Uncovering the Pachinko Industry: Part 1

The author's investment thesis for Gamecard Joyco Holdings (6249.T) is that the company is significantly undervalued. It is a pachinko peripheral supplier, providing prepaid IC card systems, a business that generates consistent 10-30% EBIT margins. The company has a strong balance sheet with no debt and has accumulated so much cash that its enterprise value is negative. The author also notes that the pachinko industry is consolidating towards larger parlors, which could be a long-term trend to monitor. This article is the first part of a series, suggesting the author is still in the early stages of research.