Stock Focus : Daiun 大運

 

As can be inferred from the above snapshots from '89, '98, '08 & '23, earnings have improved significantly over the past 3 decades, with capital adequacy increasing from 32% in '98 to 64% now, while dividends, which were absent for a long spell, were revived from 2006-2009, re-resumed in 2017 and, with the exception of 2020, remained around the ¥3 to ¥13 level. Next year's dividend, at ¥15,will equal the highest seen in 2007, translating to a yield of 3.2% as full-year EPS is projected to hit a record [& 3-year] high even as the price is languishing at a -93% discount from records seen in 1986. 2025 happens to be the 80th Anniversary of the Mitsui OSK-affiliated company's founding.

Share buybacks & business association holdings have amazingly corraled over 45.3% of Daiun's small issued float of  6.228 million shares [ up from 35.3% in Mar '23 & just 4.5% in Nov '07 ] while parties holding 4.32% have increased their holdings slightly in the last few months. I almost bought this stock twice, once when it was pushing up close to ¥500 in November '24 & before that, when I was brand new neophyte to the Tokyo mart in 2017, when the price was hovering around the current level but revenue was 25% lower, EPS was 18% less, book value was about half, total assets were ¥900 million less & dividend quantum a third less than next year's payout. ROE is at 7.57% [3.5% in '08], about the same as it was 8 years ago & also in 2023 but down 1% from last year while free cash flow has been positive for the last 3 years, accompanied by a +ve operating cashflow of  ¥216 million this year.

The former Kobe & now mainly Osaka port logistics handler could benefit from a revival of export trade post-tariffs as customers like Panasonic & SCREEN ship more inventory overseas on the back of the cheap yen.