Consumer Staples
This tofu manufacturer has leveraged automation to gain a cost advantage in the Japanese market. However, with the domestic market expected to remain flat, Yamami needs to find new avenues for growth. Its strategy involves expanding into the Greater Tokyo area and capturing market share by offering premium tofu at competitive prices. The stock reached an all-time high of ¥4,170 in Feb 24, but the shares have since fallen nearly 30%, likely due to profit-taking and the absence of fresh catalysts. It is now trading at an attractive 14x 6/25E, compared to the historical operating profit CAGR of 16% over the past four years, with another 15.5% increase anticipated for FY25.
Edition: 187
- 31 May, 2024