Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>
<a href="https://smartkarma.com/entities/seikitokyu-kogyo-co-ltd">Seikitokyu Kogyo</a> is a prominent Japanese construction company and a member of the Tokyu Group, specializing in asphalt paving and the manufacturing of paving materials.</li>
 <li>The company has demonstrated a remarkable turnaround in profitability and cash flow in recent years, evidenced by a 3-year net income CAGR of 60.57% and a strong dividend profile, including a latest yield of 5.1% and a target Dividend on Equity (DOE) of 6%.</li>
 <li>Future growth is expected to be driven by Japan's ongoing need to modernize and maintain its aging road infrastructure, disaster resilience projects, and urban redevelopment, particularly projects associated with the Tokyu Group.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Seikitokyu Kogyo is a prominent Japanese construction company and a member of the Tokyu Group, specializing in asphalt paving and the manufacturing of paving materials.
  The company has demonstrated a remarkable turnaround in profitability and cash flow in recent years, evidenced by a 3-year net income CAGR of 60.57% and a strong dividend profile, including a latest yield of 5.1% and a target Dividend on Equity (DOE) of 6%.
  Future growth is expected to be driven by Japan's ongoing need to modernize and maintain its aging road infrastructure, disaster resilience projects, and urban redevelopment, particularly projects associated with the Tokyu Group.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Seikitokyu Kogyo (1898 JP) - Aug 2026

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Shareholder proposals for AGMs in Japan are somewhat rare. Activist proposals rarer still. They only affect roughly 2% of companies with June AGMs and shareholder proposals are rarely passed, but they may reflect the pressure on a company, and when something has enough support, management may end up agreeing to it if not outright supporting it later on.Activist fund Strategic Capital has made shareholder proposals to 6 companies (that we know of) in the past month or so, starting with <a href="https://www.smartkarma.com/entities/wakita-co-ltd" target="_blank" data-smartkarma-citation="entities:11924:1" rel="noopener">Wakita &amp; Co Ltd (8125 JP)</a> which has a May AGM, as discussed in <a href="https://www.smartkarma.com/insights/japan-activism-a-look-into-wakita-8125-jp-potential-pre-event" target="_blank" data-smartkarma-citation="insights:50034" rel="noopener">Japan Activism: A Look into Wakita (8125 JP) Potential Pre-Event</a> and <a href="https://www.smartkarma.com/entities/wakita-co-ltd" target="_blank" data-smartkarma-citation="entities:11924:1" rel="noopener">Wakita &amp; Co Ltd (8125 JP)</a> at the beginning of the month, and five more names announced on the 28th of April. Those five names are <a href="https://www.smartkarma.com/entities/asanuma-corp" target="_blank" data-smartkarma-citation="entities:19612:1" rel="noopener">Asanuma Corp (1852 JP)</a>, <a href="https://www.smartkarma.com/entities/seikitokyu-kogyo-co-ltd" target="_blank" data-smartkarma-citation="entities:7819:1" rel="noopener">Seikitokyu Kogyo (1898 JP)</a>, <a href="https://www.smartkarma.com/entities/arisawa-mfg-co-ltd" target="_blank" data-smartkarma-citation="entities:18028:1" rel="noopener">Arisawa Mfg (5208 JP)</a>, <a href="https://www.smartkarma.com/entities/bunka-shutter-co-ltd" target="_blank" data-smartkarma-citation="entities:5903:1" rel="noopener">Bunka Shutter (5930 JP)</a>, and <a href="https://www.smartkarma.com/entities/kyokuto-boeki-kaisha-ltd" target="_blank" data-smartkarma-citation="entities:12884:1" rel="noopener">Kyokuto Boeki Kaisha (8093 JP)</a>.This eclectic group is unified by overly strong balance sheets. In this case, "newly" emphasised net receivables.  <h2>First up... <a href="https://www.smartkarma.com/entities/asanuma-corp" target="_blank" data-smartkarma-citation="entities:19612:1" rel="noopener">Asanuma Corp (1852 JP)</a> </h2><hr>Activist AGM Proposals so far this year are as follows (🤖 is Japanese language, 👹 is English):<table class="table table-striped"><tbody>
<tr>
<td style="width: 36px;">Date Anncd</td>
<td style="text-align: center; width: 33.6px;">Ticker</td>
<td style="width: 122.4px;">Company</td>
<td style="width: 41.6px;">AGM</td>
<td style="width: 48px;">Proposal</td>
<td style="width: 187.2px;">Proposer</td>
<td style="width: 128px;">Smartkarma Insights</td>
</tr>
<tr>
<td style="width: 36px;">15 Apr</td>
<td style="text-align: center; width: 33.6px;">8918</td>
<td style="width: 122.4px;">Land</td>
<td style="width: 41.6px;">27 May</td>
<td style="width: 48px;"><a href="http://www.land.jp/pdf/20210415154419_1.pdf" target="_blank" rel="noopener">🤖</a></td>
<td style="width: 187.2px;">An individual</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">23 Apr</td>
<td style="text-align: center; width: 33.6px;">8125</td>
<td style="width: 122.4px;">Wakita</td>
<td style="width: 41.6px;">27 May</td>
<td style="width: 48px;">
<a href="https://contents.xj-storage.jp/xcontents/81250/a6125b97/fbfe/4961/baac/116bc18b2917/140120210423498992.pdf" target="_blank" rel="noopener">🤖</a> , <a href="https://stracap.jp/english/wp-content/uploads/2021/04/To-Shareholder-of-WAKITA-CO.-LTD..pdf" target="_blank" rel="noopener">👹</a>
</td>
<td style="width: 187.2px;">Strategic Capital</td>
<td style="width: 128px;">
<a href="https://www.smartkarma.com/insights/japan-activism-a-look-into-wakita-8125-jp-potential-pre-event" target="_blank" rel="noopener">insight 1</a>, <a href="https://www.smartkarma.com/insights/wakita-rejects-stracap-s-shareholder-proposals" target="_blank" rel="noopener">insight 2</a>
</td>
</tr>
<tr>
<td style="width: 36px;">27 Apr</td>
<td style="text-align: center; width: 33.6px;">6815</td>
<td style="width: 122.4px;">Uniden</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;"><a href="http://www.uniden.co.jp/ir/news/dat/2021/information_20210427.pdf" target="_blank" rel="noopener">🤖</a></td>
<td style="width: 187.2px;">LIM Japan Event Master Fd</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">28 Apr</td>
<td style="text-align: center; width: 33.6px;">.1852</td>
<td style="width: 122.4px;">Asanuma</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;">
<a href="https://www.asanuma.co.jp/ir/pdf/etc/20210428k.pdf" target="_blank" rel="noopener">🤖</a> , <a href="https://stracap.jp/english/proposal/2021_asanuma" target="_blank" rel="noopener">👹</a>
</td>
<td style="width: 187.2px;">Strategic Capital</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">28 Apr</td>
<td style="text-align: center; width: 33.6px;">8093</td>
<td style="width: 122.4px;">Kyokuto Boeki Kaisha</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;">
<a href="https://contents.xj-storage.jp/xcontents/AS01655/21124bce/241c/4a3a/8482/00305b8413e6/140120210428402431.pdf" target="_blank" rel="noopener">🤖</a> , <a href="https://stracap.jp/english/proposal/2021_kbk" target="_blank" rel="noopener">👹</a>
</td>
<td style="width: 187.2px;">Strategic Capital</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">28 Apr</td>
<td style="text-align: center; width: 33.6px;">1898</td>
<td style="width: 122.4px;">Seikitokyu Kogyo</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;">
<a href="https://www.seikitokyu.co.jp/dev/wp-content/themes/twentysixteen/pdf/info/20210428.pdf" target="_blank" rel="noopener">🤖</a> , <a href="https://stracap.jp/english/proposal/2021_seikitokyu" target="_blank" rel="noopener">👹</a>
</td>
<td style="width: 187.2px;">Strategic Capital</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">28 Apr</td>
<td style="text-align: center; width: 33.6px;">5208</td>
<td style="width: 122.4px;">Arisawa Mfg</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;"><a href="https://stracap.jp/english/proposal/2021_arisawa" target="_blank" rel="noopener">👹</a></td>
<td style="width: 187.2px;">Strategic Capital</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">28 Apr</td>
<td style="text-align: center; width: 33.6px;">5930</td>
<td style="width: 122.4px;">Bunka Shutter</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;"><a href="https://stracap.jp/english/proposal/2021_bunkasutter" target="_blank" rel="noopener">👹</a></td>
<td style="width: 187.2px;">Strategic Capital</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">28 Apr</td>
<td style="text-align: center; width: 33.6px;">2327</td>
<td style="width: 122.4px;">NS Solutions</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;">
<a href="https://ssl4.eir-parts.net/doc/2327/tdnet/1958513/00.pdf" target="_blank" rel="noopener">🤖</a> , </td>
<td style="width: 187.2px;">AVI Japan Opportunity Trust PLC</td>
<td style="width: 128px;"></td>
</tr>
<tr>
<td style="width: 36px;">30 Apr</td>
<td style="text-align: center; width: 33.6px;">4295</td>
<td style="width: 122.4px;">Faith</td>
<td style="width: 41.6px;">June</td>
<td style="width: 48px;"><a href="https://www.faith.co.jp/ir/pdf/20210430_ir.pdf" target="_blank" rel="noopener">🤖</a></td>
<td style="width: 187.2px;">RMB Capital Japan Oppty Fd</td>
<td style="width: 128px;"></td>
</tr>
</tbody></table>

Shareholder proposals for AGMs in Japan are somewhat rare. Activist proposals rarer still. They only affect roughly 2% of companies with June AGMs and shareholder proposals are rarely passed, but they may reflect the pressure on a company, and when something has enough support, management may end up agreeing to it if not outright supporting it later on.Activist fund Strategic Capital has made shareholder proposals to 6 companies (that we know of) in the past month or so, starting with Wakita &amp; Co Ltd (8125 JP) which has a May AGM, as discussed in Japan Activism: A Look into Wakita (8125 JP) Potential Pre-Event and Wakita &amp; Co Ltd (8125 JP) at the beginning of the month, and five more names announced on the 28th of April. Those five names are Asanuma Corp (1852 JP), Seikitokyu Kogyo (1898 JP), Arisawa Mfg (5208 JP), Bunka Shutter (5930 JP), and Kyokuto Boeki Kaisha (8093 JP).This eclectic group is unified by overly strong balance sheets. In this case, "newly" emphasised net receivables.  First up... Asanuma Corp (1852 JP) Activist AGM Proposals so far this year are as follows (🤖 is Japanese language, 👹 is English):

Date Anncd
Ticker
Company
AGM
Proposal
Proposer
Smartkarma Insights


15 Apr
8918
Land
27 May
🤖
An individual



23 Apr
8125
Wakita
27 May

🤖 , 👹

Strategic Capital

insight 1, insight 2



27 Apr
6815
Uniden
June
🤖
LIM Japan Event Master Fd



28 Apr
.1852
Asanuma
June

🤖 , 👹

Strategic Capital



28 Apr
8093
Kyokuto Boeki Kaisha
June

🤖 , 👹

Strategic Capital



28 Apr
1898
Seikitokyu Kogyo
June

🤖 , 👹

Strategic Capital



28 Apr
5208
Arisawa Mfg
June
👹
Strategic Capital



28 Apr
5930
Bunka Shutter
June
👹
Strategic Capital



28 Apr
2327
NS Solutions
June

🤖 , 
AVI Japan Opportunity Trust PLC



30 Apr
4295
Faith
June
🤖
RMB Capital Japan Oppty Fd


  

2021 Japan AGM Activism - StraCap Proposals for Asanuma Corp (1852)

Last year, 55 Japanese listed companies received shareholder proposals in the June AGM season. Of course, some of the shareholder proposals made are spurious and made for a laugh, but last year <a href="https://www.nikkei.com/article/DGXMZO60929010Z20C20A6EA1000/?s=5" target="_blank" rel="noopener">23 companies received proposals from activist investors</a>, up from 16 in June 2019.  Data collated by <a href="https://www.whitecase.com/publications/alert/japans-2020-proxy-season-results-announced" target="_blank" rel="noopener">White &amp; Case</a> in summer 2020 showed that of the 22 companies which received activist proposals (their number is different than IR Japan's), 30 proposals to those 22 companies received more than 20% of votes, and just under half (14) received 30%. Various commentators noted that for the 2020 AGM season, the impact of COVID-19 and the fact that many meetings became virtual meetings, along with the fact that the lockdowns were of unknown effect but revenue and profit impact in the year ahead was deemed to be severe, many activist shareholders which would have proposed large buybacks as a use of excess cash may have decided to temper their request. Where they did not, often the response from management was that because of the significant potential impact of covid-19 mitigation/safety/response measures, large buybacks using up significant cash (just when Japanese corporates had pulled all available cash out of credit lines) was perhaps not wise. Importantly, no measure among the activists shareholder measures last year gained 50% of the vote on that agenda item let alone two-thirds needed to achieve a change in the Articles of Incorporation. Such wins remain rare. However, as White &amp; Case points out, an item which <a href="https://www.smartkarma.com/entities/mizuho-financial-group-inc" target="_blank" data-smartkarma-citation="entities:219:1" rel="noopener">Mizuho Financial Group (8411 JP)</a> management had objected to in 2015, 2016, 2017 and was rejected (shareholder input on income allocation) but with significant support of 41%, 48%, and 43% respectively in those years was re-suggested last year by management itself where the measure received 98% approval.Sometimes these messages get through. But importantly, they are a message because shareholders send them (see <a href="https://www.smartkarma.com/insights/japan-needs-more-cowbell" target="_blank" data-smartkarma-citation="insights:41191" rel="noopener">Japan Needs More Cowbell</a> for more thoughts on the matter). The measure proposed by the activist to Mizuho was actually an individual activist named Mitsutaka YAMAGUCHI and he held 30,000 shares, giving him the right to make the proposal.*<div class="content-remarks">*The minimum criteria are that a shareholder hold 300 voting rights or 1.0% of shares outstanding for at least six months to be able to put a proposal to shareholders at an AGM. And based on a change in the Companies Act which should have gone into effect on March 1, the content for such shareholder proposals is restricted now to one of ten areas. </div>The deadline for such shareholder proposals is usually 8 weeks prior to the AGM which means in most cases for June-end AGMs, they had to be submitted by the end of April. I expect we will see a flurry of company reports of new shareholder proposals in the days ahead.This insight serves as an anchor for selected insights to follow which discuss shareholder proposals on specific companies, how to get information, and follow-up where notable, from shareholder proxy services, etc.

Last year, 55 Japanese listed companies received shareholder proposals in the June AGM season. Of course, some of the shareholder proposals made are spurious and made for a laugh, but last year 23 companies received proposals from activist investors, up from 16 in June 2019.  Data collated by White &amp; Case in summer 2020 showed that of the 22 companies which received activist proposals (their number is different than IR Japan's), 30 proposals to those 22 companies received more than 20% of votes, and just under half (14) received 30%. Various commentators noted that for the 2020 AGM season, the impact of COVID-19 and the fact that many meetings became virtual meetings, along with the fact that the lockdowns were of unknown effect but revenue and profit impact in the year ahead was deemed to be severe, many activist shareholders which would have proposed large buybacks as a use of excess cash may have decided to temper their request. Where they did not, often the response from management was that because of the significant potential impact of covid-19 mitigation/safety/response measures, large buybacks using up significant cash (just when Japanese corporates had pulled all available cash out of credit lines) was perhaps not wise. Importantly, no measure among the activists shareholder measures last year gained 50% of the vote on that agenda item let alone two-thirds needed to achieve a change in the Articles of Incorporation. Such wins remain rare. However, as White &amp; Case points out, an item which Mizuho Financial Group (8411 JP) management had objected to in 2015, 2016, 2017 and was rejected (shareholder input on income allocation) but with significant support of 41%, 48%, and 43% respectively in those years was re-suggested last year by management itself where the measure received 98% approval.Sometimes these messages get through. But importantly, they are a message because shareholders send them (see Japan Needs More Cowbell for more thoughts on the matter). The measure proposed by the activist to Mizuho was actually an individual activist named Mitsutaka YAMAGUCHI and he held 30,000 shares, giving him the right to make the proposal.**The minimum criteria are that a shareholder hold 300 voting rights or 1.0% of shares outstanding for at least six months to be able to put a proposal to shareholders at an AGM. And based on a change in the Companies Act which should have gone into effect on March 1, the content for such shareholder proposals is restricted now to one of ten areas. The deadline for such shareholder proposals is usually 8 weeks prior to the AGM which means in most cases for June-end AGMs, they had to be submitted by the end of April. I expect we will see a flurry of company reports of new shareholder proposals in the days ahead.This insight serves as an anchor for selected insights to follow which discuss shareholder proposals on specific companies, how to get information, and follow-up where notable, from shareholder proxy services, etc. 

Japan Activism:  Shareholder Proposals for the Q2 AGM Season Start Trickling In

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-road-co-ltd" target="_blank" data-smartkarma-citation="entities:12581:1" rel="noopener">Nippon Road (1884 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/shimizu-corp" target="_blank" data-smartkarma-citation="entities:8530:1" rel="noopener">Shimizu Corp (1803 JP)</a> at JPY2,520, a 16.2% premium to the undisturbed price.</li>
<li>The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.</li>
<li>The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal. </li>
</ul>



Nippon Road (1884 JP) has recommended a tender offer from Shimizu Corp (1803 JP) at JPY2,520, a 16.2% premium to the undisturbed price.
The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.
The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal. 


Nippon Road (1884 JP): Shimizu Corp (1803 JP) Tender Offer Is Light but Likely Done

<ul>
<li>Today, YFO (WK1 Limited) filed an <a href="https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100QXII.pdf?sv=2020-08-04&amp;st=2023-06-13T12%3A26%3A16Z&amp;se=2028-06-13T15%3A00%3A00Z&amp;sr=b&amp;sp=rl&amp;sig=oUK2bOEu4Z3eq5k0U3V3UgPd%2FFhlZkvPaUiHl9LDMjc%3D" target="_blank" rel="noopener">amendment</a> to its Large Shareholder Filing saying it had increased its stake from 27.19% to 28.51%. GK Yamauchi No10 Family Office bought 1.32%.</li>
<li>Almost immediately, <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a> said YFO<a href="https://www.toyo-const.co.jp/wp/wp-content/uploads/2023/06/20230613.pdf" target="_blank" rel="noopener"> had likely conducted an illegal act</a> according to US Securities Exchange Act of 1934, Rule 14e-5. This is likely hogwash.</li>
<li>YFO is upping its stake for a zero premium tender and Toyo is fighting old battles. And the stock chugs higher.</li>
</ul>


Today, YFO (WK1 Limited) filed an amendment to its Large Shareholder Filing saying it had increased its stake from 27.19% to 28.51%. GK Yamauchi No10 Family Office bought 1.32%.
Almost immediately, Toyo Construction (1890 JP) said YFO had likely conducted an illegal act according to US Securities Exchange Act of 1934, Rule 14e-5. This is likely hogwash.
YFO is upping its stake for a zero premium tender and Toyo is fighting old battles. And the stock chugs higher.


Yamauchi Family Office Buys More Toyo; Toyo Claims More Malfeasance, ISS Supports YFO

Japan

SEIKITOKYU KOGYO CO., LTD. is a general construction company belonging to Tokyu group.  The Company specializes in asphalt paving.  Seikitokyu also constructs infrastructure and buildings with cement materials.  The Company produces and sells asphalt mixture.  Seikitokyu manages sports facilities such as tennis clubs and golf clubs through its subsidiaries.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Seikitokyu Kogyo (1898 JP)

Primer: Seikitokyu Kogyo (1898 JP) - Aug 2026

Seikitokyu Kogyo is a prominent Japanese construction company and a member of the Tokyu Group, specializing in asphalt paving and the...

αSK Primers

2021 Japan AGM Activism - StraCap Proposals for Asanuma Corp (1852)

2020 AGM Activism (A Series) - Strategic Capital AGM proposals for Asanuma will get dinged, like last year. They make some sense, but high div and...

Travis Lundy

Japan Activism: Shareholder Proposals for the Q2 AGM Season Start Trickling In

Japan AGM season starts in earnest in mid-June but the deadline for shareholder proposals is 8 weeks prior. 8 June AGM Companies so far received...

Travis Lundy

Nippon Road (1884 JP): Shimizu Corp (1803 JP) Tender Offer Is Light but Likely Done

The offer is below the midpoint of the target IFA DCF valuation range and peer multiples. However, the required minority acceptance rate is not...

Arun George

Yamauchi Family Office Buys More Toyo; Toyo Claims More Malfeasance, ISS Supports YFO

Toyo rails against YFO. ISS recommends to mostly support YFO. YFO increases its stake in Toyo Construction, Toyo objects and calls it unfair...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)