Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,730, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 13x in the Metals and Mining industry in Japan. Total returns to shareholders of 215% over the past three years. Declared Dividend • May 09
First half dividend of JP¥10.00 announced Shareholders will receive a dividend of JP¥10.00. Ex-date: 28th August 2026 Payment date: 24th November 2026 Dividend yield will be 1.9%, which is lower than the industry average of 3.4%. Sustainability & Growth Dividend is covered by earnings (17% 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 15% 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. Earnings per share has grown by 23% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,322, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 13x in the Metals and Mining industry in Japan. Total returns to shareholders of 142% over the past three years. Buy Or Sell Opportunity • Apr 14
Now 25% undervalued Over the last 90 days, the stock has risen 78% to JP¥1,385. The fair value is estimated to be JP¥1,838, 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 grown by 35%. Announcement • Apr 03
MERF Inc. to Report Q2, 2026 Results on Apr 13, 2026 MERF Inc. announced that they will report Q2, 2026 results on Apr 13, 2026 Buy Or Sell Opportunity • Mar 09
Now 21% undervalued Over the last 90 days, the stock has risen 175% to JP¥1,595. The fair value is estimated to be JP¥2,028, 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 19%. Buy Or Sell Opportunity • Feb 18
Now 24% undervalued Over the last 90 days, the stock has risen 175% to JP¥1,530. The fair value is estimated to be JP¥2,015, 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 19%. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥952, the stock trades at a trailing P/E ratio of 78.6x. Average trailing P/E is 15x in the Metals and Mining industry in Japan. Total returns to shareholders of 72% over the past three years. New Risk • Jan 15
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 6.9% 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 (18% operating cash flow to total debt). Earnings have declined by 38% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (164% payout ratio). Share price has been volatile over the past 3 months (6.9% average weekly change). Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (JP¥13.1b market cap, or US$82.6m). Reported Earnings • Jan 15
First quarter 2026 earnings released: EPS: JP¥28.79 (vs JP¥2.27 in 1Q 2025) First quarter 2026 results: EPS: JP¥28.79 (up from JP¥2.27 in 1Q 2025). Revenue: JP¥21.1b (down 1.2% from 1Q 2025). Net income: JP¥407.0m (up JP¥375.0m from 1Q 2025). Profit margin: 1.9% (up from 0.1% in 1Q 2025). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Declared Dividend • Dec 11
Final dividend of JP¥10.00 announced Dividend of JP¥10.00 is the same as last year. Ex-date: 26th February 2026 Payment date: 8th May 2026 Dividend yield will be 3.4%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 15% 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. Announcement • Dec 06
MERF Inc. to Report Q1, 2026 Results on Jan 14, 2026 MERF Inc. announced that they will report Q1, 2026 results on Jan 14, 2026 Reported Earnings • Oct 11
Full year 2025 earnings released: JP¥14.37 loss per share (vs JP¥37.69 profit in FY 2024) Full year 2025 results: JP¥14.37 loss per share (down from JP¥37.69 profit in FY 2024). Revenue: JP¥82.4b (flat on FY 2024). Net loss: JP¥203.0m (down 138% from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Oct 10
MERF Inc., Annual General Meeting, Nov 20, 2025 MERF Inc., Annual General Meeting, Nov 20, 2025. Upcoming Dividend • Aug 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 25 November 2025. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.5%). Announcement • Aug 01
MERF Inc. to Report Fiscal Year 2025 Results on Oct 10, 2025 MERF Inc. announced that they will report fiscal year 2025 results on Oct 10, 2025 Reported Earnings • Jul 14
Third quarter 2025 earnings released: JP¥14.92 loss per share (vs JP¥41.78 profit in 3Q 2024) Third quarter 2025 results: JP¥14.92 loss per share (down from JP¥41.78 profit in 3Q 2024). Revenue: JP¥18.9b (down 15% from 3Q 2024). Net loss: JP¥211.0m (down 136% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Declared Dividend • May 09
First half dividend of JP¥10.00 announced Dividend of JP¥10.00 is the same as last year. Ex-date: 28th August 2025 Payment date: 25th November 2025 Dividend yield will be 3.8%, which is higher than the industry average of 3.4%. Sustainability & Growth The dividend has increased by an average of 17% per year over the past 9 years and payments have been stable during that time. Announcement • May 03
MERF Inc. to Report Q3, 2025 Results on Jul 11, 2025 MERF Inc. announced that they will report Q3, 2025 results on Jul 11, 2025 New Risk • Apr 21
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 0% Dividend yield: 5.9% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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 (11% operating cash flow to total debt). Earnings have declined by 8.7% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (0% payout ratio). Market cap is less than US$100m (JP¥7.18b market cap, or US$51.0m). Reported Earnings • Apr 12
Second quarter 2025 earnings released: JP¥14.79 loss per share (vs JP¥7.58 loss in 2Q 2024) Second quarter 2025 results: JP¥14.79 loss per share (further deteriorated from JP¥7.58 loss in 2Q 2024). Revenue: JP¥21.7b (up 23% from 2Q 2024). Net loss: JP¥209.0m (loss widened 95% from 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 27 February 2025. Payment date: 08 May 2025. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (4.3%). Announcement • Feb 08
MERF Inc. to Report Q2, 2025 Results on Apr 11, 2025 MERF Inc. announced that they will report Q2, 2025 results on Apr 11, 2025 Reported Earnings • Jan 15
First quarter 2025 earnings released: EPS: JP¥2.27 (vs JP¥8.51 in 1Q 2024) First quarter 2025 results: EPS: JP¥2.27 (down from JP¥8.51 in 1Q 2024). Revenue: JP¥21.4b (up 20% from 1Q 2024). Net income: JP¥32.0m (down 73% from 1Q 2024). Profit margin: 0.1% (down from 0.7% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Declared Dividend • Dec 19
Final dividend of JP¥10.00 announced Dividend of JP¥10.00 is the same as last year. Ex-date: 27th February 2025 Payment date: 8th May 2025 Dividend yield will be 3.6%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is covered by both earnings (39% earnings payout ratio) and cash flows (52% cash payout ratio). The dividend has increased by an average of 17% per year over the past 9 years and payments have been stable during that time. Earnings per share has grown by 7.2% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Dec 17
Kurotani Corporation to Report Q1, 2025 Results on Jan 16, 2025 Kurotani Corporation announced that they will report Q1, 2025 results on Jan 16, 2025 Reported Earnings • Oct 16
Full year 2024 earnings released: EPS: JP¥37.69 (vs JP¥12.01 in FY 2023) Full year 2024 results: EPS: JP¥37.69 (up from JP¥12.01 in FY 2023). Revenue: JP¥82.1b (down 3.0% from FY 2023). Net income: JP¥532.0m (up 213% from FY 2023). Profit margin: 0.6% (up from 0.2% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 55% 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. Announcement • Oct 11
Kurotani Corporation, Annual General Meeting, Nov 21, 2024 Kurotani Corporation, Annual General Meeting, Nov 21, 2024. Upcoming Dividend • Aug 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 25 November 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (4.2%). Announcement • Aug 18
Kurotani Corporation to Report Fiscal Year 2024 Results on Oct 11, 2024 Kurotani Corporation announced that they will report fiscal year 2024 results on Oct 11, 2024 Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥590, the stock trades at a trailing P/E ratio of 11.6x. Average trailing P/E is 9x in the Metals and Mining industry in Japan. Total loss to shareholders of 23% over the past three years. Reported Earnings • Jul 16
Third quarter 2024 earnings released: EPS: JP¥41.78 (vs JP¥6.10 in 3Q 2023) Third quarter 2024 results: EPS: JP¥41.78 (up from JP¥6.10 in 3Q 2023). Revenue: JP¥22.4b (up 12% from 3Q 2023). Net income: JP¥590.0m (up JP¥504.0m from 3Q 2023). Profit margin: 2.6% (up from 0.4% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Jul 12
Kurotani Corporation Provides Consolidated Earnings Guidance for the Fiscal Year Ending August 31, 2024 Kurotani Corporation provided consolidated earnings guidance for the fiscal year ending August 31, 2024. For the year, company expects net sales of JPY 82,128 million, operating profit of JPY 2,271 million, profit attributable to owner of parent of JPY 1,080 million and basic earnings per share of JPY 76.52. Announcement • May 03
Kurotani Corporation to Report Q3, 2024 Results on Jul 12, 2024 Kurotani Corporation announced that they will report Q3, 2024 results on Jul 12, 2024 Reported Earnings • Apr 14
Second quarter 2024 earnings released: JP¥7.58 loss per share (vs JP¥0.85 loss in 2Q 2023) Second quarter 2024 results: JP¥7.58 loss per share (further deteriorated from JP¥0.85 loss in 2Q 2023). Revenue: JP¥17.7b (down 13% from 2Q 2023). Net loss: JP¥107.0m (loss widened JP¥95.0m from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Feb 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 February 2024. Payment date: 09 May 2024. Payout ratio is on the higher end at 91%, however this is supported by cash flows. Trailing yield: 3.3%. Within top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (3.5%). Announcement • Jan 28
Kurotani Corporation to Report Q2, 2024 Results on Apr 12, 2024 Kurotani Corporation announced that they will report Q2, 2024 results on Apr 12, 2024 Reported Earnings • Jan 16
First quarter 2024 earnings released: EPS: JP¥8.51 (vs JP¥1.48 loss in 1Q 2023) First quarter 2024 results: EPS: JP¥8.51 (up from JP¥1.48 loss in 1Q 2023). Revenue: JP¥17.7b (down 16% from 1Q 2023). Net income: JP¥120.0m (up JP¥141.0m from 1Q 2023). Profit margin: 0.7% (up from net loss in 1Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Jan 16
Kurotani Corporation Provides Dividend Guidance for the Second Quarter and Fiscal Year Ending August 31, 2024 Kurotani Corporation provides dividend guidance for the second quarter and fiscal year ending August 31, 2024. For the quarter, the company expects dividend to be JPY 10 per share.For the year, the company expects dividend to be JPY 10 per share. Announcement • Nov 29
Kurotani Corporation to Report Q1, 2024 Results on Feb 13, 2024 Kurotani Corporation announced that they will report Q1, 2024 results on Feb 13, 2024 Reported Earnings • Oct 16
Full year 2023 earnings released: EPS: JP¥12.01 (vs JP¥38.48 in FY 2022) Full year 2023 results: EPS: JP¥12.01 (down from JP¥38.48 in FY 2022). Revenue: JP¥84.6b (down 5.1% from FY 2022). Net income: JP¥170.0m (down 69% from FY 2022). Profit margin: 0.2% (down from 0.6% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Oct 15
Kurotani Corporation, Annual General Meeting, Nov 22, 2023 Kurotani Corporation, Annual General Meeting, Nov 22, 2023. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥10.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 30 August 2023. Payment date: 28 November 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (3.5%). Announcement • Aug 03
Kurotani Corporation to Report Q4, 2023 Results on Oct 13, 2023 Kurotani Corporation announced that they will report Q4, 2023 results on Oct 13, 2023 Reported Earnings • Jul 16
Third quarter 2023 earnings released: EPS: JP¥6.10 (vs JP¥31.21 in 3Q 2022) Third quarter 2023 results: EPS: JP¥6.10 (down from JP¥31.21 in 3Q 2022). Revenue: JP¥20.0b (down 20% from 3Q 2022). Net income: JP¥86.0m (down 81% from 3Q 2022). Profit margin: 0.4% (down from 1.8% in 3Q 2022). 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 7% per year, which means it is well ahead of earnings. Announcement • May 19
Kurotani Corporation to Report Q3, 2023 Results on Jul 12, 2023 Kurotani Corporation announced that they will report Q3, 2023 results on Jul 12, 2023 Reported Earnings • Apr 16
Second quarter 2023 earnings released: JP¥0.85 loss per share (vs JP¥12.38 profit in 2Q 2022) Second quarter 2023 results: JP¥0.85 loss per share (down from JP¥12.38 profit in 2Q 2022). Revenue: JP¥20.3b (up 1.2% from 2Q 2022). Net loss: JP¥12.0m (down 107% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 20
Upcoming dividend of JP¥10.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 27 February 2023. Payment date: 09 May 2023. Payout ratio is on the higher end at 81% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (4.5%). Announcement • Jan 29
Kurotani Corporation to Report Q2, 2023 Results on Apr 14, 2023 Kurotani Corporation announced that they will report Q2, 2023 results on Apr 14, 2023 Reported Earnings • Jan 13
First quarter 2023 earnings released: JP¥1.48 loss per share (vs JP¥12.19 profit in 1Q 2022) First quarter 2023 results: JP¥1.48 loss per share (down from JP¥12.19 profit in 1Q 2022). Revenue: JP¥21.2b (up 4.7% from 1Q 2022). Net loss: JP¥21.0m (down 112% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jan 13
Kurotani Corporation (TSE:3168) announces an Equity Buyback for 140,000 shares, for ¥85.4 million. Kurotani Corporation (TSE:3168) announces a share repurchase program. Under the program, the company will repurchase up to 140,000 shares, representing 0.98% of its issued share capital (excluding treasury stock), for a total purchase price of ¥85.4 million. The shares will be repurchased at a price of ¥610 per share. The purpose of the program is to implement a flexible capital policy that responds to changes in the business environment. As of August 31, 2022, the company has 14,337,200 issued shares (excluding treasury stock) and 112,166 treasury shares. Announcement • Nov 27
Kurotani Corporation to Report Q1, 2023 Results on Jan 12, 2023 Kurotani Corporation announced that they will report Q1, 2023 results on Jan 12, 2023 Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 6 highly experienced directors. No independent directors (7 non-independent directors). External Director Kenichi Mizuno was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Oct 17
Full year 2022 earnings released: EPS: JP¥38.48 (vs JP¥95.36 in FY 2021) Full year 2022 results: EPS: JP¥38.48 (down from JP¥95.36 in FY 2021). Revenue: JP¥89.1b (up 44% from FY 2021). Net income: JP¥547.0m (down 60% from FY 2021). Profit margin: 0.6% (down from 2.2% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Oct 16
Kurotani Corporation, Annual General Meeting, Nov 25, 2022 Kurotani Corporation, Annual General Meeting, Nov 25, 2022. Announcement • Oct 15
Kurotani Provides Dividend Guidance for the Second Quarter and Year Ending August 2023 Kurotani Corporation expects a dividend of ¥10.00 per share for the year ending August 2023.For the second quarter of year ending August 2023, the company expects dividend of ¥10.00 per share. Announcement • Oct 14
Kurotani Corporation Provides Consolidated Earnings Guidance for the First Half Ending February 2023 and Full Year Ending August 31, 2023 Kurotani Corporation provided consolidated earnings guidance for the first half ending February 2023 and full year ending August 31, 2023. For the second quarter, the company expects net sales of JPY 39,748 million, operating profit of JPY 481 million, profit attributable to owner of parent of JPY 305 million and basic earnings per share of JPY 21.49.For the year, the company expects net sales of JPY 83,158 million, operating profit of JPY 1,124 million, profit attributable to owner of parent of JPY 720 million and basic earnings per share of JPY 50.68. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 28 November 2022. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (5.5%). Announcement • Aug 22
Kurotani Corporation to Report Fiscal Year 2022 Results on Oct 14, 2022 Kurotani Corporation announced that they will report fiscal year 2022 results on Oct 14, 2022 Reported Earnings • Jul 13
Third quarter 2022 earnings released: EPS: JP¥31.21 (vs JP¥33.46 in 3Q 2021) Third quarter 2022 results: EPS: JP¥31.21 (down from JP¥33.46 in 3Q 2021). Revenue: JP¥25.2b (up 57% from 3Q 2021). Net income: JP¥444.0m (down 6.5% from 3Q 2021). Profit margin: 1.8% (down from 3.0% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Jul 12
Kurotani Corporation Provides Dividend Guidance for the Year Ending August 2022 Kurotani Corporation expects a dividend of ¥10.00 per share for the year ending August 2022. Announcement • May 20
Kurotani Corporation to Report Q3, 2022 Results on Jul 11, 2022 Kurotani Corporation announced that they will report Q3, 2022 results on Jul 11, 2022 Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 6 highly experienced directors. No independent directors (7 non-independent directors). External Director Kenichi Mizuno was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment deteriorated over the past week After last week's 19% share price decline to JP¥614, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 8x in the Metals and Mining industry in Japan. Total returns to shareholders of 44% over the past three years. Reported Earnings • Apr 12
Second quarter 2022 earnings released: EPS: JP¥12.38 (vs JP¥19.10 in 2Q 2021) Second quarter 2022 results: EPS: JP¥12.38 (down from JP¥19.10 in 2Q 2021). Revenue: JP¥20.1b (up 44% from 2Q 2021). Net income: JP¥176.0m (down 35% from 2Q 2021). Profit margin: 0.9% (down from 1.9% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 18
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 25 February 2022. Payment date: 09 May 2022. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (5.0%). Announcement • Feb 11
Kurotani Corporation to Report Q2, 2022 Results on Apr 11, 2022 Kurotani Corporation announced that they will report Q2, 2022 results on Apr 11, 2022 Reported Earnings • Jan 16
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: JP¥12.19 (up from JP¥11.78 in 1Q 2021). Revenue: JP¥20.2b (up 55% from 1Q 2021). Net income: JP¥173.0m (up 3.6% from 1Q 2021). Profit margin: 0.9% (down from 1.3% in 1Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 26% share price gain to JP¥812, the stock trades at a trailing P/E ratio of 8.5x. Average trailing P/E is 10x in the Metals and Mining industry in Japan. Total returns to shareholders of 66% over the past three years. Reported Earnings • Oct 12
Full year 2021 earnings released: EPS JP¥95.36 (vs JP¥26.69 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥62.1b (up 45% from FY 2020). Net income: JP¥1.35b (up 258% from FY 2020). Profit margin: 2.2% (up from 0.9% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 23
Upcoming dividend of JP¥7.50 per share Eligible shareholders must have bought the stock before 30 August 2021. Payment date: 27 November 2021. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.1%). Lower than average of industry peers (2.7%).