KNBWF - Kirin Holdings Looks Undervalued But The Business Is In Transition

• Kirin management has done a commendable job with the domestic brewing business, particularly on product development, but the Japanese market doesn't offer much growth.
• Management is pivoting hard toward nutritional and "wellness" products, and looking to leverage a large investment in supplements and cosmetics company Fancl to accelerate the process.
• Kyowa Kirin is looking to leverage its antibody/biosimilar capabilities to establish a larger presence in the U.S. and EU, and Kirin's stake will be increasingly valuable if they succeed.
• Kirin shares do look undervalued, but there is ample skepticism that the shift towards wellness products can and will drive meaningful long-term growth.

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