IIKKF Iino Kaiun Kaisha Ltd

100

Extremely Bullish Sentiment

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AstrisAdvisory
$IIKKF Navigating a shipping downcycle with strength • A defensive shipping company, now investing in offense – Shipping is cyclical, and earnings volatility has long been the sector's biggest weakness for investors. IINO Lines has successfully reduced the volatility of its earnings by combining its real estate business with shipping. The Company was profitable through all seven years of the FY3/15–FY3/21 shipping market downcycle and grew BVPS +26.9%, while the major domestic peers recorded multiple years of losses and saw BVPS decline meaningfully. IINO Lines is now putting its balance sheet to work by investing in growth. The new MTP moves the Company into an investment phase, with a record capex plan and a capital allocation framework centred on ROIC and ROE. We believe the investment plans outlined in the MTP position IINO Lines to navigate a shipping market made more volatile by the closure of the Strait of Hormuz and to deliver growth over the medium to long term.

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