 125 yen per share to 130 yen. It has left its sales forecast unchanged. The impact of rising ocean freight rates and raw material prices was smaller than previously expected
While operating performance is “on track,” the dividend payout ratio is too low, and the company holds $900 million (approximately ¥130 billion) in excess capital.
TOYO TIRE management is showing a “receptive” attitude to Palliser's proposed changes
ーPalliser Capital @ Sohn Hong Kong Investment Leaders Conference, May 30, 2025
summary of FT article, May 30, 2025:
Elliott alumni Palliser Capital has acquired a 3% stake Toyo Tire
Palliser aims to enhance returns, streamline Toyo’s balance sheet, and release $900mn in excess capital to shareholders.
The fund is pushing Toyo to form a special committee to explore strategic options, including a potential sale or going private.
Palliser’s investment is part of its broader focus on Japan, with stakes in companies like Tokyo Tatemono and Keisei Electric Railway.
Toyo trades at a discount to peers despite strong profit metrics and a 40% share of the US premium tyre market for SUVs and light trucks.
Palliser believes could reach ¥4,200 with their proposed changes.
Engagement between Palliser and Toyo has been constructive,…
mkt cap 462 bil yen (at share price of 2997 - up almost 5% on Palliser news today) vs net cash of 135 bil yen
9.23x per / 1x pbr / 4.17% div yield