RS Technologies (TSE Prime: 3445), a Tokyo-listed silicon wafer reclaim company, closed at 5,430 yen on October 16, 2026. Japan Deep Value argues the market is ignoring its controlling stake in Shanghai-listed Gritek (688432), a China prime-wafer maker. On our math, using the company's own share count, that stake alone was worth about 1.8 times RS Technologies' market value on October 16, before taxes and any discount.
This is journalism and commentary, not investment advice. We hold no position unless stated.
Key facts
- Ticker and exchange: RS Technologies, 3445, Tokyo Stock Exchange Prime.
- The call: Japan Deep Value said on October 17, 2026 (UTC) that the listed China asset is discounted 80% to 90% inside RS.
- Price: 5,430 yen on October 16 and 5,390 yen on October 19, 2026, versus 7,750 yen on July 15.
- The stake: 314,590,400 Gritek shares after a 1% sale, per the company's February 10, 2026 notice.
- Gritek price: 35.67 yuan on October 16, 2026, putting the stake near 11.2 billion yuan, or about 265 billion yen.
- RS market value: about 144.4 billion yen at 5,430 yen.
- First-half 2026 results: revenue of 40.6 billion yen, up 6.8%, and operating income of 7.7 billion yen, up 8.9%.
Is 3445 a good bet right now?
It is a sum-of-the-parts bet that needs a catalyst. On paper, the Gritek stake covers the whole market value with room left over, and the core reclaim business comes free. But parent companies often trade well below the value of their listed stakes, and that gap can last for years. The question is whether RS keeps selling Gritek shares and bringing the cash home, or whether the discount simply stays.
Why are investors bullish on RS Technologies?
- Proof of concept. In its February 10 notice, RS said it would sell 12,500,000 Gritek shares, 1% of the total, for about 3.494 billion yen, for growth investment such as M&A and capital spending, while keeping control.
- A growing core business. Wafer reclaim recycles test wafers for chip fabs and is RS's most profitable segment, with first-half sales of 14.3 billion yen and operating income of 5.1 billion yen.
- Room to sell more. Investors say management has signaled it could sell more Gritek shares over time.
Who's making this call and why?
Japan Deep Value (@JapanDeepValue1) is an account focused on cheap Japanese stocks and activism, with about 8,300 followers on X. On October 17, 2026 (UTC) it wrote, "3445 RS Tech in Japan is an interesting one." It added that "a heavily discounted (60-70%) NAV calc still puts NAV nearly double where it's trading."
Track record. In our tracking, Japan Deep Value is 5-8 (a .385 win rate) on 13 calls scored at 180 days against the S&P 500, with an average edge of about -2.95 percentage points. It is unranked on the career table. See the scoreboard.
Other supporters:
- First Hill Capital (@FirstHillcap) wrote in June that the Gritek stake was worth about $2.17 billion against a $1.17 billion RS market value: "They already proved they can close the gap by selling a small stake."
- Garrett Arms (@ArmsGarrett) posted on August 25, "Bought $3445.T round 2 @ 5,300," and said RS noted on its call that it had room to sell "several additional points."
- Grana Research (@granaresearch) argued in July that the market is effectively assigning a negative value to the reclaim business.
Who disagrees?
- The discount is persistent. Even Japan Deep Value concedes that the question of why RS has not sold more is open: "I ask myself (and mgmt) the same question all the time."
- Earnings sensitivity. First Hill noted on August 13 that "RS Technologies $3445 is selling off heavily on earnings this morning on slower than expected growth in the reclaimed wafer division."
- Getting the cash out. Turning a China A-share stake into yen involves selling limits, taxes and capital controls, so the realizable value can be well below the screen value.
- Insider control. Grana says the founder and CEO owns 43.87% of RS, which leaves little room for activist pressure.
What are the key facts to verify?
- RS's actual economic interest in Gritek. Its notice shows a direct 314,590,400 shares, about 25% of Gritek's 1.25 billion shares; supporters cite 39% to 42%, likely including indirect holdings. We could not reconcile the gap from the primary filings.
- Whether RS has completed the 1% sale and announced any further sales.
- Gritek's reorganization plans for its China wafer units and any dilution to RS.
- Reclaim capacity additions and utilization in Japan and Taiwan.
What would prove it right or wrong?
Right: RS sells more Gritek shares at market-linked prices, brings the proceeds to Japan, and returns cash or funds high-return reclaim capacity, shrinking the discount.
Wrong: RS holds its Gritek stake indefinitely, Gritek's A-share price falls, or reclaim growth keeps disappointing, leaving 3445 cheap for a long time.
This is journalism and commentary, not investment advice. We hold no position unless stated.