6360 Tokyo Automatic Machinery
- Japan Guru
- Jul 15
- 1 min read
Starting with automatic cigarette packaging machines, the company has expanded into food packaging, waste paper compression machines, etc. High market share in packaging for specialty products and gifts
From Altay:
"Tokyo Automatic Machinery (TYO 6360) - Deep Value Nanocap with Improving Shareholder Returns, 0.4x P/B, and 7.8x Forward P/E
Company is targeting 1x PBR, Committed to 30% Payout ratio (vs 10-15% historically), + upside if the packaging business can expand margins. NCAV+Investments of ¥5,220 vs a share price of ¥2,885"
https://altaycap.substack.com/p/tokyo-automatic-machinery-deep-value
https://x.com/AltayCapital/status/1944548260779282675
Packaging machinery is performing well, driven by labor-saving demand in the confectionery and food industries, and the division is steadily profitable. However, the backlog of orders for production machinery, the main source of profits, has plummeted as special demand from a major overseas customer ends. The decline in factory utilization rates also had an impact, causing operating profits to plummet. Special profit from the sale of cross-shareholdings. Dividend reduction.
at 3070 yen/share, 4.5 bil yen mkt cap vs 6.5 bil yen net cash
8.62x per / 0.46x pbr / 3.26% dividend