New Risk • Aug 01
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: 2.6% Last year net profit margin: 6.7% 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: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.6% net profit margin). Declared Dividend • Jul 25
Final dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 29th September 2026 Payment date: 30th November 2026 Dividend yield will be 3.5%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (14% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 5.1% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Jul 03
Consensus EPS estimates fall by 10% The consensus outlook for fiscal year 2027 has been updated. 2027 EPS estimate fell from JP¥143 to JP¥128 per share. Revenue forecast steady at JP¥1.49t. Net income forecast to shrink 33% next year vs 28% decline forecast for Electric Utilities industry in Japan. Consensus price target broadly unchanged at JP¥1,025. Share price rose 3.8% to JP¥918 over the past week. Aankondiging • Jun 23
The Chugoku Electric Power Co., Inc. to Report Q1, 2027 Results on Jul 31, 2026 The Chugoku Electric Power Co., Inc. announced that they will report Q1, 2027 results on Jul 31, 2026 Reported Earnings • Apr 29
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: JP¥191 (down from JP¥274 in FY 2025). Revenue: JP¥1.44t (down 5.7% from FY 2025). Net income: JP¥68.5b (down 30% from FY 2025). Profit margin: 4.8% (down from 6.4% in FY 2025). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Aankondiging • Apr 28
The Chugoku Electric Power Co., Inc., Annual General Meeting, Jun 25, 2026 The Chugoku Electric Power Co., Inc., Annual General Meeting, Jun 25, 2026. Aankondiging • Apr 16
Toda Corporation (TSE:1860) and The Chugoku Electric Power Co., Inc. (TSE:9504) acquired Asia Wind power Co., Ltd. Toda Corporation (TSE:1860) and The Chugoku Electric Power Co., Inc. (TSE:9504) acquired Asia Wind power Co., Ltd. on April 16, 2026. With this acquisition, The Chugoku Electric Power Co.,Inc. and TODA join Mitsui O.S.K. Lines, Ltd. and Hokutaku Co., Ltd. as investors in the Masuda-Hikimi Wind Power Project.
Toda Corporation (TSE:1860) and The Chugoku Electric Power Co., Inc. (TSE:9504) completed the acquisition of Asia Wind power Co., Ltd. on April 16, 2026. Buy Or Sell Opportunity • Apr 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.9% to JP¥979. The fair value is estimated to be JP¥1,226, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 4.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.4% per annum. Earnings are forecast to decline by 7.1% per annum over the same time period. Aankondiging • Mar 25
The Chugoku Electric Power Co., Inc. to Report Fiscal Year 2026 Results on Apr 28, 2026 The Chugoku Electric Power Co., Inc. announced that they will report fiscal year 2026 results on Apr 28, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (3.1%). Buy Or Sell Opportunity • Mar 11
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at JP¥973. The fair value is estimated to be JP¥803, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 0.1% per annum. Earnings are also forecast to decline by 11% per annum over the same time period. Buy Or Sell Opportunity • Feb 04
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 4.0% to JP¥954. The fair value is estimated to be JP¥789, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 0.8% per annum. Earnings are also forecast to decline by 12% per annum over the same time period. Reported Earnings • Jan 31
Third quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2026 results: EPS: JP¥15.15 (down from JP¥75.32 in 3Q 2025). Revenue: JP¥329.8b (down 7.0% from 3Q 2025). Net income: JP¥5.45b (down 80% from 3Q 2025). Profit margin: 1.7% (down from 7.6% in 3Q 2025). Revenue missed analyst estimates by 13%. Earnings per share (EPS) exceeded analyst estimates by 126%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Aankondiging • Dec 23
The Chugoku Electric Power Co., Inc. to Report Q3, 2026 Results on Jan 30, 2026 The Chugoku Electric Power Co., Inc. announced that they will report Q3, 2026 results on Jan 30, 2026 Declared Dividend • Nov 29
First half dividend of JP¥17.00 announced Shareholders will receive a dividend of JP¥17.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 2.6%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (10% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 44% over the next 3 years. However, it would need to fall by 89% to increase the payout ratio to a potentially unsustainable range. Major Estimate Revision • Nov 21
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥205 to JP¥227. Revenue forecast unchanged at JP¥1.45t. Net income forecast to shrink 37% next year vs 27% decline forecast for Electric Utilities industry in Japan. Consensus price target of JP¥943 unchanged from last update. Share price rose 2.6% to JP¥988 over the past week. Reported Earnings • Nov 01
Second quarter 2026 earnings: EPS exceeds analyst expectations Second quarter 2026 results: EPS: JP¥106 (up from JP¥78.66 in 2Q 2025). Revenue: JP¥396.7b (down 3.6% from 2Q 2025). Net income: JP¥38.0b (up 34% from 2Q 2025). Profit margin: 9.6% (up from 6.9% in 2Q 2025). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.5%. Revenue is forecast to decline by 1.5% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Aankondiging • Sep 26
The Chugoku Electric Power Co., Inc. to Report Q2, 2026 Results on Oct 31, 2025 The Chugoku Electric Power Co., Inc. announced that they will report Q2, 2026 results on Oct 31, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 01 December 2025. Payout ratio is a comfortable 9.5% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.1%). Reported Earnings • Aug 02
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: JP¥74.54 (up from JP¥64.85 in 1Q 2025). Revenue: JP¥329.6b (flat on 1Q 2025). Net income: JP¥26.8b (up 15% from 1Q 2025). Profit margin: 8.1% (up from 7.1% in 1Q 2025). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 9.9%. Revenue is forecast to decline by 1.6% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Declared Dividend • Jul 09
Final dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 4.3%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (10% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 28% over the next 3 years. However, it would need to fall by 89% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Jun 29
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥274 (down from JP¥371 in FY 2024). Revenue: JP¥1.53t (down 6.1% from FY 2024). Net income: JP¥98.5b (down 26% from FY 2024). Profit margin: 6.4% (down from 8.2% in FY 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 33%. Revenue is forecast to decline by 1.6% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jun 24
Now 20% overvalued Over the last 90 days, the stock has fallen 25% to JP¥685. The fair value is estimated to be JP¥569, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 1.6% per annum. Earnings are also forecast to decline by 10% per annum over the same time period. Aankondiging • Jun 20
The Chugoku Electric Power Co., Inc. to Report Q1, 2026 Results on Jul 31, 2025 The Chugoku Electric Power Co., Inc. announced that they will report Q1, 2026 results on Jul 31, 2025 Price Target Changed • Jun 16
Price target decreased by 10.0% to JP¥968 Down from JP¥1,075, the current price target is an average from 4 analysts. New target price is 38% above last closing price of JP¥699. Stock is down 34% over the past year. The company is forecast to post earnings per share of JP¥196 for next year compared to JP¥274 last year. Reported Earnings • May 01
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥274 (down from JP¥371 in FY 2024). Revenue: JP¥1.53t (down 6.1% from FY 2024). Net income: JP¥98.5b (down 26% from FY 2024). Profit margin: 6.4% (down from 8.2% in FY 2024). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 33%. Revenue is forecast to decline by 1.4% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Aankondiging • Apr 30
The Chugoku Electric Power Co., Inc., Annual General Meeting, Jun 26, 2025 The Chugoku Electric Power Co., Inc., Annual General Meeting, Jun 26, 2025. New Risk • Apr 30
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.0% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (4.0% operating cash flow to total debt). Earnings are forecast to decline by an average of 6.1% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.1%). Aankondiging • Mar 19
The Chugoku Electric Power Co., Inc. to Report Fiscal Year 2025 Results on Apr 30, 2025 The Chugoku Electric Power Co., Inc. announced that they will report fiscal year 2025 results on Apr 30, 2025 Major Estimate Revision • Feb 14
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥169 to JP¥195. Revenue forecast unchanged at JP¥1.50t. Net income forecast to shrink 26% next year vs 20% decline forecast for Electric Utilities industry in Japan. Consensus price target of JP¥1,063 unchanged from last update. Share price was steady at JP¥847 over the past week. Reported Earnings • Feb 01
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: JP¥75.32 (up from JP¥7.01 loss in 3Q 2024). Revenue: JP¥354.5b (down 2.4% from 3Q 2024). Net income: JP¥27.1b (up JP¥29.6b from 3Q 2024). Profit margin: 7.6% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Revenue missed analyst estimates by 7.3%. Earnings per share (EPS) exceeded analyst estimates significantly. Revenue is forecast to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Aankondiging • Dec 27
The Chugoku Electric Power Co., Inc. to Report Q3, 2025 Results on Jan 31, 2025 The Chugoku Electric Power Co., Inc. announced that they will report Q3, 2025 results on Jan 31, 2025 Price Target Changed • Dec 11
Price target decreased by 8.1% to JP¥1,113 Down from JP¥1,210, the current price target is an average from 4 analysts. New target price is 26% above last closing price of JP¥883. Stock is down 16% over the past year. The company is forecast to post earnings per share of JP¥159 for next year compared to JP¥371 last year. Declared Dividend • Nov 30
First half dividend of JP¥5.00 announced Shareholders will receive a dividend of JP¥5.00. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 1.1%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (20% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 8.1% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 02
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: JP¥78.66 (down from JP¥168 in 2Q 2024). Revenue: JP¥411.6b (down 6.6% from 2Q 2024). Net income: JP¥28.3b (down 53% from 2Q 2024). Profit margin: 6.9% (down from 14% in 2Q 2024). Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) missed analyst estimates by 7.8%. Revenue is forecast to decline by 1.4% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.6%). Aankondiging • Aug 28
The Chugoku Electric Power Co., Inc. to Report Q2, 2025 Results on Oct 31, 2024 The Chugoku Electric Power Co., Inc. announced that they will report Q2, 2025 results on Oct 31, 2024 Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: JP¥64.85 (vs JP¥174 in 1Q 2024) First quarter 2025 results: EPS: JP¥64.85 (down from JP¥174 in 1Q 2024). Revenue: JP¥330.3b (down 18% from 1Q 2024). Net income: JP¥23.4b (down 63% from 1Q 2024). Profit margin: 7.1% (down from 16% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to decline by 1.7% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Declared Dividend • Jul 11
Final dividend of JP¥5.00 announced Shareholders will receive a dividend of JP¥5.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 3.4%, which is higher than the industry average of 2.6%. Payout Ratios Payout ratio: 1%. Cash payout ratio: 6%. Aankondiging • Jun 15
The Chugoku Electric Power Co., Inc. to Report Q1, 2025 Results on Jul 31, 2024 The Chugoku Electric Power Co., Inc. announced that they will report Q1, 2025 results on Jul 31, 2024 Major Estimate Revision • Jun 05
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥1.56t to JP¥1.45t. EPS estimate also fell from JP¥172 per share to JP¥152 per share. Net income forecast to shrink 59% next year vs 39% decline forecast for Electric Utilities industry in Japan. Consensus price target up from JP¥1,306 to JP¥1,350. Share price was steady at JP¥1,110 over the past week. 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 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Earnings are forecast to decline by an average of 17% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.7% average weekly change). Price Target Changed • May 16
Price target increased by 17% to JP¥1,300 Up from JP¥1,115, the current price target is an average from 3 analysts. New target price is 29% above last closing price of JP¥1,010. Stock is up 34% over the past year. The company is forecast to post earnings per share of JP¥172 for next year compared to JP¥371 last year. Reported Earnings • May 01
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥371 (up from JP¥431 loss in FY 2023). Revenue: JP¥1.63t (down 3.9% from FY 2023). Net income: JP¥133.5b (up JP¥288.9b from FY 2023). Profit margin: 8.2% (up from net loss in FY 2023). The move to profitability was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.2%. Revenue is expected to fall by 1.7% p.a. on average during the next 3 years compared to a 1.6% decline forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Aankondiging • May 01
The Chugoku Electric Power Co., Inc., Annual General Meeting, Jun 26, 2024 The Chugoku Electric Power Co., Inc., Annual General Meeting, Jun 26, 2024. Aankondiging • Apr 30
Nitto Kogyo Corporation (TSE:6651) completed the acquisition of 57.13% stake in Tempearl Industrial Co.,Ltd. from The Chugoku Electric Power Co., Inc. (TSE:9504). Nitto Kogyo Corporation (TSE:6651) agreed to acquire 57.13% stake in Tempearl Industrial Co.,Ltd. from The Chugoku Electric Power Co., Inc. (TSE:9504) on January 31, 2024. Tempearl Industrial reported net assets of ¥8,055 million, total assets of ¥12,236 million, sales of ¥10,552 million and net income of ¥231 million in fiscal year ending March 3023. The transaction is expected to close on April 30, 2024.Nitto Kogyo Corporation (TSE:6651) completed the acquisition of 57.13% stake in Tempearl Industrial Co.,Ltd. from The Chugoku Electric Power Co., Inc. (TSE:9504) on April 30, 2024. Aankondiging • Mar 16
The Chugoku Electric Power Co., Inc. to Report Fiscal Year 2024 Results on Apr 26, 2024 The Chugoku Electric Power Co., Inc. announced that they will report fiscal year 2024 results on Apr 26, 2024 Reported Earnings • Feb 02
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: JP¥7.01 loss per share (improved from JP¥307 loss in 3Q 2023). Revenue: JP¥363.3b (down 16% from 3Q 2023). Net loss: JP¥2.52b (loss narrowed 98% from 3Q 2023). Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) were also behind analyst expectations. Revenue is expected to fall by 2.9% p.a. on average during the next 3 years compared to a 2.9% decline forecast for the Electric Utilities 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 only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Feb 02
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 (8.8% operating cash flow to total debt). Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Price Target Changed • Dec 16
Price target decreased by 17% to JP¥920 Down from JP¥1,115, the current price target is an average from 3 analysts. New target price is 10% below last closing price of JP¥1,024. Stock is up 58% over the past year. The company is forecast to post earnings per share of JP¥347 next year compared to a net loss per share of JP¥431 last year. Aankondiging • Dec 10
The Chugoku Electric Power Co., Inc. to Report Q3, 2024 Results on Jan 31, 2024 The Chugoku Electric Power Co., Inc. announced that they will report Q3, 2024 results on Jan 31, 2024 Major Estimate Revision • Dec 09
Consensus EPS estimates increase by 27%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥1.76t to JP¥1.66t. EPS estimate rose from JP¥241 to JP¥306. Net income forecast to grow 291% next year vs 23% decline forecast for Electric Utilities industry in Japan. Consensus price target up from JP¥1,115 to JP¥1,165. Share price rose 4.0% to JP¥1,030 over the past week. Aankondiging • Nov 10
Kibo Investment, L.P, managed by Yokohama Capital Co., Ltd, Sony Innovation Fund 3 L.P. managed by Sony Ventures Corporation, The Chugoku Electric Power Co., Inc. and Kyushu Electric Power Company, Incorporated acquired an unknown minority stake in iXs Co., Ltd. from INCJ, Ltd. Kibo Investment, L.P, managed by Yokohama Capital Co., Ltd, Sony Innovation Fund 3 L.P. managed by Sony Ventures Corporation, The Chugoku Electric Power Co., Inc. and Kyushu Electric Power Company, Incorporated acquired an unknown minority stake in iXs Co., Ltd. from INCJ, Ltd. in November 2023.Kibo Investment, L.P, managed by Yokohama Capital Co., Ltd, Sony Innovation Fund 3 L.P. managed by Sony Ventures Corporation, The Chugoku Electric Power Co., Inc. and Kyushu Electric Power Company, Incorporated completed the acquisition of an unknown minority stake in iXs Co., Ltd. from INCJ, Ltd. in November 2023. New Risk • Nov 04
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 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (8.9% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (5.4% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 02
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: JP¥168 (up from JP¥81.21 loss in 2Q 2023). Revenue: JP¥440.5b (up 1.3% from 2Q 2023). Net income: JP¥60.4b (up JP¥89.6b from 2Q 2023). Profit margin: 14% (up from net loss in 2Q 2023). Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 111%. Revenue is expected to fall by 1.1% p.a. on average during the next 3 years compared to a 2.1% decline forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Aankondiging • Sep 13
The Chugoku Electric Power Co., Inc. to Report Q2, 2024 Results on Oct 31, 2023 The Chugoku Electric Power Co., Inc. announced that they will report Q2, 2024 results on Oct 31, 2023 Reported Earnings • Jul 29
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: JP¥174 (up from JP¥74.28 loss in 1Q 2023). Revenue: JP¥401.1b (up 27% from 1Q 2023). Net income: JP¥62.6b (up JP¥89.4b from 1Q 2023). Profit margin: 16% (up from net loss in 1Q 2023). Revenue missed analyst estimates by 10%. Earnings per share (EPS) exceeded analyst estimates significantly. Revenue is forecast to stay flat during the next 3 years compared to a 1.2% decline forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 105 percentage points per year, which is a significant difference in performance. Aankondiging • Jun 24
The Chugoku Electric Power Co., Inc. to Report Q1, 2024 Results on Jul 28, 2023 The Chugoku Electric Power Co., Inc. announced that they will report Q1, 2024 results on Jul 28, 2023 Price Target Changed • Jun 07
Price target increased by 9.1% to JP¥720 Up from JP¥660, the current price target is an average from 4 analysts. New target price is 19% below last closing price of JP¥891. Stock is up 4.7% over the past year. The company is forecast to post earnings per share of JP¥181 next year compared to a net loss per share of JP¥431 last year. Buying Opportunity • May 19
Now 21% undervalued Over the last 90 days, the stock is up 7.7%. The fair value is estimated to be JP¥937, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Apr 29
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: JP¥431 loss per share (further deteriorated from JP¥110 loss in FY 2022). Revenue: JP¥1.69t (up 49% from FY 2022). Net loss: JP¥155.4b (loss widened 291% from FY 2022). Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 18%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 107 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 01
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: JP¥307 loss per share (further deteriorated from JP¥59.69 loss in 3Q 2022). Revenue: JP¥430.1b (up 55% from 3Q 2022). Net loss: JP¥110.7b (loss widened 415% from 3Q 2022). Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) exceeded analyst estimates by 26%. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Japan are expected to remain flat. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 107 percentage points per year, which is a significant difference in performance. Price Target Changed • Dec 14
Price target decreased to JP¥660 Down from JP¥768, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥646. Stock is down 31% over the past year. The company is forecast to post a net loss per share of JP¥513 next year compared to a net loss per share of JP¥110 last year. Major Estimate Revision • Dec 09
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥1.53t to JP¥1.60t. Forecast EPS reduced from -JP¥214 to -JP¥478 per share. Electric Utilities industry in Japan expected to see average net income growth of 12% next year. Consensus price target down from JP¥768 to JP¥733. Share price fell 3.3% to JP¥646 over the past week. Aankondiging • Dec 07
The Chugoku Electric Power Co., Inc. to Report Q3, 2023 Results on Jan 31, 2023 The Chugoku Electric Power Co., Inc. announced that they will report Q3, 2023 results on Jan 31, 2023 Price Target Changed • Nov 16
Price target decreased to JP¥768 Down from JP¥857, the current price target is an average from 4 analysts. New target price is 8.1% above last closing price of JP¥710. Stock is down 18% over the past year. The company is forecast to post a net loss per share of JP¥214 next year compared to a net loss per share of JP¥110 last year. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 8 non-independent directors. Independent External Director Makoto Furuse was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 30
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: JP¥81.21 loss per share (down from JP¥21.88 profit in 2Q 2022). Revenue: JP¥435.0b (up 64% from 2Q 2022). Net loss: JP¥29.3b (down 471% from profit in 2Q 2022). Revenue exceeded analyst estimates by 8.0%. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Electric Utilities industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Sep 24
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥1.49t to JP¥1.50t. Forecast EPS reduced from -JP¥148 to -JP¥229 per share. Electric Utilities industry in Japan expected to see average net income growth of 14% next year. Consensus price target down from JP¥857 to JP¥790. Share price was steady at JP¥763 over the past week. Price Target Changed • Sep 23
Price target decreased to JP¥790 Down from JP¥857, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥763. Stock is down 29% over the past year. The company is forecast to post a net loss per share of JP¥159 next year compared to a net loss per share of JP¥110 last year. Major Estimate Revision • Aug 26
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥1.34t to JP¥1.44t. Forecast EPS reduced from -JP¥51.25 to -JP¥159 per share. Electric Utilities industry in Japan expected to see average net income growth of 16% next year. Consensus price target down from JP¥903 to JP¥857. Share price was steady at JP¥844 over the past week. Reported Earnings • Jul 31
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: JP¥74.28 loss per share (down from JP¥3.78 loss in 1Q 2022). Revenue: JP¥314.8b (up 43% from 1Q 2022). Net loss: JP¥26.8b (loss widened JP¥25.4b from 1Q 2022). Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 15%, compared to a 17% growth forecast for the industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Jun 24
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 revenue forecast increased from JP¥1.37t to JP¥1.42t. Forecast EPS reduced from -JP¥26.52 to -JP¥46.72 per share. Electric Utilities industry in Japan expected to see average net income growth of 29% next year. Consensus price target broadly unchanged at JP¥903. Share price rose 2.4% to JP¥855 over the past week. Price Target Changed • May 27
Price target decreased to JP¥913 Down from JP¥1,085, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥888. Stock is down 17% over the past year. The company is forecast to post earnings per share of JP¥61.30 next year compared to a net loss per share of JP¥110 last year. Reported Earnings • Apr 30
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: JP¥110 loss per share (down from JP¥40.42 profit in FY 2021). Revenue: JP¥1.14t (down 13% from FY 2021). Net loss: JP¥39.7b (down 373% from profit in FY 2021). Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) missed analyst estimates by 19%. Over the next year, revenue is forecast to grow 7.4%, compared to a 7.1% growth forecast for the industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 8 non-independent directors. Independent External Director Makoto Furuse was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity.