Hennessy Japan Small Cap Fund reduced its positions in nine companies in the third quarter.
The fund’s most noteworthy reduction was the sale of 45% of its holding in Nihon Trim Co. Ltd. (TSE:6788, Financial), a Japanese company that makes and sells electrolyzed reduction water equipment. The fund sold 4,500 shares for an average price of 7,283.08 Japanese yen ($70.74) per share. The transaction had a -1.22% impact on the portfolio.
Nihon Trim has a price-earnings (P/E) ratio of 21.17, a price-book (P/B) ratio of 2.81 and a price-sales (P/S) ratio of 2.99. GuruFocus gives Nihon Trim a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10 with return on equity (ROE) of 13.87% that is higher than 77% of the companies in the Global Pollution & Treatment Controls industry and return on assets (ROA) of 9.93% that is higher than 87% of the companies in that industry.
Nihon Trim sold for 5,670 yen per share Monday. The DCF Calculator gives Nihon Trim a fair value of 6,089.59 yen with a 7% margin of safety.
The fund sold more than 36% of its holding in Kitz Corp. (TSE:6498, Financial), a Japanese valve manufacturer. The fund sold the shares for an average price of 503.11 yen per share. The deal had a -0.74% impact on the portfolio.
Kitz has a P/E of 12.67, a P/B of 0.88 and a P/S of 0.55. GuruFocus gives Kitz a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 6.76% that is higher than 52% of the companies in the Global Diversified Industrials industry and ROA of 4.30% that is higher than 59% of the companies in that industry.
Kitz sold for 593 yen per share Monday. The DCF Calculator gives Kitz a fair value of 500.94 yen.
The fund trimmed its position in Towa Corp. (TSE:6315, Financial), a Japanese semiconductor packaging solutions company, by more than 22% with the sale of 17,700 shares for an average price of 914.18 yen per share. The transaction had a -0.45% impact on the portfolio.
Towa has a P/E of 18.61, a P/B of 1.51 and a P/S of 1.33. GuruFocus gives Towa a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10 with ROE of 7.84% that is higher than 63% of the companies in the Global Semiconductors industry and ROA of 5.23% that is higher than 67% of the companies in that industry.
Towa sold for 1,236 yen per share Monday. The DCF Calculator gives Towa a fair value of 710.59 yen.
The fund sold more than 24% of its holding in YOKOWO Co. Ltd. (TSE:6800, Financial), a Japanese manufacturer of compact and reliable spring-loaded connectors for electronic devices. The fund sold 22,000 shares for an average price of 511.91 yen per share. The deal had a -0.4% impact on the portfolio.
The company has a P/E of 56.63, a P/B of 0.71 and a P/S of 0.31. GuruFocus gives YOKOWO a Financial Strength rating of 7/10 and a Profitability and Growth rating of 5/10 with ROE of 1.17% that is lower than 66% of the companies in the Global Electronic Components industry and ROA of 0.75% that is lower than 64% of the companies in that industry.
YOKOWO sold for 636 yen per share Monday. The DCF Calculator gives YOKOWO a fair value of 120.07 yen.
The fund cuts its holding in Sinfonia Technology Co. Ltd. (TSE:6507, Financial), a Japanese maker of motion equipment used in a variety of products, by nearly 29% with the sale of 67,000 shares for an average price of 172.52 yen per share. The transaction had a -0.36% impact on the portfolio.
Sinfonia has a P/E of 9.55, a P/B of 0.91 and a P/S of 0.33. GuruFocus gives Sinfonia a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 9.27% that is higher than 65% of the companies in the Global Electronics Components industry and ROA of 3.09% that is higher than 52% of the companies in that industry.
Sinfonia sold for 175 yen per share Monday. The DCF Calculator gives Sinfonia a fair value of 196.16 yen with an 11% margin of safety.
The fund sold almost 15% of its holding in Hagihara Industries Inc. (TSE:7856), a Japanese flat yarn manufacturer. The fund sold 3,400 shares for an average price of 2,569.97 yen per share. The deal had a -0.32% impact on the portfolio.
Hagihara has a P/E of 9.75, a P/B of 0.98 and a P/S of 0.77. GuruFocus gives Hagihara a Financial Strength rating of 8/10 and a Profitability and Growth rating of 6/10 with ROE of 10.29% that is higher than 65% of the companies in the Global Textile Manufacturing industry and ROA of higher than 78% of the companies in that industry.
Hagihara sold for 2,412 yen per share Monday. The DCF Calculator gives Hagihara a fair value of 2,648.65 yen with a 9% margin of safety.
The fund reduced its position in Hito-Communications Inc. (TSE:3654), a Japanese company involved in the outsourcing and temporary staffing of businesses, by more than 14% with the sale of 3,700 shares for an average price of 1,925.26 yen per share. The transaction had a -0.27% impact on the portfolio.
Hito-Communications has a P/E of 17.75, a P/B of 3.78 and a P/S of 1.04. GuruFocus gives Hito-Communications a Financial Strength rating of 8/10 and a Profitability and Growth rating o 5/10 with ROE of 23.47% that is higher than 75% of the companies in the Global Staffing and Outsourcing Services industry and ROA of 16.04% that is higher than 87% of the companies in that industry.
Hito-Communications sold for 1,659 yen per share Monday. The DCF Calculator gives Hito-Communications a fair value of 999.96 yen.
The fund trimmed its holding in Elecom Co. Ltd. (TSE:6750), a Japanese electronics company, by more than 9% with the sale of 3,000 shares for an average price of 2,134.09 yen per share. The deal had a -0.2% impact on the portfolio.
Elecom has a P/E of 17.10, a P/B of 3.94 and a P/S of 1.08. GuruFocus gives Elecom a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10 with ROE of 21.28% that is higher than 91% of the companies in the Global Computer Systems industry and ROA of 11.05% that is higher than 90% of the companies in that industry.
Elecom sold for 2,184 yen per share Monday. The DCF Calculator gives Elecom a fair value of 3,636.54 yen with a 40% margin of safety.
The fund reduced its position in ITFOR Inc. (TSE:4743), a Japanese company that provides network and system solutions, by more than 9%. The fund sold 8,600 shares for an average price of 489.06 yen per share. The transaction had a -0.15% impact on the portfolio.
ITFOR has a P/E of 18.96, a P/B of 1.72 and a P/S of 1.52. GuruFocus gives ITFOR a Financial Strength rating of 9/10 with no debt and a Profitability and Growth rating of 6/10 with ROE of 8.90% that is higher than 59% of the companies in the Global Information Technology Services industry and ROA of 7.00% that is higher than 70% of the companies in that industry.
ITFOR sold for 654 yen per share Monday. The DCF Calculator gives ITFOR a fair value of 369.21 yen.
The fund invested in two new holdings in the third quarter, sold out two and added to four others.
Disclosure: I do not own any stocks mentioned in this article.
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