
Kyowanissei Co.,Ltd. (1981.T)
ValueMarkers Composite Index
54% below intrinsic value ($21)
Kyowanissei Co.,Ltd. (1981.T) — VMCI valuation read
Headline read on 1981.T: VMCI of 68/100 versus a Basic Materials sector median of 50. The 18-point above-median position is what makes Kyowanissei Co.,Ltd. a relative-value candidate in the mid-cap cohort, before any pillar-level review.
Form 4 filings on 1981.T: zero in the trailing 30 days. The absence of insider transactions is itself a data point, just a low-information one. The thesis runs on financials and price action until that changes.
**Investor frame.** Three reads on 1981.T: value (1981.T trades at 27.0x earnings, 50% above the Basic Materials median of 18.0x), quality (ROIC of 15.0% sits 5.0pp above the Basic Materials median (10.0%)), and risk (net debt to EBITDA of -2.1x leaves covenant headroom). The value read also implies an EV/EBITDA gap of +4.0x against the Basic Materials 12.0x baseline.
1981.T fell 3.7% over the trailing 7 days, with a -8.0% read on a 30-day basis.
Kyowanissei Co.,Ltd. engages in the construction and civil engineering business in Japan. The company operates in four segments: Building Equipment Business, Gas Equipment Business, Gas Pipe Business, and Electrical Construction and Civil Engineering Business. Its businesses cover gas equipment construction; heating, hot water supply, and air conditioning equipment construction; solar cells, fuel cells, and storage battery systems construction; gas pipeline laying work; road paving work related to gas pipeline work; and maintenance services in the areas of commercial air conditioners, gas pipeline repair work, and gas leakage. The company is also involved in water supply/hot water supply, drainage, air-conditioning ventilation equipment, gas hot water systems, sprinkler and inert gas fire extinguishing equipment, and factory plant construction; air conditioning installation work; and water supply, hot water supply, drainage, aeration, and other maintenance of various facilities maintenance. In addition, it undertakes electric construction, installation, and maintenance works comprising general civil engineering works, such as water supply construction and road paving repair works; and irrigation works. Further, the company is involved in the floor heating work, gas equipment installation work, propane gas work, and exterior work; inspection of pipes; vehicle leasing; and non-life insurance agency businesses. Kyowanissei Co.,Ltd. was founded in 1887 and is headquartered in Tokyo, Japan.
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