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T. Rowe Price Japan Fund Makes 4 New Buys in 3rd Quarter

- By David Goodloe

The T. Rowe Price Japan Fund (Trades, Portfolio) made four new buys in the third quarter. It was the most new purchases the fund has made since the fourth quarter of 2015


The investment with the greatest impact on the fund's portfolio was the purchase of 180,000 shares of Chugai Pharmaceutical Co. Ltd. (TSE:4519), a Tokyo-based pharmaceutical company, for an average price of 3,588.41 yen ($34.53) per share. The acquisition had a 1.57% impact on the fund's portfolio.

Vanguard Health Care Fund (Trades, Portfolio) is Chugai's leading shareholder among the gurus with a stake of 13,459,942 shares. The stake is 2.47% of Chugai's outstanding shares and 1.01% of Vanguard's total assets.

Chugai has a price-earnings (P/E) ratio of 30.54, a forward P/E of 31.85, a price-book (P/B) ratio of 3.03 and a price-sales (P/S) ratio of 3.77. GuruFocus gives Chugai a Financial Strength rating of 9/10 and a Profitability and Growth rating of 7/10 with return on equity (ROE) of 10.04% that is higher than 61% of the companies in the Global Drug Manufacturers - Major industry and return on assets (ROA) of 8.11% that is higher than 74% of the companies in that industry.

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Chugai sold for 3,575 yen per share at market close Wednesday. The DCF Calculator gives Chugai a fair value of 1,223.52 yen.

The fund's most expensive new holding was a 1,709-share purchase in Mitsui Fudosan Logistics Park Inc. (TSE:3471), a Japanese real estate investment trust (REIT), for an average price of 301,435 yen per share. The transaction had a 1.35% impact on the portfolio.

The holding is 1.35% of the fund's total assets.

Mitsui Fudosan sold for 319,000 yen per share Wednesday.

The fund purchased 178,600 shares in Eiken Chemical Co. Ltd. (TSE:4549), a Tokyo-based manufacturer of clinical diagnostics and equipment, for an average price of 2,538.88 yen per share. The deal had a 1.24% impact on the portfolio.

The purchase represents 1.24% of the fund's total assets.

Eiken Chemical has a P/E of 22.49, a P/B of 2.02 and a P/S of 1.77. GuruFocus gives Eiken Chemical a Financial Strength rating of 8/10 with no debt and a Profitability and Growth rating of 6/10 with ROE of 9.30% that is higher than 68% of the companies in the Global Medical Devices industry and ROA of 6.59% that is higher than 72% of the companies in that industry.

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Eiken Chemical sold for 3,130 yen per share Wednesday. The DCF Calculator gives Eiken Chemical a fair value of 1,496.94 yen.

The fund acquired 71,800 shares of Jin Co. Ltd. (TSE:3046), a Japanese eyewear company, for an average price of 4,411.21 yen per share. The transaction had a 0.8% impact on the fund's portfolio.

Jin has a P/E of 69.06, a P/B of 8.44 and a P/S of 2.72. GuruFocus gives Jin a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10 with ROE of 12.77% that is higher than 71% of the companies in the Global Luxury Goods industry and ROA of 7.18% that is higher than 76% of the companies in that industry.

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Jin sold for 5,280 yen per share Wednesday. The DCF Calculator gives Jin a fair value of 793.31 yen.

Disclosure: I do not own any stocks mentioned in this article.

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This article first appeared on GuruFocus.