6440 JUKI
- May 30, 2025
- 1 min read
Global No. 1 in industrial sewing machines for apparel. No. 3 in household sewing machines. Strong in Asia. Surface-mount machines as the second pillar.
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one important question is, whether this management is someone who is able to deliver on their promises. The 65-yr old CEO Narikawa - career banker at Mizuho Bank - just assumed this position last summer. We'll see
This co has been bleeding cash on the back of pricing war w/ cheap Chinese rivals, and now increasingly serious about reforming operation and cashflow management
The new midterm projection, which was recently disclosed, shoots for an aggressive rev / profit growth trajectory thru 2029, coupled with shorter cash conversion cycle
Not the kind of "no-brainer net-net small cap" play i like (this co is net 'debt'), but seems pretty limited on the downside and on negative surprises
Notably, JUKI, along with 3.5% cross-shareholder PEGASUS, makes high-performance sewing equipment for the automotive industry, such as for seat covers and interior materials (e.g., leather or fabric sewing). Given the global No.1 position of JUKI, they could get re-rerated as an ancillar…
mkt cap 10.5 bil yen + net debt of 4 bil yen
at share price of 353, per 10.5x / pbr 0.35 / div yield 2.83%
The share price needs to go up by just 10% more in order for this co to remain listed in the Prime-section of TSE