Tourism and Investment in Japan

A major earthquake in Japan forces Toyota to suspend production causing another dent on its profit bases significantly Toyota Motor was obliged to shut down its factories after the earthquake that hit the Tohoku region, northern part of Japan, on the night of March 16 made it difficult to procure parts in addition to the global shortage of semiconductors and the spread of the new coronavirus infection.  The earthquake is causing additional problems for the already constrained global automotive supply chain straggling to cope with problems caused by the coronavirus pandemic and Russia’s ongoing invasion of Ukraine.  The impact of the disruption in the distribution network caused by Russia's invasion against Ukraine is another concern for Toyota Motor being exposed to a severe business environment for the time being.  Toyota Motor Corporation announced on March 18 that it will reduce production by about 20,000 units due to the suspension of operations at 11 domestic plant...

Toyota has demonstrated greater flexibility in adapting to supply chain disruptions Toyota Motor Corporation is a Japanese automaker which investors around the world admire its strong business profile, the highest margin in its peer group and resilient credit metrics that provide significant downside resiliency.  Even Toyota is facing difficult business conditions this year such as a shortage of semiconductors forcing Toyota to reduce its production and rising raw material prices, the new coronavirus infection’s lingering effects.  However, Toyota has managed to revise its earnings forecast for FY 2021 upward by securing higher than expected profits through strengthening sales of profitable SUVs, efforts in rationalization and the tailwind of the depreciation of the yen. Toyota has demonstrated greater flexibility in adapting to supply-chain disruptions since the beginning of the Covid-19 pandemic, which resulted in a continuing advantage for Toyota when supply normalizes. ...

COVID-19 cases rise in Japan amid state of emergency, Tokyo Olympics and Paralympics to be downsized The Japanese government has decided to add three prefectures to its state of emergency as coronavirus cases continue to rise.   Prime Minister Yoshihide Suga said on May 14 that he decided to expand a COVID-19 state of emergency covering Tokyo and other areas to three more prefectures as infections continue to surge ahead of the Summer Olympics.  Starting on May 15, it will cover Hokkaido, Okayama and Hiroshima in an effort to curb infections and ease the strain on medical systems. The government will also designate three more prefectures as areas where intensive virus measures should be taken which is often called “Manbou”, acronym in Japanese for quasi-emergency to contain the virus.  Daily new cases have been on the rise nationwide in recent weeks reaching more than 6,000 for the fourth straight day as of May 14. The recent spike in new cases forces the organizers of ...

Ateam engages in entertainment business, lifestyle support business, and EC business Ateam inc., founded in 2000 with its headquarters in Nagoya City, Aichi Prefecture, is an IT company that operates price comparison websites for various services needed in daily life and provides games and useful tool applications for smart devices such as smartphones and tablet devices. Ateam engages in three domains of business which are "entertainment business", "lifestyle support business" and "EC business".  In entertainment business, the company plans, develops and operates games and useful tool applications for smart devices such as “ Hatsune Miku – Tap Wonder”, a new smartphone game starring the Virtual Singer Hatsune Miku and 　 "Revue Starlight", a smartphone game that started as a musical and was followed by a hit anime series, and “BASSA WARRIORS”, a battle RPG where players engage in heart-pounding combat in an expansive fantasy setting.  In the en...

A manufacturer of digital home electronics, automobile-related equipment and precision pressed parts Muto Seiko Co., headquartered in Kakamigahara City, Gifu Prefecture, has been manufacturing plastic molded parts and plastic precision parts worldwide since its establishment in 1956. Muto Seiko offers plastic parts for digital home appliances, such as digital and video cameras.  It also produces center panel units for automobile-related parts including car navigation system, air conditioner, audio as well as molds for injection molding and presses. It has production bases both in Japan and overseas for the company’s integrated production system of mold design, mold manufacturing, plastic molding and assembly of the final process. A factory adjacent to the head office in Gifu serves as a mother factory for overseas production bases in China and Southeast Asia.   COVID-19 pandemic dented Muto Seiko’s profits As for the current business performance, the spread of the new...

From luxurious Wagyu meat to appetizing delicatessen to Japanese confectionery with colorful appearance Kakiyasu Honten Co., Ltd. is a food company founded in 1871 in Kuwana City, Mie Prefecture. Kakiyasu produces and sells prepared food products and is known for processing and selling Matsusaka beef, one of the most prominent brands of Japanese Wagyu Beef. Matsusaka beef is famous for its tender and heavily marbled meat. Only beef products meeting strict grading criteria can be marketed and sold as Matsusaka beef.  Kakiyasu also developed its original brand "Kakiyasu beef" and sell the meat and processed products with that brand name at department stores nationwide. They have been very popular among Japanese consumers as a high-class ingredient. In addition, it also sells delicatessen dishes and traditional Japanese confectionery at restaurants, department stores and supermarkets.  In particular, Kakiyasu has been well known for maintaining high level of standards of its p...

The third wave of the new coronavirus hit Japan with daily new cases exceeding 3,000. Since November, Japan is struggling to contain the third wave of the new coronavirus infection with daily new cases exceeding 3,000 confirmed a day and the number of deaths continuing to break record highs. The cumulative number of infected people has doubled in less than two months since it reached 100,000 on October 29.  The spread of coronavirus infection changed people's consumption behavior. After the pandemic, tourism industry cannot make both ends meet even with government support programs and food industry lost customers who used to often visit restaurants for expensive dinner.  On the other hand, reservations for Christmas cakes have increased 1.3 times compared to last year with high-priced cakes of around 10,000 yen being sold well. People who are forced to refrain from eating out and traveling spend more money on expenses at home such as takeout meal, deliveries and online shopp...

ICHIBANYA boasts incredible profitability although tarnished by COVID-19 infection ICHIBANYA CO., LTD. has been operating and franchising curry specialty restaurants "Curry House CoCo Ichibanya", known as "CoCoICHI" which is a chain restaurant specializing in Japanese-style curry rice. ICHIBANYA has continue to expand its business not only in Japan but also in Asian countries, the United States, the United Kingdom and others for more than 40 years since its establishment in 1978.  Headquartered in Ichinomiya City, Aichi Prefecture, it operates 1,484 restaurants as of September 2020. ICHIBANYA started its business with a small coffee shop opened in Nagoya by its founder and has grown dramatically in a short period of time, becoming a curry specialty store that everyone knows in Japan.  Furthermore, it has expanded its business scale so remarkable that was certified by the Guinness World Records as the largest curry restaurant in the world in 2013.   The fact that...

JR Central posted the first deficit since its privatization The number of railway users in Japan declined due to the spread of the new coronavirus infection. The consolidated earnings forecast for the fiscal year ending March 2021 announced by Central Japan Railway Company (JR Central) is that sales will decrease 53.2% from the previous year to 863 billion yen ending up with operating loss of 185 billion yen, ordinary loss of 258 billion yen and net loss of 192 billion yen.  This is the first full-year deficit since 1987 when JR Central was privatized.  JR Central expects that railroad use will continue to stagnate until the end of the year and then it will recover after that. Especially, rebound of the Shinkansen's business is sluggish compared to the conventional lines. The stagnation has a major impact on JR Central's profits as approximately 90% of the profits of JR Central's railway business come from Tokaido Shinkansen.  In addition, sales of department stores and...

Toyota expands its business to new mobility fields, biotechnology, afforestation, environment and energy. Toyota Motor Corporation has been developing new businesses in various fields such as housing, finance and telecommunications in addition to its main business of automobile manufacturing and sales. Recently, Toyota also focuses on fields such as automobile related business, new mobility fields, biotechnology, afforestation, environment and energy.  Toyota recognizes developing new businesses is indispensable to maintain its vitality and grow sustainably. Toyota has announced a number of new businesses and initiatives since the beginning of this year. For example, Toyota will establish a preparatory committee for the "Hydrogen Value Chain Promotion Council," a new organization that promotes global cooperation on the use of hydrogen and the formation of a supply chain, together with private companies to build a hydrogen society. ENEOS, Kawasaki Heavy Industries, Kansai El...

 Japanese diet falls short of required vegetable intake Kagome Co., Ltd., founded in 1899 and headquartered in Nagoya, manufactures and sells condiments, foods and beverages in Japan. It is also involved in purchase, production and sale of seeds, seedlings, fruits and vegetables. Kagome has a history of more than 100 years in a tomato processing business.  It has 60.9% share of the tomato ketchup market in Japan and 61.2% share of the mixed vegetable and fruit juice market. Kagome who supplies 17.7% of Japan's green and yellow vegetable consumption and 4.4% of vegetable consumption has been greatly contributing to maintain the health of Japanese people.  The Ministry of Health, Labor and Welfare recommends Japanese adult people to consume at least 350 g of vegetables per day to maintain their health. However, according to a survey by the Ministry, the intake of vegetables by each Japanese is 281.4 g a day, which is about 70 g short. Looking at the changes over the last ...

Its aerospace business and “Space Jet” were hit hard by COVID-19 Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. 　 Starting with ship building, the company provides solutions to a broad range of industries from railways and other transportation systems to the energy sector and space development. Although headquartered in Tokyo, Mitsubishi Heavy Industries also has factories for its aerospace projects in the Chubu region where many aerospace related companies are located and occupying 50% of share in Japan's aircraft parts and products market.  Mitsubishi Heavy Industries has been in a difficult business environment recently. The new coronavirus pandemic decreases the profits of the company’s mainstay aircraft parts business. The company is reviewing the development plan for the jet passenger plane "Space Jet," which was originally called "Mitsubishi Regional Jet (MRJ)" as a 90-seat aircraft. It plans to reduce significantl...

Menicon secured profit growth amid COVID-19 disruptions Menicon Co., Ltd. is a leading contact lens manufacturer in Japan founded in 1951, headquartered in Nagoya. It consistently develops, manufactures and sells contact lenses and related products in-house. To date, Menicon has developed various types of contact lenses such as hard lenses, soft lenses, disposables (disposable), lenses for astigmatism and bifocal lenses. It has the No. 1 market share for hard lenses and the No. 2 market for soft lenses in Japan.  As for the recent consolidated financial results, Menicon announced that net income for the fiscal year ended March 31, 2020 was 4 billion yen, up 14% from the previous year. While the sales and profits of most Japanese companies fell sharply due to the spread of new coronavirus infections, Menicon increased its sales by 4.5% from the previous year to 84.5 billion yen, a record high for the fifth consecutive year since listing of its stock. On the other hand, the earning...