Nippon Paper Industries Cuts Stake in Lintec (7966) to 19.73% | Large Shareholding Report

A large shareholding report (EDINET filing) shows that Nippon Paper Industries Co., Ltd. has reduced its stake in Lintec Corporation (7966) to 19.73%. Nippon Paper is a major paper manufacturing company. Lintec manufactures and sells adhesive products, paper products, and electronic materials, providing diverse products including packaging materials, films, and labels for various industries. The 19.73% holding represents a substantial stake in the company's market capitalization. Starting from an initial filing in July 2025 at 27.31%, the company has gradually reduced its position by 7.58 percentage points over the past year.

Gradual Divestment Over One Year

Nippon Paper first reported its Lintec holding in July 2025 at 27.31%. By the time of this latest change report approximately one year later, the company had sold approximately ¥25.39 billion worth of shares, reducing its stake by 7.58 percentage points. The divestment appears to have occurred in multiple tranches rather than a single transaction. The share price at the disclosure date was ¥5,580, reflecting the price level at which these sales were executed.

Selective Investment Strategy in Materials Sector

Other major holdings by Nippon Paper reveal a focused investment approach toward materials and component manufacturers. The company holds 4.29% of Nippon Filcon (5942, metal products), 4.16% of Nippon Felt (3512, textile products), and 4.02% of Ichikawa (3513, textile products). None of these stakes approaches Lintec's size, indicating that Lintec remains the company's most significant related-company investment. Nippon Paper also holds 3.21% of Kasuga Shipping (9171, maritime transport), demonstrating some diversification beyond the materials sector. The portfolio composition underscores a strategic emphasis on industrial materials businesses while maintaining exposure to other sectors.

Current Market Valuation Metrics

Lintec trades at a PER of 26.2x and PBR of 1.53x. The PER in the mid-26s implies market expectations for above-average earnings growth, reflecting confidence in the company's profitability trajectory. The PBR of 1.53x indicates that the market values the business at roughly 1.5 times its net asset value, a level consistent with the valuation of industrial material companies. Lintec's current position at 59% of its 52-week range suggests it sits slightly above the midpoint of its annual trading band, placing it within the range where these sales decisions were executed.

*Speculation: By gradually reducing its holding from the high-27% range to below 20%, Nippon Paper may be repositioning Lintec from a controlled affiliate toward a significant but non-controlling related company.