Buy Or Sell Opportunity • Jul 09
Now 22% undervalued Over the last 90 days, the stock has risen 2.5% to €6.65. The fair value is estimated to be €8.48, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.7% over the last 3 years. Earnings per share has declined by 5.7%. For the next 3 years, revenue is forecast to grow by 4.9% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Announcement • Jun 23
Kanadevia Corporation to Report Q1, 2027 Results on Aug 06, 2026 Kanadevia Corporation announced that they will report Q1, 2027 results on Aug 06, 2026 Board Change • May 21
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Outside Corporate Auditor Hirofumi Yasuhara is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • May 12
Kanadevia Corporation, Annual General Meeting, Jun 23, 2026 Kanadevia Corporation, Annual General Meeting, Jun 23, 2026. Announcement • Mar 30
Kanadevia Corporation to Report Fiscal Year 2026 Results on May 12, 2026 Kanadevia Corporation announced that they will report fiscal year 2026 results on May 12, 2026 Announcement • Mar 27
KITZ Corporation (TSE:6498) signed a share transfer agreement to acquire V TEX Corporation from Kanadevia Corporation (TSE:7004) for ¥9.2 billion. KITZ Corporation (TSE:6498) signed a share transfer agreement to acquire V TEX Corporation from Kanadevia Corporation (TSE:7004) for ¥9.2 billion on March 26, 2026. As part of the acquisition, KITZ Corporation will acquire all shares in V TEX Corporation. The consideration will be paid in cash. As a result of the Share Transfer, V TEX Corporation and its wholly owned subsidiaries, V TEX Korea Co., Ltd., VTEX America Inc., and V TEX Shanghai Co.,Ltd. will be excluded from the Kanadevia’s consolidated subsidiaries and affiliated companies and will operate as a wholly owned subsidiary of KITZ Corporation.
For the period ending March 31, 2025, V TEX Corporation reported total revenue of ¥8.5 billion, operating income of ¥395 million and net income of ¥363 million. As of March 31, 2025, V TEX Corporation reported total assets of ¥9.82 billion and net assets of ¥3.27 billion.
The transaction is expected to close on June 1, 2026. Announcement • Mar 05
Kanadevia Corporation (TSE:7004) entered into a business transfer agreement to acquire All-solid-state Lithium-ion Batteries Business of Suzuki Motor Corporation (TSE:7269). Kanadevia Corporation (TSE:7004) entered into a business transfer agreement to acquire All-solid-state Lithium-ion Batteries Business of Suzuki Motor Corporation (TSE:7269) on March 4, 2026. A cash consideration will be paid by Kanadevia Corporation.
The transaction is subject to the fulfillment of customary closing conditions. The expected completion of the transaction is July 1, 2026. Announcement • Feb 06
Imabari Shipbuilding Co., Ltd. executed a share transfer agreement to acquire an additional 25% stake in Hitachi Zosen Marine Engine Co., Ltd. from Kanadevia Corporation (TSE:7004). Imabari Shipbuilding Co., Ltd. executed a share transfer agreement to acquire an additional 25% stake in Hitachi Zosen Marine Engine Co., Ltd. from Kanadevia Corporation (TSE:7004) on February 5, 2026. Upon completion, Imabari Shipbuilding Co., Ltd. will own 60% stake in Hitachi Zosen Marine Engine Co., Ltd.
The expected completion of the transaction is March 31, 2026. Announcement • Dec 24
Kanadevia Corporation to Report Q3, 2026 Results on Feb 05, 2026 Kanadevia Corporation announced that they will report Q3, 2026 results on Feb 05, 2026 Announcement • Sep 23
Kanadevia Corporation to Report Q2, 2026 Results on Nov 06, 2025 Kanadevia Corporation announced that they will report Q2, 2026 results on Nov 06, 2025 Announcement • Jun 21
Kanadevia Corporation to Report Q1, 2026 Results on Aug 05, 2025 Kanadevia Corporation announced that they will report Q1, 2026 results at 9:00 AM, Tokyo Standard Time on Aug 05, 2025 Announcement • May 16
Amada Co., Ltd. (TSE:6113) completed the acquisition of H&F Corporation from Kanadevia Corporation (TSE:7004). Amada Co., Ltd. (TSE:6113) agreed to acquire H&F Corporation from Kanadevia Corporation (TSE:7004) on January 24, 2025. A cash consideration will be paid by Amada Co., Ltd. As part of the deal, 9.84 million shares of H&F Corporation are being acquired. In a related transaction, Amada Co., Ltd. resolved to acquire partial businesses of Kanadevia Trading (Shanghai) Co., Ltd., Kanadevia India Private Limited and PT. Kanadevia INDONESIA. The transfer price for all the acquisitions is ¥17.7 billion. For the period ending March 31, 2024, H&F Corporation reported total revenue of ¥17,93 billion, total assets of ¥28.27 billion, operating income of ¥570 million, net income of ¥415 million and ¥14.87 billion. The deal is subject to completion of necessary approvals and procedures under Act on Prohibition of Private Monopolization and Maintenance of Fair Trade and other relevant regulations in Japan. The expected completion of the transaction is April 1, 2025.
As of March 26, 2025, the execution date of the share transfer and business transfer has been changed to May 1, 2025. This change is due to the prolonged examination period for the domestic anti-monopoly law procedures required for the execution of this share and business transfer.
Amada Co., Ltd. (TSE:6113) completed the acquisition of H&F Corporation from Kanadevia Corporation (TSE:7004) on May 15, 2025. Announcement • Mar 08
Kanadevia Corporation to Report Fiscal Year 2025 Results on May 12, 2025 Kanadevia Corporation announced that they will report fiscal year 2025 results on May 12, 2025 Announcement • Jan 03
Kanadevia Corporation to Report Q3, 2025 Results on Feb 05, 2025 Kanadevia Corporation announced that they will report Q3, 2025 results on Feb 05, 2025 Declared Dividend • Nov 10
Dividend of JP¥23.00 announced Shareholders will receive a dividend of JP¥23.00. Ex-date: 28th March 2025 Payment date: 23rd June 2025 Dividend yield will be 388%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (22% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 8.7% 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 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Oct 23
Kanadevia Corporation Revises Earnings Guidance for the Fiscal Year Ending March 31, 2025 Kanadevia Corporation revises earnings guidance for the fiscal year ending March 31, 2025. For the year, the company expects Net sales to be JPY 570,000 million. Operating income to be JPY 26,000 million. Profit attributable to shareholders of Kanadevia to be JPY 18,000 million compared to previous guidance of JPY 16,000 million. Net income per share to be JPY 106.81 compared to previous guidance of JPY 94.94. Announcement • Sep 25
Hitachi Zosen Corporation to Report Q2, 2025 Results on Nov 07, 2024 Hitachi Zosen Corporation announced that they will report Q2, 2025 results on Nov 07, 2024 Board Change • Aug 28
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Corporate Auditor Koji Inada was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 07
First quarter 2025 earnings released: JP¥16.69 loss per share (vs JP¥11.19 loss in 1Q 2024) First quarter 2025 results: JP¥16.69 loss per share (further deteriorated from JP¥11.19 loss in 1Q 2024). Revenue: JP¥121.6b (up 19% from 1Q 2024). Net loss: JP¥2.81b (loss widened 49% from 1Q 2024). Revenue is forecast to stay flat during the next 3 years compared to a 4.5% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to €5.27, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Machinery industry in Germany. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €7.56 per share. Buy Or Sell Opportunity • Aug 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to €6.10. The fair value is estimated to be €7.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 57%. For the next 3 years, revenue is forecast to grow by 1.5% per annum. Earnings are also forecast to grow by 1.7% per annum over the same time period. Announcement • Jun 26
Hitachi Zosen Corporation to Report Q1, 2025 Results on Aug 05, 2024 Hitachi Zosen Corporation announced that they will report Q1, 2025 results on Aug 05, 2024 Reported Earnings • May 13
Full year 2024 earnings released: EPS: JP¥113 (vs JP¥92.43 in FY 2023) Full year 2024 results: EPS: JP¥113 (up from JP¥92.43 in FY 2023). Revenue: JP¥555.8b (up 13% from FY 2023). Net income: JP¥19.0b (up 22% from FY 2023). Profit margin: 3.4% (up from 3.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 12
Hitachi Zosen Corporation, Annual General Meeting, Jun 20, 2024 Hitachi Zosen Corporation, Annual General Meeting, Jun 20, 2024. Announcement • May 11
Hitachi Zosen Corporation Announces Year-End Dividend for the Fiscal Year Ended March 31, 2024, Payable on June 21, 2024 On May 10, 2024, the Board of Directors of Hitachi Zosen Corporation passed a resolution to distribute dividends from surplus with a date of record of March 31, 2024. In light of the fact that the business results for the current fiscal year significantly exceeded its initial forecast, the Company have decided to pay a year-end dividend of JPY 23 per share for the current fiscal year, an increase of JPY 5 from the latest forecast. As a result, the dividend payout ratio for the current fiscal year will be 20.4%. Effective date is June 21, 2024. New Risk • Apr 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.2% 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. This is currently the only risk that has been identified for the company. Announcement • Mar 28
Hitachi Zosen Corporation to Report Fiscal Year 2024 Results on May 10, 2024 Hitachi Zosen Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (3.2%). Reported Earnings • Feb 07
Third quarter 2024 earnings released: EPS: JP¥33.28 (vs JP¥33.86 in 3Q 2023) Third quarter 2024 results: EPS: JP¥33.28 (down from JP¥33.86 in 3Q 2023). Revenue: JP¥140.1b (up 13% from 3Q 2023). Net income: JP¥5.61b (down 1.7% from 3Q 2023). Profit margin: 4.0% (down from 4.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Feb 06
Hitachi Zosen Corporation Announces Management Changes, Effective April 1, 2024 Hitachi Zosen Corporation announced that at its board meeting held on February 5, 2024, has resolved the change of Representative Director, President. Details of the change (as of April 1, 2024): Sadao Mino, Representative Director President and CEO as Representative Director Chairman and CEO; Michi Kuwahara, Managing Director General Manager of Environment Business Headquarters, and Responsible for Procurement Headquarters and Architect Supervision Department as Representative Director President and COO. Michi Kuwahara: Date of birth: June 18, 1963; April 1986 Joined the Company, April 2015 General Manager of Corporate Planning Dept., Jan. 2018 General Manager of Corporate Planning Dept. and Chairman of the Supervisory Board of Hitachi Zosen Inova AG; April 2018 Executive Officer, Assistant to General Manager of Environment Business Headquarters, and Chairman of the Supervisory Board of Hitachi Zosen Inova AG; April 2020 Managing Executive Officer; July 2020 General Manager of General Administration Headquarters, and Corporate Planning Headquarters; April 2021 General Manager of Corporate Planning Headquarters; June 2021 Director, General Manager of Corporate Planning Headquarters, and Responsible for General Administration Headquarters, Quality Assurance Dept., and Yumeshima Area Development Promotion Dept.; Oct. 2021, General Manager of Corporate Planning Headquarters, and Responsible for General Administration Headquarters, Sustainability Promotion Dept., Quality Assurance Dept., and Yumeshima Area Development Promotion Dept.; April 2022, Managing Director, (current position) General Manager of Environment Business Headquarters and Responsible for Procurement Headquarters; June 2023 General Manager of Environment Business Headquarters, and Responsible for Procurement Headquarters and Architect Supervision Dept.(current position). Announcement • Nov 19
Hitachi Zosen Corporation to Report Q3, 2024 Results on Feb 05, 2024 Hitachi Zosen Corporation announced that they will report Q3, 2024 results on Feb 05, 2024 Buying Opportunity • Nov 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 1.6%. The fair value is estimated to be €6.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 26%. For the next 3 years, revenue is forecast to grow by 3.2% per annum. Earnings is also forecast to grow by 3.1% per annum over the same time period. Reported Earnings • Nov 07
Second quarter 2024 earnings released: EPS: JP¥1.04 (vs JP¥7.04 loss in 2Q 2023) Second quarter 2024 results: EPS: JP¥1.04 (up from JP¥7.04 loss in 2Q 2023). Revenue: JP¥116.1b (up 4.7% from 2Q 2023). Net income: JP¥175.0m (up JP¥1.36b from 2Q 2023). Profit margin: 0.2% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be €6.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Earnings per share has grown by 21%. For the next 3 years, revenue is forecast to grow by 3.8% per annum. Earnings is also forecast to grow by 6.9% per annum over the same time period. Announcement • Sep 24
Hitachi Zosen Corporation to Report Q2, 2024 Results on Nov 06, 2023 Hitachi Zosen Corporation announced that they will report Q2, 2024 results on Nov 06, 2023 Reported Earnings • Aug 02
First quarter 2024 earnings released: JP¥11.19 loss per share (vs JP¥11.99 loss in 1Q 2023) First quarter 2024 results: JP¥11.19 loss per share (improved from JP¥11.99 loss in 1Q 2023). Revenue: JP¥102.5b (up 6.4% from 1Q 2023). Net loss: JP¥1.89b (loss narrowed 6.6% from 1Q 2023). Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 24% per year. Announcement • Jun 28
Hitachi Zosen Corporation to Report Q1, 2024 Results on Aug 01, 2023 Hitachi Zosen Corporation announced that they will report Q1, 2024 results on Aug 01, 2023 Reported Earnings • Jun 28
Full year 2023 earnings released: EPS: JP¥92.43 (vs JP¥46.87 in FY 2022) Full year 2023 results: EPS: JP¥92.43 (up from JP¥46.87 in FY 2022). Revenue: JP¥492.7b (up 12% from FY 2022). Net income: JP¥15.6b (up 97% from FY 2022). Profit margin: 3.2% (up from 1.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 23% per year. Announcement • May 17
Hitachi Zosen Corporation, Annual General Meeting, Jun 21, 2023 Hitachi Zosen Corporation, Annual General Meeting, Jun 21, 2023. Reported Earnings • May 16
Full year 2023 earnings released: EPS: JP¥92.43 (vs JP¥46.87 in FY 2022) Full year 2023 results: EPS: JP¥92.43 (up from JP¥46.87 in FY 2022). Revenue: JP¥492.7b (up 12% from FY 2022). Net income: JP¥15.6b (up 97% from FY 2022). Profit margin: 3.2% (up from 1.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share at 1.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 23 June 2023. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (2.9%). Buying Opportunity • Mar 14
Now 21% undervalued Over the last 90 days, the stock is up 9.0%. The fair value is estimated to be €7.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 2.6% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Reported Earnings • Feb 10
Third quarter 2023 earnings released: EPS: JP¥33.86 (vs JP¥9.97 in 3Q 2022) Third quarter 2023 results: EPS: JP¥33.86 (up from JP¥9.97 in 3Q 2022). Revenue: JP¥124.2b (up 15% from 3Q 2022). Net income: JP¥5.71b (up 240% from 3Q 2022). Profit margin: 4.6% (up from 1.6% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 22% per year. Announcement • Feb 06
Hitachi Zosen Corporation Appoints Takashi Tanisho as Director, Senior Corporate Advisor Hitachi Zosen Corporation appointed Takashi Tanisho as Director, Senior Corporate Advisor, effective April 1, 2023. Announcement • Dec 26
Hitachi Zosen Corporation to Report Q3, 2023 Results on Feb 06, 2023 Hitachi Zosen Corporation announced that they will report Q3, 2023 results on Feb 06, 2023 Buying Opportunity • Dec 24
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.5%. The fair value is estimated to be €7.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has grown by 24%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings is also forecast to grow by 13% per annum over the same time period. Announcement • Dec 06
SENKO Group Holdings Co., Ltd. (TSE:9069) signed a share transfer agreement to acquire 66.6% stake in Ohnami Corporation from Hitachi Zosen Corporation (TSE:7004). SENKO Group Holdings Co., Ltd. (TSE:9069) signed a share transfer agreement to acquire 66.6% stake in Ohnami Corporation from Hitachi Zosen Corporation (TSE:7004) on December 5, 2022. The transaction is expected to close on March 31, 2023. Reported Earnings • Nov 16
Second quarter 2023 earnings released: JP¥7.04 loss per share (vs JP¥2.45 loss in 2Q 2022) Second quarter 2023 results: JP¥7.04 loss per share (further deteriorated from JP¥2.45 loss in 2Q 2022). Revenue: JP¥110.9b (up 11% from 2Q 2022). Net loss: JP¥1.19b (loss widened 188% from 2Q 2022). Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 20% per year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent Outside Director Richard R. Lury was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 09
Second quarter 2023 earnings released: JP¥7.04 loss per share (vs JP¥2.45 loss in 2Q 2022) Second quarter 2023 results: JP¥7.04 loss per share (further deteriorated from JP¥2.45 loss in 2Q 2022). Revenue: JP¥110.9b (up 11% from 2Q 2022). Net loss: JP¥1.19b (loss widened 188% from 2Q 2022). Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 22% per year. Announcement • Sep 28
Imabari Shipbuilding Co., Ltd. agreed to acquire Marine engine business of Hitachi Zosen Corporation on September 26, 2022. Imabari Shipbuilding Co., Ltd. agreed to acquire Marine engine business of Hitachi Zosen Corporation on September 26, 2022. Announcement • Sep 24
Hitachi Zosen Corporation to Report Q2, 2023 Results on Nov 07, 2022 Hitachi Zosen Corporation announced that they will report Q2, 2023 results on Nov 07, 2022 Reported Earnings • Aug 02
First quarter 2023 earnings released: JP¥11.99 loss per share (vs JP¥15.72 loss in 1Q 2022) First quarter 2023 results: JP¥11.99 loss per share (up from JP¥15.72 loss in 1Q 2022). Revenue: JP¥96.4b (up 20% from 1Q 2022). Net loss: JP¥2.02b (loss narrowed 24% from 1Q 2022). Over the next year, revenue is forecast to grow 3.1%, compared to a 9.6% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 28% per year. Reported Earnings • May 13
Full year 2022 earnings released: EPS: JP¥46.87 (vs JP¥25.26 in FY 2021) Full year 2022 results: EPS: JP¥46.87 (up from JP¥25.26 in FY 2021). Revenue: JP¥441.8b (up 8.1% from FY 2021). Net income: JP¥7.90b (up 86% from FY 2021). Profit margin: 1.8% (up from 1.0% in FY 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 2.1%, compared to a 9.1% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Hitachi Zosen Corporation, Annual General Meeting, Jun 22, 2022 Hitachi Zosen Corporation, Annual General Meeting, Jun 22, 2022. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 7 non-independent directors. Independent Outside Director Richard R. Lury was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 26
Hitachi Zosen Corporation Updates Earnings Guidance for the Fiscal Year Ending 31 March 2022 Hitachi Zosen Corporation updated earnings guidance for the fiscal year ending 31 March 2022. For the year, the company expects net Sales of JPY 440,000 million compared to JPY 420,000 million, Operating income of JPY 15,300 million compared to JPY 15,000 million, Profit attributable to shareholders of Hitachi Zosen of JPY 7,500 million compared to JPY 5,500 million and Net income per share to be JPY 32.63 compared to JPY 44.50 previous guidance respectively. Announcement • Apr 08
Hitachi Zosen Corporation to Report Fiscal Year 2022 Results on May 11, 2022 Hitachi Zosen Corporation announced that they will report fiscal year 2022 results on May 11, 2022 Announcement • Mar 28
Hitachi Zosen Corporation Provides Earnings Guidance for the Fiscal Year Ending 31 March 2022 Hitachi Zosen Corporation provided earnings guidance for the fiscal year ending 31 March 2022. For the year, the company expects net Sales of JPY 420.0 billion, Operating income of JPY 15.0 billion, Profit attributable to shareholders of Hitachi Zosen of JPY 5.5 billion. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 69% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of German dividend payers (3.6%). Lower than average of industry peers (1.9%). Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorated over the past week After last week's 17% share price decline to €5.00, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Machinery industry in Germany. Total returns to shareholders of 101% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €7.15 per share. Announcement • Feb 12
Chubu Electric Power Company, Incorporated (TSE:9502), Taihei Dengyo Kaisha, Ltd. (TSE:1968), Hitachi Zosen Corporation (TSE:7004), Inabata & Co.,Ltd. (TSE:8098) and Tokyo Sangyo Co., Ltd. (TSE:8070) agreed to acquire 53-MWp biomass power project from Solariant Capital LLC. Chubu Electric Power Company, Incorporated (TSE:9502), Taihei Dengyo Kaisha, Ltd. (TSE:1968), Hitachi Zosen Corporation (TSE:7004), Inabata & Co.,Ltd. (TSE:8098) and Tokyo Sangyo Co., Ltd. (TSE:8070) agreed to acquire 53-MWp biomass power project from Solariant Capital LLC on February 10, 2022. Solariant retained a minority interest in the project company, Fukuyama Biomass Power Plant GK. Buying Opportunity • Feb 08
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 9.8%. The fair value is estimated to be JP¥7.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% per annum over the last 3 years. Earnings per share has grown by 22% per annum over the last 3 years. Reported Earnings • Feb 08
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: JP¥9.97 (down from JP¥11.40 in 3Q 2021). Revenue: JP¥107.6b (up 13% from 3Q 2021). Net income: JP¥1.68b (down 13% from 3Q 2021). Profit margin: 1.6% (down from 2.0% in 3Q 2021). Revenue exceeded analyst estimates by 6.8%. Over the next year, revenue is expected to shrink by 1.6% compared to a 10.0% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 24% per year. Buying Opportunity • Feb 08
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 9.8%. The fair value is estimated to be JP¥7.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% per annum over the last 3 years. Earnings per share has grown by 22% per annum over the last 3 years. Buying Opportunity • Jan 17
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be JP¥7.63, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.3% per annum over the last 3 years. The company has become profitable over the last 3 years. Reported Earnings • Nov 02
Second quarter 2022 earnings released: JP¥2.45 loss per share (vs JP¥9.88 profit in 2Q 2021) The company reported a soft second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2022 results: Revenue: JP¥100.0b (up 9.5% from 2Q 2021). Net loss: JP¥412.0m (down 125% from profit in 2Q 2021). 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 29% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 18% share price gain to €7.25, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 19x in the Machinery industry in Germany. Total returns to shareholders of 131% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €7.53 per share. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥6.65, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 20x in the Machinery industry in Germany. Total returns to shareholders of 87% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €6.61 per share. Reported Earnings • Jun 28
Full year 2021 earnings released: EPS JP¥25.26 (vs JP¥13.04 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥408.6b (up 1.5% from FY 2020). Net income: JP¥4.26b (up 94% from FY 2020). Profit margin: 1.0% (up from 0.5% in FY 2020). Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 15
Full year 2021 earnings released: EPS JP¥25.26 (vs JP¥13.04 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥408.6b (up 1.5% from FY 2020). Net income: JP¥4.26b (up 94% from FY 2020). Profit margin: 1.0% (up from 0.5% in FY 2020). Over the last 3 years on average, earnings per share has increased by 65% 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 • Mar 24
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 24 June 2021. Trailing yield: 1.3%. Lower than top quartile of German dividend payers (3.3%). In line with average of industry peers (1.2%). Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment improved over the past week After last week's 48% share price gain to JP¥7.85, the stock is trading at a trailing P/E ratio of 8.6x, up from the previous P/E ratio of 5.8x. This compares to an average P/E of 40x in the Machinery industry in Germany. Total returns to shareholders over the past three years are 117%. Is New 90 Day High Low • Mar 05
New 90-day high: €7.85 The company is up 142% from its price of €3.24 on 04 December 2020. The German market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.99 per share. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥11.40 (vs JP¥31.27 loss in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥95.7b (down 1.2% from 3Q 2020). Net income: JP¥1.92b (up JP¥7.19b from 3Q 2020). Profit margin: 2.0% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue beats expectations Revenue exceeded analyst estimates by 4.9%. Over the next year, revenue is expected to shrink by 2.7% compared to a 5.0% growth forecast for the Machinery industry in Germany. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 23% share price gain to JP¥5.35, the stock is trading at a trailing P/E ratio of 10.3x, up from the previous P/E ratio of 8.4x. This compares to an average P/E of 35x in the Machinery industry in Germany. Total returns to shareholders over the past three years are 28%.