5 Popular Stocks in Japan that Offer Yutai Gifts (July & August 2020 Update)


In this post I will present to you my yutai stock picks for July and August 2020. It’s worth noting that July wasn’t a yutai heavy month, especially compared to August and September. Yutai investing might be fun but without wanting to sound too repetitive, I always like to add as a disclaimer that you shouldn’t just pick a stock solely because of its yutai. Rather yutai should just be considered as a perk in addition to the underlying return opportunities that the stock presents. Needless to say, given the uncertainty surrounding financial markets and COVID cases rising in Japan, I would be cautious before making any new purchases.

Picks for July 2020

(1) DyDo GROUP HOLDINGS,INC. (2590)

DyDo GROUP HOLDINGS,INC_yutai

Company Website
What do they do? The company divides its products in Domestic Beverage Business, Pharmaceutical-Related Business and Food Business. The Domestic Beverage product breakdown shows a high concentration in canned coffees followed by teas and carbonated drinks. The brand is very popular in Japan and the company claims to have a network of around 280,000 vending machines in the country.

Yutai
A box similar to the one shown in the above image. The box contains a selection of Dydo’s products which include coffees, soft drinks and jellies worth 6,000 JPY

Ex-Rights Months: January, July
Yutai Yield:
1.27%
Minimum Shares Required:
100
Investment Amount:
4,765 * 100 = 476,500

To note that the stock price is relatively high so if you are considering Dydo, definitely do a lot of research before investing in it. It’s also worth noting that it’s very unlikely that you would be able to sell on the goods for 6,000 JPY. 


(2) Crossfor Co. (7810)

Crossfor_Yutai

Company Website
What do they do? Crossfor Co. is listed on JASDAQ and according to its IR page, the company sells original jewellery and accessories worldwide, including jewellery with the Dancing Stone setting created by Crossfor to make stones swing and twinkle.

Yutai
100-500 stocks entitles shareholders to 4,500 JPY worth of company product similar to the ones shown in the above picture. 500+ stocks instead gets you jewellery worth 10,000 JPY. This is an example on their yutai page.

Ex-Rights Months: July
Yutai Yield: 12.87%
Minimum Shares Required:
100
Investment Amount:
317 * 100 = 31,700

The yutai yield is very high but the value of the gifts is based on the company’s pricing of the product so inevitably this will be inflated. I also highly doubt that this can be easily sold/monetised.

(3) BALNIBARBI (3418)

balnibari

Company Website
What do they do? The company runs a variety of cafes and restaurant around Japan. As they explain on their homepage, their business involves running restaurants that are unique to the locations where they run their restaurants.

Yutai
Vouchers that can be used across the company’s group restaurants. 100-200 shares for 1,000 JPY in vouchers, 200-600 for 2,000 JPY, 600+ for 4,000 JPY worth of vouchers. Further information can be found here on their Japnaese IR page.

Ex-Rights Months: July, January
Yutai Yield:
2.69%
Minimum Shares Required:
100
Investment Amount:
799*100 = 79,900

(4) NIPPON PARKING DEVELOPMENT Co.,Ltd. (2353)

NipponPark

Company Website
What do they do? The company operates in the car park business and its key segments are concentrated in domestic, oversea car parks and ski resorts.

Yutai
Similar to the other stocks that have already been introduced, this company also provides benefits which are related to its service.  In summary, you can expect to receive the following perks (this information can also be found on the company’s official IR page in Japanese):

  • 5 coupons, 30% discount for company run car parks
  • 3 coupons, 50% discount for a one day ski lift fee for selected locations
  • 2 coupons, 10% discount on rent a car 
  • 2 coupons, discount on holiday packages offered by Greekout, the company’s holiday planning unit
  • 2 coupons, Nasu Highland Park discount tickets


Ex-Rights Months: July
Yutai Yield: 2.69%
Minimum Shares Required: 100
Investment Amount: 135*100 = 13,500 JPY

The company does provide a lot of coupons but unless you use their services, it might be a bit hard getting value out of this yutai. I also looked up the values of these coupons on online auction websites and they go for around 75-400 JPY so not too much value there either.

(5) Kin-Ei Corp (9636)

CCA8E815-84D4-4036-B190-770DA991B14B

Company Website
What do they do? Kin-Ei Corp (also referred to as the cinema company of Kintetsu Group) is based in Osaka and runs a chain of cinemas called Abano Apollo Cinemas. In addition to its core service sector business, the company is also involved in property.

Yutai
The company offers free cinema tickets to its shareholders based on the following numbers of shares held: 

75 shares: 1 cinema ticket(s)/month
150 shares: 2 cinema ticket(s)/month
300 shares: 4 cinema ticket(s)/month
450 shares: 6 cinema ticket(s)/month
750 shares: 10 cinema ticket(s)/month
1,050 shares: 14 cinema ticket(s)/month

Ex-Rights Months: January, July
Yutai Yield:
6-8%
Minimum Shares Required:
75
Investment Amount:
100*2801 = 280,100 JPY 

The yutai for this stock is pretty generous, especially compared to rival cinema companies based in Tokyo. This perk is definitely appealing if you enjoy going watching films at the cinema but the only downside is that most of their cinemas are located in the Kasai area. 

Yutai Stocks for August

As mentioned in the introduction of this post, August is a more yutai heavy month so you can expect to see more interesting picks here. 

(1) Komeda Holdings Co, Ltd. (3543)

2DBDC9B0-1665-451F-8673-918BDECB2BD0

Company Website
What do they do? Komeda is very famous for its coffee shops around Japan. A search on this website returns a total total of 873 shops around Japan with the highest concentration being in Aichi (224), Tokyo (61) and Osaka (57).

Yutai
For shareholders with 100 stocks in this company, every 6 months they will get JPY1,000 worth of credit that can be used at Komeda’s stores. This credit is provided in the form of digital money that gets credited on the Komeca card (this is what they call their points card). For shareholders holding at least 300 stocks and for 3 or more consecutive years, an extra 1,000 JPY is paid out in February.

Summary of the yutai from the company’s IR page for those who can read Japanese. Their latest announcement relates to an extension of the period of validity for the use of these credits due to the impact of COVID. This is something in line with what other companies in Japan are doing for their yutai.

Ex-Rights Months: August, February
Yutai Yield:
1.13%
Minimum Shares Required:
 100
Investment Amount:
100*1,735 = 173,500 JPY

The yutai yield is not that high but if you have a Komeda Coffee nearby and you are keen on their coffee, this might not be a bad perk. I have also checked online auctions and these yutai seem to be in pretty high demand so these are definitely easier to monetise without too much of a discount compared to other yutai that have been introduced in this post.

(2) Transaction Co. Ltd (7818)

C5FCEA77-EEC2-4FD0-A14B-F4DBC7198A13

(picture shows yutai from August 2018)

Company Website
What do they do? The company divides its products in the following manner: 

(1) Custom made miscellaneous goods: goods tailored for events, sales and promotion goods, Prominate, Moleskine.

(2) Original miscellaneous goods: eco & design products, ethical products, travel, pet wear. 

SOURCE (in Japanese)

Yutai
Company products valued at JPY 3,000 twice a year. This increases in the following way: 

100 shares = JPY 3,000 / 6 months
500 shares = JPY 6,000 / 6 months
1,000 shares = JPY 9,000 / 6 months

For the month of August 2020, the company’s yutai consisted of a box of masks and alcohol disinfectant which are both very valuable at the moment. 

Ex-Rights Months:
 February, August
Yutai Yield:
5.3%
Minimum Shares Required:
 100
Investment Amount:
100*1,159 = 115,900 JPY

A stock that gives out masks as yutai during times when there is a shortage of masks is very valuable. The nature of the goods that this stock produces has allowed it to be very resilient to the market turmoil caused by the pandemic. The stock was trading at around 1,200 in January, halved in value in March hitting 600 levels but has steadily recovered since then, reaching levels that we saw prior to the March sell off. 

(3) Ichigo Inc. (2337)

95D9604B-FA7C-47B1-BFC2-8BE75FE81158

Company Website
What do they do? The company mainly focuses on property and renewable energy but its business segment branches out to: smart agriculture, lifestyle hotels and AI. The company is also J.League’s top partner and the yutai that it offers is linked to this partnership. 

Yutai
All shareholders have the right to apply for a company lottery where winners will be given free tickets for J-League matches.

On the company website it states that even though J-League has resumed, due to the limitations on spectators who are allowed to attend matches, the company has encountered difficulties securing tickets so it has temporarily suspended this benefit.

SOURCE (in Japanese)

Ex-Rights Months: August, September
Yutai Yield:  
NA (as this is a lottery and yutai is currently suspended)
Minimum Shares Required:
100
Investment Amount:
100*270 = 27,000 JPY

This might be a good yutai for football fans. The investment amount is low so winning a few tickets in the future might repay for the investment itself whilst adding some thrill. People reported that the probabilities of winning stand at around 0.5-2.0% depending on the match so not the best odds. To add to that, it’s not clear when the company will resume this benefit so that’s also something that has to be taken into account.

(4) Create Restaurants Holdings Inc. (3887)

Company Website
What do they do? The company runs Japanese, Western, Chinese and ethnic cuisines according to their business overview. Some of their major brands include: Hina-Sushi, Shabu Sai, Harvest and Tanto Tanto.

Yutai
Coupons that can be redeemed at the restaurants. The coupon amounts increase based on the number of shares as shown below:

100 shares = 2,000 JPY / 6 months
200 shares = 4,000 JPY 6 months
400 shares = 6,000 JPY 6 months
600 shares = 8,000 JPY 6 months
1,000 shares = 10,000 JPY 6 months
6,000 shares = 16,000 JPY 6 months
9,000 shares = 30,000 JPY 6 months

In addition to the above, the below amounts are added for shareholders who own the stock for a year or longer.

400 shares = 2,000 JPY
3,000 shares = 4,000 JPY
6,000 shares = 6,000 JPY
9,000 shares = 8,000 JPY

Ex-Rights Months: February, August
Yutai Yield: 6.40%
Minimum Shares Required:
100
Investment Amount:
100*632 = 63,200 JPY

The yutai yield on this stock is very competitive and I have seen a number of these coupons being sold on online auctions.

(5) Meiko Network Japan Co. (4668)

Company Website
What do they do? They have a corporate information page in English that summarises their core business but in short they run cram schools and focus on exam preparation services aimed at elementary, junior high and high school students.

Yutai
Unlike the other stocks introduced in this post, this company’s yutai is not linked to its core business, instead shareholders are rewarded in the form of QUO Cards.

100 shares = 500 JPY
500 shares = 1,000 JPY
1,000 shares = 1,500 JPY

For shareholders who hold the stock for at least 3 consecutive years, the payout is as follows:

100 shares = 1,500 JPY
500 shares = 2,000 JPY
1,000 shares = 2,500 JPY

Ex-Rights Months: August
Yutai Yield: 0.65% (depending on holding period)
Minimum Shares Required: 100
Investment Amount: 754*100 = 75,400 JPY

The yutai yield becomes pretty attractive as the stock is held for 3 or more years. QUO Cards are widely accepted around the country which makes them very close to cash.


So this concludes this post and I hope that you found the stocks for this month interesting. There are a few solid picks such as Aeon (8267) which were not mentioned in this post as they were covered in one of my past posts. If you have any suggestions please feel free to get in touch. September also has some interesting yutai stocks so I look forward to introducing to you my picks.

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