Japan’s fourth-largest electric utility at 47 cents on the dollar, with a nuclear restart already underway
Tohoku Electric Power (9506.T): ¥2.4T in revenue, 7.6 million customers across northern Honshu, 0.5x price-to-tangible book, ¥1.1T in equity vs a ¥505.8B market cap, and a 4.0% dividend yield
Sendai is the largest city in the Tohoku region, a place of wide boulevards, zelkova trees, and beef tongue restaurants. It’s also the headquarters of a company that has been generating and delivering electricity to northern Japan since 1951.
Tohoku Electric Power serves 7.6 million individual and corporate customers across six prefectures in the Tohoku region plus Niigata Prefecture.
It’s the fourth-largest electric utility in Japan by revenue, behind TEPCO, KEPCO, and Chubu Electric Power.
The Tohoku region is beautiful and it’s emptying out.
Population decline in the Tohoku region is among the most severe in Japan, with Akita losing 1.52% per year, Aomori 1.35%, and Yamagata 1.23%.
In 2021, the region had a population of 8.52 million, accounting for just 7.2% of the national total.
The productive-age population is projected to shrink by 31% by 2040.
That’s the kind of demographic headwind that keeps most investors away. And it’s why you can buy over ¥1 trillion of equity for about ¥506 billion.
