Itochu: A Great Collection, But Expecting Logistic Cost Impacts And JPY Risks

Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryItochu Corporation offers a quality, diversified profile with standout non-resource businesses, notably the competitive FamilyMart convenience chain.Itochu should face margin pressure from rising logistics and input costs, particularly in food and maybe textiles, due to the oil crisis and imported inflation.Resource segments, especially coal and oil E&P, are positioned for profit recovery amid higher energy prices, offsetting some non-resource headwinds.We are cautious about logistics costs and JPY weakness, but some drivers remain, and there are turnaround vectors in well-positioned resource businesses to develop.Still, we don't see the planned profit growth as particularly likely for the FY.Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » Mukhammad Syafiul Umam/iStock Editorial via Getty Images ITOCHU Corporation (ITOCY)(ITOCF) (or best through the Japanese listing, which is what we're considering, (ISIN:JP3143600009) has a lot of non-resource businesses, and there's a lot of quality in the profile - we're especially impressed byThis article was written byValkyrie Trading Society5.53K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.