Buy Or Sell Opportunity • Jul 03
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 32% to JP¥1,247. The fair value is estimated to be JP¥1,033, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 43%. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,227, the stock trades at a trailing P/E ratio of 26.4x. Average trailing P/E is 14x in the IT industry in Japan. Total returns to shareholders of 34% over the past three years. New Risk • Jun 29
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 6.6% 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. This is currently the only risk that has been identified for the company. Declared Dividend • Jun 13
First half dividend of JP¥3.00 announced Shareholders will receive a dividend of JP¥3.00. Ex-date: 29th September 2026 Payment date: 28th December 2026 Dividend yield will be 0.6%, which is lower than the industry average of 1.4%. Payout Ratios Payout ratio: 17%. Cash payout ratio: 8%. Reported Earnings • May 08
Second quarter 2026 earnings released: EPS: JP¥16.62 (vs JP¥11.98 in 2Q 2025) Second quarter 2026 results: EPS: JP¥16.62 (up from JP¥11.98 in 2Q 2025). Revenue: JP¥3.11b (up 16% from 2Q 2025). Net income: JP¥518.0m (up 35% from 2Q 2025). Profit margin: 17% (up from 14% in 2Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. 공시 • Apr 03
HENNGE Inc. Launches Endpoint and Managed Security Solution HENNGE Inc. announced the launch of HENNGE Endpoint & Managed Security, a new solution designed to extend protection beyond identity and secure devices across modern cloud environments. With the increasing complexity of cyber threats targeting endpoints, organizations require more than access control alone. HENNGE Endpoint & Managed Security delivers a unified approach to endpoint protection, detection, and response, helping organizations prevent, identify, and contain threats across their device landscape. The solution combines Endpoint Protection Platform (EPP), Endpoint Detection and Response (EDR), and Managed Detection and Response (MDR) into a single, cloud-managed platform. Key capabilities include automated patch management, advanced threat protection against ransomware and zero-day attacks, real-time behavioral detection, and automated containment of compromised devices. For organizations requiring additional support, optional 24/7 expert-led monitoring and remediation provides continuous protection and rapid response to emerging threats. HENNGE Endpoint & Managed Security is designed to complement HENNGE Identity by securing the device layer alongside identity-based access controls. By combining identity and endpoint protection, organizations can reduce risk across both user access and device exposure, strengthening their overall security posture. Organizations and managed service providers (MSPs) interested in adding endpoint protection and managed security services can contact HENNGE’s cybersecurity experts. New Risk • Feb 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 5.5% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 05
First quarter 2026 earnings released: EPS: JP¥11.53 (vs JP¥12.63 in 1Q 2025) First quarter 2026 results: EPS: JP¥11.53 (down from JP¥12.63 in 1Q 2025). Revenue: JP¥3.02b (up 20% from 1Q 2025). Net income: JP¥365.0m (down 10% from 1Q 2025). Profit margin: 12% (down from 16% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Dec 30
Full year 2025 earnings released: EPS: JP¥42.39 (vs JP¥25.66 in FY 2024) Full year 2025 results: EPS: JP¥42.39 (up from JP¥25.66 in FY 2024). Revenue: JP¥10.9b (up 31% from FY 2024). Net income: JP¥1.36b (up 64% from FY 2024). Profit margin: 12% (up from 9.9% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. 공시 • Nov 21
Hennge K.K. (TSE:4475) announces an Equity Buyback for 700,000 shares, representing 2.2% for ¥1,190 million. Hennge K.K. (TSE:4475) announces a share repurchase program. Under the program, the company will repurchase up to 700,000 shares, representing 2.2% of its issued share capital for ¥1,190 million. The purpose of the program is to avoiding dilution of stock value. The program will be funded from own resources. The program is valid till January 23, 2026 As of September 30, 2025, the company had 31,850,068 shares issued (excluding treasury stock) and 650,532 shares in treasury. Reported Earnings • Nov 08
Full year 2025 earnings released: EPS: JP¥42.39 (vs JP¥25.66 in FY 2024) Full year 2025 results: EPS: JP¥42.39 (up from JP¥25.66 in FY 2024). Revenue: JP¥10.9b (up 31% from FY 2024). Net income: JP¥1.36b (up 64% from FY 2024). Profit margin: 12% (up from 9.9% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. 공시 • Nov 07
Hennge K.K., Annual General Meeting, Dec 24, 2025 Hennge K.K., Annual General Meeting, Dec 24, 2025. Buy Or Sell Opportunity • Oct 03
Now 21% overvalued Over the last 90 days, the stock has fallen 3.0% to JP¥1,570. The fair value is estimated to be JP¥1,296, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 50%. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥4.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 26 December 2025. Payout ratio is a comfortable 8.3% and this is well supported by cash flows. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.2%). Reported Earnings • Aug 05
Third quarter 2025 earnings released: EPS: JP¥8.31 (vs JP¥9.41 in 3Q 2024) Third quarter 2025 results: EPS: JP¥8.31 (down from JP¥9.41 in 3Q 2024). Revenue: JP¥2.81b (up 30% from 3Q 2024). Net income: JP¥266.0m (down 12% from 3Q 2024). Profit margin: 9.5% (down from 14% in 3Q 2024). The decrease in margin was driven by higher expenses. 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 17% per year, which means it is significantly lagging earnings growth. New Risk • Jul 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.2% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,780, the stock trades at a trailing P/E ratio of 47.4x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 94% over the past three years. Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,698, the stock trades at a trailing P/E ratio of 45.6x. Average trailing P/E is 17x in the IT industry in Japan. Total returns to shareholders of 60% over the past three years. Declared Dividend • May 09
Dividend of JP¥4.00 announced Shareholders will receive a dividend of JP¥4.00. Ex-date: 29th September 2025 Payment date: 26th December 2025 Dividend yield will be 0.3%, which is lower than the industry average of 1.4%. Payout Ratios Payout ratio: 8%. Cash payout ratio: 5%. Reported Earnings • May 08
Second quarter 2025 earnings released: EPS: JP¥11.98 (vs JP¥5.10 in 2Q 2024) Second quarter 2025 results: EPS: JP¥11.98 (up from JP¥5.10 in 2Q 2024). Revenue: JP¥2.69b (up 36% from 2Q 2024). Net income: JP¥385.0m (up 133% from 2Q 2024). Profit margin: 14% (up from 8.3% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,669, the stock trades at a trailing P/E ratio of 54.9x. Average trailing P/E is 15x in the IT industry in Japan. Total returns to shareholders of 23% over the past three years. Buy Or Sell Opportunity • Mar 05
Now 21% overvalued Over the last 90 days, the stock has fallen 4.5% to JP¥1,301. The fair value is estimated to be JP¥1,076, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 45%. 공시 • Mar 01
Hennge K.K. to Report Q2, 2025 Results on May 07, 2025 Hennge K.K. announced that they will report Q2, 2025 results on May 07, 2025 Reported Earnings • Feb 06
First quarter 2025 earnings released: EPS: JP¥12.63 (vs JP¥7.93 in 1Q 2024) First quarter 2025 results: EPS: JP¥12.63 (up from JP¥7.93 in 1Q 2024). Revenue: JP¥2.51b (up 31% from 1Q 2024). Net income: JP¥406.0m (up 59% from 1Q 2024). Profit margin: 16% (up from 13% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to JP¥1,490, the stock trades at a trailing P/E ratio of 57.9x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 26% over the past three years. 공시 • Jan 29
Hennge K.K. to Report Q3, 2025 Results on Aug 04, 2025 Hennge K.K. announced that they will report Q3, 2025 results on Aug 04, 2025 Reported Earnings • Dec 28
Full year 2024 earnings released: EPS: JP¥25.66 (vs JP¥15.73 in FY 2023) Full year 2024 results: EPS: JP¥25.66 (up from JP¥15.73 in FY 2023). Revenue: JP¥8.36b (up 24% from FY 2023). Net income: JP¥827.0m (up 63% from FY 2023). Profit margin: 9.9% (up from 7.5% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. 공시 • Dec 03
Hennge K.K. to Report Q1, 2025 Results on Feb 04, 2025 Hennge K.K. announced that they will report Q1, 2025 results on Feb 04, 2025 Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to JP¥1,619, the stock trades at a trailing P/E ratio of 62.9x. Average trailing P/E is 18x in the IT industry in Japan. Total loss to shareholders of 31% over the past three years. Reported Earnings • Nov 10
Full year 2024 earnings released: EPS: JP¥25.66 (vs JP¥15.73 in FY 2023) Full year 2024 results: EPS: JP¥25.66 (up from JP¥15.73 in FY 2023). Revenue: JP¥8.36b (up 24% from FY 2023). Net income: JP¥827.0m (up 63% from FY 2023). Profit margin: 9.9% (up from 7.5% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. 공시 • Nov 08
Hennge K.K., Annual General Meeting, Dec 24, 2024 Hennge K.K., Annual General Meeting, Dec 24, 2024. New Risk • Nov 06
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. 공시 • Aug 29
Hennge K.K. to Report Fiscal Year 2024 Results on Nov 08, 2024 Hennge K.K. announced that they will report fiscal year 2024 results on Nov 08, 2024 Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥1,103, the stock trades at a trailing P/E ratio of 40.5x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 56% over the past three years. Buy Or Sell Opportunity • Aug 22
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at JP¥991. The fair value is estimated to be JP¥815, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 41%. Reported Earnings • Aug 14
Third quarter 2024 earnings released: EPS: JP¥9.41 (vs JP¥6.29 in 3Q 2023) Third quarter 2024 results: EPS: JP¥9.41 (up from JP¥6.29 in 3Q 2023). Revenue: JP¥2.17b (up 24% from 3Q 2023). Net income: JP¥302.7m (up 49% from 3Q 2023). Profit margin: 14% (up from 12% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥842, the stock trades at a trailing P/E ratio of 34.8x. Average trailing P/E is 17x in the IT industry in Japan. Total loss to shareholders of 45% over the past three years. Buy Or Sell Opportunity • Aug 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to JP¥842. The fair value is estimated to be JP¥1,098, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 33%. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,060, the stock trades at a trailing P/E ratio of 43.8x. Average trailing P/E is 19x in the IT industry in Japan. Total loss to shareholders of 41% over the past three years. Reported Earnings • May 12
Second quarter 2024 earnings released: EPS: JP¥5.11 (vs JP¥3.29 in 2Q 2023) Second quarter 2024 results: EPS: JP¥5.11 (up from JP¥3.29 in 2Q 2023). Revenue: JP¥1.98b (up 20% from 2Q 2023). Net income: JP¥165.0m (up 56% from 2Q 2023). Profit margin: 8.3% (up from 6.4% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. 공시 • May 11
Hennge K.K. (TSE:4475) announces an Equity Buyback for 150,000 shares, representing 0.46% for ¥255 million. Hennge K.K. (TSE:4475) announces a share repurchase program. Under the program, the company will repurchase up to 150,000 shares, representing 0.77% of its issued share capital for ¥255 million. The purpose of the program is to avoiding dilution of stock value. The program will be funded from own resources. The program is valid till June 28, 2024. As of March 31, 2024 , the company had 32,283,946 shares issued (excluding treasury stock) and 216,654 shares in treasury. Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 43% After last week's 43% share price gain to JP¥1,660, the stock trades at a trailing P/E ratio of 74.6x. Average trailing P/E is 18x in the IT industry in Japan. Total loss to shareholders of 62% over the past three years. New Risk • Feb 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.5% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 10
First quarter 2024 earnings released: EPS: JP¥7.93 (vs JP¥1.42 in 1Q 2023) First quarter 2024 results: EPS: JP¥7.93 (up from JP¥1.42 in 1Q 2023). Revenue: JP¥1.92b (up 24% from 1Q 2023). Net income: JP¥256.0m (up 457% from 1Q 2023). Profit margin: 13% (up from 3.0% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 28
Full year 2023 earnings released: EPS: JP¥15.73 (vs JP¥9.88 in FY 2022) Full year 2023 results: EPS: JP¥15.73 (up from JP¥9.88 in FY 2022). Revenue: JP¥6.78b (up 20% from FY 2022). Net income: JP¥508.0m (up 58% from FY 2022). Profit margin: 7.5% (up from 5.7% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 11
Full year 2023 earnings released: EPS: JP¥15.73 (vs JP¥9.88 in FY 2022) Full year 2023 results: EPS: JP¥15.73 (up from JP¥9.88 in FY 2022). Revenue: JP¥6.78b (up 20% from FY 2022). Net income: JP¥508.0m (up 58% from FY 2022). Profit margin: 7.5% (up from 5.7% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. 공시 • Nov 10
Hennge K.K., Annual General Meeting, Dec 22, 2023 Hennge K.K., Annual General Meeting, Dec 22, 2023. 공시 • Sep 02
Hennge K.K. to Report Fiscal Year 2023 Results on Nov 10, 2023 Hennge K.K. announced that they will report fiscal year 2023 results on Nov 10, 2023 New Risk • Aug 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 12
Third quarter 2023 earnings released: EPS: JP¥6.29 (vs JP¥2.62 in 3Q 2022) Third quarter 2023 results: EPS: JP¥6.29 (up from JP¥2.62 in 3Q 2022). Revenue: JP¥1.74b (up 21% from 3Q 2022). Net income: JP¥203.0m (up 139% from 3Q 2022). Profit margin: 12% (up from 5.9% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. 공시 • May 28
Hennge K.K. to Report Q3, 2023 Results on Aug 10, 2023 Hennge K.K. announced that they will report Q3, 2023 results on Aug 10, 2023 Reported Earnings • May 16
Second quarter 2023 earnings released: EPS: JP¥3.29 (vs JP¥3.11 in 2Q 2022) Second quarter 2023 results: EPS: JP¥3.29 (up from JP¥3.11 in 2Q 2022). Revenue: JP¥1.65b (up 19% from 2Q 2022). Net income: JP¥106.0m (up 5.0% from 2Q 2022). Profit margin: 6.4% (down from 7.3% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Reported Earnings • Feb 12
First quarter 2023 earnings released: EPS: JP¥1.42 (vs JP¥3.88 in 1Q 2022) First quarter 2023 results: EPS: JP¥1.42 (down from JP¥3.88 in 1Q 2022). Revenue: JP¥1.55b (up 18% from 1Q 2022). Net income: JP¥46.0m (down 64% from 1Q 2022). Profit margin: 3.0% (down from 9.6% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 8% per year, which means it is performing significantly worse than earnings. Reported Earnings • Dec 28
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥9.88 (up from JP¥6.91 in FY 2021). Revenue: JP¥5.65b (up 17% from FY 2021). Net income: JP¥321.0m (up 44% from FY 2021). Profit margin: 5.7% (up from 4.6% 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 2.6%. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. 공시 • Nov 27
Hennge K.K. to Report Q1, 2023 Results on Feb 10, 2023 Hennge K.K. announced that they will report Q1, 2023 results on Feb 10, 2023 공시 • Nov 19
Hennge K.K. (TSE:4475) announces an Equity Buyback for 250,000 shares, representing 0.77% for ¥350 million. Hennge K.K. (TSE:4475) announces a share repurchase program. Under the program, the company will repurchase up to 250,000 shares, representing 0.77% of its issued share capital for ¥350 million. The purpose of the program is to avoiding dilution of stock value. The program is valid till November 30, 2022. As of September 30, 2022 , the company had 32,500,324 shares issued (excluding treasury stock) and 276 shares in treasury. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Executive VP & Director Haruo Amano was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. 공시 • Nov 13
Hennge K.K., Annual General Meeting, Dec 23, 2022 Hennge K.K., Annual General Meeting, Dec 23, 2022. Reported Earnings • Nov 13
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥9.88 (up from JP¥6.91 in FY 2021). Revenue: JP¥5.65b (up 17% from FY 2021). Net income: JP¥321.0m (up 44% from FY 2021). Profit margin: 5.7% (up from 4.6% 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 2.6%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the IT industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 16% per year. 공시 • Sep 23
Hennge K.K. to Report Fiscal Year 2022 Results on Nov 11, 2022 Hennge K.K. announced that they will report fiscal year 2022 results on Nov 11, 2022 Buying Opportunity • Aug 22
Now 21% undervalued Over the last 90 days, the stock is up 5.3%. The fair value is estimated to be JP¥1,476, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 21%. For the next 3 years, revenue is forecast to grow by 15% per annum. Earnings is also forecast to grow by 32% per annum over the same time period. Reported Earnings • Aug 12
Third quarter 2022 earnings released: EPS: JP¥2.62 (vs JP¥5.24 in 3Q 2021) Third quarter 2022 results: EPS: JP¥2.62 (down from JP¥5.24 in 3Q 2021). Revenue: JP¥1.44b (up 18% from 3Q 2021). Net income: JP¥85.0m (down 50% from 3Q 2021). Profit margin: 5.9% (down from 14% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 30%, compared to a 11% growth forecast for the industry in Japan. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥993, the stock trades at a forward P/E ratio of 60x. Average forward P/E is 19x in the IT industry in Japan. Total loss to shareholders of 45% over the past year. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥880, the stock trades at a forward P/E ratio of 53x. Average forward P/E is 19x in the IT industry in Japan. Total loss to shareholders of 58% over the past year. 공시 • Jun 02
Hennge K.K. to Report Q3, 2022 Results on Aug 10, 2022 Hennge K.K. announced that they will report Q3, 2022 results on Aug 10, 2022 Buying Opportunity • May 24
Now 21% undervalued Over the last 90 days, the stock is up 37%. The fair value is estimated to be JP¥1,389, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last year. Earnings per share has grown by 63%. Revenue is forecast to grow by 60% in 2 years. Earnings is forecast to grow by 112% in the next 2 years. Reported Earnings • May 16
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: JP¥3.11 (up from JP¥4.88 loss in 2Q 2021). Revenue: JP¥1.39b (up 19% from 2Q 2021). Net income: JP¥101.0m (up JP¥258.0m from 2Q 2021). Profit margin: 7.3% (up from net loss in 2Q 2021). The move to profitability was primarily driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 41%. Over the next year, revenue is forecast to grow 28%, compared to a 8.2% growth forecast for the industry in Japan. Buying Opportunity • Apr 28
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 15%. The fair value is estimated to be JP¥1,368, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last year. Earnings per share has declined by 58%. Revenue is forecast to grow by 59% in 2 years. Earnings is forecast to grow by 315% in the next 2 years. Price Target Changed • Apr 27
Price target decreased to JP¥1,500 Down from JP¥2,200, the current price target is provided by 1 analyst. New target price is 35% above last closing price of JP¥1,115. Stock is down 73% over the past year. The company is forecast to post earnings per share of JP¥10.29 for next year compared to JP¥6.91 last year. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Executive VP & Director Haruo Amano was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. 공시 • Apr 08
Hennge K.K. to Report Q2, 2022 Results on May 12, 2022 Hennge K.K. announced that they will report Q2, 2022 results on May 12, 2022 Buying Opportunity • Feb 14
Now 29% undervalued after recent price drop Over the last 90 days, the stock is down 64%. The fair value is estimated to be JP¥1,330, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last year. Earnings per share has declined by 52% over the last year. Reported Earnings • Feb 12
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: JP¥7.76 (up from JP¥4.28 in 1Q 2021). Revenue: JP¥1.31b (up 16% from 1Q 2021). Net income: JP¥126.0m (down 8.0% from 1Q 2021). Profit margin: 9.6% (down from 12% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 41%. Over the next year, revenue is forecast to grow 26%, compared to a 7.3% growth forecast for the industry in Japan. Price Target Changed • Jan 13
Price target decreased to JP¥2,200 Down from JP¥2,500, the current price target is provided by 1 analyst. New target price is 17% above last closing price of JP¥1,875. Stock is down 56% over the past year. The company is forecast to post earnings per share of JP¥10.80 for next year compared to JP¥6.91 last year. Major Estimate Revision • Jan 13
Consensus EPS estimates fall by 47% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥6.21b to JP¥5.89b. EPS estimate also fell from JP¥20.20 per share to JP¥10.80 per share. Net income forecast to grow 58% next year vs 9.8% growth forecast for IT industry in Japan. Consensus price target down from JP¥2,500 to JP¥2,200. Share price rose 4.5% to JP¥1,875 over the past week. Reported Earnings • Dec 28
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: JP¥13.82 (down from JP¥22.52 in FY 2020). Revenue: JP¥4.84b (up 17% from FY 2020). Net income: JP¥223.0m (down 37% from FY 2020). Profit margin: 4.6% (down from 8.5% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 41%. Earnings per share (EPS) missed analyst estimates by 41%. Over the next year, revenue is forecast to grow 28%, compared to a 7.8% growth forecast for the industry in Japan. Reported Earnings • Nov 15
Full year 2021 earnings released: EPS JP¥13.82 (vs JP¥22.52 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: JP¥4.84b (up 17% from FY 2020). Net income: JP¥223.0m (down 37% from FY 2020). Profit margin: 4.6% (down from 8.5% in FY 2020). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 13
Third quarter 2021 earnings released: EPS JP¥10.48 (vs JP¥8.20 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥1.23b (up 17% from 3Q 2020). Net income: JP¥170.0m (up 32% from 3Q 2020). Profit margin: 14% (up from 12% in 3Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • May 14
Second quarter 2021 earnings released: JP¥9.75 loss per share (vs JP¥8.20 profit in 2Q 2020) The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: JP¥1.17b (up 11% from 2Q 2020). Net loss: JP¥157.0m (down 222% from profit in 2Q 2020).