TICKER 5208.T
ISIN JP3126000003
Market cap. JPY
61,403,031,720
Shs outstanding 33,280,776
Arisawa Mfg. Co., Ltd. manufactures and sells electronic, optoelectronic, electrical insulating, and industrial structural materials in Japan and internationally. It operates through Electronics Related Materials, Industrial Structural Materials, Electrical Insulators Materials, Opto Electronics Related Materials, and Related Products and Others segments. The company offers flexible printed circuit materials, including PI, photosensitive, and other; copper-clad laminates; interlayer adhesive sheets; and PI composite and protection films. It also provides optical materials, such as projection screens, UV nanoimprinting products, 3D products, optical retardation elements, and film and glass lamination services. In addition, the company offers fabric products comprising glass cloths and tapes, carbon cloths, and braided and other fabric products; general coating products, which include pre-pregs, glass cloth silicon rubber tapes, semi-conductive tapes, adhesive tapes, composite adhesive tapes, and resin impregnated glass-cloth tapes; and glass and carbon fiber fillament winding moldings, pultrusion products, compression molding products, and cryogenic cooling vessels. Arisawa Mfg. Co., Ltd. was founded in 1909 and is headquartered in Joetsu, Japan.

Strategy:

Return at exit: 3.6%
Valuation concerns amid profit volatility
• Rotated out as other companies show stronger risk-reward profiles in the current environment. • Recent semi-annual results revealed concerning profit declines: operating profit down 10%, ordinary profit down 26%, with significant weakness in the display materials segment (sales down 29%). • Trading at a PEG ratio of 2.7 and above InvestingPro’s fair value estimate of ¥1,618, suggesting limited upside potential despite reaching 97% of its 52-week high. • Foreign exchange losses and segment volatility increased the company’s risk profile, though 8% annual revenue growth and a robust 4.9% dividend yield remain positive attributes. • This change reflects portfolio rotation toward more attractively valued opportunities, not a sell signal.