Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 4 highly experienced directors. Independent Outside Director Naomi Tobita was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Jun 19
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥104 (up from JP¥32.63 in FY 2025). Revenue: JP¥35.8b (up 6.3% from FY 2025). Net income: JP¥2.51b (up 217% from FY 2025). Profit margin: 7.0% (up from 2.4% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 48%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥1,839, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 15x in the Chemicals industry in Japan. Total returns to shareholders of 102% over the past three years. Announcement • Jun 03
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q1, 2027 Results on Aug 07, 2026 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q1, 2027 results on Aug 07, 2026 Buy Or Sell Opportunity • May 28
Now 20% overvalued Over the last 90 days, the stock has fallen 20% to JP¥2,245. The fair value is estimated to be JP¥1,869, 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 34%. Revenue is forecast to grow by 8.5% in 2 years. Earnings are forecast to grow by 3.4% in the next 2 years. Reported Earnings • May 18
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥104 (up from JP¥32.63 in FY 2025). Revenue: JP¥35.8b (up 6.3% from FY 2025). Net income: JP¥2.51b (up 217% from FY 2025). Profit margin: 7.0% (up from 2.4% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 48%. Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Announcement • May 14
Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 19, 2026 Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 19, 2026. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,686, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 224% over the past three years. Announcement • May 09
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Announcement • Apr 02
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q3, 2027 Results on Feb 12, 2027 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q3, 2027 results on Feb 12, 2027 Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥2,897, the stock trades at a forward P/E ratio of 54x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 194% over the past three years. Buy Or Sell Opportunity • Jan 14
Now 41% overvalued after recent price rise Over the last 90 days, the stock has risen 277% to JP¥2,630. The fair value is estimated to be JP¥1,871, 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. Meanwhile, the company has become profitable. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 44% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥1,423, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 50% over the past three years. Declared Dividend • Dec 02
First half dividend of JP¥14.00 announced Dividend of JP¥14.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 2.4%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (26% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 17% 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. Announcement • Nov 29
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q3, 2026 Results on Feb 12, 2026 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q3, 2026 results on Feb 12, 2026 Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥1.73 (vs JP¥35.14 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥1.73 (up from JP¥35.14 loss in 2Q 2025). Revenue: JP¥9.05b (up 5.4% from 2Q 2025). Net income: JP¥42.0m (up JP¥895.0m from 2Q 2025). Profit margin: 0.5% (up from net loss in 2Q 2025). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,171, the stock trades at a forward P/E ratio of 103x. Average forward P/E is 13x in the Chemicals industry in Japan. Total returns to shareholders of 6.9% over the past three years. New Risk • Oct 23
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 7.2% 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 Dividend is not well covered by earnings (162% payout ratio). Share price has been volatile over the past 3 months (7.2% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Valuation Update With 7 Day Price Move • Oct 23
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to JP¥944, the stock trades at a forward P/E ratio of 83x. Average forward P/E is 13x in the Chemicals industry in Japan. Total loss to shareholders of 21% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Announcement • Sep 01
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q2, 2026 Results on Nov 13, 2025 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q2, 2026 results on Nov 13, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings released: JP¥0.041 loss per share (vs JP¥16.55 profit in 1Q 2025) First quarter 2026 results: JP¥0.041 loss per share (down from JP¥16.55 profit in 1Q 2025). Revenue: JP¥8.10b (down 3.9% from 1Q 2025). Net loss: JP¥1.00m (down 100% from profit in 1Q 2025). Profit margin: 0% (down from 4.8% in 1Q 2025). Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. 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: 1.2% Last year net profit margin: 2.7% 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 Dividend is not well covered by earnings (162% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Declared Dividend • Jul 09
Final dividend of JP¥14.00 announced Shareholders will receive a dividend of JP¥14.00. Ex-date: 29th September 2025 Payment date: 2nd December 2025 Dividend yield will be 4.2%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (46% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 70% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 24
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥32.63 (down from JP¥46.84 in FY 2024). Revenue: JP¥33.6b (down 4.5% from FY 2024). Net income: JP¥792.0m (down 31% from FY 2024). Profit margin: 2.4% (down from 3.2% in FY 2024). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Chemicals 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 only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • May 31
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 Reported Earnings • May 17
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥32.63 (down from JP¥46.84 in FY 2024). Revenue: JP¥33.6b (down 4.5% from FY 2024). Net income: JP¥792.0m (down 31% from FY 2024). Profit margin: 2.4% (down from 3.2% in FY 2024). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 5.6% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Chemicals 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 only fallen by 16% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • May 16
Now 20% overvalued Over the last 90 days, the stock has fallen 12% to JP¥629. The fair value is estimated to be JP¥524, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has declined by 43%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to decline by 23% in the next 2 years. Announcement • May 13
Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 20, 2025 Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 20, 2025. Buy Or Sell Opportunity • Apr 10
Now 22% overvalued Over the last 90 days, the stock has fallen 6.8% to JP¥640. The fair value is estimated to be JP¥524, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has declined by 43%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to decline by 23% in the next 2 years. New Risk • Apr 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.0b (US$95.7m) 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 Risks Debt is not well covered by operating cash flow (3.3% operating cash flow to total debt). Earnings are forecast to decline by an average of 14% 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¥14.0b market cap, or US$95.7m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥578, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Chemicals industry in Japan. Total loss to shareholders of 34% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 20 June 2025. Payout ratio is a comfortable 46% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Announcement • Mar 01
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report fiscal year 2025 results on May 13, 2025 New Risk • Feb 28
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 14% 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 Risks Debt is not well covered by operating cash flow (3.3% operating cash flow to total debt). Earnings are forecast to decline by an average of 14% 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¥76.93 (vs JP¥14.05 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥76.93 (up from JP¥14.05 loss in 3Q 2024). Revenue: JP¥8.06b (down 12% from 3Q 2024). Net income: JP¥1.86b (up JP¥2.21b from 3Q 2024). Profit margin: 23% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals 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 only fallen by 11% per year, which means it has not declined as severely as earnings. Declared Dividend • Dec 03
First half dividend of JP¥14.00 announced Shareholders will receive a dividend of JP¥14.00. Ex-date: 28th March 2025 Payment date: 20th June 2025 Dividend yield will be 3.6%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having 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 16% per year over the past 10 years. However, payments have been volatile during that time. Announcement • Nov 30
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q3, 2025 Results on Feb 13, 2025 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q3, 2025 results on Feb 13, 2025 New Risk • Nov 16
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.3% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (3.3% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Announcement • Sep 27
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q2, 2025 Results on Nov 12, 2024 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q2, 2025 results on Nov 12, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 66% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.4%). Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥16.55 (vs JP¥23.93 in 1Q 2024) First quarter 2025 results: EPS: JP¥16.55 (down from JP¥23.93 in 1Q 2024). Revenue: JP¥8.43b (up 1.3% from 1Q 2024). Net income: JP¥403.0m (down 31% from 1Q 2024). Profit margin: 4.8% (down from 7.0% in 1Q 2024). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 25% per year whereas the company’s share price has fallen by 21% per year. Announcement • Aug 09
Daiichi Kigenso Kagaku Kogyo Co., Ltd. (TSE:4082) announces an Equity Buyback for 150,000 shares, for ¥113.1 million. Daiichi Kigenso Kagaku Kogyo Co., Ltd. (TSE:4082) announces a share repurchase program. Under the program, the company will repurchase up to150,000 shares, representing 0.62% of its issued share capital (excluding treasury stock), for ¥113.1 million. The shares will be repurchased at a price of ¥754 per share. The purpose of the program is to enable the implementation of a flexible capital policy in response to future changes in the business environment. As of August 8, 2024, the company had 24,369,930 shares in issue (excluding treasury stock) and 30,070 shares in treasury. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥696, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 58% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥12.00 announced Shareholders will receive a dividend of JP¥12.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 3.0%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by both earnings (65% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 77% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥46.84 (down from JP¥165 in FY 2023). Revenue: JP¥35.2b (down 1.5% from FY 2023). Net income: JP¥1.14b (down 72% from FY 2023). Profit margin: 3.2% (down from 11% in FY 2023). Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 42%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. New Risk • May 16
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: 3.2% Last year net profit margin: 11% 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 High level of debt (44% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.2% net profit margin). Announcement • May 15
Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 19, 2024 Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 19, 2024. Announcement • Mar 21
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Fiscal Year 2024 Results on May 13, 2024 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report fiscal year 2024 results on May 13, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 65% and the cash payout ratio is 81%. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Reported Earnings • Feb 11
Third quarter 2024 earnings released: JP¥14.05 loss per share (vs JP¥0.49 profit in 3Q 2023) Third quarter 2024 results: JP¥14.05 loss per share (down from JP¥0.49 profit in 3Q 2023). Revenue: JP¥9.17b (down 4.1% from 3Q 2023). Net loss: JP¥342.0m (down JP¥354.0m from profit in 3Q 2023). Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Dec 01
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q3, 2024 Results on Feb 09, 2024 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 New Risk • Nov 12
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: 5.7% Last year net profit margin: 9.9% 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 Risk Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (5.7% net profit margin). Upcoming Dividend • Sep 21
Upcoming dividend of JP¥12.00 per share at 3.5% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 3.5%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.5%). Announcement • Aug 27
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q2, 2024 Results on Nov 10, 2023 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥23.93 (vs JP¥78.92 in 1Q 2023) First quarter 2024 results: EPS: JP¥23.93 (down from JP¥78.92 in 1Q 2023). Revenue: JP¥8.33b (up 4.9% from 1Q 2023). Net income: JP¥582.0m (down 70% from 1Q 2023). Profit margin: 7.0% (down from 24% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Jun 03
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 17
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥165 (up from JP¥76.13 in FY 2022). Revenue: JP¥35.7b (up 22% from FY 2022). Net income: JP¥4.02b (up 117% from FY 2022). Profit margin: 11% (up from 6.3% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) exceeded analyst estimates by 8.7%. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 22, 2023 Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 22, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥16.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 26 June 2023. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.8%). Major Estimate Revision • Feb 24
Consensus EPS estimates fall by 27% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from JP¥209 to JP¥152 per share. Revenue forecast steady at JP¥36.5b. Net income forecast to grow 42% next year vs 6.4% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥1,540 unchanged from last update. Share price was steady at JP¥1,017 over the past week. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥0.49 (vs JP¥34.21 in 3Q 2022) Third quarter 2023 results: EPS: JP¥0.49 (down from JP¥34.21 in 3Q 2022). Revenue: JP¥9.57b (up 40% from 3Q 2022). Net income: JP¥12.0m (down 99% from 3Q 2022). Profit margin: 0.1% (down from 12% in 3Q 2022). Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals 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 only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Dec 15
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q3, 2023 Results on Feb 10, 2023 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 Price Target Changed • Nov 16
Price target increased to JP¥1,700 Up from JP¥1,040, the current price target is provided by 1 analyst. New target price is 41% above last closing price of JP¥1,206. Stock is down 15% over the past year. The company is forecast to post earnings per share of JP¥197 for next year compared to JP¥76.13 last year. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥63.57 (vs JP¥34.14 in 2Q 2022) Second quarter 2023 results: EPS: JP¥63.57 (up from JP¥34.14 in 2Q 2022). Revenue: JP¥8.96b (up 23% from 2Q 2022). Net income: JP¥1.55b (up 86% from 2Q 2022). Profit margin: 17% (up from 11% in 2Q 2022). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year and the company’s share price has also increased by 13% per year. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥63.57 (vs JP¥34.14 in 2Q 2022) Second quarter 2023 results: EPS: JP¥63.57 (up from JP¥34.14 in 2Q 2022). Revenue: JP¥8.96b (up 23% from 2Q 2022). Net income: JP¥1.55b (up 86% from 2Q 2022). Profit margin: 17% (up from 11% in 2Q 2022). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 16% per year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 01 December 2022. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.9%). Announcement • Sep 09
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q2, 2023 Results on Nov 11, 2022 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥78.92 (vs JP¥56.67 in 1Q 2022) First quarter 2023 results: EPS: JP¥78.92 (up from JP¥56.67 in 1Q 2022). Revenue: JP¥7.94b (up 5.9% from 1Q 2022). Net income: JP¥1.92b (up 39% from 1Q 2022). Profit margin: 24% (up from 18% in 1Q 2022). Over the next year, revenue is forecast to grow 20%, compared to a 9.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥1,231, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Chemicals industry in Japan. Total returns to shareholders of 50% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥584 per share. Announcement • May 29
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Q1, 2023 Results on Aug 10, 2022 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report Q1, 2023 results on Aug 10, 2022 Major Estimate Revision • May 20
Consensus EPS estimates increase by 48% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥32.8b to JP¥35.5b. EPS estimate increased from JP¥108 to JP¥161 per share. Net income forecast to grow 111% next year vs 4.0% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥1,360 unchanged from last update. Share price rose 9.1% to JP¥1,051 over the past week. Reported Earnings • May 18
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥76.13 (up from JP¥50.90 in FY 2021). Revenue: JP¥29.4b (up 25% from FY 2021). Net income: JP¥1.85b (up 50% from FY 2021). Profit margin: 6.3% (up from 5.3% in FY 2021). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 18%. Over the next year, revenue is forecast to grow 12%, compared to a 7.4% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • May 15
Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 23, 2022 Daiichi Kigenso Kagaku Kogyo Co., Ltd., Annual General Meeting, Jun 23, 2022. Announcement • Apr 08
Daiichi Kigenso Kagaku Kogyo Co., Ltd. to Report Fiscal Year 2022 Results on May 13, 2022 Daiichi Kigenso Kagaku Kogyo Co., Ltd. announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.6%). Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥34.21 (up from JP¥21.71 in 3Q 2021). Revenue: JP¥6.85b (up 6.2% from 3Q 2021). Net income: JP¥831.0m (up 58% from 3Q 2021). Profit margin: 12% (up from 8.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 45%. Over the next year, revenue is forecast to grow 3.0%, compared to a 6.2% growth forecast for the industry in Japan. 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 10% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥1,278, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 31% over the past three years. Major Estimate Revision • Nov 26
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from JP¥30.4b to JP¥29.9b. EPS estimate rose from JP¥94.70 to JP¥119. Net income forecast to shrink 20% next year vs 1.8% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥2,010 unchanged from last update. Share price was steady at JP¥1,411 over the past week. Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS JP¥34.14 (vs JP¥0.74 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¥7.27b (up 57% from 2Q 2021). Net income: JP¥829.0m (up JP¥847.0m from 2Q 2021). Profit margin: 11% (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 15% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 01 December 2021. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.9%). Reported Earnings • Aug 12
First quarter 2022 earnings released: EPS JP¥56.67 (vs JP¥2.60 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¥7.50b (up 73% from 1Q 2021). Net income: JP¥1.38b (up JP¥1.44b from 1Q 2021). Profit margin: 18% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. 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 11% per year, which means it is well ahead of earnings. Reported Earnings • Jun 27
Full year 2021 earnings released: EPS JP¥50.90 (vs JP¥96.90 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥23.5b (down 12% from FY 2020). Net income: JP¥1.24b (down 47% from FY 2020). Profit margin: 5.3% (down from 8.9% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥1,837, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 64% over the past three years. Major Estimate Revision • Jun 05
Consensus EPS estimates increase to JP¥101 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥29.5b to JP¥30.4b. EPS estimate increased from JP¥86.50 to JP¥101 per share. Net income forecast to grow 70% next year vs 16% growth forecast for Chemicals industry in Japan. Consensus price target up from JP¥538 to JP¥1,040. Share price rose 18% to JP¥1,837 over the past week. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,577, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 57% over the past three years. Reported Earnings • May 18
Full year 2021 earnings released: EPS JP¥50.90 (vs JP¥96.90 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥23.5b (down 12% from FY 2020). Net income: JP¥1.24b (down 47% from FY 2020). Profit margin: 5.3% (down from 8.9% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 25 June 2021. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.8%). 
