Valuation Update With 7 Day Price Move • 3h
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to JP¥27,500, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 2,050% over the past three years. Reported Earnings • Aug 13
First quarter 2027 earnings released: EPS: JP¥247 (vs JP¥106 in 1Q 2026) First quarter 2027 results: EPS: JP¥247 (up from JP¥106 in 1Q 2026). Revenue: JP¥8.61b (up 56% from 1Q 2026). Net income: JP¥2.21b (up 133% from 1Q 2026). Profit margin: 26% (up from 17% in 1Q 2026). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has increased by 161% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥15,970, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 983% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥24,037 per share. Declared Dividend • Jul 25
Final dividend of JP¥60.00 announced Shareholders will receive a dividend of JP¥60.00. Ex-date: 29th September 2026 Payment date: 8th December 2026 Dividend yield will be 0.4%, which is lower than the industry average of 1.4%. Payout Ratios Payout ratio: 14%. Cash payout ratio: 24%. Buy Or Sell Opportunity • Jul 17
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 38% to JP¥18,840. The fair value is estimated to be JP¥23,955, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 76%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥24,600, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 1,530% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥23,740 per share. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥24,220, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 1,556% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥23,311 per share. Buy Or Sell Opportunity • Jun 09
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 2.5% to JP¥28,510. The fair value is estimated to be JP¥23,175, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 76%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Buy Or Sell Opportunity • May 22
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to JP¥28,770. The fair value is estimated to be JP¥23,342, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 76%. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Reported Earnings • May 18
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥696 (up from JP¥245 in FY 2025). Revenue: JP¥30.1b (up 51% from FY 2025). Net income: JP¥6.21b (up 179% from FY 2025). Profit margin: 21% (up from 11% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has increased by 158% per year, which means it is tracking significantly ahead of earnings growth. 공고 • May 14
SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 19, 2026 SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 19, 2026. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥33,400, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 1,967% over the past three years. 공고 • May 10
SEIKOH GIKEN Co., Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 SEIKOH GIKEN Co., Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥24,400, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 1,309% over the past three years. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥23,490, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 1,283% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to JP¥28,730, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 1,573% over the past three years. Major Estimate Revision • Feb 20
Consensus revenue estimates increase by 20% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥25.0b to JP¥30.0b. EPS estimate increased from JP¥481 to JP¥604 per share. Net income forecast to grow 25% next year vs 14% growth forecast for Electronic industry in Japan. Consensus price target of JP¥15,000 unchanged from last update. Share price rose 24% to JP¥23,630 over the past week. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥23,630, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 1,340% over the past three years. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥185 (vs JP¥62.16 in 3Q 2025) Third quarter 2026 results: EPS: JP¥185 (up from JP¥62.16 in 3Q 2025). Revenue: JP¥8.04b (up 89% from 3Q 2025). Net income: JP¥1.66b (up 193% from 3Q 2025). Profit margin: 21% (up from 13% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has increased by 122% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥14,590, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 813% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,350 per share. Declared Dividend • Dec 09
First half dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 0.6%, which is lower than the industry average of 1.4%. Payout Ratios Payout ratio: 18%. Cash payout ratio: 27%. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥14,190, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 815% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,359 per share. Major Estimate Revision • Nov 20
Consensus EPS estimates increase by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥23.3b to JP¥25.0b. EPS estimate increased from JP¥376 to JP¥470 per share. Net income forecast to grow 13% next year vs 11% growth forecast for Electronic industry in Japan. Consensus price target of JP¥10,500 unchanged from last update. Share price rose 17% to JP¥13,050 over the past week. Reported Earnings • Nov 17
Second quarter 2026 earnings released: EPS: JP¥144 (vs JP¥50.76 in 2Q 2025) Second quarter 2026 results: EPS: JP¥144 (up from JP¥50.76 in 2Q 2025). Revenue: JP¥6.60b (up 33% from 2Q 2025). Net income: JP¥1.28b (up 177% from 2Q 2025). Profit margin: 19% (up from 9.4% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has increased by 103% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥10,940, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 650% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,149 per share. New Risk • Sep 23
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 7.5% 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. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.7%). Major Estimate Revision • Aug 22
Consensus EPS estimates increase by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥22.4b to JP¥22.8b. EPS estimate increased from JP¥281 to JP¥348 per share. Net income forecast to grow 11% next year vs 17% growth forecast for Electronic industry in Japan. Consensus price target of JP¥7,000 unchanged from last update. Share price rose 8.1% to JP¥7,720 over the past week. Reported Earnings • Aug 10
First quarter 2026 earnings released: EPS: JP¥106 (vs JP¥33.76 in 1Q 2025) First quarter 2026 results: EPS: JP¥106 (up from JP¥33.76 in 1Q 2025). Revenue: JP¥5.54b (up 35% from 1Q 2025). Net income: JP¥946.0m (up 207% from 1Q 2025). Profit margin: 17% (up from 7.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 1.2%, which is lower than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (46% earnings payout ratio) and cash flows (26% cash payout ratio). 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. EPS is expected to grow by 30% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 25
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥245 (up from JP¥83.41 in FY 2024). Revenue: JP¥20.0b (up 27% from FY 2024). Net income: JP¥2.23b (up 192% from FY 2024). Profit margin: 11% (up from 4.8% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.0%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Jun 11
Now 20% undervalued Over the last 90 days, the stock has risen 28% to JP¥5,270. The fair value is estimated to be JP¥6,599, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.7% over the last 3 years. Earnings per share has grown by 12%. For the next 3 years, revenue is forecast to grow by 7.3% per annum. Earnings are also forecast to grow by 8.4% per annum over the same time period. Price Target Changed • May 21
Price target increased by 13% to JP¥7,000 Up from JP¥6,200, the current price target is provided by 1 analyst. New target price is 58% above last closing price of JP¥4,430. Stock is up 92% over the past year. The company is forecast to post earnings per share of JP¥281 for next year compared to JP¥245 last year. Reported Earnings • May 19
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥245 (up from JP¥83.41 in FY 2024). Revenue: JP¥20.0b (up 27% from FY 2024). Net income: JP¥2.23b (up 192% from FY 2024). Profit margin: 11% (up from 4.8% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.0%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to JP¥4,455, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 173% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,213 per share. 공고 • May 14
SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 20, 2025 SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 20, 2025. Buy Or Sell Opportunity • Apr 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 42% to JP¥3,265. The fair value is estimated to be JP¥4,157, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 43% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥3,480, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 110% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,166 per share. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.7%). Buy Or Sell Opportunity • Feb 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to JP¥4,985. The fair value is estimated to be JP¥4,124, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 41% in the next 2 years. Reported Earnings • Feb 12
Third quarter 2025 earnings released: EPS: JP¥62.16 (vs JP¥10.52 in 3Q 2024) Third quarter 2025 results: EPS: JP¥62.16 (up from JP¥10.52 in 3Q 2024). Revenue: JP¥4.26b (up 7.0% from 3Q 2024). Net income: JP¥566.0m (up 490% from 3Q 2024). Profit margin: 13% (up from 2.4% in 3Q 2024). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic 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 44% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥5,930, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 288% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥8,185 per share. 공고 • Dec 13
SEIKOH GIKEN Co., Ltd. (TSE:6834) announces an Equity Buyback for 250,000 shares, representing 2.71% for ¥1,315 million. SEIKOH GIKEN Co., Ltd. (TSE:6834) announces a share repurchase program. Under the program, the company will repurchase 250,000 shares, representing 2.71% of the outstanding shares, at ¥5,260 per share for ¥1,315 million. The purpose of the program is to enhance capital efficiency and to enable the implementation of a flexible capital policy in response to changes in the business environment. As of September 30, 2024, the company had 9,239,805 shares outstanding and 93,849 shares in treasury. Declared Dividend • Dec 10
First half dividend of JP¥30.00 announced Shareholders will receive a dividend of JP¥30.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 1.2%, which is lower than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (41% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 28% 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. EPS is expected to grow by 95% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 13
Second quarter 2025 earnings released: EPS: JP¥50.76 (vs JP¥29.60 in 2Q 2024) Second quarter 2025 results: EPS: JP¥50.76 (up from JP¥29.60 in 2Q 2024). Revenue: JP¥4.95b (up 16% from 2Q 2024). Net income: JP¥464.0m (up 72% from 2Q 2024). Profit margin: 9.4% (up from 6.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Electronic 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 29% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥3,850, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 138% over the past three years. 공고 • Oct 04
SEIKOH GIKEN Co., Ltd. (TSE:6834) agreed to acquire Mg Co.,Ltd. SEIKOH GIKEN Co., Ltd. (TSE:6834) agreed to acquire Mg Co.,Ltd. on October 2, 2024.
For the period ending March 31, 2024, Mg Co.,Ltd. reported total revenue of ¥2.34 billion, EBIT of ¥574.22 million and net income of ¥414.37 million. As of March 31, 2024, Mg Co.,Ltd. reported total assets of ¥1.4 billion and total common equity of ¥945.08 million. Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥33.76 (vs JP¥3.40 in 1Q 2024) First quarter 2025 results: EPS: JP¥33.76 (up from JP¥3.40 in 1Q 2024). Revenue: JP¥4.12b (up 15% from 1Q 2024). Net income: JP¥308.0m (up JP¥277.0m from 1Q 2024). Profit margin: 7.5% (up from 0.9% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to JP¥2,010, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 12x in the Electronic industry in Japan. Negligible returns to shareholders over past three years. New Risk • Jul 18
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 7.5% 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 • Jun 26
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥83.41 (down from JP¥119 in FY 2023). Revenue: JP¥15.8b (down 3.1% from FY 2023). Net income: JP¥761.0m (down 30% from FY 2023). Profit margin: 4.8% (down from 6.6% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,696, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 26% over the past three years. New Risk • May 30
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 5.6% 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. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥2,262, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 4.9% over the past three years. Reported Earnings • May 16
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥83.41 (down from JP¥119 in FY 2023). Revenue: JP¥15.8b (down 3.1% from FY 2023). Net income: JP¥761.0m (down 30% from FY 2023). Profit margin: 4.8% (down from 6.6% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is forecast to grow 7.9% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. 공고 • May 15
SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 21, 2024 SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 21, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥55.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Reported Earnings • Feb 11
Third quarter 2024 earnings released: EPS: JP¥10.52 (vs JP¥32.01 in 3Q 2023) Third quarter 2024 results: EPS: JP¥10.52 (down from JP¥32.01 in 3Q 2023). Revenue: JP¥3.98b (down 7.9% from 3Q 2023). Net income: JP¥96.0m (down 67% from 3Q 2023). Profit margin: 2.4% (down from 6.8% in 3Q 2023). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 12
Second quarter 2024 earnings released: EPS: JP¥29.60 (vs JP¥46.04 in 2Q 2023) Second quarter 2024 results: EPS: JP¥29.60 (down from JP¥46.04 in 2Q 2023). Revenue: JP¥4.28b (down 7.8% from 2Q 2023). Net income: JP¥270.0m (down 36% from 2Q 2023). Profit margin: 6.3% (down from 9.0% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic 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 fallen by 17% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥3.40 (vs JP¥25.10 in 1Q 2023) First quarter 2024 results: EPS: JP¥3.40 (down from JP¥25.10 in 1Q 2023). Revenue: JP¥3.58b (down 9.0% from 1Q 2023). Net income: JP¥31.0m (down 87% from 1Q 2023). Profit margin: 0.9% (down from 5.8% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 25
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥119 (down from JP¥126 in FY 2022). Revenue: JP¥16.3b (flat on FY 2022). Net income: JP¥1.08b (down 5.9% from FY 2022). Profit margin: 6.6% (down from 7.1% in FY 2022). Revenue missed analyst estimates by 7.0%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • May 17
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥119 (down from JP¥126 in FY 2022). Revenue: JP¥16.3b (flat on FY 2022). Net income: JP¥1.08b (down 5.9% from FY 2022). Profit margin: 6.6% (down from 7.1% in FY 2022). Revenue missed analyst estimates by 7.0%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥50.00 per share at 2.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 27% but the company is paying out more than the cash it is generating. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥32.01 (vs JP¥36.72 in 3Q 2022) Third quarter 2023 results: EPS: JP¥32.01 (down from JP¥36.72 in 3Q 2022). Revenue: JP¥4.32b (up 5.7% from 3Q 2022). Net income: JP¥292.0m (down 13% from 3Q 2022). Profit margin: 6.8% (down from 8.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥46.04 (vs JP¥36.06 in 2Q 2022) Second quarter 2023 results: EPS: JP¥46.04 (up from JP¥36.06 in 2Q 2022). Revenue: JP¥4.65b (up 15% from 2Q 2022). Net income: JP¥420.0m (up 28% from 2Q 2022). Profit margin: 9.0% (up from 8.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Board Change • Nov 16
No independent 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. No independent directors (9 non-independent directors). Director Toyohiko Yatagai was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥46.04 (vs JP¥36.06 in 2Q 2022) Second quarter 2023 results: EPS: JP¥46.04 (up from JP¥36.06 in 2Q 2022). Revenue: JP¥4.65b (up 15% from 2Q 2022). Net income: JP¥420.0m (up 28% from 2Q 2022). Profit margin: 9.0% (up from 8.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: JP¥25.10 (vs JP¥10.74 in 1Q 2022) First quarter 2023 results: EPS: JP¥25.10 (up from JP¥10.74 in 1Q 2022). Revenue: JP¥3.94b (up 10% from 1Q 2022). Net income: JP¥229.0m (up 134% from 1Q 2022). Profit margin: 5.8% (up from 2.7% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 14%, compared to a 9.6% 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 fallen by 14% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 18
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥126 (up from JP¥108 in FY 2021). Revenue: JP¥16.2b (up 9.2% from FY 2021). Net income: JP¥1.15b (up 17% from FY 2021). Profit margin: 7.1% (up from 6.6% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 4.5%. Over the next year, revenue is forecast to grow 8.1%, compared to a 8.0% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 10% per year. 공고 • May 18
SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 24, 2022 SEIKOH GIKEN Co., Ltd., Annual General Meeting, Jun 24, 2022. Board Change • Apr 27
No independent 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. No independent directors (9 non-independent directors). Director Toyohiko Yatagai was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment.