Reported Earnings • May 15
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: JP¥96.03 (down from JP¥152 in FY 2025). Revenue: JP¥161.3b (up 15% from FY 2025). Net income: JP¥3.69b (down 37% from FY 2025). Profit margin: 2.3% (down from 4.1% in FY 2025). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.1%. Earnings per share (EPS) exceeded analyst estimates by 16%. Revenue is forecast to grow 10% 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 12% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • May 13
Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 24, 2026 Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 24, 2026. Announcement • May 10
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report fiscal year 2026 results at 12:00 PM, Tokyo Standard Time on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥56.89 (vs JP¥21.30 in 3Q 2025) Third quarter 2026 results: EPS: JP¥56.89 (up from JP¥21.30 in 3Q 2025). Revenue: JP¥38.5b (up 18% from 3Q 2025). Net income: JP¥2.19b (up 168% from 3Q 2025). Profit margin: 5.7% (up from 2.5% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Machinery industry in Japan. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Announcement • Dec 12
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q3, 2026 Results on Feb 10, 2026 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q3, 2026 results on Feb 10, 2026 Declared Dividend • Dec 04
First half dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 5.0%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is not covered by earnings (464% earnings payout ratio) and 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. The company's earnings per share (EPS) would need to grow by 415% to bring the payout ratio under control. EPS is expected to grow by 108% over the next year, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥91.02 (vs JP¥58.62 in 2Q 2025) Second quarter 2026 results: EPS: JP¥91.02 (up from JP¥58.62 in 2Q 2025). Revenue: JP¥40.7b (up 15% from 2Q 2025). Net income: JP¥3.50b (up 56% from 2Q 2025). Profit margin: 8.6% (up from 6.4% in 2Q 2025). Revenue is forecast to grow 13% p.a. on average during the next 2 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 43% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 30
Now 21% overvalued Over the last 90 days, the stock has fallen 2.4% to JP¥2,610. The fair value is estimated to be JP¥2,163, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 45%. Revenue is forecast to grow by 17% in a year. Earnings are forecast to grow by 25,818% in the next year. Buy Or Sell Opportunity • Oct 15
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 3.9% to JP¥2,651. The fair value is estimated to be JP¥2,169, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 45%. Revenue is forecast to grow by 17% in a year. Earnings are forecast to grow by 25,818% in the next year. Announcement • Sep 01
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q2, 2026 Results on Nov 12, 2025 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q2, 2026 results on Nov 12, 2025 New Risk • Aug 08
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: 0.01% Last year net profit margin: 3.1% 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: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 379x earnings per share. Paying a dividend despite having no free cash flows. Earnings have declined by 14% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.01% net profit margin). Announcement • Jul 30
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 Declared Dividend • Jul 09
Final dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 29th September 2025 Payment date: 4th December 2025 Dividend yield will be 5.9%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (86% 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 20% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Buy Or Sell Opportunity • Jul 09
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 17% to JP¥2,605. The fair value is estimated to be JP¥2,157, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has declined by 40%. Announcement • Jul 08
Kyokuto Kaihatsu Kogyo Co.,Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 2026 Kyokuto Kaihatsu Kogyo Co.,Ltd. revised consolidated earnings guidance for the fiscal year ending March 2026. For the year, the company expects net sales of JPY 168,000 million, operating profit of JPY 9,600 million, profit attributable to owners of parent of JPY 2,645 million and basic earnings per share of JPY 90.91 compared to previous guidance of net sales of JPY 168,000 million, operating profit of JPY 9,600 million, profit attributable to owners of parent of JPY 6,500 million and basic earnings per share of JPY 169.18. Reason for revision: In addition to recording the extraordinary loss described in "Extraordinary loss" above, as announced July 8, 2025 in the "Notice Concerning Sale of Investment Securities and Expected Recording of Extraordinary Profit (Gain on Sale of Investment Securities)," the Board of Directors decided at a meeting held on July 8, 2025 to sell a portion of the investment securities, and as a result it expect to record extraordinary profit (gain on the sale of investment securities) for the consolidated fiscal year ending March 2026. In light of the above and other information currently available, it have revised the earnings forecast announced on May 14, 2025. Buy Or Sell Opportunity • Jun 10
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 3.6% to JP¥2,623. The fair value is estimated to be JP¥2,180, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has declined by 40%. New Risk • Jun 04
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 104% The company is paying a dividend despite having no free cash flows. Dividend yield: 5.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 104% Paying a dividend despite having no free cash flows. Earnings have declined by 7.8% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Announcement • May 14
Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 27, 2025 Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 27, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,011, the stock trades at a trailing P/E ratio of 13x. Average trailing P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 78% over the past three years. Buy Or Sell Opportunity • Apr 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥2,143. The fair value is estimated to be JP¥2,696, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has declined by 36%. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥83.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is on the higher end at 86% but the company is not cash flow positive. Trailing yield: 6.5%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.1%). Announcement • Mar 14
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Fiscal Year 2025 Results on May 14, 2025 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report fiscal year 2025 results on May 14, 2025 Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥21.30 (vs JP¥10.22 in 3Q 2024) Third quarter 2025 results: EPS: JP¥21.30 (up from JP¥10.22 in 3Q 2024). Revenue: JP¥32.6b (up 6.2% from 3Q 2024). Net income: JP¥817.0m (up 109% from 3Q 2024). Profit margin: 2.5% (up from 1.3% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Feb 07
Kyokuto Kaihatsu Kogyo Co.,Ltd. Revises Dividend Forecast for Fiscal Year 2024 Kyokuto Kaihatsu Kogyo Co.,Ltd. revised dividend forecast for fiscal year 2024. For the year the company expects to pay dividend of JPY 83.00 per share compared to JPY 75.00 per share a year ago. Announcement • Dec 12
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q3, 2025 Results on Feb 06, 2025 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q3, 2025 results on Feb 06, 2025 Declared Dividend • Dec 05
First half dividend of JP¥75.00 announced Shareholders will receive a dividend of JP¥75.00. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 6.6%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is not adequately covered by earnings (93% earnings payout ratio) and 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 22% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 2.8% to bring the payout ratio under control. However, EPS has declined by 2.3% over the last 5 years so the company would need to reverse this trend. Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥58.62 (vs JP¥22.03 in 2Q 2024) Second quarter 2025 results: EPS: JP¥58.62 (up from JP¥22.03 in 2Q 2024). Revenue: JP¥35.4b (up 5.7% from 2Q 2024). Net income: JP¥2.25b (up 167% from 2Q 2024). Profit margin: 6.4% (up from 2.5% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Nov 13
Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) agreed to acquire STG Global Holdings Pty Ltd from RRA Pty Ltd and OCP Industrial Holdings Pty Ltd and others for AUD 100 million. Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) agreed to acquire STG Global Holdings Pty Ltd from RRA Pty Ltd and OCP Industrial Holdings Pty Ltd and others for AUD 100 million on November 12, 2024. A cash consideration of AUD 100 million will be paid by Kyokuto Kaihatsu Kogyo Co.,Ltd. As part of consideration, AUD 100 million is paid towards common equity of STG Global Holdings Pty Ltd. Agreement is scheduled to be signed on November 12, 2024. The transaction is expected to close in December. Announcement • Sep 27
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q2, 2025 Results on Nov 12, 2024 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q2, 2025 results on Nov 12, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 06 December 2024. Payout ratio is on the higher end at 81% but the company is not cash flow positive. Trailing yield: 5.8%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 09
First quarter 2025 earnings released: EPS: JP¥21.39 (vs JP¥5.75 in 1Q 2024) First quarter 2025 results: EPS: JP¥21.39 (up from JP¥5.75 in 1Q 2024). Revenue: JP¥28.6b (up 9.7% from 1Q 2024). Net income: JP¥820.0m (up 273% from 1Q 2024). Profit margin: 2.9% (up from 0.8% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Aug 08
Now 22% overvalued Over the last 90 days, the stock has fallen 5.0% to JP¥2,471. The fair value is estimated to be JP¥2,023, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 21%. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,169, the stock trades at a trailing P/E ratio of 23.8x. Average trailing P/E is 11x in the Machinery industry in Japan. Total returns to shareholders of 54% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥58.00 announced Shareholders will receive a dividend of JP¥58.00. Ex-date: 27th September 2024 Payment date: 6th December 2024 Dividend yield will be 4.5%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (48% 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 and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to decline by 46% to shift the payout ratio to a potentially unsustainable range, which is more than the 10% EPS decline seen over the last 5 years. Announcement • Jun 28
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q1, 2025 Results on Aug 07, 2024 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q1, 2025 results on Aug 07, 2024 Reported Earnings • May 18
Full year 2024 earnings released: EPS: JP¥91.47 (vs JP¥90.89 in FY 2023) Full year 2024 results: EPS: JP¥91.47. Revenue: JP¥128.0b (up 13% from FY 2023). Net income: JP¥3.50b (down 2.2% from FY 2023). Profit margin: 2.7% (down from 3.2% in FY 2023). The decrease in margin was driven by higher expenses. Announcement • May 16
Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 26, 2024 Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 26, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥58.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 48% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.9%). Announcement • Mar 10
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Fiscal Year 2024 Results on May 14, 2024 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report fiscal year 2024 results on May 14, 2024 Reported Earnings • Feb 08
Third quarter 2024 earnings released: EPS: JP¥10.22 (vs JP¥3.73 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥10.22 (up from JP¥3.73 loss in 3Q 2023). Revenue: JP¥30.7b (up 15% from 3Q 2023). Net income: JP¥391.0m (up JP¥537.0m from 3Q 2023). Profit margin: 1.3% (up from net loss in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. New Risk • Feb 07
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 6.4% 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: Major Risk High level of non-cash earnings (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (3.2% net profit margin). Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,397, the stock trades at a trailing P/E ratio of 23.4x. Average trailing P/E is 12x in the Machinery industry in Japan. Total returns to shareholders of 64% over the past three years. Announcement • Nov 27
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q3, 2024 Results on Feb 06, 2024 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q3, 2024 results on Feb 06, 2024 New Risk • Nov 11
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.2% net profit margin). Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥22.03 (vs JP¥13.51 in 2Q 2023) Second quarter 2024 results: EPS: JP¥22.03 (up from JP¥13.51 in 2Q 2023). Revenue: JP¥33.5b (up 19% from 2Q 2023). Net income: JP¥843.0m (up 56% from 2Q 2023). Profit margin: 2.5% (up from 1.9% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥29.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 07 December 2023. Payout ratio is a comfortable 58% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.1%). Announcement • Sep 10
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q2, 2024 Results on Nov 09, 2023 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥5.75 (vs JP¥4.71 in 1Q 2023) First quarter 2024 results: EPS: JP¥5.75 (up from JP¥4.71 in 1Q 2023). Revenue: JP¥26.1b (up 11% from 1Q 2023). Net income: JP¥220.0m (up 17% from 1Q 2023). Profit margin: 0.8% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 7% per year and the company’s share price has also increased by 7% per year. Announcement • Jul 24
Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) acquired 90% stake in Import Machinery And Equipment Pty. Ltd. Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) acquired 90% stake in Import Machinery And Equipment Pty. Ltd. on July 7, 2023. Import Machinery And Equipment became a subsidiary of Kyokuto Kaihatsu.Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) completed the acquisition of 90% stake in Import Machinery And Equipment Pty. Ltd. on July 7, 2023. Announcement • Jun 30
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q1, 2024 Results on Aug 08, 2023 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q1, 2024 results on Aug 08, 2023 Reported Earnings • May 14
Full year 2023 earnings released: EPS: JP¥90.89 (vs JP¥358 in FY 2022) Full year 2023 results: EPS: JP¥90.89 (down from JP¥358 in FY 2022). Revenue: JP¥113.1b (down 3.3% from FY 2022). Net income: JP¥3.58b (down 75% from FY 2022). Profit margin: 3.2% (down from 12% in FY 2022). Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 13% per year. Announcement • May 13
Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 27, 2023 Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 27, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥27.00 per share at 3.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 29 June 2023. Payout ratio is a comfortable 21% but the company is paying out more than the cash it is generating. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Reported Earnings • Feb 10
Third quarter 2023 earnings released: JP¥3.73 loss per share (vs JP¥21.68 profit in 3Q 2022) Third quarter 2023 results: JP¥3.73 loss per share (down from JP¥21.68 profit in 3Q 2022). Revenue: JP¥26.8b (down 1.9% from 3Q 2022). Net loss: JP¥146.0m (down 117% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Dec 04
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q3, 2023 Results on Feb 07, 2023 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q3, 2023 results on Feb 07, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥13.51 (vs JP¥39.57 in 2Q 2022) Second quarter 2023 results: EPS: JP¥13.51 (down from JP¥39.57 in 2Q 2022). Revenue: JP¥28.2b (down 11% from 2Q 2022). Net income: JP¥540.0m (down 66% from 2Q 2022). Profit margin: 1.9% (down from 5.0% in 2Q 2022). Revenue is forecast to grow 8.5% 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 28% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. 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. 5 non-independent directors. Independent Outside Director Hiroyuki Terakawa 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 12
Second quarter 2023 earnings released: EPS: JP¥13.51 (vs JP¥39.57 in 2Q 2022) Second quarter 2023 results: EPS: JP¥13.51 (down from JP¥39.57 in 2Q 2022). Revenue: JP¥28.2b (down 11% from 2Q 2022). Net income: JP¥540.0m (down 66% from 2Q 2022). Profit margin: 1.9% (down from 5.0% in 2Q 2022). Revenue is forecast to grow 8.5% 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 28% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥27.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 07 December 2022. Payout ratio is a comfortable 16% but the company is paying out more than the cash it is generating. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.4%). Announcement • Sep 15
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q2, 2023 Results on Nov 10, 2022 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q2, 2023 results on Nov 10, 2022 Major Estimate Revision • Aug 12
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥117.0b to JP¥112.0b. EPS estimate also fell from JP¥110 per share to JP¥85.20 per share. Net income forecast to shrink 68% next year vs 8.2% growth forecast for Machinery industry in Japan . Consensus price target down from JP¥1,380 to JP¥1,240. Share price rose 3.0% to JP¥1,420 over the past week. Price Target Changed • Aug 08
Price target decreased to JP¥1,240 Down from JP¥1,470, the current price target is provided by 1 analyst. New target price is 9.7% below last closing price of JP¥1,373. Stock is down 11% over the past year. The company is forecast to post earnings per share of JP¥85.20 for next year compared to JP¥358 last year. Reported Earnings • Aug 05
First quarter 2023 earnings released: EPS: JP¥4.71 (vs JP¥29.80 in 1Q 2022) First quarter 2023 results: EPS: JP¥4.71 (down from JP¥29.80 in 1Q 2022). Revenue: JP¥23.5b (down 9.1% from 1Q 2022). Net income: JP¥188.0m (down 84% from 1Q 2022). Profit margin: 0.8% (down from 4.6% in 1Q 2022). Over the next year, revenue is forecast to grow 5.0%, compared to a 9.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 15
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate fell from JP¥123 to JP¥110. Revenue forecast unchanged from JP¥117.0b at last update. Net income forecast to shrink 69% next year vs 8.5% growth forecast for Machinery industry in Japan . Consensus price target down from JP¥1,470 to JP¥1,380. Share price was steady at JP¥1,423 over the past week. Announcement • Jun 30
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Q1, 2023 Results on Aug 04, 2022 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report Q1, 2023 results on Aug 04, 2022 Announcement • Jun 07
Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) announces an Equity Buyback for 2,000,000 shares, representing 5.01% for ¥2,500 million. Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) announces a share repurchase program. Under the program, the company will repurchase up to 2,000,000 shares, representing 5.01% of its issued share capital (excluding treasury stock), for a total purchase price of ¥2,500 million. The purpose of the program is to enable the execution of agile capital policies in response to changes in the business environment. The repurchased shares will be used to improve corporate value and stock value. The program will continue through June 30, 2023. As of March 31, 2022, the company had 39,950,148 issued shares (excluding treasury stock) and 2,787,520 treasury shares. Reported Earnings • May 16
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥358 (up from JP¥170 in FY 2021). Revenue: JP¥116.9b (flat on FY 2021). Net income: JP¥14.3b (up 111% from FY 2021). Profit margin: 12% (up from 5.8% in FY 2021). Revenue exceeded analyst estimates by 6.6%. Earnings per share (EPS) also surpassed analyst estimates by 9.1%. Over the next year, revenue is forecast to stay flat compared to a 7.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • May 14
Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 28, 2022 Kyokuto Kaihatsu Kogyo Co.,Ltd., Annual General Meeting, Jun 28, 2022. Price Target Changed • Apr 27
Price target decreased to JP¥1,470 Down from JP¥1,650, the current price target is provided by 1 analyst. New target price is 17% above last closing price of JP¥1,252. Stock is down 23% over the past year. The company is forecast to post earnings per share of JP¥329 for next year compared to JP¥170 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 6 non-independent directors. Chairperson Kazuya Takahashi was the last director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 13
Price target decreased to JP¥1,470 Down from JP¥1,650, the current price target is provided by 1 analyst. New target price is 15% above last closing price of JP¥1,276. Stock is down 26% over the past year. The company is forecast to post earnings per share of JP¥329 for next year compared to JP¥170 last year. Major Estimate Revision • Apr 13
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥120.5b to JP¥109.7b. EPS estimate also fell from JP¥391 per share to JP¥329 per share. Net income forecast to grow 13% next year vs 9.5% growth forecast for Machinery industry in Japan. Consensus price target down from JP¥1,650 to JP¥1,470. Share price fell 4.1% to JP¥1,276 over the past week. Announcement • Apr 08
Kyokuto Kaihatsu Kogyo Co.,Ltd. to Report Fiscal Year 2022 Results on May 12, 2022 Kyokuto Kaihatsu Kogyo Co.,Ltd. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥32.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 30% 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 07
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: JP¥21.68 (down from JP¥37.17 in 3Q 2021). Revenue: JP¥27.3b (down 4.1% from 3Q 2021). Net income: JP¥864.0m (down 42% from 3Q 2021). Profit margin: 3.2% (down from 5.2% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 37%. Over the next year, revenue is forecast to grow 1.9%, compared to a 8.3% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Nov 11
Second quarter 2022 earnings released: EPS JP¥39.57 (vs JP¥37.86 in 2Q 2021) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2022 results: Revenue: JP¥31.6b (up 10% from 2Q 2021). Net income: JP¥1.58b (up 4.8% from 2Q 2021). Profit margin: 5.0% (down from 5.2% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 08 December 2021. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.4%). Reported Earnings • Aug 09
First quarter 2022 earnings released: EPS JP¥29.79 (vs JP¥32.12 in 1Q 2021) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: JP¥25.9b (up 7.3% from 1Q 2021). Net income: JP¥1.19b (down 7.1% from 1Q 2021). Profit margin: 4.6% (down from 5.3% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 2% per year. Announcement • Jun 15
Mitra Garrage Private Limited acquired an unknown stake in Mithra Kyokuto SPV Co. Ltd from Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226). Mitra Garrage Private Limited acquired an unknown stake in Mithra Kyokuto SPV Co. Ltd from Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) on March 30, 2021.
Mitra Garrage Private Limited completed the acquisition of an unknown stake in Mithra Kyokuto SPV Co. Ltd from Kyokuto Kaihatsu Kogyo Co.,Ltd. (TSE:7226) on March 30, 2021. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥170 (vs JP¥153 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥117.2b (down 2.5% from FY 2020). Net income: JP¥6.77b (up 12% from FY 2020). Profit margin: 5.8% (up from 5.1% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 2% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.1%). 
