New Risk • May 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% 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 0.6% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • May 15
Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 24, 2026 Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 24, 2026. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.3%). Reported Earnings • Feb 17
Third quarter 2026 earnings released: EPS: JP¥74.11 (vs JP¥69.48 in 3Q 2025) Third quarter 2026 results: EPS: JP¥74.11 (up from JP¥69.48 in 3Q 2025). Revenue: JP¥12.1b (up 12% from 3Q 2025). Net income: JP¥1.23b (up 6.8% from 3Q 2025). Profit margin: 10% (in line with 3Q 2025). Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 07
Second quarter 2026 earnings released: EPS: JP¥68.30 (vs JP¥81.40 in 2Q 2025) Second quarter 2026 results: EPS: JP¥68.30 (down from JP¥81.40 in 2Q 2025). Revenue: JP¥11.4b (down 10% from 2Q 2025). Net income: JP¥1.13b (down 16% from 2Q 2025). Profit margin: 10.0% (in line with 2Q 2025). Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year whereas the company’s share price has increased by 39% per year. Reported Earnings • Aug 07
First quarter 2026 earnings released: EPS: JP¥57.78 (vs JP¥87.85 in 1Q 2025) First quarter 2026 results: EPS: JP¥57.78 (down from JP¥87.85 in 1Q 2025). Revenue: JP¥11.4b (down 2.4% from 1Q 2025). Net income: JP¥958.0m (down 34% from 1Q 2025). Profit margin: 8.4% (down from 13% in 1Q 2025). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jul 30
Now 20% undervalued Over the last 90 days, the stock has risen 12% to JP¥1,675. The fair value is estimated to be JP¥2,098, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.7% over the last 3 years. Earnings per share has grown by 36%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 30% in the next 2 years. Reported Earnings • May 20
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥528 (up from JP¥159 in FY 2024). Revenue: JP¥47.6b (up 15% from FY 2024). Net income: JP¥4.38b (up 67% from FY 2024). Profit margin: 9.2% (up from 6.4% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.3% 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 52% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 25, 2025 Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 25, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥125 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). New Risk • Feb 19
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 5.2% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.2% average weekly change). Reported Earnings • Feb 06
Third quarter 2025 earnings released: EPS: JP¥139 (vs JP¥119 in 3Q 2024) Third quarter 2025 results: EPS: JP¥139 (up from JP¥119 in 3Q 2024). Revenue: JP¥10.9b (down 7.5% from 3Q 2024). Net income: JP¥1.15b (up 17% from 3Q 2024). Profit margin: 11% (up from 8.4% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Chemicals industry in Japan. 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. Reported Earnings • Nov 08
Second quarter 2025 earnings released: EPS: JP¥163 (vs JP¥99.81 in 2Q 2024) Second quarter 2025 results: EPS: JP¥163 (up from JP¥99.81 in 2Q 2024). Revenue: JP¥12.7b (up 24% from 2Q 2024). Net income: JP¥1.35b (up 63% from 2Q 2024). Profit margin: 11% (up from 8.1% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 20% per year. Board Change • Nov 05
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 Takayoshi Fusegi was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.3% average weekly change). Buy Or Sell Opportunity • Sep 17
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to JP¥3,230. The fair value is estimated to be JP¥2,669, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Reported Earnings • Aug 07
First quarter 2025 earnings released: EPS: JP¥176 (vs JP¥66.30 in 1Q 2024) First quarter 2025 results: EPS: JP¥176 (up from JP¥66.30 in 1Q 2024). Revenue: JP¥11.7b (up 29% from 1Q 2024). Net income: JP¥1.46b (up 166% from 1Q 2024). Profit margin: 13% (up from 6.1% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.0% 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 increased by 1% per year but the company’s share price has increased by 7% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Aug 06
Now 22% overvalued Over the last 90 days, the stock has fallen 13% to JP¥2,600. The fair value is estimated to be JP¥2,136, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 8.2% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. 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 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.9% average weekly change). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,100, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 13% over the past three years. Reported Earnings • May 21
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥318 (up from JP¥174 in FY 2023). Revenue: JP¥41.3b (up 8.4% from FY 2023). Net income: JP¥2.63b (up 83% from FY 2023). Profit margin: 6.4% (up from 3.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) also missed analyst estimates by 6.0%. Revenue is forecast to grow 10% 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 12% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Announcement • May 17
Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 26, 2024 Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 26, 2024. New Risk • Apr 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.7% average weekly change). Upcoming Dividend • Mar 21
Upcoming dividend of JP¥95.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 26 June 2024. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Reported Earnings • Feb 07
Third quarter 2024 earnings released: EPS: JP¥119 (vs JP¥7.50 in 3Q 2023) Third quarter 2024 results: EPS: JP¥119 (up from JP¥7.50 in 3Q 2023). Revenue: JP¥11.8b (up 22% from 3Q 2023). Net income: JP¥988.0m (up JP¥926.0m from 3Q 2023). Profit margin: 8.4% (up from 0.6% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 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 17% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jan 24
Now 20% undervalued Over the last 90 days, the stock has risen 46% to JP¥2,688. The fair value is estimated to be JP¥3,368, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has declined by 21%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 91% in the next 2 years. New Risk • Nov 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.4% average weekly change). Reported Earnings • Nov 07
Second quarter 2024 earnings released: EPS: JP¥99.80 (vs JP¥29.54 in 2Q 2023) Second quarter 2024 results: EPS: JP¥99.80 (up from JP¥29.54 in 2Q 2023). Revenue: JP¥10.2b (up 12% from 2Q 2023). Net income: JP¥826.0m (up 238% from 2Q 2023). Profit margin: 8.1% (up from 2.7% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 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 fallen by 21% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,105, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Chemicals industry in Japan. Total returns to shareholders of 70% over the past three years. New Risk • Aug 18
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.4b (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.1% net profit margin). Market cap is less than US$100m (JP¥14.4b market cap, or US$99.1m). New Risk • Aug 09
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.1% Last year net profit margin: 5.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.1% net profit margin). Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥66.29 (vs JP¥101 in 1Q 2023) First quarter 2024 results: EPS: JP¥66.29 (down from JP¥101 in 1Q 2023). Revenue: JP¥9.05b (down 13% from 1Q 2023). Net income: JP¥548.0m (down 34% from 1Q 2023). Profit margin: 6.1% (down from 8.1% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% 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 fallen by 17% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Reported Earnings • May 19
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥174 (down from JP¥247 in FY 2022). Revenue: JP¥38.1b (down 1.3% from FY 2022). Net income: JP¥1.44b (down 30% from FY 2022). Profit margin: 3.8% (down from 5.3% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 9.4% 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 fallen by 7% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥85.00 per share at 4.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 4.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.8%). Reported Earnings • Feb 04
Third quarter 2023 earnings released: EPS: JP¥7.50 (vs JP¥61.32 in 3Q 2022) Third quarter 2023 results: EPS: JP¥7.50 (down from JP¥61.32 in 3Q 2022). Revenue: JP¥9.64b (down 4.8% from 3Q 2022). Net income: JP¥62.0m (down 88% from 3Q 2022). Profit margin: 0.6% (down from 5.0% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
No independent directors There are 8 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 8 new directors. 3 experienced directors. 1 highly experienced director. No independent directors (8 non-independent directors). President & Director Junichiro Fukuda is the most experienced director on the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 06
Second quarter 2023 earnings released: EPS: JP¥29.54 (vs JP¥59.67 in 2Q 2022) Second quarter 2023 results: EPS: JP¥29.54 (down from JP¥59.67 in 2Q 2022). Revenue: JP¥9.08b (flat on 2Q 2022). Net income: JP¥244.0m (down 50% from 2Q 2022). Profit margin: 2.7% (down from 5.5% in 2Q 2022). 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 12% per year whereas the company’s share price has increased by 13% per year. Reported Earnings • Aug 07
First quarter 2023 earnings released: EPS: JP¥101 (vs JP¥83.42 in 1Q 2022) First quarter 2023 results: EPS: JP¥101 (up from JP¥83.42 in 1Q 2022). Revenue: JP¥10.4b (up 19% from 1Q 2022). Net income: JP¥836.0m (up 22% from 1Q 2022). Profit margin: 8.1% (up from 7.9% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 7.0%, compared to a 9.5% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 17
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥247 (down from JP¥331 in FY 2021). Revenue: JP¥38.6b (up 23% from FY 2021). Net income: JP¥2.04b (down 25% from FY 2021). Profit margin: 5.3% (down from 8.6% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 36%. Over the next year, revenue is forecast to stay flat compared to a 7.7% growth forecast for the 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 only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 24, 2022 Soken Chemical & Engineering Co., Ltd., Annual General Meeting, Jun 24, 2022. Board Change • Apr 27
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: No independent directors. 8 non-independent directors. Full-Time Auditor Nobuyuki Izumiura was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 28 June 2022. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 07
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥61.31 (down from JP¥104 in 3Q 2021). Revenue: JP¥10.1b (up 21% from 3Q 2021). Net income: JP¥506.0m (down 41% from 3Q 2021). Profit margin: 5.0% (down from 10% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.6%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Over the next year, revenue is forecast to grow 4.2%, compared to a 6.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 07
Second quarter 2022 earnings released: EPS JP¥59.66 (vs JP¥83.13 in 2Q 2021) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2022 results: Revenue: JP¥9.02b (up 25% from 2Q 2021). Net income: JP¥492.0m (down 28% from 2Q 2021). Profit margin: 5.5% (down from 9.5% 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 26% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 07
Second quarter 2022 earnings released: EPS JP¥59.66 (vs JP¥83.13 in 2Q 2021) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2022 results: Revenue: JP¥9.02b (up 25% from 2Q 2021). Net income: JP¥492.0m (down 28% from 2Q 2021). Profit margin: 5.5% (down from 9.5% 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 26% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥1,770, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Chemicals industry in Japan. Total returns to shareholders of 14% over the past three years. Reported Earnings • Aug 05
First quarter 2022 earnings released: EPS JP¥83.41 (vs JP¥61.83 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥8.72b (up 28% from 1Q 2021). Net income: JP¥687.0m (up 35% from 1Q 2021). Profit margin: 7.9% (up from 7.5% in 1Q 2021). The increase in margin was driven by higher revenue. 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 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 17
Full year 2021 earnings released: EPS JP¥331 (vs JP¥198 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥31.5b (up 9.7% from FY 2020). Net income: JP¥2.72b (up 67% from FY 2020). Profit margin: 8.6% (up from 5.7% 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 12% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 26 June 2021. Trailing yield: 3.3%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.8%). Is New 90 Day High Low • Feb 08
New 90-day high: JP¥2,545 The company is up 55% from its price of JP¥1,643 on 10 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 14% over the same period. Reported Earnings • Feb 07
Third quarter 2021 earnings released: EPS JP¥104 (vs JP¥71.81 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥8.38b (up 17% from 3Q 2020). Net income: JP¥860.0m (up 46% from 3Q 2020). Profit margin: 10% (up from 8.3% in 3Q 2020). The increase in margin was driven by higher revenue. 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 12% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 07
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Over the next year, revenue is forecast to grow 5.3%, compared to a 6.2% growth forecast for the Chemicals industry in Japan. Is New 90 Day High Low • Jan 13
New 90-day high: JP¥2,120 The company is up 39% from its price of JP¥1,526 on 15 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 18% over the same period. Is New 90 Day High Low • Dec 29
New 90-day high: JP¥1,931 The company is up 29% from its price of JP¥1,499 on 30 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 13% over the same period. Is New 90 Day High Low • Dec 08
New 90-day high: JP¥1,919 The company is up 39% from its price of JP¥1,383 on 09 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 16% over the same period. Reported Earnings • Nov 07
Second quarter 2021 earnings released: EPS JP¥83.13 The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: JP¥7.21b (down 1.2% from 2Q 2020). Net income: JP¥684.0m (up 50% from 2Q 2020). Profit margin: 9.5% (up from 6.2% in 2Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Analyst Estimate Surprise Post Earnings • Nov 07
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Over the next year, revenue is forecast to stay flat compared to a 2.0% growth forecast for the Chemicals industry in Japan. Is New 90 Day High Low • Nov 06
New 90-day high: JP¥1,770 The company is up 38% from its price of JP¥1,286 on 07 August 2020. The Japanese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 11% over the same period. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 26% share price gain to JP¥1,770, the stock is trading at a trailing P/E ratio of 7.7x, up from the previous P/E ratio of 6.1x. This compares to an average P/E of 14x in the Chemicals industry in Japan. Total return to shareholders over the past three years is a loss of 11%. Is New 90 Day High Low • Oct 05
New 90-day high: JP¥1,516 The company is up 25% from its price of JP¥1,209 on 07 July 2020. The Japanese market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 6.0% over the same period.