Japan Foods Holding Ltd

It seems that Japanese foods are well received by ASEAN people, as well as Japanese cars and electronics. In-depth research needed.



One of the listed companies specialising in authentic and quality Japanese cuisine is Japan Foods Holding.

In Singapore, the Group operates a chain of 37 restaurants and three concept stalls in selected food court outlets, serving authentic Japanese fare under various franchise as well as self-developed brands.

10 franchise brands from Japan : Ajisen Ramen, Botejyu, Aoba, Botejyu Yatai, Botejyu San, Menya Musashi, Osaka Ohsho, Kazokutei, Yonehachi, and Menzo Butao.

6 self-developed brands : Aji Tei, Fruit Paradise, Udon King, Japanese Gourmet Town, Ajisen Gourmet Town, Tokyo Walker.

Over the years, the Group has expanded its network beyond Singapore. Today, the Group has 11 “Ajisen Ramen” sub-franchise restaurants in the region including four in Indonesia, five in Malaysia and two in Vietnam. It also holds interests in five “Menya Musashi” restaurants in Hong Kong through joint ventures.

The Business :
- Self-operated restaurants in Singapore
- Self-operated food court outlets in Singapore
- Overseas sub-franchise
- Overseas joint-ventures

Five-year financial results and cash flow statement from FY2009 to FY2013


Five-year balance sheet and financial ratios from FY2009 to FY2013
[Image: japfoods_finratios.png]

Five-year dividend history and shareholder's equity chart from FY2009 to FY2013
[Image: japfoods_divs_equity.png]

I think Japan Foods AR-2013 will make an interesting read for buddies.

The counter is illiquid, with 115,404K shares outstanding at at 2013/06/10. Last closed at 87 cents as at 2013/11/15, 5:05pm. Latest announcement 2013/11/11 : 1 for 2 bonus issue.
<not vested, in watch list, the longer in the watch list the higher it flies, hmm yummy>

(17-11-2013, 02:45 PM)cyclone Wrote: It seems that Japanese foods are well received by ASEAN people, as well as Japanese cars and electronics. In-depth research needed.

[Image: ajisen.png]

One of the listed companies specialising in authentic and quality Japanese cuisine is Japan Foods Holding.

In Singapore, the Group operates a chain of 37 restaurants and three concept stalls in selected food court outlets, serving authentic Japanese fare under various franchise as well as self-developed brands.

10 franchise brands from Japan : Ajisen Ramen, Botejyu, Aoba, Botejyu Yatai, Botejyu San, Menya Musashi, Osaka Ohsho, Kazokutei, Yonehachi, and Menzo Butao.

6 self-developed brands : Aji Tei, Fruit Paradise, Udon King, Japanese Gourmet Town, Ajisen Gourmet Town, Tokyo Walker.

Over the years, the Group has expanded its network beyond Singapore. Today, the Group has 11 “Ajisen Ramen” sub-franchise restaurants in the region including four in Indonesia, five in Malaysia and two in Vietnam. It also holds interests in five “Menya Musashi” restaurants in Hong Kong through joint ventures.

The Business :
- Self-operated restaurants in Singapore
- Self-operated food court outlets in Singapore
- Overseas sub-franchise
- Overseas joint-ventures

Five-year financial results and cash flow statement from FY2009 to FY2013
[Image: japfoods_finresults.png]

Five-year balance sheet and financial ratios from FY2009 to FY2013
[Image: japfoods_finratios.png]

Five-year dividend history and shareholder's equity chart from FY2009 to FY2013
[Image: japfoods_divs_equity.png]

I think Japan Foods AR-2013 will make an interesting read for buddies.

The counter is illiquid, with 115,404K shares outstanding at at 2013/06/10. Last closed at 87 cents as at 2013/11/15, 5:05pm. Latest announcement 2013/11/11 : 1 for 2 bonus issue.
<not vested, in watch list, the longer in the watch list the higher it flies, hmm yummy>

Hi Cyclone,

Not very appealing in terms of valuation at current levels - more than 4.0x P?B and 2.87% div yield for a small cap counter.

Not Vested
GG

http://www.businesstimes.com.sg/premium/...s-20140721

PUBLISHED JULY 21, 2014
TOPLINE
Serving up multiple brands
Japan Foods is also taking the manpower shortage and rising rentals in its stride, reports ANDREA SOH

Mr Kenichi: 'The Singapore market is quite small, but if you have a lot of brands, it's fine. It's competitive but from our results you can see that we've been progressing every year.' - PHOTO: YEN MENG JIIN
LOCAL food and beverage firms have been struggling with the twin pressures of manpower shortage and rising rental costs. Japan Foods, the group behind Japan- themed restaurants such as Ajisen Ramen, Menya Musashi and Osaka Ohsho, is however taking these in its strides - having put in the necessary measures in the past years.
Just this year, in view of a staff shortage and the need to raise salaries to keep its existing staff, the group started placing an iPad at every table in its restaurants, enabling patrons to place their orders themselves. This helps the group keep expenses in check. "We will increase salaries, but we're going to reduce the number of staff," says chief executive officer Takahashi Kenichi in an interview with The Business Times.
There will, of course, be some customers who don't know how to use the iPads. When that happens, there are staff on stand-by to help them, he says. "But 90 per cent (of our customers) can do it."
Besides the iPad menu, Japan Foods in 2007 expanded the small central kitchen it had since 2002. Now, the facility at Kampong Ampat makes everything from gyozas to salmon teriyaki.

Was appealing one year ago. Let it slide, and regretted ever since.

Main reason was due to illiquidity, hard to buy without paying a "premium" to previous high.

(17-11-2013, 05:39 PM)greengiraffe Wrote: Hi Cyclone,

Not very appealing in terms of valuation at current levels - more than 4.0x P?B and 2.87% div yield for a small cap counter.

Not Vested
GG

Valuation with PB on a service company, might not be a suitable choice. Valuation base on PE is more appropriate IMO.

The valuation on historical PE, with share price 64 cents, is about 15, and dividend yield of approx 3.3%, which is fair IMO.

I visited Ajisen Ramen, but disappointed with the food. Service-wise was decent, mostly DIY, and might be a good idea, once you get use to it.

(not vested, but monitoring)

Contributing to the forum. I attended the agm this morning. The board was very honest and open to share with shareholders on their finances, their direction and strategies. They are not seeking for hypergrowth, but their plans to develop in singapore is sound and there is good room to grow.

The restaurants remain quite profitable and surprisingly to me they have the capability to grow both toplines and bottomlines even after what I thought was an uphill task for this year.

I am not sure how much I can/should share here. Ask me anything and I will try my best to answer, pm or otherwise on this forum.

Vested

Do they give away free Ajisen membership if you are a shareholder like soup restaurant

(11-09-2014, 07:59 PM)zquan Wrote: Do they give away free Ajisen membership if you are a shareholder like soup restaurant

Yes, but i think they send it to you together with the annual report. Anyway the membership is no big deal.

- Strong brands, steady growth in sales
- zero debt, consistent high >20% ROE
- I think its undervalued @ 60c.
- High PB ratio not so relevant for a service company with few assets and strong brands
- 4% div yield with committed 40% div payout
- limited competition

What can go wrong?

CAGR for the past 5 years:
- Revenue = 13%
- Net Profit = 21%
- Cash Flow = 20%
- EPS = 3%

However at the current price of 60c, the historical PER is at its highest in the past 5 years of around 15. Average PER for the past 5 years is around 9. Another thing to consider is the company's future it it can still continue to grow.