Hikari Tsushin Co., Ltd. Cuts Stake in J.S.B. (3480) to 0% | Large Shareholding Report

A large shareholding report (EDINET filing) reveals that Hikari Tsushin Co., Ltd. has reduced its stake in J.S.B. (3480) to 0%. Hikari Tsushin is a major telecommunications mail order distributor that frequently submits large shareholding reports as an investment vehicle. J.S.B. manufactures and sells pharmaceutical and medical devices while conducting related research and development, and Hikari Tsushin's complete exit represents the departure of a significant shareholder. The holding ratio declined 6.77 percentage points from the previous report, marking a full divestment of the position initially held at 6.56% when first disclosed in September last year, just over one year ago.

Sale of 1.487 million shares at ¥9,000 per share

Hikari Tsushin transferred 1,487,600 shares at ¥9,000 per share, generating total proceeds of ¥13.39 billion. The buyer was Ursa 4 K.K., acquiring the shares through a tender offer application. The transaction occurred off-market, and with J.S.B.'s share price at ¥8,990 on the disclosure date, the tender offer sale executed at approximately market rates. This divestment eliminates Hikari Tsushin's large shareholding reporting obligation in J.S.B., as the stake now stands at zero.

Staged divestment over approximately one year

Hikari Tsushin first filed a large shareholding report on J.S.B. on September 19, 2025, holding 6.56% at that time. Across five filings thereafter, including today's report, the holding ratio declined to 0%, representing a full 6.56 percentage point reduction from initial disclosure. Over eleven months, the investor methodically built and then liquidated its position, with zero holdings signifying complete exit from the equity stake.

Portfolio concentrated in information and communications among 224 holdings

Hikari Tsushin maintains stakes exceeding 5% in 224 securities at present, with notable concentration in specific sectors. The highest holding is Arent Co., Ltd. (5254, Information and Communications, 9.23%), while other high-ratio positions include Fukui Computer Holdings (9790, Information and Communications, 8.33%) and Mediadō Co., Ltd. (3678, Information and Communications, 8.42%). Apart from Yuasa-Funasaku Co., Ltd. (8006, Wholesale Trade, 8.68%), four of the five largest holdings operate in information and communications. J.S.B., being medically focused, represented a relatively uncommon sector allocation within this investor's portfolio.

Ursa 4 K.K. dominates with 89.63% ownership

Among investors filing large shareholding reports on J.S.B., Ursa 4 K.K. holds an overwhelming 89.63%, with Hikari Tsushin's exit further concentrating control. Nomura Securities, Yasuko Oka, and Neuberger Berman hold positions below 0.01%, making Hikari Tsushin's former second-place position at 6.77% substantially larger. The departure of this secondary shareholder heightens J.S.B.'s dependence on Ursa 4 K.K. as dominant stakeholder.

PER 36.8x, PBR 4.55x, trading near 52-week highs

J.S.B. displayed a PER of 36.8x, PBR of 4.55x, and traded at 96% of its 52-week range (0% represents the low, 100% the high). The PER of 36.8x reflects relatively high price-to-earnings multiples compared to market averages, suggesting elevated market expectations for earnings growth. The PBR of 4.55x indicates share price substantially exceeding book value, with market valuation significantly above accounting asset value. At 96% of the 52-week range, the stock price was trading near its annual peaks, positioning Hikari Tsushin's divestment at an elevated price point within the one-year trading band.

*Speculation: Hikari Tsushin's complete liquidation of its J.S.B. position may reflect a sharpened sector preference within its portfolio strategy, or a reassessment of medical-related securities' relative importance to its investment thesis.