Investors go wild for Japan spray, rifle stocks amid spike in bear attacks

A spate of fatal bear attacks across Japan has dominated local news for weeks, prompting the government to send soldiers to one of the most affected areas. Meme traders have piled into the shares of two little-known companies whose products offer some protection for hikers and rural residents.

At least 12 people have been killed by bears so far in the year starting April, exceeding the previous high of six in 2023, according to government data. Most of the victims have been elderly people in the country’s sparsely populated Tohoku region. Akita prefecture, which has suffered at least three deaths, will get support from the country’s Self-Defence Forces to deal with the problem, according to Kyodo News.

That has fuelled demand for shares of bear spray seller Tiemco and Miroku, which makes hunting rifles. The two firms have jumped 95 per cent and 27 per cent this year, respectively, outstripping the 19 per cent gain in the benchmark Topix index. Trading volume in both companies has also surged. This comes despite Tiemco posting a nine-month loss and cutting its forecast due to lower demand from its mainstay clothing business.

“Investors are actively buying up our shares, although our earnings performance has not been too good,” said Seiichi Sakai, the president of Tiemco. The outdoor gear retailer started selling bear spray in May and restocked later in the year. In both cases, supplies sold out immediately.

Tiemco has a US$34 million market capitalisation, while Miroku is valued at US$29 million.

Japan has two types of bears, the Hokkaido brown bear and the smaller Asiatic black bear, which inhabits the rest of Japan. The estimated median population for the Hokkaido brown bear tripled over the past 30 years to about 11,700, according to material from a cross-ministerial meeting last year. There are no specific population figures available for the Asiatic black bear.

  

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