The San-in Godo Bank, Ltd. provides various banking products and services for individuals and corporate customers in Japan. The company operates through two segments, Banking and Leasing. It offers deposits and loans; and leasing, currency exchange, and securities investment services. The company also provides real estate leasing and credit guarantee services; collection, delivery, and sorting and safekeeping services for cash/checks; maintenance and management services for ATMs; and bad loan collection services. In addition, it offers public fund and account transfer services; and services for card member stores. Further, the company provides consulting services on the acquisition, safekeeping, and sale of securities, as well as corporate diagnosis and management consulting services. As of March 31, 2021, it operated 70 branches and 79 sub-branches in Tokyo and Osaka, as well as representative offices in Dalian, Shanghai, and Bangkok. The San-in Godo Bank, Ltd. was founded in 1878 and is headquartered in Matsue, Japan.
Strategy: Beat the Nikkei 225
Return at exit: Live
Value Play with Strong Growth Momentum
• San-in Godo Bank has been selected by our ML engine primarily due to its impressive market performance (28.6% 6-month return), attractive valuation metrics, and solid financial position.
• The bank trades at compelling multiples with a P/E of just 10.8 and Price-to-Book of 0.7, suggesting significant undervaluation despite strong fundamentals.
• Revenue has accelerated impressively with 17.8% quarterly growth while maintaining a healthy 26.8% operating margin.
• Shareholder returns are exceptional, featuring a 3.8% dividend yield with 24.4% dividend growth and an ongoing share buyback program.
• Despite regional demographic challenges, San-in maintains market leadership with 40-50% deposit share in its core prefectures and is well-positioned to benefit from Japan’s economic recovery and wage growth trends.