Be Brave Inc., a Tokyo-based investment firm, disclosed on July 17 that it has built a 5.58% stake in Chofu Seisakusho Co., Ltd. (TSE: 5946), acquiring 1,912,200 shares out of the company's 34,239,312 shares outstanding. The position cost roughly ¥3.78bn, funded through an ESG investment partnership that Be Brave manages as executing partner. Of those shares, 712,900 were bought on margin through Tachibana Securities and 586,900 through Mita Securities, according to the filing.
Be Brave says its base policy is to hold the stock as a long-term investment, but it has reserved the right to press the company on four fronts depending on "various circumstances," including Chofu Seisakusho's management policy, financial position and corporate governance record.
| Focus Area | What the Filing Seeks |
|---|---|
| Valuation (PBR) | Achieve and hold a price-to-book ratio above 1 through capital-cost-conscious management |
| Shareholder returns | Sell excess policy-holding shares and rental real estate to fund buybacks and dividend increases |
| Capital efficiency | Execute a capital policy to lift a low return on equity |
| Governance | Review board effectiveness and composition to build shareholder-focused decision-making |
The fund's central complaint is valuation. It wants Chofu Seisakusho to correct a price-to-book ratio below 1, which it says calls for "management conscious of capital cost and stock price," with the aim of pushing and holding PBR above 1. Be Brave also wants the company to sell what it calls excessive policy-holding shares and other securities, along with rental real estate, and use the proceeds to fund share buybacks and flexible dividend increases. On capital efficiency, the fund is asking for a capital policy that lifts what it describes as a low return on equity. And on governance, it wants the board to review its own effectiveness and composition and build decision-making that serves shareholder interests.
The filing does not show whether Chofu Seisakusho has responded to any of the four points, and Be Brave's own language keeps the campaign contingent: the proposals depend on the company's future conduct rather than a fixed timetable. What is fixed is the size of the position. At 5.58% of outstanding shares, Be Brave has crossed the disclosure threshold that puts its intentions on the public record, whatever happens next.