- Imasen Electric Industrial is a steady Japanese auto-parts business with a strong balance sheet, recently affiliated with quality tier 2 supplier TS Tech (7313).
- We expect an earnings recovery profile into FY3/2022, with increasing capex YoY for factory automation. In the next three years, we expect the company to fully merge with TS Tech.
- The shares are very illiquid and should trade at a discount. However, on PER FY3/2022 9.6x, dividend yield of 3.8% and PBR 0.4x, we are buyers.
For further details see:
Imasen Electric Industrial: Very Illiquid But The Valuations Stack Up