We believe that after implementing the value enhancement plan, Sanken market cap should be worth ¥176bn, or +133% from the current market cap.
That assumes an exit from the Power System Business and operational enhancement of the Semiconductor Device Business excluding Allegro.
We also believe the Semiconductor Device Business excluding Allegro could achieve a 10% margin, which is still a modest estimate considering the industry median.
We will continue to engage with the Company in order to monitor progress on these issues and to help build A Better Sanken.