Rebirth Tokyo 1986

Chapter 196 Planning for IPO
"I'm sorry Sachiko that I don't have time to come out so late to enjoy the cherry blossoms with you."

The Japanese have an extraordinary enthusiasm for cherry blossom viewing. If they don't enjoy the viewing once a year, they always feel that something is missing in their life.

Masato Takeshita naturally did not have such an idea during this holiday, but Sister Izumizu is a pure Japanese, so she had to take her feelings into consideration.

Izumi Sakai is not the kind of girl who likes to make unreasonable demands. She is very reasonable.

She shook her head in satisfaction.

"Yeah, work is important."

"Besides, aren't we on our way to the cherry blossom viewing area? We're going to the very famous Nagano Takato Castle Park."

Japanese people love to make all kinds of messy rankings.

Cherry blossom viewing is a traditional activity in Japan and is naturally not immune to it.

Takato Castle Park in Ina City, Nagano Prefecture, was voted by the Japanese as the best place to view cherry blossoms.

Although there may not have been a similar ranking vote in Japan in 1988, visiting Takato Castle Park to view cherry blossoms has become something that the Japanese people yearn for.

Here are Japan's very famous early cherry blossoms. Compared with the cherry blossoms in Tokyo, the petals are smaller, but the colors of the flowers are more beautiful.

This is also a small benefit for rich people.

After the cherry blossoms in Tokyo have faded, you can still go to other cities and counties to enjoy the cherry blossoms.

And for cherry blossom viewing, you can also ask employees in advance to help occupy the trees.

"How about this place? Isn't it beautiful?"

"Wow, that's great, so beautiful!"

"Thank you, Masato."

Izumi Sakai looked at the beautiful cherry trees in front of her and the wide view ahead, and she was extremely satisfied.

Since we are asking employees for help, we naturally have to find a place with a better location.

Not only must the flowers bloom beautifully, the view must also be great.

This will make their trip to Nagano worthwhile.

"As long as you like it."

The young man held Sister Quanshui's warm and smooth little hand and smiled like a satisfied aunt.

"Yeah, I like it very much."

The girl showed her happy dimples and started to spread out things like mats.

Masato Takeshita is a homebody who doesn't really like going out.

But cherry blossom viewing was really nice. He was lying on his girlfriend's lap, enjoying the breeze, and it felt like a reenactment of an anime.

Of course, you can only lie there for a few minutes.

After a long time, he will feel sad.

After all, real anime is different. It would be very uncomfortable to have someone lying on your legs for a long time.

"Would you like something to eat?"

"Okay, get me a banana."

Banana is Masato Takeshita's favorite fruit, and he basically eats one every day.

Generally it is to replenish energy, and occasionally to enjoy the delicious taste of bananas.

Today, it’s the latter.

"Yeah, okay, do you want grapes?"

"Just leave it there for now. I'll eat it later."

Compared with grapes produced in Japan, Masato Takeshita prefers to eat those produced in China.

Because generally speaking, the inspection standards for food imported by a country are usually higher than those for its own products.

Fruit is a typical example.

The pesticide residue levels in Japanese products are very high, while those imported from China are very low.

Therefore, no matter which country you are from, eating imported products will be safer.

This can also be considered a trade protection strategy.

The standards I set for the outside world are higher, and the standards for my own country are lower.

Domestic products will be more competitive in terms of price.

After lying down for a while, Takeshita Masato sat up and asked curiously, "What are you writing? Are they lyrics?"

Masato Takeshita promised Sister Izumizu that he would help her realize her dream of becoming a star.

The girl is now decorating her house while practicing her singing skills.

She was a complete amateur before, singing relying on her natural voice.

If you don't practice your technique, your vocal cords can easily be ruined.

Many Japanese female singers have serious voice problems due to their lack of scientific pronunciation.

For example, Mika Nakashima who sang "I Once Thought About Ending It All" and Ayumi Hamasaki who sang "My All".

Throat problems are very serious.

"No, I just felt inspired."

Sister Izumizu was a little shy and put the notebook where Masato Takeshita couldn't see it.

"This is good, it's all material."

For a singer, writing lyrics is also a process of accumulation.

The more you accumulate, the more likely you are to write good words.

East Asia is a region that places special emphasis on lyrics.

In a sense, the lyrics are even above the music.

If the singer can write the lyrics himself, he will not only earn more but also be more respected.

"Well, it's alright."

My girlfriend is quite shy and doesn’t want to talk about this matter.

Masato Takeshita didn't insist on asking, but quickly changed the subject: "How is your singing technique practice going? When are you planning to debut?"

Speaking of debut, Izumi Sakai's eyebrows immediately beamed with joy.

"I plan to join Being in the second half of this year, and then prepare for my debut according to President Nagato's request."

If you have the right, you should use it.

So before Izumi Sakai entered the record industry, she already had a place to sing.

"Is that so? Then I'll build you a dedicated recording studio next to the company. This way, when you record and practice singing in the future, you won't have to bother others, and it won't be too noisy."

Practicing singing requires a quiet place.

The company's recording studio is bustling with people, and it's easy to be disturbed.

"Isn't this too extravagant?"

"It doesn't matter. It won't cost much."

It's just a recording studio, and the decoration would only cost tens of millions of yen.

This amount of money is not considered an expense at all.

As time went by, the park became more and more lively.

Many local people from Nagano Prefecture came to the park to enjoy the cherry blossoms.

Soon, the park seemed to come alive, filled with the flavor of life.

Masato Takeshita saw his girlfriend staring at the children of several families not far away and tested her cautiously.

"Why, are you jealous? How about we have a child too?"

Izumi Sakai asked in surprise: "Eh, is it okay?"

"Of course. I just don't like getting married. Children are still fine."

"Maybe he can inherit my business in the future."

Masato Takeshita not only wants to give birth, but also wants to give birth to a lot of life.

Only in this way can a sufficiently good successor be selected.

There are countless examples of fathers being heroes but sons being shits.

Only by adding up the numbers can you choose a more suitable one.

No wonder wealthy Japanese prefer daughters.

Because a daughter can help him find an excellent male heir, but a son cannot.

No matter how smart a daughter-in-law is, it is difficult for her to run a well-known company.

This is related to the physiological conditions of men and women.

Men think more broadly, while women think more narrowly. And thinking more broadly means being more suitable for running a large company.

Of course, there are also women with broader thinking.

But they are rare and very hard to come by.

"okay."

Izumi Sakai lowered her head shyly and answered in a low voice.

Fortunately, Masato Takeshita was paying attention, otherwise it would have been easy to overlook it.

"Then it's decided."

The young man smiled, then naturally put his arms around the girl's waist, shoulder to shoulder with her, enjoying the beautiful and warm moment.

Cherry blossom viewing in one place in Japan can basically last for more than a week. If you follow the cherry blossom season, the viewing time will be even longer.

Even if we don’t count Okinawa, it can be more than a month.

The two naturally would not choose to chase the cherry blossom season.

But I stayed in Nagano Prefecture for 5 days before reluctantly returning to Tokyo.

……

"Qingqian, how is the preparation of the report on Matsumoto Manufacturing going?"

"President, the information is all here."

"Ah, very good."

Matsumoto Manufacturing is preparing to go public in the second half of this year, and the necessary preparations must be carried out in advance.

Number of employees and their educational background, factory location and area, number and value of machines, product sales and profits...

Especially sales volume and profit are of utmost importance.

This is related to Matsumoto Manufacturing's valuation before listing and its stock price after listing.

However, in this regard, Matsumoto Manufacturing has the least to worry about.

Trolley suitcases are still in the blue ocean market, and even if there is competition, it is not fierce.

In addition, Matsumoto Manufacturing still has the title of number one, so even if the competition becomes more fierce in the future, there is no need to worry about the sales of high-end Fengya brands.

As for low-end products, they are also guaranteed by the Shanghai factory.

Not to mention Japan, even the production costs of Southeast Asian products are difficult to beat.

Of course, Takeshita was talking about the cost of mass production.

If it is a family-run factory, no one can beat it.

"Sales in the first quarter were 682 billion yen, a 46% increase from the previous quarter. Compared to the first quarter of last year, the increase was 174%."

This is also a notable feature of new startups. The growth rates of various indicators will be very high in the first few years.

"The shipment volume is also over 400 million pieces. It has increased by 92% compared to the previous quarter and 185% compared to the first quarter of last year."

"Profits also increased significantly, with net profit in the first quarter reaching 276 billion yen. This is a 49% increase from the previous quarter and a 116% increase from the first quarter of last year."

This is the benefit of having a factory in Shencheng. Sales have more than doubled.

The increase in profits was not as great as that in sales.

Profit margins even fell.

The main reason is that although the Shencheng factory is large in scale, it mainly produces low-end suitcases, so the profit margin naturally drops significantly.

"This year, Matsumoto Manufacturing has recruited nearly 1 people. It is estimated that the factory in Japan will be able to increase its shipments by more than 100 million units per quarter."

"And let's take into account the expansion of production in Shencheng."

"The annual sales volume of suitcases is about 3000 million pieces."

"According to estimates, sales could account for over 15% of the global market share. Profits could even account for around 50% of the world's total."

"The full-year net profit should be able to reach 1200 billion yen relatively easily."

The Fuga brand manufactured by Matsumoto is the world's highest-end suitcase brand.

No other suitcase company can compete.

Of course, there are still a small amount of that.

Some brands are even more expensive than the Fuga brand manufactured by Matsumoto.

But there is no point in comparing those suitcases that are handmade in small quantities.

This is the power of high-end brands.

In later generations, Apple Inc. made the most profits by relying on its high-end brand.

Therefore, after the rise of the Chrysanthemum Factory, the United States tried its best to suppress it.

Because Huawei's high-end brand strategy is very successful, it has threatened the position of Apple phones.

At least in the Chinese and European markets, many users choose Huawei's Mate series and P series, which greatly squeezes the market share of Apple and Samsung.

However, as time goes by, Matsumoto Manufacturing's profit share in the suitcase market will gradually decline.

On the one hand, with the bursting of the Japanese bubble, consumption in the high-end market will gradually decrease.

On the other hand, luggage companies in other countries have emerged and occupied more emerging market shares.

However, even if it is reduced, the global profit share will not decrease much.

Because other companies have to pay at least 10% of their sales in patent fees every year.

This is a highly profitable business.

As for the cost, it is negligible, requiring only a small number of auditors' salaries.

"Well, Matsumoto Manufacturing is in a period of rapid growth, and the number of employees has increased a lot."

"Even if there are teething problems, the net profit for the next quarter is estimated to reach 300 billion yen."

“So the company’s valuation must be arranged according to the level of the next quarter.”

At this time, Masato Takeshita really envied semiconductor companies such as Toshiba.

If Matsumoto Manufacturing were a semiconductor company.

Based on the expected profit of more than 1200 billion this year, the valuation can be at least 5000 billion, and the market value will be close to 400 billion US dollars.

The company will become a giant enterprise that attracts worldwide attention.

Unfortunately, Matsumoto Manufacturing is engaged in low-end manufacturing and has limited ability to deliver results.

No matter how much people brag, the market share of suitcases is there.

The valuation multiples before listing were at most 20 times.

This is already pretty good.

If it weren't for the bubble economy era, it would probably be at most 15 times.

Even if it is 15 times, it is because the market is still growing and Matsumoto Manufacturing has a monopoly on high-end brands.

Of course, even if the valuation multiples are lower than those of other companies, Matsumoto Manufacturing's market value will be higher, reaching around US$200 billion.

It can be said that Matsumoto Production relies solely on the suitcase project.

The market capitalization has the opportunity to enter the top 30 in Japan and the top 50 in the world.

This is the power of monopoly, this is the power of the people's livelihood industry.

Even if you only monopolize one branch of the people's livelihood industry - trolley suitcases, you can create an international giant.

Of course, this is also related to the fact that the scale of enterprises around the world is relatively small at this point in time.

If it were in the future, a company with an annual profit of only 10 billion US dollars would not be worth mentioning at all.

This profit is not as much as that of "Genshin Impact".

Even in 2024, when "Genshin Impact" is in its decline, its annual profit is estimated to reach the same level.

"Well, how about we wait a little longer, until the third quarter's profits are out, before listing?"

New employees need to be adjusted in the second quarter, so profits will definitely not be as high as in the third quarter.

If calculated based on the third quarter, the company's profits can definitely be increased further.

The company's market value may reach the 300 billion US dollar mark.

However, after thinking about the consequences of listing at night, Masato Takeshita finally chose to give up this tempting idea.

The stock market will crash by the end of next year, so it’s better to withdraw early.

If you don't withdraw in time, you will lose at least half of your money.

If panic selling occurs, a drop of two-thirds is not impossible.

By then, let alone 200 billion, even 100 billion will be difficult to maintain.

But this is exactly what Takeshita Masato wants.

Only when the company's market value drops can he better recover the shares and realize his employee stock ownership plan.

(End of this chapter)