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Hennessy Japan Fund’s Top Five

Monica Wolfe

Monica Wolfe

133 followers

Hennessy Japan Fund seeks long-term capital appreciation by investing in equity securities of Japanese companies. The fund is managed by Yu Shimizu and Masakazu Takeda. Over the fourth quarter, the fund held on to a total of 23 stocks, with no new stock purchases over the duration of the quarter. The Hennessy Japan Fund was valued at $39 million as of the close of the fourth quarter.

Keyence Corp (TSE:6861)

The fund’s largest position goes to Keyence Corp. The fund holds on to 5,500 shares, representing 0.01% of the company’s shares outstanding and 6.1% of Hennessy’s total portfolio.

During the fourth quarter the fund upped their stake 3.77% by purchasing 200 shares of the company’s stock. They purchased these shares in the third quarter price range of ¥34000 to ¥45000, with an estimated average quarterly price of ¥40550 per share. Since this increase the price per share has gone up about 2.5%.

Hennessy’s holding history as of the fourth quarter:

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Keyence is a supplier of sensors, measuring systems, laser markers, microscopes and machine vision systems. It offers products including photoelectric sensors, laser displacement sensors, image measurement systems, and pressure and flow sensors.

Keyence’s historical revenue and net income:

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The analysis on Keyence reports that the company’s price is sitting near a 5-year high, it holds no debt and its P/S ratio is at a 1-year low.

Keyence Corp has a market cap of ¥2729.01 billion. Its shares are currently trading at around ¥45000 with a P/E ratio of 63.90, a P/S ratio of 13.44and a P/B ratio of 3.52.

Nidec Corporation (HKSE:6594)

Hennessy’s second largest holding is in Nidec Corporation. The fund holds on to 23,900 shares of the company’s stock. Its holding in the company represents 0.02% of the company’s shares outstanding and 6% of their total assets managed.

During the fourth quarter Hennessy did not alter its position in Nidec Corp. Over the third quarter, the fund added nearly 3,000 shares to its stake.

Hennessy’s Japan Fund’s historical holding history:

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Nidec is a global manufacturer of electric motors and a manufacturer of electronic machinery and components and other products. The company specializes in brushless DC motors.

Nidec’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently overvalued:

Nidec Corporation has a market cap of ¥1,422.94 billion. Its shares are currently trading at around ¥10,300 with a P/E ratio of 170.00, a P/S ratio of 1.90 and a P/B ratio of 3.32. The company had an annual average earnings growth of 4.5% over the past ten years.

Ryohin Keikaku (TSE:7453)

Another one of Hennessy Japan Funds’ largest holdings over the third quarter is in Ryohin Keikaku. The fund currently holds on to 22,700 shares of the company, representing 0.08% of the company’s shares outstanding and 6.1% of their total portfolio.

The fund didn’t make any changes to their holdings over the duration of the third quarter. The fund has held a position in Ryohin since 2008Q2 and since then has seen average gains of 108%.

Hennessy Japan Funds’ historical holding history:

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Ryohin Keikaku is in the operation of exclusive stores of MUJI products. The company’s product line includes knitwear, food and household items.

Ryohin Keikaku’s historical revenue and net income:

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The analysis on Ryohin Keikaku reports that the company currently holds no debt, its dividend yield is near a 5-year low and its price is near a 10-year high.  It also notes that the company has issued ¥361 million of debt over the past three years, but that its debt level is acceptable.

The Peter Lynch Chart suggests that the company is currently overvalued:

1388701463274.png

Ryohin Keikaku has a market cap of ¥304.74 billion. Its shares are currently trading at around ¥11370 with a P/E ratio of 23.60, a P/S ratio of 1.51 and a P/B ratio of 2.43. The company currently holds a dividend yield of 0.43%.

Ryohin Keikaku was Hennessy Japan Funds’ largest holding over the third quarter.

Rohto Pharmaceutical (TSE:4527)

Another of Hennessy Japan’s largest holdings is in Rohto Pharmaceutical where the fund holds on to 143,000 shares of the company’s stock.  This position makes up for 5.4% of the fund’s total portfolio as well as 0.12% of their total portfolio.

Over the past quarter the fund upped their stake by 18.18%.  Hennessy purchased a total of 22,000 shares in the fourth quarter price range of ¥1,320 to ¥1,666 per share.  Since then the price per share is trading slightly up at ¥1,605.

Hennessy Japan’s historical holding history of Rohto:

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Rohto Pharmaceutical Co manufactures and markets pharmaceuticals and cosmetics products. The Company's products include eyewash, bath soaps, gastrointestinal medicine and hand cream. 

Rohto Pharmaceutical’s historical revenue and net income:

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The analysis on Rohto Pharmaceutical reports that the company’s dividend yield is near a 3-year low, its price is near a 10-year high and its P/S ratio is near a 3-year high.  It also notes that the company has a high Piotroski F-Score, indicating a healthy situation, and it also holds a comfortable interest coverage which means that the company has enough cash to cover the entirety of its debt.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Rohto Pharmaceutical has a market cap of ¥188.74 billion.  Its shares are currently trading at around ¥1605.00 with a P/E ratio of 20.40, a P/S ratio of 1.39 and a P/B ratio of 1.73.  The dividend yield of Rohto Pharmaceutical is at 1.01%.

MISUMI Group (TSE:9962)

The fifth largest position goes to MISUMI Group where Hennessy Japan holds on to 69,900 shares of the company’s stock. Their position in the company makes up for 0.08% of the company’s shares outstanding and 5.3% of the fund’s total portfolio.

During the fourth quarter Hennessy upped their position in MISUMI 9.91% by purchasing 6,300 shares of the company’s stock. They purchased these shares in the fourth quarter price range of ¥2,709.00 to ¥3,325 per share.  Since then the price per share is trading up to ¥3305 per share.

Hennessy Japan’s historical holding history:

1388703322322.png

MISUMI Group Inc. manufactures and sells shafts, bushes, linear guides, locating parts, pulleys, aluminum frames and stages, sells punches, dies, spring guides, ejector pins, core pins, guides and retainers.

MISUMI Group’s historical revenue and net income:

1388703384142.png

The analysis on MISUMI Group reports that the company holds no debt, its dividend yield is close to a 2-year low, its price is at a 10-year high and its P/S ratio is at a 3-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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MISUMI Group has a market cap of ¥300.21 billion. Its shares are trading at around ¥3305 with a P/E ratio of 25.20, a P/S ratio of 1.95 and a P/B ratio of 2.59. 

Check out Hennessy Japan Fund’s complete fourth quarter portfolio here.
 

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