Declared Dividend • just now
Final dividend of JP¥33.00 announced Shareholders will receive a dividend of JP¥33.00. Ex-date: 29th September 2026 Payment date: 2nd December 2026 Dividend yield will be 3.8%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is not covered by earnings (150% earnings payout ratio). However, it is well covered by cash flows (18% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 67% to bring the payout ratio under control. EPS is expected to grow by 27% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Major Estimate Revision • Jun 26
Consensus revenue estimates increase by 11% The consensus outlook for revenues in fiscal year 2027 has improved. 2027 revenue forecast increased from JP¥2.62t to JP¥2.91t. EPS estimate increased from JP¥214 to JP¥219 per share. Net income forecast to grow 12% next year vs 11% growth forecast for Trade Distributors industry in Japan. Consensus price target up from JP¥1,500 to JP¥1,813. Share price rose 3.7% to JP¥1,766 over the past week. Buy Or Sell Opportunity • Jun 01
Now 25% undervalued Over the last 90 days, the stock has risen 1.1% to JP¥1,769. The fair value is estimated to be JP¥2,347, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to decline by 1.6% per annum. Earnings are forecast to grow by 8.3% per annum over the same time period. Live News • May 13
Hanwa Expands Critical Minerals Supply With Canada Japan Agreement for Phosphate and Rare Earths Hanwa Co., Ltd. and KAP Minerals Inc. signed a Memorandum of Understanding to build a critical minerals supply chain between Canada and Japan.
Under the agreement, Hanwa is set to purchase and distribute phosphate and rare earth elements sourced from KAP’s Northern Ontario project.
The two companies plan to work together on processing capacity in Ontario and on developing downstream supply chains for these materials.
This partnership indicates that Hanwa is increasing its focus on critical minerals tied to electrification and advanced manufacturing, while securing access to Canadian supply.
Investors may want to monitor the pace of processing facility development and downstream partnerships, since execution timelines and permitting or project risks can influence the value this agreement ultimately delivers. Reported Earnings • May 13
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: JP¥966. Revenue: JP¥2.66t (up 4.2% from FY 2025). Net income: JP¥38.3b (down 16% from FY 2025). Profit margin: 1.4% (down from 1.8% in FY 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) missed analyst estimates by 4.0%. Revenue is expected to decline by 1.6% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to grow by 4.3%. Announcement • May 13
Hanwa Co., Ltd. (TSE:8078) announces an Equity Buyback for 4,000,000 shares, representing 2.06% for ¥5,000 million. Hanwa Co., Ltd. (TSE:8078) announces a share repurchase program. Under the program, the company will repurchase 4,000,000 shares, representing 2.06% of its share capital, for ¥5,000 million. The purpose of program is to return profits to promote return to shareholders and improve capital efficiency. The program will run until o December 31, 2026. As of March 31, 2026, the company had 194,518,680 shares issued and 17,144,520 shares in treasury. Announcement • May 12
Hanwa Co., Ltd., Annual General Meeting, Jun 26, 2026 Hanwa Co., Ltd., Annual General Meeting, Jun 26, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥125 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.1%). Announcement • Feb 19
Hanwa Co., Ltd. (TSE:8078) acquired Marui Sato Kaisan Co.,Ltd. Hanwa Co., Ltd. (TSE:8078) acquired Marui Sato Kaisan Co.,Ltd. on February 19, 2026.
Hanwa Co., Ltd. (TSE:8078) completed the acquisition of Marui Sato Kaisan Co.,Ltd. on February 19, 2026. Price Target Changed • Feb 07
Price target increased by 18% to JP¥7,500 Up from JP¥6,333, the current price target is an average from 3 analysts. New target price is 7.9% below last closing price of JP¥8,140. Stock is up 63% over the past year. The company is forecast to post earnings per share of JP¥997 for next year compared to JP¥1,126 last year. Buy Or Sell Opportunity • Jan 28
Now 20% undervalued Over the last 90 days, the stock has risen 19% to JP¥7,760. The fair value is estimated to be JP¥9,715, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 8.0%. For the next 3 years, revenue is forecast to grow by 1.3% per annum. Earnings are also forecast to grow by 3.0% per annum over the same time period. Announcement • Jan 27
Hanwa Co., Ltd. Announces Board Changes, Effective March 31, 2026 Hanwa Co., Ltd. announced that the Board of Directors of Hanwa, held on January 27, 2026, resolved to change Representative Director as follows: Reason for Change: In order to change management structure. Retirement of Representative Director: Hiromasa Yamamoto: Currently, Representative Director, Executive Vice President. Hiromasa Yamamoto will become a Director, Executive Vice President without representation right on April 1, 2026. Scheduled Date of Change: March 31, 2026. Declared Dividend • Dec 03
First half dividend of JP¥125 announced Shareholders will receive a dividend of JP¥125. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 3.6%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 7.1% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥170 (vs JP¥272 in 2Q 2025) Second quarter 2026 results: EPS: JP¥170 (down from JP¥272 in 2Q 2025). Revenue: JP¥639.3b (flat on 2Q 2025). Net income: JP¥6.75b (down 39% from 2Q 2025). Profit margin: 1.1% (down from 1.7% in 2Q 2025). Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Trade Distributors industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Announcement • Nov 07
Hanwa Co., Ltd. (TSE:8078) announces an Equity Buyback for 1,000,000 shares, representing 2.52% for ¥5,000 million. Hanwa Co., Ltd. (TSE:8078) announces a share repurchase program. Under the program, the company will repurchase 1,000,000 shares, representing 2.52% of its share capital, for ¥5,000 million. The purpose of program is to return profits to promote return to shareholders and improve capital efficiency. The program will run until September 30, 2026. As of September 30, 2025, the company had 39,695,234 shares issued and 2,637,406 shares in treasury. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥125 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 02 December 2025. Payout ratio is a comfortable 20% but the company is paying out more than the cash it is generating. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.9%). Major Estimate Revision • Aug 14
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥897 to JP¥1,029. Revenue forecast unchanged at JP¥2.50t. Net income forecast to shrink 9.4% next year vs 1.3% growth forecast for Trade Distributors industry in Japan . Consensus price target of JP¥6,350 unchanged from last update. Share price was steady at JP¥6,170 over the past week. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥248 (vs JP¥228 in 1Q 2025) First quarter 2026 results: EPS: JP¥248 (up from JP¥228 in 1Q 2025). Revenue: JP¥639.9b (up 3.5% from 1Q 2025). Net income: JP¥9.98b (up 8.3% from 1Q 2025). Profit margin: 1.6% (up from 1.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Trade Distributors 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 24% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jul 28
Now 20% undervalued Over the last 90 days, the stock has risen 31% to JP¥6,160. The fair value is estimated to be JP¥7,712, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 1.0% per annum. Earnings are also forecast to grow by 1.0% per annum over the same time period. Price Target Changed • Jul 27
Price target increased by 8.5% to JP¥6,350 Up from JP¥5,850, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥6,210. Stock is up 10% over the past year. The company is forecast to post earnings per share of JP¥897 for next year compared to JP¥1,126 last year. Declared Dividend • Jul 09
Final dividend of JP¥125 announced Shareholders will receive a dividend of JP¥125. Ex-date: 29th September 2025 Payment date: 2nd 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 (21% earnings payout ratio) but not covered by cash flows (dividend approximately 5x free cash flows). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 4.5% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jun 06
Now 20% undervalued Over the last 90 days, the stock has risen 4.6% to JP¥5,270. The fair value is estimated to be JP¥6,596, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 1.1% per annum. Earnings are also forecast to grow by 1.0% per annum over the same time period. Buy Or Sell Opportunity • May 14
Now 21% undervalued Over the last 90 days, the stock has risen 1.8% to JP¥5,130. The fair value is estimated to be JP¥6,457, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 1.1% per annum. Earnings are also forecast to grow by 1.0% per annum over the same time period. Reported Earnings • May 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥1,126 (up from JP¥945 in FY 2024). Revenue: JP¥2.55t (up 5.0% from FY 2024). Net income: JP¥45.5b (up 18% from FY 2024). Profit margin: 1.8% (up from 1.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 5.8%. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Trade Distributors 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 18% per year, which means it is well ahead of earnings. Announcement • May 10
Hanwa Co., Ltd. (TSE:8078) announces an Equity Buyback for 1,250,000 shares, representing 3.1% for ¥5,000 million. Hanwa Co., Ltd. (TSE:8078) announces a share repurchase program. Under the program, the company will repurchase 1,250,000 shares, representing 3.1% of its share capital, for ¥5,000 million. The purpose of program is to return profits to promote return to shareholders and improve capital efficiency. The program will run until March 31, 2026. As of March 31, 2025, the company had 40,382,736 shares issued and 1,949,904 shares in treasury. Announcement • May 09
Hanwa Co., Ltd., Annual General Meeting, Jun 26, 2025 Hanwa Co., Ltd., Annual General Meeting, Jun 26, 2025. Announcement • Apr 17
Hanwa Co., Ltd. (TSE:8078) completed the acquisition of an unknown minority stake in Kinoshiro Taisetsu, K.K. Hanwa Co., Ltd. (TSE:8078) acquired an unknown minority stake in Kinoshiro Taisetsu, K.K. on April 16, 2025.
Hanwa Co., Ltd. (TSE:8078) completed the acquisition of an unknown minority stake in Kinoshiro Taisetsu, K.K. on April 16, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥4,090, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 8x in the Trade Distributors industry in Japan. Total returns to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,185 per share. Buy Or Sell Opportunity • Mar 31
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.8% to JP¥4,890. The fair value is estimated to be JP¥6,314, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 1.2% per annum. Earnings are also forecast to grow by 2.8% per annum over the same time period. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥105 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (3.3%). Announcement • Feb 28
Hanwa Co., Ltd. to Report Fiscal Year 2025 Results on May 09, 2025 Hanwa Co., Ltd. announced that they will report fiscal year 2025 results on May 09, 2025 Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥287 (vs JP¥287 in 3Q 2024) Third quarter 2025 results: EPS: JP¥287 (down from JP¥287 in 3Q 2024). Revenue: JP¥660.9b (up 5.7% from 3Q 2024). Net income: JP¥11.6b (flat on 3Q 2024). Profit margin: 1.8% (down from 1.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 1.3% growth forecast for the Trade Distributors 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 13% per year, which means it is well ahead of earnings. Declared Dividend • Dec 03
First half dividend of JP¥105 announced Shareholders will receive a dividend of JP¥105. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 4.3%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (21% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 12% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥272 (vs JP¥187 in 2Q 2024) Second quarter 2025 results: EPS: JP¥272 (up from JP¥187 in 2Q 2024). Revenue: JP¥640.2b (up 8.0% from 2Q 2024). Net income: JP¥11.0b (up 45% from 2Q 2024). Profit margin: 1.7% (up from 1.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Trade Distributors 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 increased by 15% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥105 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 21% and the cash payout ratio is 78%. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (3.3%). Reported Earnings • Aug 12
First quarter 2025 earnings released: EPS: JP¥228 (vs JP¥283 in 1Q 2024) First quarter 2025 results: EPS: JP¥228 (down from JP¥283 in 1Q 2024). Revenue: JP¥618.5b (up 1.6% from 1Q 2024). Net income: JP¥9.21b (down 20% from 1Q 2024). Profit margin: 1.5% (down from 1.9% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.0% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (99% cash payout ratio). Share price has been volatile over the past 3 months (6.2% average weekly change). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥4,375, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 10x in the Trade Distributors industry in Japan. Total returns to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥8,069 per share. Buy Or Sell Opportunity • Jul 23
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.4% to JP¥5,700. The fair value is estimated to be JP¥7,205, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 9.2%. For the next 3 years, revenue is forecast to grow by 1.9% per annum. Earnings are also forecast to grow by 2.3% per annum over the same time period. Declared Dividend • Jul 11
Final dividend of JP¥105 announced Shareholders will receive a dividend of JP¥105. 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%. Sustainability & Growth Dividend is covered by earnings (18% earnings payout ratio) but not adequately covered by cash flows (99% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 7.2% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jul 08
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥5,950. The fair value is estimated to be JP¥7,536, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 9.2%. For the next 3 years, revenue is forecast to grow by 1.9% per annum. Earnings are also forecast to grow by 2.3% per annum over the same time period. New Risk • May 16
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 5.0% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.0% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 12
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥945 (down from JP¥1,267 in FY 2023). Revenue: JP¥2.43t (down 8.9% from FY 2023). Net income: JP¥38.4b (down 25% from FY 2023). Profit margin: 1.6% (down from 1.9% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) exceeded analyst estimates by 1.8%. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 12
Hanwa Co., Ltd. (TSE:8078) announces an Equity Buyback for 400,000 shares, representing 0.98% for ¥2,000 million. Hanwa Co., Ltd. (TSE:8078) announces a share repurchase program. Under the program, the company will repurchase 400,000 shares, representing 0.98% of its share capital, for ¥2,000 million. The purpose of program is to return profits to shareholders and improve capital efficiency. The program will run until June 19, 2024. As of March 31, 2024, the company had 40,668,229 shares issued and 1,664,411 shares in treasury. Announcement • May 11
Hanwa Co., Ltd. Resolves to Pay Dividends for Fiscal Year 2023 Hanwa Co., Ltd. announced that the Board of Directors meeting held on May 10, 2024 resolved to pay dividends with a record date of March 31, 2024. For Fiscal Year 2023, comprehensively considering the business results and financial condition, company will pay the year- end dividend of JPY 100 per share, increasing of JPY 15 from the latest dividend forecasts. Combined with the interim dividend of JPY 85 per share already paid, the annual dividend per share will be JPY 185. This resolution is subject to approval at the 77th Ordinary General Meeting of Shareholders, scheduled to beheld on June 26, 2024. Price Target Changed • May 10
Price target increased by 10% to JP¥6,450 Up from JP¥5,863, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥6,320. Stock is up 49% over the past year. The company is forecast to post earnings per share of JP¥928 for next year compared to JP¥1,267 last year. Announcement • Apr 01
Hanwa Co., Ltd., Annual General Meeting, Jun 26, 2024 Hanwa Co., Ltd., Annual General Meeting, Jun 26, 2024, at 10:00 Tokyo Standard Time. Location: HK YodoyabashiGarden Avenue Bldg., 4-3-9 Fushimi-machi Chuo-Ku Osaka Japan Price Target Changed • Mar 26
Price target increased by 9.3% to JP¥5,863 Up from JP¥5,363, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥5,910. Stock is up 58% over the past year. The company is forecast to post earnings per share of JP¥916 for next year compared to JP¥1,267 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥85.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.4%). Announcement • Mar 02
Hanwa Co., Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Hanwa Co., Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Announcement • Feb 27
Hanwa Co., Ltd. (TSE:8078) agreed to acquire unknown stake in Shinx Co., Ltd. from Buyout Fund No.1, managed by Mercuria Investment Co., Ltd. Hanwa Co., Ltd. (TSE:8078) agreed to acquire unknown stake in Shinx Co., Ltd. from Buyout Fund No.1, managed by Mercuria Investment Co., Ltd. on February 26, 2024. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥287 (vs JP¥190 in 3Q 2023) Third quarter 2024 results: EPS: JP¥287 (up from JP¥190 in 3Q 2023). Revenue: JP¥625.4b (down 8.6% from 3Q 2023). Net income: JP¥11.7b (up 51% from 3Q 2023). Profit margin: 1.9% (up from 1.1% in 3Q 2023). Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 24% per year. Announcement • Jan 26
Hanwa Co., Ltd. Announces Executive Changes Hanwa Co., Ltd. announced that the Board of Directors of Hanwa, held on January 26, 2024, resolved to change Representative Director as follows: Reason of Change: In order to change management structure. Retirement of representative director: Yasumichi Kato Currently, Representative Director and Chairman . Yasumichi Kato will become a Director and Chairman without representation right on April 1, 2024. Scheduled date of Change is March 31, 2024. Reported Earnings • Nov 09
Second quarter 2024 earnings released: EPS: JP¥187 (vs JP¥327 in 2Q 2023) Second quarter 2024 results: EPS: JP¥187 (down from JP¥327 in 2Q 2023). Revenue: JP¥592.5b (down 12% from 2Q 2023). Net income: JP¥7.58b (down 43% from 2Q 2023). Profit margin: 1.3% (down from 2.0% in 2Q 2023). Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥85.00 per share at 3.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.8%). New Risk • Aug 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks High level of debt (101% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥283 (vs JP¥589 in 1Q 2023) First quarter 2024 results: EPS: JP¥283 (down from JP¥589 in 1Q 2023). Revenue: JP¥608.7b (down 8.5% from 1Q 2023). Net income: JP¥11.5b (down 52% from 1Q 2023). Profit margin: 1.9% (down from 3.6% in 1Q 2023). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 20
Price target increased by 18% to JP¥5,067 Up from JP¥4,300, the current price target is an average from 3 analysts. New target price is 12% above last closing price of JP¥4,520. Stock is up 57% over the past year. The company is forecast to post earnings per share of JP¥887 for next year compared to JP¥1,267 last year. Reported Earnings • May 14
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥1,267 (up from JP¥1,073 in FY 2022). Revenue: JP¥2.67t (up 23% from FY 2022). Net income: JP¥51.5b (up 18% from FY 2022). Profit margin: 1.9% (down from 2.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 8.4%. Earnings per share (EPS) missed analyst estimates by 1.5%. Revenue is forecast to stay flat during the next 3 years compared to a 2.5% decline forecast for the Trade Distributors industry in Japan. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • May 13
Consensus revenue estimates increase by 16%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥2.26t to JP¥2.62t. EPS estimate fell from JP¥929 to JP¥838. Net income forecast to shrink 30% next year vs 2.1% growth forecast for Trade Distributors industry in Japan . Consensus price target broadly unchanged at JP¥4,367. Share price was steady at JP¥4,240 over the past week. Announcement • May 12
Hanwa Co., Ltd. Announces Dividends for the Year Ended March 31, 2023, Payable on June 26, 2023 Hanwa Co., Ltd. announced that the Board of Directors meeting held on May 12, 2023 resolved to pay dividends of JPY 80.00 with a record date of March 31, 2023, effective on June 26, 2023. 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 3.7% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.8%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥190 (vs JP¥300 in 3Q 2022) Third quarter 2023 results: EPS: JP¥190 (down from JP¥300 in 3Q 2022). Revenue: JP¥684.5b (up 22% from 3Q 2022). Net income: JP¥7.74b (down 37% from 3Q 2022). Profit margin: 1.1% (down from 2.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 1.9% decline forecast for the Trade Distributors industry in Japan. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. 
