5726 JP

OSAKA Titanium Technologies Co Ltd

Industrial/Transportation, Event Driven/Special Sit


Presented:05/23/2024
Price:¥2,348.00
Cap:$0.72B
Current Price:¥2,535.00
Cap:$0.78B

Presented

Date05/23/2024
Price¥2,348.00
Market Cap$0.72B
Ent Value$1.09B
P/E Ratio8.92x
Book Value¥1,046.43
Div Yield2.98%
Shares O/S36.80M
Ave Daily Vol716,376
Short IntN/A

Current

Price¥2,535.00
Market Cap$0.78B
OSAKA Titanium Technologies Co., Ltd. engages in the manufacture and sale of titanium and silicon products. It operates through the Titanium Business and High-Performance Materials Business segments. The Titanium Business segment offers titanium sponges, ingots, tetrachloride, and tetrachloride aqueous solutions. The High-Performance Materials Business segment handles high-purity titanium, powdered titanium, silicon monoxide (SiO) and spherical titanium powder (TILOP). The company was founded in January 1937 and is headquartered in Amagasaki, Japan.

Publicly traded companies mentioned herein: Airbus SE (EADSY), Boeing Co (BA)Osaka Titanium Technologies (5726 JP) 

Highlights

The presenter is long shares of Osaka Titanium Technologies (5726 JP), given its position as the top player in a four-player aerospace-grade titanium market. Positioned as the dominant player in an oligopoly, where one of the largest players has been taken out of major supply chains and prices have increased by 10-20% a year is providing a significant tailwind to the company. The stock currently trades at 9x consensus FY26 EPS and 7x consensus FY27 EPS. Using the presenter’s math, the stock is even cheaper at 5x-6x his FY27 EPS estimate. The stock is currently up 3x this cycle versus 30x last cycle, and while price increases are not to the same extent as last time, there is still significant upside. 

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Idea Discussion

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