A Japanese maker of high-tech toilets has been causing a splash in the world of artificial intelligence.

Activist investor Palliser Capital recently called on the management of Toto, best known for its Washlet bidets, to do more to highlight that the firm is a growing AI play, thanks to its advanced ceramics segments. Toto is the "most undervalued and overlooked AI memory beneficiary,” Palliser wrote. Its little-known chips parts business recently accounted for half of its operating profit. Yet just a page was dedicated to it in the most recent investor presentation, with the limited disclosure leaving its value "effectively hidden from the market,” the fund said.

That one of the world’s biggest toilet makers is actually a growing chip supplier won’t come as a surprise to regular readers of this column. But Palliser has a point here — and it’s one that extends beyond the porcelain throne.

Japanese firms often struggle to tell their success stories, particularly if they’re diversified or in niche industries. Carefully stage-managed domestic media engagements tend to dominate. While disclosure is improving, getting information out of some firms can still be akin to pulling teeth. Worse, for years even companies........

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