Central Japan Railway operates the high-speed Shinkansen rail service between Tokyo and Osaka as well as lower-speed local trains in the same region. It also has related merchandise and real-estate businesses. The Shinkansen is faster than air travel on the Tokyo-Osaka route and takes a similar amount of time on the Tokyo-Okayama route (after allowing for airport check-in etc.); it is also considerably kinder to the environment. However, air travel still captures a significant market share on these routes, in particular the Okayama route. The company is well positioned in an area with a growing population and improving economics, has achieved a high return on equity in the past and has shown steady profit growth over the last five years. The current share price is overly depressed as yield-focussed investors have been selling following the announcement of a planned new Tokyo-Chukyo line, which will reduce the level of surplus cash flow over the next 20 years.
| Sedol |
Type |
Price |
Date |
| 6183552 |
Buy |
JPY 1,025,454 |
13 February 2008 | |
