EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Azabu Research

Trades at less than half the TOPIX multiple and generates nearly twice the average ROE. OHG has grown sales at a 25% annual clip during the past 5 years, despite declining house starts, because of overwhelming pricing advantages. The consensus believes these advantages have suddenly disappeared and projects earnings to flatline indefinitely. However, Mike Allen sees an inventory correction that may already be completed but will inevitably end without having any long-term impact on the company’s position. He expects cash flows from operations to exceed capital requirements by >¥500bn in the next 5 years - an amount that exceeds current shareholders’ equity. Mike sees fair value at ~¥17,000, nearly 4x the current price!

Edition: 183

- 05 April, 2024