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 second quarter, the fund held on to a total of 24 stocks, with no new stock purchases over the duration of the quarter. The Hennessy Japan Fund was valued at $37 million as of the close of the second quarter.
Ryohin Keikaku (TSE:7453)
Hennessy Japan Funds’ largest holding over the second quarter is in Ryohin Keikaku. The fund currently holds on to 22,100 shares of the company, representing 0.08% of the company’s shares outstanding and 6.7% of their total portfolio.
The fund cut their holdings -19.05% over the past quarter by selling 5,200 shares of the company’s stock. They sold these shares in the quarterly price range of ¥9740 to ¥11650, with an estimated average quarterly price of ¥10993 per share. From this average price the price per share is trading up about 1.7%.
Hennessy Japan Funds’ historical holding history:
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:
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:
Ryohin Keikaku has a market cap of ¥295.97 billion. Its shares are currently trading at around ¥11220 with a P/E ratio of 17.40, a P/S ratio of 1.34 and a P/B ratio of 2.43. The company currently holds a dividend yield of 0.57%. The company had an annual average earnings growth of 17.70% over the past five years.
Kao Corp (TSE:4452)
The fund’s second largest holding was in Kao Corp where they hold on to 64,200 shares of the company’s stock. This position makes up for 6.5% of the fund’s total assets managed as well as a very miniscule portion of the company’s shares outstanding.
Over the past quarter Hennessey cut their holdings in Kao -19.04% by selling 15,100 shares of the company’s stock. They sold these shares in the second quarter price range of ¥3551 to ¥4131, with an estimated average quarterly price of ¥3879 per share. Since then the price per share has increased approximately 3.1%.
Hennessey Japan’s historical holding history:
Kao Corporation, together with its subsidiaries, produces and markets beauty care, health care and fabric and home care products and chemicals.
Kao’s historical revenue and net income:
The analysis on Kao reports that the company’s dividend yield is close to a 10-year low, its price is near a 10-year high and its Piotroski F-Score is high. The analysis also notes that the company’s operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
Kao has a market cap of ¥2066.9 billion. Its shares are currently trading at around ¥3998 with a P/E ratio of 26.60, a P/S ratio of 1.51 and a P/B ratio of 3.28. The company currently holds a dividend yield of 1.31%. The company had an annual average earnings growth of 2.90% over the past five years.
ASICS Corp (TSE:7936)
The fund’s third largest position in ASICS where he holds on to 115,200 shares of the company’s stock. This position makes up for 6% of his total holdings as well as 0.06% of the company’s shares outstanding.
Over the past quarter the fund reduced their position -19.04% by selling 27,100 shares of ASICS stock. They sold these shares in the quarterly price range of ¥1850 to ¥2401, with an estimated average quarterly price of ¥2116 per share. Since then the price per share has increased approximately 12%.
Hennessy Japan’s historical holding history:
ASICS Corporation is a sports apparel company. The company is engaged in the manufacture and sales of sports and leisure goods.
ASICS’ historical revenue and net income:
The analysis on ASICS reports that the company’s dividend yield is near a 5-year low, its price is near a 10-year high and its asset growth is currently faster than its revenue growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
ASICS has a market cap of ¥450.8 billion. Its shares are currently trading at around ¥2371 with a P/E ratio of 27.90, a P/S ratio of 1.37 and a P/B ratio of 2.82. The company had an annual average earnings growth of 11.10% over the past five years.
Nidec Corp (TSE:6594)
Hennessy’s fourth largest holding is in Nidec Corporation. The fund holds on to 38,700 shares of the company’s stock. Its holding in the company represents 0.22% of the company’s shares outstanding and 5.9% of their total assets managed.
During the first quarter Hennessy reduced their holdings, selling 9,100 shares of the company’s stock. They sold these shares near the average quarterly price of ¥5934 and since then the price per share is up approximately 3.9%.
Hennessy’s Japan Fund’s historical holding history:
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:
The analysis on Nidec reports that the company’s revenue per share has declined, its dividend yield is near a 3-year low and its price is near a 10-year high. The analysis also notes that the company’s Piotroski F-Score is high, indicating a healthy situation for the company.
The Peter Lynch Chart suggests that the company is currently overvalued:
Nidec Corporation has a market cap of ¥1700.35 billion. Its shares are currently trading at around ¥6165 with a P/E ratio of 39.10, a P/S ratio of 2.58 and a P/B ratio of 2.82. The company had an annual average earnings growth of 4.5% over the past ten years.
Rohto Pharmaceutical (TSE:4527)
Another of Hennessy Japan’s largest holdings is in Rohto Pharmaceutical where the fund holds on to 123,600 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:
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:
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:
Rohto Pharmaceutical has a market cap of ¥177.45 billion. Its shares are currently trading at around ¥1575 with a P/E ratio of 20.40, a P/S ratio of 1.26 and a P/B ratio of 1.73. The dividend yield of Rohto Pharmaceutical is at 0.97%. The company had an annual average earnings growth of 3.30% over the past five years.
Check out Hennessy Japan Fund’s complete fourth quarter portfolio here.
