- The outlook for Shinoken Group looks positive post-pandemic, with FY12/2020 orders growing 40% YoY driven by demand from individual landlords.
- The company is developing a sizable recurring revenue stream from real estate management services. It started conducting asset sales to a private REIT, driving free cash flow.
- The shares are cheap, trading at small-cap discount multiples (PER FY12/2021 7.1x, PBR 0.9x). We are buyers, but are mindful that this discount could remain for some time.
For further details see:
Shinoken Group: Robust Orders, Strong Balance Sheet And Discount Valuations