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T. Rowe Price Japan Fund's Top Five Holdings

Monica Wolfe

Monica Wolfe

121 followers
Over the second quarter the T. Rowe Price Japan Fund purchased six new stocks. This brought the total number of stocks held by them to 83 stocks valued at $308 million. This fund seeks long-term growth of capital through investments in common stocks of companies located in Japan.

The following five companies represent T. Rowe Price Fund’s top five stock holdings.

Toyota Motor Corp (TSE:7203)

T. Rowe Price Japan Fund’s largest position is in Toyota Motor Corp. The fund currently holds on to 230,400 shares of the company’s stock, representing 4.5% of the fund’s total portfolio and 0.01% of the company’s shares outstanding.

Over the past quarter, the T. Rowe Price Fund sold 1,200 shares of Toyota, representing a -0.52% decrease in their holdings. They sold these shares at around the estimated average quarterly price of ¥5682.59. Since then the price per share has increased 6.4%

T. Rowe Price has held Toyota Motor since 2012Q2 and has seen average gains of 55%.

The fund’s historical holding history of Toyota:

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Toyota Motor conducts its business in the automotive industry as well as the finance and other industries. The company’s automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and commercial vehicles.

Toyota Motor’s historical revenue and net income:

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The analysis on Toyota reports that the company’s Piotroski F-Score is high, its dividend yield is sitting at a 2-year low, over the past three years the company has issued JPY15.7 billion of debt, and it has been in operating loss over the past three years.

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

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Toyota Motor has a market cap of ¥19158.07 billion. Its shares are currently trading at around ¥6044 with a P/E ratio of 10.40, a P/S ratio of 0.75 and a P/B ratio of 1.31. The company had an annual average earnings growth of 20.20% over the past five years.

SOFTBANK Corp (TSE:9984)

T. Rowe’s second largest position is in SOFTBANK Corp. The fund holds on to 165,700 shares of the company’s stock. Their position in the company represents 4% of their total portfolio.

During the second quarter the fund increased their stake in the company 7.88% by adding a total of 12,100 shares. T. Rowe purchased these shares in the second quarter price range of ¥6766 to ¥8140, with an estimated average quarterly price of ¥7994, with an estimated average quarterly price of ¥7467. The price has since then increased approximately 2.8%.

T. Rowe’s historical holding history of SOFTBANK:

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SOFTBANK serves the computer industry by providing information infrastructure and distribution services. It also invests in and maintains a portfolio of Internet-related ventures. The firm holds stakes in more than 400 Internet companies.

SOFTBANK’s historical revenue and net income:

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T. Rowe Price Japan Fund and the Matthews Japan Fund are the only guru-ranked funds that maintain a position in SOFTBANK.

The analysis on SOFTBANK reports that the company has issued JPY43.8 billion of debt over the past three years, it has a poor stock buyback record and its dividend yield is trading at a 3-year low.

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

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Softbank has a market cap of ¥10414.9 billion. Its shares are currently trading at around ¥7677 with a P/E ratio of 16.90, a P/S ratio of 1.39 and a P/B ratio of 3.11. The company had an annual average earnings growth of 30.90% over the past ten years.

Japan Tobacco Inc (TSE:2914)

T. Rowe’s third largest position goes to Japan Tobacco where the fund holds on to 292,500 shares of the company’s stock. This position makes up of 3.5% of their total portfolio and 0.02% of the company’s shares outstanding.

During the second quarter T. Rowe purchased 26,100 shares at an estimated average quarterly price of ¥3409.74 per share. Since their increase the price per share has increased approximately 10.3%.

T. Rowe’s historical holding history:

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Japan Tobacco is engaged in the tobacco business. It operates in the following business segments: Japanese Domestic Tobacco business and the International Tobacco business.

Japan Tobacco’s historical revenue and net income:

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T. Rowe Price Japan Fund is the only guru rated fund that currently holds a stake in Japan Tobacco.

The analysis on Japan Tobacco reports that the company’s revenue has been in decline over the past five years, its operating margin is expanding and its price is nearing a 10-year high.

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

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Japan Tobacco has a market cap of ¥6819.44 billion. Its shares are currently trading at around ¥3760 with a P/E ratio of 15.80, a P/S ratio of 2.84 and a P/B ratio of 2.70. The company had an annual average earnings growth of 11.10% over the past five years.

Honda Motor Co Ltd (TSE:7267)

The fund’s fourth largest position is in Honda Motor where they hold on to 288,800 shares of the company’s stock. Their holding 3.3% of their total portfolio and 0.02% of the company’s shares outstanding.

During the second quarter T. Rowe decreased their stake -0.52% by selling 1,500 shares. They sold these shares in the price range of ¥3311 to ¥3700, with an estimated average quarterly price of ¥3498. Since then the price per share has increased about 2.9%.

T. Rowe Price Japan Fund’s historical holding history:

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Honda Motor develops, produces, and manufactures motor products, including small general-purpose engines and scooters and specialty sports cars. Its business segments are the motorcycle business, automobile business, financial services business and power product and other businesses.

Honda Motor’s historical revenue and net income:

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The analysis on Honda Motors reports that the company has issued 909.2 billion of debt over the past three years, its Piotroski F-Score is high, and its operating margin is expanding. The analysis also notes that the company’s dividend yield is near a 1-year high and its P ratios are all trading near historical lows.

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

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Honda Motor has a market cap of ¥6526.1 billion. Its shares are currently trading at around ¥3601 with a P/E ratio of 11.40, a P/S ratio of 0.55 and a P/B ratio of 1.10. The company had an annual average earnings growth 2.10% over the past 10 years.

Nippon Telegraph & Telephone Corp (TSE:9432)

The guru fund’s fifth largest holding is in Nippon Telegraph & Telephone where they maintain 156,800 shares of the company’s stock. This position makes up for 3.2% of their total portfolio and 0.01% of the company’s shares outstanding.

Over the past quarter T. Rowe Japan decreased their position -9.52% by selling 16,500 shares of the company’s stock at near the estimated average quarterly price of ¥5827.95 per share, and since then the price per share has increased approximately 15.6%.

T. Rowe Japan’s historical holding history:

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Nippon Telegraph & Telephone is a provider of fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, system integration and other telecommunications-related services in Japan.

Nippon’s historical revenue and net income:

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The analysis on Nippon reports that the company’s price is trading at a 10-year high, it has shown predictable revenue and earnings growth and its Piotroski F-Score is high, indicating a healthy situation for the company.

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

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Nippon Telegraph & Telephone has a market cap of ¥7453.96 billion. Its shares are currently trading at around ¥6740 with a P/E ratio of 12.90, a P/S ratio of 0.71 and a P/B ratio of 0.85. The company had an annual average earnings growth of 0.80% over the past ten years.

GuruFocus rated the company the business predictability rank of 2.5-star.

Check out T. Rowe Price Japan Fund (Trades, Portfolio)’s complete second quarter portfolio here.

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