Sojitz Corporation (2768.T) fair value

ACCE thesis

Sojitz is a Tokyo trading house whose income comes from brokering and financing metals, energy, chemicals, food and infrastructure projects, plus a portfolio of equity stakes in resource and industrial assets, rather than from a single manufacturing line. Its edge is the breadth of that network and the balance sheet to take positions in commodity supply chains that smaller traders cannot fund. Revenue grew 39.3% over the latest reported period, though the 3.5% operating margin and 13.3% gross margin show how thin the spread is on the trading book, so the top line is doing much of the work. At a trailing P/E of 9.8 and a forward P/E of 10.0, the market is pricing a flat earnings profile, with a 10.7% ROE that reflects a business still earning modest returns on a large capital base. The question for a deeper look is whether the recent revenue surge converts into sustained earnings or simply reflects higher commodity prices passing through the books.