Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

<ul><li><p>While the world is obsessing about AI, there's been a quiet bull market in the world's industrial gas companies.</p></li><li><p>Stocks like Linde (LNA US – US$245 billion) and Nippon Sanso (4091 JP – US$16 billion) have both been ten-baggers since the early 2000s</p></li><li>However, there's been one major laggard: Japan's Air Water (4088 JP – US$3.8 billion). </li></ul>

While the world is obsessing about AI, there's been a quiet bull market in the world's industrial gas companies.Stocks like Linde (LNA US – US$245 billion) and Nippon Sanso (4091 JP – US$16 billion) have both been ten-baggers since the early 2000sHowever, there's been one major laggard: Japan's Air Water (4088 JP – US$3.8 billion). 

Air Water (4088 JP): Japan’s Second-Largest Industrial Gas Business in Full-On Restructuring Mode

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/air-water-inc" target="_blank" data-smartkarma-citation="entities:18073:1" rel="noopener">Air Water Inc (4088 JP)</a> was a problem stock because of accounting issues. Management got the boot. The TSE said "Security on Special Alert" three weeks ago.</li>
<li>That meant it got the boot from various domestic indices and there were 30mm shares for sale. It turns out Murakami Group has bought half of that.</li>
<li>Shares are +35% since the day after I wrote. Small picture, that brings PSR near its 8yr high. Big picture, EV/Revenue is half that of closest Japan comp Nippon Sanso.</li>
</ul>



Air Water Inc (4088 JP) was a problem stock because of accounting issues. Management got the boot. The TSE said "Security on Special Alert" three weeks ago.
That meant it got the boot from various domestic indices and there were 30mm shares for sale. It turns out Murakami Group has bought half of that.
Shares are +35% since the day after I wrote. Small picture, that brings PSR near its 8yr high. Big picture, EV/Revenue is half that of closest Japan comp Nippon Sanso.


[Japan Event] Air Water (4088) - Small Picture Vs Big Picture

Japan Specialist

Mark Chadwick

<ul>
<li>City Index built a 5.86% stake in Air Water, targeting governance reform and valuation upside following accounting issues and sector discount. </li>
<li>GMO Asset Management acquired 5.01% of Mizuno, betting operational improvements can narrow profitability gaps and drive a valuation re-rating.</li>
<li>Zennor Asset Management took 5.04% of Katakura, attracted by its undervalued asset-heavy balance sheet and scope for balance sheet optimisation.</li>
</ul>


City Index built a 5.86% stake in Air Water, targeting governance reform and valuation upside following accounting issues and sector discount. 
GMO Asset Management acquired 5.01% of Mizuno, betting operational improvements can narrow profitability gaps and drive a valuation re-rating.
Zennor Asset Management took 5.04% of Katakura, attracted by its undervalued asset-heavy balance sheet and scope for balance sheet optimisation.


Japan Activist Briefs | Air Water, Mizuno, Katakura

<ul>
<li>On May 1, the TSE designated <a href="https://www.smartkarma.com/entities/air-water-inc" target="_blank" data-smartkarma-citation="entities:18073:1" rel="noopener">Air Water Inc (4088 JP)</a> a Security on Special Alert. This is a relatively new designation category with big impact. </li>
<li>This happens when the TSE deems the Company violated terms of the Code of Corporate Conduct. This was something of a known known. </li>
<li>This triggers index deletions in the very near-term. The stock reacted badly on Friday, but big picture the stock is cheap. </li>
</ul>


On May 1, the TSE designated Air Water Inc (4088 JP) a Security on Special Alert. This is a relatively new designation category with big impact. 
This happens when the TSE deems the Company violated terms of the Code of Corporate Conduct. This was something of a known known. 
This triggers index deletions in the very near-term. The stock reacted badly on Friday, but big picture the stock is cheap. 


[Quiddity Index] Air Water (4088) Accounting SNAFUs Mean Big Index Deletion Imminent

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>SMCI -33% after federal prosecutors accused officials of smuggling Nvidia chips into China. Bad for Nidec Corp (6594 JP) who makes server cooling modules for SMCI.</li>
<li>Chiyoda looks interesting on Qatar LNG reconstruction given its direct tie-up with Technip once conflict stabilises.</li>
<li>Sumi Forestry looking increasingly ill-timed on its Tri Pointe acquisition as US homebuilder rates hit highest since mid-2026.</li>
</ul>


SMCI -33% after federal prosecutors accused officials of smuggling Nvidia chips into China. Bad for Nidec Corp (6594 JP) who makes server cooling modules for SMCI.
Chiyoda looks interesting on Qatar LNG reconstruction given its direct tie-up with Technip once conflict stabilises.
Sumi Forestry looking increasingly ill-timed on its Tri Pointe acquisition as US homebuilder rates hit highest since mid-2026.


Japan Morning Connection: SMCI's Chip Smuggling Scandal Drags Server and Memory Down

Japan

AIR WATER INC. produces industrial gases such as oxygen, nitrogen, argon, and acetylene.  The Company also sells fuels and processed foods.

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Air Water Inc (4088 JP)

Air Water (4088 JP): Japan’s Second-Largest Industrial Gas Business in Full-On Restructuring Mode

While the world is obsessing about AI, there's been a quiet bull market in the world's industrial gas companies. Stocks like Linde (LNA US –...

Asian Century Stocks

[Japan Event] Air Water (4088) - Small Picture Vs Big Picture

Air Water is at a new 10-year high following activist Oasis filing a 6% position, in addition to Murakami Group with 6.9%. AGM is Friday. July 1...

Travis Lundy

Japan Activist Briefs | Air Water, Mizuno, Katakura

Investment firms City Index, GMO Asset Management, and Zennor Asset Management take significant stakes in Air Water, Mizuno, and Katakura...

Mark Chadwick

[Quiddity Index] Air Water (4088) Accounting SNAFUs Mean Big Index Deletion Imminent

Air Water had a multi-year run where inappropriate accounting was implemented and seemingly approved. It's bad. Thankfully it's a small portion of...

Travis Lundy

Japan Morning Connection: SMCI's Chip Smuggling Scandal Drags Server and Memory Down

SMCI Nvidia chip smuggling charges hit server and memory names. Japan's SPE names likely muted at open after missing Thursday's US rebound during...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Air Water (4088 JP): Japan’s Second-Largest Industrial Gas Business in Full-On Restructuring Mode

While the world is obsessing about AI, there's been a quiet bull market in the world's industrial gas companies. Stocks like Linde (LNA US –...

Asian Century Stocks

[Japan Event] Air Water (4088) - Small Picture Vs Big Picture

Air Water is at a new 10-year high following activist Oasis filing a 6% position, in addition to Murakami Group with 6.9%. AGM is Friday. July 1...

Travis Lundy

Japan Activist Briefs | Air Water, Mizuno, Katakura

​Investment firms City Index, GMO Asset Management, and Zennor Asset Management take significant stakes in Air Water, Mizuno, and Katakura...

Mark Chadwick

[Quiddity Index] Air Water (4088) Accounting SNAFUs Mean Big Index Deletion Imminent

Air Water had a multi-year run where inappropriate accounting was implemented and seemingly approved. It's bad. Thankfully it's a small portion of...

Travis Lundy

Japan Morning Connection: SMCI's Chip Smuggling Scandal Drags Server and Memory Down

SMCI Nvidia chip smuggling charges hit server and memory names. Japan's SPE names likely muted at open after missing Thursday's US rebound during...

Andrew Jackson

Investment firms City Index, GMO Asset Management, and Zennor Asset Management take significant stakes in Air Water, Mizuno, and Katakura...