The Hennessy Japan Fund (Trades, Portfolio)’s activity in the quarter ended July 31 focused exclusively on trimming holdings in its portfolio. All 14 of its transactions in the quarter were reductions to existing stakes.
The most noteworthy was the sale of 4,000 shares of Ryohin Keikaku Co. Ltd. (TSE:7453, Financial), a Tokyo-based retailer of consumer and household goods, for an average price of 24,472.6 yen ($237.37) per share. The deal had a -0.78% impact on the fund’s portfolio.
Matthews Japan Fund (Trades, Portfolio) is the company’s largest shareholder among the gurus with 328,700 shares in its portfolio.
Ryohin Keikaku has a price-earnings (P/E) ratio of 24.74, a price-book (P/B) ratio of 4.02 and a price-sales (P/S) ratio of 1.81. GuruFocus gives Ryohin Keikaku a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10 with return on equity (ROE) of 17.01% that is higher than 75% of the companies in the Global Department Stores industry and return on assets (ROA) of 11.81% that is higher than 88% of the companies in that industry.
Ryohin Keikaku sold for 21,220 yen per share Thursday. The DCF Calculator gives Ryohin Keikaku a fair value of 12,269.48 yen.
The fund sold 22,700 shares of Terumo Corp. (TSE:4543, Financial), a medical equipment company based in Tokyo, for an average price of 4,467.38 yen per share. The transaction had a -0.76% impact on the portfolio.
Terumo has a P/E of 33.05, a P/B of 2.94 and a P/S of 2.75. GuruFocus gives Terumo a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10 with ROE of 8.44% that is higher than 63% of the companies in the Global Medical Instruments & Supplies industry and ROA of 4.92% that is higher than 64% of the companies in that industry.
Terumo sold for 3,950 yen per share Thursday. The DCF Calculator gives Terumo a fair value of 1,246.95 yen.
The fund sold 16,200 shares of FUJI Seal International Inc. (TSE:7864, Financial), a Japanese holding company that is mostly involved in the packaging business, for an average price of 3,901.23 yen per share. The deal had a -0.48% impact on the portfolio.
FUJI has a P/E of 16.53, a P/B of 1.49 and a P/S of 0.83. GuruFocus gives FUJI a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10 with ROE of 9.10% that is higher than 57% of the companies in the Global Packaging & Containers industry and ROA of 5.12% that is higher than 60% of the companies in that industry.
FUJI sold for 4,160 yen per share Thursday. The DCF Calculator gives FUJI a fair value of 2,666.85 yen.
The fund trimmed its position in Keyence Corp. (TSE:6861, Financial), a Japanese electronics company, selling 900 shares for an average price of 69,053.7 yen per share. The transaction had a -0.47% impact on the portfolio.
Matthews Japan Fund (Trades, Portfolio) is Keyence’s leading shareholder among the gurus with 117,400 shares in its portfolio. The holding is 0.19% of Keyence’s outstanding shares and 2.51% of the fund’s total assets.
Keyence has a P/E of 33.20, a P/B of 4.30 and a P/S of 11.83. GuruFocus gives Keyence a Financial Strength rating of 10/10 with no debt and a Profitability and Growth rating of 4/10 with ROE of 22.59% that is higher than 93% of the companies in the Global Scientific & Technical Instruments industry and ROA of 21.42% that is higher than 98% of the companies in that industry.
Keyence sold for 76,290 yen per share Thursday. The DCF Calculator gives Keyence a fair value of 24,375.75 yen.
The fund sold 41,900 shares of Isuzu Motors Ltd. (TSE:7202, Financial), a Tokyo-based vehicle and engine manufacturing company, for an average price of 1,260.37 yen per share. The deal had a -0.39% impact on the portfolio.
T. Rowe Price Japan Fund (Trades, Portfolio) is Isuzu’s leading shareholder among the gurus with 634,300 shares in its portfolio. The holding is 0.08% of Isuzu’s outstanding shares and 2.11% of the guru’s total assets.
Isuzu has a P/E of 9.47, a P/B of 1.29 and a P/S of 0.52. GuruFocus gives Isuzu a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10 with ROE of 13.50% that is higher than 68% of the companies in the Global Auto Manufacturers industry and ROA of 5.75% that is higher than 64% of the companies in that industry.
Isuzu sold for 1,229 yen per share Thursday. The DCF Calculator gives Isuzu a fair value of 1,344.55 with a 9% margin of safety.
The fund reduced its position in MISUMI Group Inc. (TSE:9962), a Japanese manufacturing company, by 31,100 shares. The fund sold the shares for an average price of 1,704.48 yen per share. The transaction had a 0.38% impact on the portfolio.
Matthews Japan Fund (Trades, Portfolio) is MISUMI’s largest shareholder among the gurus with a stake of 4,725,000 shares. The stake is 1.72% of MISUMI’s outstanding shares and 2.67% of the fund’s total assets.
MISUMI has a P/E of 31.91, a P/B of 3.81 and a P/S of 2.16. GuruFocus gives MISUMI a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10 with ROE of 13.23% that is higher than 76% of the companies in the Global Tools & Accessories industry and ROA of 9.77% that is higher than 87% of the companies in that industry.
MISUMI sold for 1,925 yen per share Thursday. The DCF Calculator gives MISUMI a fair value of 643.81 yen.
The fund sold 79,800 shares of Daikin Industries Ltd. (TSE:6367), a Japanese air conditioner manufacturer, for an average price of 8,851.66 yen per share. The deal had a -0.38% impact on the portfolio.
Matthews Japan Fund (Trades, Portfolio) is Daikin’s leading shareholder among the gurus with 504,500 shares in its portfolio. The holding is 0.17% of Daikin’s outstanding shares and 1.33% of the fund’s total assets.
Daikin has a P/E of 18.80, a forward P/E of 24.94, a P/B of 3.00 and a P/S of 1.36. GuruFocus gives Daikin a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with ROE of 14.54% that is higher than 74% of the companies in the Global Building Materials industry and ROA of 6.56% that is higher than 70% of the companies in that industry.
Daikin sold for 9,613 yen per share Thursday. The DCF Calculator gives Daikin a fair value of 8,183.18 yen.
The fund trimmed its position in Kubota Corp. (TSE:6326), a Japanese machinery company, selling 325,000 shares for an average price of 1,507.32 yen per share. The transaction had a -0.37% impact on the portfolio.
T. Rowe Price Japan Fund (Trades, Portfolio) is Kubota’s leading shareholder among the gurus with 506,900 shares in the portfolio. The holding is 0.04% of Kubota’s outstanding shares and 1.84% of the fund’s total assets.
Kubota has a P/E of 13.89, a P/B of 1.73 and a P/S of 1.14. GuruFocus gives Kubota a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 14.98% that is higher than 87% of the companies in the Global Farm & Construction equipment industry and ROA of 6.82% that is higher than 84% of the companies in that industry.
Kubota sold for 1,562.5 yen per share Thursday. The DCF Calculator gives Kubota a fair value of 1,479.6 yen.
The fund sold 17,900 shares of Toyota Motor Corp. (TSE:7203), a Japanese automotive company, for an average price of 5,516.31 yen per share. The deal had a -0.29% impact on the portfolio.
David Herro (Trades, Portfolio) is Toyota’s leading shareholder among the gurus with a stake of 12,398,000 shares. The stake is 0.37% of Toyota’s outstanding shares and 2.75% of the guru’s total assets.
Toyota has a P/E of 8.27, a forward P/E of 11.17, a P/B of 1.10 and a P/S of 0.65. GuruFocus gives Toyota a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 13.11% that is higher than 67% of the companies in the Global Auto Manufacturers industry and ROA of 4.66% that is higher than 57% of the companies in that industry.
Toyota sold for 6,032 yen per share Thursday. The DCF Calculator gives Toyota a fair value of 7,589.92 yen with a 21% margin of safety.
The fund slashed its holding in Shimano Inc. (TSE:7309), a Japanese leisure products company, selling 2,300 shares for an average price of 15,816.8 yen per share. The transaction had a -0.29% impact on the portfolio.
Shimano has a P/E of 22.76, a P/B of 4.02 and a P/S of 4.09. GuruFocus gives Shimano a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10 with ROE of 17.35% that is higher than 83% of the companies in the Global Leisure industry and ROA of 14.94% that is higher than 93% of the companies in that industry.
Shimano sold for 16,310 yen per share Thursday. The DCF Calculator gives Shimano a fair value of 15,248.06 yen.
The fund sold 12,600 shares of Pigeon Corp. (TSE:7956), a manufacturer of maternity, baby and child care products, for an average price of 2,950.68 yen. The deal had a -0.29% impact on the portfolio.
Matthews Japan Fund (Trades, Portfolio) is Pigeon’s leading shareholder among the gurus with a stake of 2,724,700 shares. The stake is 2.28% of Pigeon’s outstanding shares and 2.55% of the fund’s total assets.
Pigeon has a P/E of 35.03, a P/B of 7.67 and a P/S of 3.98. GuruFocus gives Pigeon a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10 with ROE of 21.52% that is higher than 85% of the companies in the Global Household & Personal Products industry and ROA of 14.19% that is higher than 91% of the companies in that industry.
Pigeon sold for 3,020 yen per share Thursday. The DCF Calculator gives Pigeon a fair value of 2,486.42 yen.
The fund sold 31,500 shares of Sumitomo Corp. (TSE:8053), a Japanese diversified corporation, for an average price of 1,073.46 yen per share. The deal had a -0.29% impact on the portfolio.
T. Rowe Price Japan Fund (Trades, Portfolio) is Sumitomo’s leading shareholder among the gurus with 549,800 shares in its portfolio. The holding is 0.04% of Sumitomo’s outstanding shares and 1.49% of the fund’s total assets.
Sumitomo has a P/E of 92.49, a P/B of 0.67 and a P/S of 0.35. GuruFocus gives Sumitomo a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with ROE of 0.64% that is lower than 52% of the companies in the Global Conglomerates industry and ROA of 0.18% that is higher than 57% of the companies in that industry.
Sumitomo sold for 1,160.5 yen per share Thursday. The DCF Calculator gives Sumitomo a fair value of 129.81 yen.
The fund also sold portions of its holdings in Sumitomo Mitsui Financial Group Inc. (TSE:8316) and Mizuho Financial Group Inc. (TSE:8411) during the quarter.
Disclosure: I do not own any stocks mentioned in this article.
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