Activist investor Flashlight Capital Partners urged Japan’s Secom Co. to roughly double its interest in South Korea’s S-1 Corp. and Taiwan Secom Co., according to a letter dated Tuesday. The Singapore-based investor, which owns less than 1% of Secom, called on the company to raise its stakes in S-1 and Taiwan Secom to at least 50%, a move it estimates may lift revenue from outside Japan to about 28% of sales. Secom has targeted 10% by March 2028, compared with 5.4% currently, Flashlight said.

The activist also urged Secom to set more ambitious growth and profitability targets and assess whether its current leadership is best placed to deliver them. The changes may help drive a significant revaluation of the stock, Flashlight said. "We believe its share price could re-rate to at least JPY10,000, 55% upside from current levels," Sanghyun Lee, chief executive officer of Flashlight Capital, said in the correspondence. The push follows Flashlight’s offer last month to pay a premium for Samsung Group affiliates’ stakes in S-1, arguing they’re better off selling non-core holdings to free up capital.

After the affiliates rejected the offer, Flashlight on Monday again urged them to sell their stake in S-1 through an open auction. Secom owns 25.65% of S-1 and 26.75% of Taiwan Secom, according to data compiled by Bloomberg.