New Risk • Jun 02
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 7.1% 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 Earnings are forecast to decline by an average of 26% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.1% average weekly change). Valuation Update With 7 Day Price Move • May 22
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,130, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 46% over the past three years. Reported Earnings • May 20
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥192 (down from JP¥200 in FY 2025). Revenue: JP¥48.0b (down 1.1% from FY 2025). Net income: JP¥3.05b (down 3.9% from FY 2025). Profit margin: 6.4% (down from 6.5% in FY 2025). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 53%. Revenue is forecast to grow 3.8% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 11% per year. Announcement • May 18
Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 24, 2026 Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 24, 2026. Announcement • Mar 29
Hodogaya Chemical Co., Ltd. (TSE:4112) has entered into a quota purchase agreement to acquire Framochem Kft. from VanDeMark Chemical, Inc. for approximately ¥16.0 billion. Hodogaya Chemical Co., Ltd. (TSE:4112) has entered into a quota purchase agreement to acquire Framochem Kft. from VanDeMark Chemical, Inc. for approximately ¥16.0 billion on March 27, 2026. A cash consideration of ¥16.01 billion will be paid by Hodogaya Chemical Co., Ltd. Through this Acquisition, the Hodogaya Chemical intends to maintain and further deepen its existing high-quality production and export structure for specialty chemicals from bases in Japan.
Completion of the Acquisition is subject to the satisfaction of the conditions set forth in the agreement. Date of commencement of equity transfer will be on Hodogaya Chemical fiscal year ending March 2027 second quarter.
Perella Weinberg Partners acted as exclusive financial advisor for Framochem Kft. and its sponsor, SK Capital Partners. Approximately ¥600 million is for advisory fees will be paid by Hodogaya Chemical to its advisors. Announcement • Mar 23
Hodogaya Chemical Co., Ltd. to Report Fiscal Year 2026 Results on May 15, 2026 Hodogaya Chemical Co., Ltd. announced that they will report fiscal year 2026 results on May 15, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 33% but the company is paying out more than the cash it is generating. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.3%). Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥47.59 (vs JP¥21.02 in 3Q 2025) Third quarter 2026 results: EPS: JP¥47.59 (up from JP¥21.02 in 3Q 2025). Revenue: JP¥11.9b (up 12% from 3Q 2025). Net income: JP¥757.0m (up 127% from 3Q 2025). Profit margin: 6.4% (up from 3.1% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,165, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Chemicals industry in Japan. Total returns to shareholders of 66% over the past three years. Announcement • Dec 23
Hodogaya Chemical Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 Hodogaya Chemical Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 Declared Dividend • Dec 13
First half dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 2.6%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (41% 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 9.6% 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 decline by 4.1% over the next 3 years. However, it would need to fall by 55% to increase the payout ratio to a potentially unsustainable range. Major Estimate Revision • Dec 10
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥49.2b to JP¥47.4b. EPS estimate also fell from JP¥151 per share to JP¥126 per share. Net income forecast to shrink 0.7% next year vs 8.2% growth forecast for Chemicals industry in Japan . Consensus price target of JP¥2,400 unchanged from last update. Share price rose 3.0% to JP¥1,907 over the past week. New Risk • Dec 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.2% net profit margin). New Risk • Nov 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.5% average weekly change). Profit margins are more than 30% lower than last year (4.2% net profit margin). Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: JP¥38.92 (vs JP¥52.92 in 2Q 2025) Second quarter 2026 results: EPS: JP¥38.92 (down from JP¥52.92 in 2Q 2025). Revenue: JP¥11.2b (down 7.9% from 2Q 2025). Net income: JP¥619.0m (down 26% from 2Q 2025). Profit margin: 5.5% (down from 6.9% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 5% per year. Announcement • Sep 25
Hodogaya Chemical Co., Ltd. to Report Q2, 2026 Results on Nov 11, 2025 Hodogaya Chemical Co., Ltd. announced that they will report Q2, 2026 results on Nov 11, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥25.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 16 December 2025. Payout ratio is a comfortable 69% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,779, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 16% over the past three years. Major Estimate Revision • Aug 23
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥50.0b to JP¥49.2b. EPS estimate also fell from JP¥176 per share to JP¥151 per share. Net income forecast to grow 20% next year vs 11% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥2,400 unchanged from last update. Share price was steady at JP¥1,571 over the past week. Reported Earnings • Aug 11
First quarter 2026 earnings released: EPS: JP¥38.70 (vs JP¥108 in 1Q 2025) First quarter 2026 results: EPS: JP¥38.70 (down from JP¥108 in 1Q 2025). Revenue: JP¥11.4b (down 22% from 1Q 2025). Net income: JP¥615.0m (down 64% from 1Q 2025). Profit margin: 5.4% (down from 12% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Jul 13
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Akira Matsuo was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Declared Dividend • Jul 09
Final dividend of JP¥25.00 announced Shareholders will receive a dividend of JP¥25.00. Ex-date: 29th September 2025 Payment date: 16th December 2025 Dividend yield will be 4.8%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (17% earnings payout ratio) but not covered by cash flows (303% cash payout ratio). The dividend has increased by an average of 9.6% 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 decline by 46% over the next 3 years. However, it would need to fall by 81% to increase the payout ratio to a potentially unsustainable range. Announcement • Jun 29
Hodogaya Chemical Co., Ltd. to Report Q1, 2026 Results on Aug 08, 2025 Hodogaya Chemical Co., Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • May 20
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥400 (up from JP¥156 in FY 2024). Revenue: JP¥48.6b (up 9.8% from FY 2024). Net income: JP¥3.18b (up 28% from FY 2024). Profit margin: 6.5% (up from 5.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) exceeded analyst estimates by 14%. Revenue is forecast to grow 9.5% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • May 16
Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 26, 2025 Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 26, 2025. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,457, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Chemicals industry in Japan. Total loss to shareholders of 16% over the past three years. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.9% 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 Risk Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (115% cash payout ratio). Share price has been volatile over the past 3 months (5.9% average weekly change). Announcement • Mar 22
Hodogaya Chemical Co., Ltd. to Report Fiscal Year 2025 Results on May 15, 2025 Hodogaya Chemical Co., Ltd. announced that they will report fiscal year 2025 results at 3:00 PM, Tokyo Standard Time on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 26 June 2025. Payout ratio is a comfortable 17% but the company is paying out more than the cash it is generating. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (2.6%). Major Estimate Revision • Mar 01
Consensus EPS estimates fall by 32% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥516 to JP¥352. Revenue forecast unchanged from JP¥51.7b at last update. Net income forecast to shrink 24% next year vs 8.6% growth forecast for Chemicals industry in Japan . Consensus price target down from JP¥8,000 to JP¥5,100. Share price was steady at JP¥3,115 over the past week. New Risk • Mar 01
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (115% cash payout ratio). Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥42.03 (vs JP¥82.41 in 3Q 2024) Third quarter 2025 results: EPS: JP¥42.03 (down from JP¥82.41 in 3Q 2024). Revenue: JP¥10.6b (down 5.0% from 3Q 2024). Net income: JP¥334.0m (down 49% from 3Q 2024). Profit margin: 3.1% (down from 5.8% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Dec 29
Hodogaya Chemical Co., Ltd. to Report Nine Months, 2025 Results on Feb 13, 2025 Hodogaya Chemical Co., Ltd. announced that they will report nine months, 2025 results on Feb 13, 2025 Declared Dividend • Dec 17
First half dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 28th March 2025 Payment date: 26th June 2025 Dividend yield will be 2.4%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (7% earnings payout ratio) and cash flows (47% cash payout ratio). The dividend has increased by an average of 7.8% 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 48% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 13
Hodogaya Chemical Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2025 Hodogaya Chemical Co., Ltd. revised consolidated earnings guidance for the fiscal year ending March 31, 2025. For the year, the company expects net sales of JPY 50,000 million compared to previous guidance of JPY 48,000 million, operating profit of JPY 5,500 million compared to previous guidance of JPY 4,500 million, profit attributable to owners of parent of JPY 3,300 million compared to previous guidance of JPY,700 million and earnings per share of JPY 415.89 compared to previous guidance of JPY 340.27. Reason for revision Sales of OLED materials in the functional colorants segment have significantly increased, and the cumulative performance for the second quarter has greatly exceeded the initial forecasts, so net sales, operating profit, ordinary profit, and profit attributable to owners of parent for the fiscal year ending March 2025 are expected to see an increase compared to the previous announcement. Announcement • Sep 21
Hodogaya Chemical Co., Ltd. to Report Q2, 2025 Results on Nov 13, 2024 Hodogaya Chemical Co., Ltd. announced that they will report Q2, 2025 results on Nov 13, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥42.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 16 December 2024. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.4%). Major Estimate Revision • Aug 21
Consensus EPS estimates increase by 37% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥48.1b to JP¥51.7b. EPS estimate increased from JP¥378 to JP¥516 per share. Net income forecast to grow 11% next year vs 11% growth forecast for Chemicals industry in Japan. Consensus price target up from JP¥7,000 to JP¥8,000. Share price rose 7.7% to JP¥5,440 over the past week. Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: JP¥215 (vs JP¥46.53 in 1Q 2024) First quarter 2025 results: EPS: JP¥215 (up from JP¥46.53 in 1Q 2024). Revenue: JP¥14.5b (up 44% from 1Q 2024). Net income: JP¥1.71b (up 363% from 1Q 2024). Profit margin: 12% (up from 3.7% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals 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 4% per year, which means it is well ahead of earnings. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to JP¥3,645, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 14% over the past three years. Declared Dividend • Jul 11
Final dividend increased to JP¥42.50 Dividend of JP¥42.50 is 13% higher than last year. Ex-date: 27th September 2024 Payment date: 16th December 2024 Dividend yield will be 1.5%, which is lower than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (27% earnings payout ratio) and cash flows (23% cash payout ratio). The dividend has increased by an average of 7.8% 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 84% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥313 (up from JP¥281 in FY 2023). Revenue: JP¥44.3b (up 2.2% from FY 2023). Net income: JP¥2.48b (up 12% from FY 2023). Profit margin: 5.6% (up from 5.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.4%. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Jun 22
Hodogaya Chemical Co., Ltd. to Report Q1, 2025 Results on Aug 09, 2024 Hodogaya Chemical Co., Ltd. announced that they will report Q1, 2025 results on Aug 09, 2024 New Risk • Jun 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Major Estimate Revision • May 29
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥328 to JP¥378. Revenue forecast unchanged at JP¥48.1b. Net income forecast to grow 21% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target up from JP¥5,200 to JP¥7,000. Share price fell 2.2% to JP¥5,000 over the past week. Price Target Changed • May 28
Price target increased by 32% to JP¥7,000 Up from JP¥5,300, the current price target is provided by 1 analyst. New target price is 39% above last closing price of JP¥5,040. Stock is up 58% over the past year. The company is forecast to post earnings per share of JP¥378 for next year compared to JP¥313 last year. Reported Earnings • May 21
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥313 (up from JP¥281 in FY 2023). Revenue: JP¥44.3b (up 2.2% from FY 2023). Net income: JP¥2.48b (up 12% from FY 2023). Profit margin: 5.6% (up from 5.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.4%. Revenue is forecast to grow 8.1% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • May 18
Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 25, 2024 Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 25, 2024. Announcement • Mar 28
Hodogaya Chemical Co., Ltd. to Report Fiscal Year 2024 Results on May 15, 2024 Hodogaya Chemical Co., Ltd. announced that they will report fiscal year 2024 results on May 15, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥37.50 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.1%). Reported Earnings • Feb 14
Third quarter 2024 earnings released: EPS: JP¥82.41 (vs JP¥42.40 in 3Q 2023) Third quarter 2024 results: EPS: JP¥82.41 (up from JP¥42.40 in 3Q 2023). Revenue: JP¥11.2b (flat on 3Q 2023). Net income: JP¥654.0m (up 95% from 3Q 2023). Profit margin: 5.8% (up from 3.0% in 3Q 2023). Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Dec 24
Hodogaya Chemical Co., Ltd. to Report Q3, 2024 Results on Feb 13, 2024 Hodogaya Chemical Co., Ltd. announced that they will report Q3, 2024 results on Feb 13, 2024 Major Estimate Revision • Nov 22
Consensus EPS estimates increase by 14%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥44.5b to JP¥43.6b. EPS estimate rose from JP¥277 to JP¥315. Net income forecast to grow 56% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥5,300 unchanged from last update. Share price rose 9.8% to JP¥3,530 over the past week. Announcement • Nov 17
Hodogaya Chemical Co., Ltd. Announces Dividend for the Second Quarter of Fiscal Year Ending March 31, 2024, Payable on December 14, 2023; Provides Dividend Guidance for the Fiscal Year Ending March 31, 2024 Hodogaya Chemical Co., Ltd. announced dividend of JPY 37.50 per share for the second quarter of fiscal year ending March 31, 2024 against JPY 32.50 per share paid a year ago. Scheduled date to commence dividend payments: December 14, 2023. Provided Dividend guidance for the fiscal year ending March 31, 2024. For the period, Company expects dividend of JPY 37.50 per share against JPY 32.50 per share paid a year ago. Reported Earnings • Nov 16
Second quarter 2024 earnings released: EPS: JP¥68.04 (vs JP¥92.66 in 2Q 2023) Second quarter 2024 results: EPS: JP¥68.04 (down from JP¥92.66 in 2Q 2023). Revenue: JP¥10.4b (down 1.9% from 2Q 2023). Net income: JP¥540.0m (down 26% from 2Q 2023). Profit margin: 5.2% (down from 6.9% in 2Q 2023). Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 10% per year. Announcement • Sep 22
Hodogaya Chemical Co., Ltd. to Report Q2, 2024 Results on Nov 13, 2023 Hodogaya Chemical Co., Ltd. announced that they will report Q2, 2024 results on Nov 13, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥37.50 per share at 2.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 11 December 2023. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.3%). In line with average of industry peers (2.5%). Major Estimate Revision • Aug 17
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥47.0b to JP¥44.5b. EPS estimate also fell from JP¥316 per share to JP¥277 per share. Net income forecast to grow 21% next year vs 7.0% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥5,300. Share price fell 4.5% to JP¥3,160 over the past week. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥46.53 (vs JP¥83.86 in 1Q 2023) First quarter 2024 results: EPS: JP¥46.53 (down from JP¥83.86 in 1Q 2023). Revenue: JP¥10.0b (flat on 1Q 2023). Net income: JP¥369.0m (down 44% from 1Q 2023). Profit margin: 3.7% (down from 6.7% in 1Q 2023). Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Announcement • Jun 24
Hodogaya Chemical Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Hodogaya Chemical Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Announcement • May 17
Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 27, 2023 Hodogaya Chemical Co., Ltd., Annual General Meeting, Jun 27, 2023. Reported Earnings • May 17
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥281 (down from JP¥411 in FY 2022). Revenue: JP¥43.3b (up 3.5% from FY 2022). Net income: JP¥2.22b (down 32% from FY 2022). Profit margin: 5.1% (down from 7.8% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 7.3%. Revenue is forecast to grow 6.9% p.a. on average during the next 2 years, compared to a 3.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥32.50 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 10
Third quarter 2023 earnings released: EPS: JP¥42.40 (vs JP¥132 in 3Q 2022) Third quarter 2023 results: EPS: JP¥42.40 (down from JP¥132 in 3Q 2022). Revenue: JP¥11.2b (up 4.3% from 3Q 2022). Net income: JP¥336.0m (down 68% from 3Q 2022). Profit margin: 3.0% (down from 9.7% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Feb 10
Hodogaya Chemical Co., Ltd. Provides Consolidated Earnings Guidance for the Full Year Ending March 31, 2023 Hodogaya Chemical Co., Ltd. provided consolidated earnings guidance for the full year ending March 31, 2023. For the year, the company expects net sales of JPY 44,000 million, operating profit of JPY 4,300 million, profit attributable to owners of parent JPY 2,400 million and basic earnings per share of JPY 303.12. Announcement • Dec 20
Hodogaya Chemical Co., Ltd. to Report Nine Months, 2023 Results on Feb 07, 2023 Hodogaya Chemical Co., Ltd. announced that they will report nine months, 2023 results on Feb 07, 2023 Announcement • Dec 01
Hodogaya Chemical Co., Ltd. Provides Consolidated Earnings Guidance for the Full Year Ending March 31, 2023 Hodogaya Chemical Co., Ltd. provided consolidated earnings guidance for the full year ending March 31, 2023. For the year, the company expects net sales of JPY 44,000 million, operating profit of JPY 4,300 million, profit attributable to owners of parent JPY 2,400 million and basic earnings per share of JPY 303.12. Announcement • Nov 30
Hodogaya Chemical Co., Ltd. Announces Dividend for the Second Quarter of Year Ending March 31, 2023, Payable on December 9, 2022, Provides Dividend Guidance for the Year Ending March 31, 2023 Hodogaya Chemical Co., Ltd. announced dividend for the second quarter of year ending March 31, 2023. For the period, company announced dividend of JPY 32.50 per share against JPY 30.00 per share paid a year ago. Scheduled date to commence dividend payments is December 9, 2022. For the Year ending March 31, 2023, Company expects dividend of JPY 32.50 per share against JPY 30.00 per share a year ago. Price Target Changed • Nov 16
Price target decreased to JP¥6,300 Down from JP¥8,500, the current price target is provided by 1 analyst. New target price is 108% above last closing price of JP¥3,025. Stock is down 39% over the past year. The company is forecast to post earnings per share of JP¥328 for next year compared to JP¥411 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Masaki Sakai was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 10
Second quarter 2023 earnings released: EPS: JP¥92.66 (vs JP¥115 in 2Q 2022) Second quarter 2023 results: EPS: JP¥92.66 (down from JP¥115 in 2Q 2022). Revenue: JP¥10.6b (up 4.5% from 2Q 2022). Net income: JP¥734.0m (down 19% from 2Q 2022). Profit margin: 6.9% (down from 9.0% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Sep 22
Hodogaya Chemical Co., Ltd. to Report Q2, 2023 Results on Nov 08, 2022 Hodogaya Chemical Co., Ltd. announced that they will report Q2, 2023 results on Nov 08, 2022 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥32.50 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.9%). Price Target Changed • Aug 26
Price target increased to JP¥9,100 Up from JP¥8,500, the current price target is provided by 1 analyst. New target price is 171% above last closing price of JP¥3,360. Stock is down 33% over the past year. The company is forecast to post earnings per share of JP¥442 for next year compared to JP¥411 last year.