Entered Kawasumi Laboratories (TYO:7703)

Opened a small position in Kawasumi Laboratories. KL manufactures and sells medical devices relating to hemodialysis, blood banking, infusion therapy etc. The devices are mainly of a more simple and disposable nature.

It’s not wide moat medtech business, but more of a commodity market. However, the company has a very low valuation, is trading below NCAV and have a strong balance sheet. The company has been profitable during the last years, although poor margins as with most Japanese net-nets. Dividends looks ok and the company performed a 5% share repurchase last year.

Entered at ~0.63 of NCAV or 660¥.

Market cap 14 400 M¥ (126 MUSD)
Total cash 15 501 M¥
Total liabilities 5 637 M¥
P/S 0.54
P/B 0.40

 

 

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