Recent Share Price: ¥2,790

Accounting: Japanese Accounting Standards

Fiscal Year: May 31st

Market Cap: ¥10.7 billion ($97 million)

NAKAKITA SEISAKUSHO CO., LTD. is a Japanese manufacturer of automatic control valves, butterfly valves and remote controllers for ships and power plants. The Company offers three types of products:

• Automatic Control Valves (41% Revenue)
  • which include auto actuated valves, servo actuated control valves, remote control valves, cylinder valves, safety valves, air purge-type automatic regulatory equipment, actuators, valves for nuclear plants, superheated steam pressure reducers and attemperators, other special automatic control valves and controlling equipment;
• Butterfly Valves (32% Revenue)
  • which include manual butterfly valves, remote control butterfly valves, and butterfly valves for low-temperature use
• Remote Control Devices (27% Revenue)
  • which include cargo handling and ballast remote controllers and remote water level indication and warning equipment for ships.

Plant / Ship	Use	Kind of product
For Plant	・Power Plant ・Steel Works ・Desalination Plant ・and etc.	・Control / Shut-off Valve ・Butterfly Valve
For Ship	・Cargo line ・Ballast line	・Butterfly Valve ・Valve Remote Control System ・Level Gauging System
	・In Engine Room	・Control / Shut-off Valve

• Number of employees : 346 people.

Recent History

2017

1 for 5 reverse stock split

Capital Allocation

The company has a stated goal of a dividend payout ratio of at least 40%. In the past 3 years, the company has paid out ¥1.3 billion (~12%) in dividends and has bought back over ¥330 million (~3%) in stock.

Regarding the distribution of profits to shareholders, we aim to maintain a steady dividend, and we will strive to achieve the results of that period and forecasts for the following year […] In addition, the Company acquires treasury stock as part of returning profits to shareholders. Although we have reviewed and implemented cancellation and retirement, we would like to consider buying tremendous treasury stock in the future.

2018 Annual Report (Google Translate)

Insider Ownership

Insiders own over 30% of shares outstanding.

Shareholders
Name	Equities	%
Miyata Family	442,000	11.50%
Kenichi Nakakita,	264,400	6.90%
Akihisa Miyata,	114,000	2.97%
Ikuko Watanabe	114,000	2.97%
Tomoko Kurota	114,000	2.97%
Hiroko Nakakita	114,000	2.97%
Kazuko Miyata	109,000	2.84%
Hiroaki Miyata	106,000	2.77%
Sumitomo Mitsui Financial Group, Inc.	86,000	2.24%

Equity Holdings

The company holds over $6 million in stock.

Holdings
Name	Equities	Valuation
Maruichi Steel Tube Ltd (5463)	120,000	$3,765,622
KOKUYO CO., LTD. (7984)	72,200	$1,049,457
KIMURA CHEMICAL PLANTS CO., LTD.(6378)	270,000	$860,714
Kobelco Eco-Solutions Co Ltd (6299)	40,000	$539,757
HYOKI KAIUN KAISHA, LTD. (9362)	10,300	$124,809
Mitsui OSK Lines Ltd (9104)	2,693	$58,508
Sumitomo Mitsui Trust Holdings Inc (8309)	633	$23,057
JSR Corp (4185)	1,063	$15,932
Sanoyas Holdings Corp (7022)	2,640	$4,112
Naikai Zosen Corporation (7018)	100	$1,246

Financials

Disclosure: We own shares in Nakakita Seisakusho Co Ltd (6496:TYO)