Japan Investment Adviser is estimated to offer a total yield of around 9% by combining a dividend yield above 5% with QUO Card benefits, with approximately 7 weeks remaining until the December record date. The PER has been trading below 10x.
Japan Investment Adviser (7172) is a financial services company that structures large assets such as aircraft, vessels and marine containers into fractional investment products, sells them to mid-sized and small companies nationwide, and manages them through maturity. Most of its revenue comes from its operating lease business, with transactions offered through the company’s structuring capabilities and sales network.
The company’s strength lies in integrating its ability to source transactions from overseas aircraft and leasing companies with its sales capabilities, delivering them to domestic investors through banks, securities companies and tax accounting firms. Results are expected to show higher revenue, higher profit and an increased dividend this fiscal year as well, drawing attention to the company’s continued growth despite its high dividend yield.
However, the identified risks include the possibility that demand could weaken if the tax benefits change, a high reliance on borrowing due to the impact of inventory held in advance for products, and the susceptibility of its financial position to foreign exchange movements and disruption in the aviation industry. The company’s strengths and weaknesses need to be assessed in light of its financial results.
As the record date approaches, the calculation of the total yield depends on certain assumptions, and the yield can vary substantially depending on how the benefits received when acquiring 100 shares and their value are estimated. The article explains how to assess the nature of the company’s earnings model and the factors behind its share price level, based on primary sources such as earnings summaries and securities reports.