Maruzen Showa Unyu has achieved long-term growth centred on port logistics and international transportation, with net income approximately 3.2 times higher and shareholders’ equity approximately 2.1 times greater over the past 10 years. Its share price has risen approximately fourfold, but the stock is considered undervalued relative to peers.
Maruzen Showa Unyu, which was founded in Yokohama as a port cargo-handling company, has grown into an integrated logistics company centred on port logistics and international transportation. In recent years, cargo volumes have increased against a backdrop of growth in manufacturing in China and ASEAN and the expansion of cross-border e-commerce, while the volume handled in port operations and international transportation has expanded over the long term. The company has also strengthened its business continuity planning and diversified its locations, improving the stability and profitability of its customer base.
Net income is on an upward trend, and margins have improved alongside revenue growth. By segment, the expansion of high-value-added areas such as logistics, warehousing and customs clearance has contributed to performance, and the share price has risen in line with its historical trend. Revenue and profit are expected to continue increasing, with forecasts for the fiscal years ending March 2027 and March 2028 based on further revenue and profit growth.
Shareholders’ equity has approximately doubled to 2.1 times its level of 10 years ago, while market capitalisation has expanded approximately fourfold. Meanwhile, the PBR has improved from 0.5x to 1.0x, and the stock is considered undervalued. Competitors include Senko Group Holdings and SBS Holdings, and the stock is considered to have room for a re-rating if its undervaluation is eliminated based on the relationship between ROE and PBR.
A DuPont analysis comparing financial leverage and the composition of ROE shows that Maruzen Showa Unyu has relatively low financial leverage and ROE of approximately 9%. Estimates also indicate that raising financial leverage to around the industry average could provide room for ROE and PBR to rise. Under its medium-term management plan from fiscal 2025 onward, the company plans capital investment of approximately ¥40 billion and M&A of approximately ¥10 billion, and intends to pursue a growth strategy using additional funding.