Reported Earnings • May 15
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥206 (up from JP¥168 in FY 2025). Revenue: JP¥27.5b (down 1.1% from FY 2025). Net income: JP¥1.76b (up 23% from FY 2025). Profit margin: 6.4% (up from 5.2% in FY 2025). Revenue exceeded analyst estimates by 5.9%. Earnings per share (EPS) also surpassed analyst estimates by 152%. Revenue is forecast to grow 2.6% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • May 13
Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 26, 2026 Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 26, 2026. Announcement • May 10
Sakai Heavy Industries, Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Sakai Heavy Industries, Ltd. announced that they will report fiscal year 2026 results on May 13, 2026 Buy Or Sell Opportunity • Apr 24
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.6% to JP¥2,038. The fair value is estimated to be JP¥2,564, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.6% over the last 3 years. Earnings per share has declined by 27%. Revenue is forecast to grow by 8.8% in 2 years. Earnings are forecast to grow by 92% in the next 2 years. Buy Or Sell Opportunity • Mar 23
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥2,066. The fair value is estimated to be JP¥2,626, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.6% over the last 3 years. Earnings per share has declined by 27%. Revenue is forecast to grow by 8.8% in 2 years. Earnings are forecast to grow by 92% in the next 2 years. Announcement • Mar 14
Sakai Heavy Industries, Ltd. Revises Consolidated Earnings Guidance for Full Year Ending March 31, 2026 Sakai Heavy Industries, Ltd. revised consolidated earnings guidance for full year ending March 31, 2026. For the year, the company expects Net sales of JPY 26,600 million; Operating profit of JPY 1,050 million; Profit attributable to owners of parent JPY 1,500 million; Earnings per share JPY 175.28 against previous guidance of Net sales of JPY 28,000 million; Operating profit of JPY 1,250 million; Profit attributable to owners of parent JPY 900 million; Earnings per share JPY 105.61. Reasons for the revision: Although the global construction machinery market showed signs of bottoming out, demand did not recover strongly. As a result, net sales are expected to fall below the previous forecast. Due to the decrease in net sales, both operating profit and ordinary profit have been revised downward. As announced in the "Notice of Recording of Expected Extraordinary Income (Gain on Sale of
Investment Securities)", based on the Company's policy to limit the ratio of cross-shareholdings to consoli dated net assets to less than 20%, the Company expects to record a gain on sale of investment securities as an extraordinary income. Accordingly, the Company has revised upward the profit attributable to owners of parent forecast. Buy Or Sell Opportunity • Mar 04
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥2,064. The fair value is estimated to be JP¥2,595, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.6% over the last 3 years. Earnings per share has declined by 27%. Revenue is forecast to grow by 8.8% in 2 years. Earnings are forecast to grow by 92% in the next 2 years. Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥5.37 (vs JP¥15.59 in 3Q 2025) Third quarter 2026 results: EPS: JP¥5.37 (down from JP¥15.59 in 3Q 2025). Revenue: JP¥5.71b (down 2.5% from 3Q 2025). Net income: JP¥46.0m (down 65% from 3Q 2025). Profit margin: 0.8% (down from 2.3% in 3Q 2025). Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Declared Dividend • Dec 11
First half dividend of JP¥60.00 announced Shareholders will receive a dividend of JP¥60.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 5.1%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is not covered by earnings (160% earnings payout ratio) nor is it adequately covered by cash flows (91% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 77% to bring the payout ratio under control. EPS is expected to grow by 85% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥39.62 (vs JP¥71.78 in 2Q 2025) Second quarter 2026 results: EPS: JP¥39.62 (down from JP¥71.78 in 2Q 2025). Revenue: JP¥7.23b (down 5.8% from 2Q 2025). Net income: JP¥339.5m (down 45% from 2Q 2025). Profit margin: 4.7% (down from 8.0% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 10 December 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.0%). Reported Earnings • Aug 10
First quarter 2026 earnings released: EPS: JP¥10.67 (vs JP¥76.48 in 1Q 2025) First quarter 2026 results: EPS: JP¥10.67 (down from JP¥76.48 in 1Q 2025). Revenue: JP¥5.75b (down 20% from 1Q 2025). Net income: JP¥91.0m (down 86% from 1Q 2025). Profit margin: 1.6% (down from 9.1% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Declared Dividend • Jul 09
Final dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 29th September 2025 Payment date: 10th December 2025 Dividend yield will be 5.2%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (62% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 17% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 05
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥168 (down from JP¥287 in FY 2024). Revenue: JP¥27.9b (down 16% from FY 2024). Net income: JP¥1.44b (down 41% from FY 2024). Profit margin: 5.2% (down from 7.4% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 12% per year. New Risk • May 19
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 5.2% Last year net profit margin: 7.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.2% net profit margin). Reported Earnings • May 19
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥168 (down from JP¥287 in FY 2024). Revenue: JP¥27.9b (down 16% from FY 2024). Net income: JP¥1.44b (down 41% from FY 2024). Profit margin: 5.2% (down from 7.4% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 4.3% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year and the company’s share price has also increased by 9% per year. Announcement • May 14
Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 27, 2025 Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 27, 2025. New Risk • Apr 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.6b (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 6.4% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (JP¥14.6b market cap, or US$99.9m). Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,870, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 35% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥60.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 62% but the company is not cash flow positive. Trailing yield: 4.5%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.1%). New Risk • Feb 26
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 6.4% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥15.59 (vs JP¥48.58 in 3Q 2024) Third quarter 2025 results: EPS: JP¥15.59 (down from JP¥48.58 in 3Q 2024). Revenue: JP¥5.86b (down 22% from 3Q 2024). Net income: JP¥133.0m (down 68% from 3Q 2024). Profit margin: 2.3% (down from 5.5% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 17% per year. Declared Dividend • Dec 11
First half dividend of JP¥60.50 announced Shareholders will receive a dividend of JP¥60.50. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 6.2%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (54% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 13% over the next 3 years. However, it would need to fall by 40% to increase the payout ratio to a potentially unsustainable range. New Risk • Nov 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥85.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 December 2024. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥162 (vs JP¥111 in 1Q 2024) First quarter 2025 results: EPS: JP¥162 (up from JP¥111 in 1Q 2024). Revenue: JP¥6.71b (down 11% from 1Q 2024). Net income: JP¥690.0m (up 47% from 1Q 2024). Profit margin: 10% (up from 6.3% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.3% average weekly change). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥4,355, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 100% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥85.00 announced Shareholders will receive a dividend of JP¥85.00. Ex-date: 27th September 2024 Payment date: 11th December 2024 Dividend yield will be 4.8%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (36% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 9.9% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 20
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥575 (up from JP¥401 in FY 2023). Revenue: JP¥33.0b (up 5.0% from FY 2023). Net income: JP¥2.44b (up 44% from FY 2023). Profit margin: 7.4% (up from 5.4% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 1.8%. Revenue is forecast to grow 5.7% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥5,280, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Machinery industry in Japan. Total returns to shareholders of 205% over the past three years. Announcement • May 16
Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 27, 2024 Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥180 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.9%). Announcement • Feb 14
Sakai Heavy Industries, Ltd. Provides Dividend Guidance for the Year Ending March 31, 2024 Sakai Heavy Industries, Ltd. provided dividend guidance for the year ending March 31, 2024. For the year, the company expects dividend of JPY 180.00 per share against JPY 120.00 per share paid a year ago. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥97.15 (vs JP¥83.63 in 3Q 2023) Third quarter 2024 results: EPS: JP¥97.15 (up from JP¥83.63 in 3Q 2023). Revenue: JP¥7.52b (up 3.9% from 3Q 2023). Net income: JP¥413.0m (up 17% from 3Q 2023). Profit margin: 5.5% (up from 4.9% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥6,060, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 199% over the past three years. Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥250 (vs JP¥98.30 in 2Q 2023) Second quarter 2024 results: EPS: JP¥250 (up from JP¥98.30 in 2Q 2023). Revenue: JP¥9.26b (up 15% from 2Q 2023). Net income: JP¥1.06b (up 156% from 2Q 2023). Profit margin: 12% (up from 5.2% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥90.00 per share at 4.0% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 12 December 2023. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥111 (vs JP¥95.49 in 1Q 2023) First quarter 2024 results: EPS: JP¥111 (up from JP¥95.49 in 1Q 2023). Revenue: JP¥7.53b (up 9.7% from 1Q 2023). Net income: JP¥471.0m (up 17% from 1Q 2023). Profit margin: 6.3% (up from 5.9% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Announcement • May 13
Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 29, 2023 Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 29, 2023. Reported Earnings • May 12
Full year 2023 earnings released: EPS: JP¥401 (vs JP¥337 in FY 2022) Full year 2023 results: EPS: JP¥401 (up from JP¥337 in FY 2022). Revenue: JP¥31.5b (up 18% from FY 2022). Net income: JP¥1.69b (up 19% from FY 2022). Profit margin: 5.4% (in line with FY 2022). Revenue is forecast to grow 5.3% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥100.00 per share at 4.0% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Reported Earnings • Feb 16
Third quarter 2023 earnings released: EPS: JP¥83.59 (vs JP¥77.54 in 3Q 2022) Third quarter 2023 results: EPS: JP¥83.59 (up from JP¥77.54 in 3Q 2022). Revenue: JP¥7.23b (up 6.3% from 3Q 2022). Net income: JP¥354.0m (up 8.3% from 3Q 2022). Profit margin: 4.9% (up from 4.8% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥98.29 (vs JP¥84.24 in 2Q 2022) Second quarter 2023 results: EPS: JP¥98.29 (up from JP¥84.24 in 2Q 2022). Revenue: JP¥8.03b (up 16% from 2Q 2022). Net income: JP¥416.0m (up 17% from 2Q 2022). Profit margin: 5.2% (up from 5.1% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Outside Independent Director Kaori Sato was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥98.29 (vs JP¥84.24 in 2Q 2022) Second quarter 2023 results: EPS: JP¥98.29 (up from JP¥84.24 in 2Q 2022). Revenue: JP¥8.03b (up 16% from 2Q 2022). Net income: JP¥416.0m (up 17% from 2Q 2022). Profit margin: 5.2% (up from 5.1% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥80.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 13 December 2022. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 5.4%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.4%). Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥95.48 (vs JP¥35.78 in 1Q 2022) First quarter 2023 results: EPS: JP¥95.48 (up from JP¥35.78 in 1Q 2022). Revenue: JP¥6.87b (up 13% from 1Q 2022). Net income: JP¥402.0m (up 161% from 1Q 2022). Profit margin: 5.9% (up from 2.5% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 5.0%, compared to a 9.2% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • May 17
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥337 (up from JP¥0.93 in FY 2021). Revenue: JP¥26.6b (up 23% from FY 2021). Net income: JP¥1.43b (up JP¥1.42b from FY 2021). Profit margin: 5.4% (up from 0% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 58%. Over the next year, revenue is forecast to grow 7.1%, compared to a 7.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 29, 2022 Sakai Heavy Industries, Ltd., Annual General Meeting, Jun 29, 2022. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. 2 independent directors (4 non-independent directors). Independent Outside Director Ryuichi Tokunaga was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 08
Sakai Heavy Industries, Ltd. to Report Fiscal Year 2022 Results on May 12, 2022 Sakai Heavy Industries, Ltd. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥90.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.0%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥77.54 (up from JP¥20.42 in 3Q 2021). Revenue: JP¥6.81b (up 31% from 3Q 2021). Net income: JP¥327.0m (up 272% from 3Q 2021). Profit margin: 4.8% (up from 1.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) also surpassed analyst estimates. Over the next year, revenue is forecast to grow 2.8%, compared to a 8.1% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Reported Earnings • Nov 12
Second quarter 2022 earnings released: EPS JP¥84.21 (vs JP¥58.35 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥6.90b (up 23% from 2Q 2021). Net income: JP¥355.0m (up JP¥606.0m from 2Q 2021). Profit margin: 5.1% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 11 December 2021. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.4%). Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥35.78 (vs JP¥28.47 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥6.09b (up 33% from 1Q 2021). Net income: JP¥154.0m (up JP¥276.0m from 1Q 2021). Profit margin: 2.5% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Jun 12
Sakai Heavy Industries, Ltd. (TSE:6358) announces an Equity Buyback for 130,000 shares, representing 3% for ¥500 million. Sakai Heavy Industries, Ltd. (TSE:6358) announces a share repurchase program. Under the program, the company will repurchase up to 130,000 shares, representing 3% for ¥500 million. The purpose of the program is to maximize corporate value under the Medium-Term Company Management Policy. The program is valid till December 30, 2021. As of March 31 2021, the company had 4,338,417 shares (excluding treasury stock) and 25,628 treasury shares. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 24 June 2021. Trailing yield: 2.8%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.1%). Is New 90 Day High Low • Feb 20
New 90-day low: JP¥2,080 The company is down 12% from its price of JP¥2,360 on 20 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 15% over the same period. Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS JP¥20.41 (vs JP¥28.01 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥5.21b (down 6.8% from 3Q 2020). Net income: JP¥88.0m (down 27% from 3Q 2020). Profit margin: 1.7% (down from 2.1% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 82% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. 
