Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥44,300, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 13x in the Metals and Mining industry in Japan. Total returns to shareholders of 1,424% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥24,759 per share. Live News • May 19
Mitsui Kinzoku Taps Startup Fund for Growth in Climate Tech and Robotics Mitsui Kinzoku has joined Emerald Technology Ventures’ Industrial Innovation Fund as a new limited partner, giving it direct exposure to startups focused on climate tech, robotics, batteries, next-generation energy and computing.
The partnership is framed as a way to support Mitsui Kinzoku’s business development goals around carbon neutrality and broader industrial innovation.
The announcement came shortly after the company’s full-year earnings, a period that has seen the stock gain 154% year to date and trade at a premium valuation relative to sector peers.
This fund commitment indicates that management is actively looking beyond its existing portfolio to source technologies that could align with long-term themes such as decarbonisation and advanced manufacturing.
For investors, the combination of strong recent share performance and a premium valuation suggests that expectations around future execution and earnings delivery are likely elevated, which can leave the stock more sensitive to any earnings disappointments or delays in converting these new opportunities into tangible results. Announcement • May 15
Mitsui Kinzoku Company, Limited, Annual General Meeting, Jun 26, 2026 Mitsui Kinzoku Company, Limited, Annual General Meeting, Jun 26, 2026. Reported Earnings • May 14
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥1,595 (up from JP¥1,131 in FY 2025). Revenue: JP¥758.5b (up 6.5% from FY 2025). Net income: JP¥91.3b (up 41% from FY 2025). Profit margin: 12% (up from 9.1% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 15%. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has increased by 152% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥42,360, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 13x in the Metals and Mining industry in Japan. Total returns to shareholders of 1,310% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥24,203 per share. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥34,750, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 13x in the Metals and Mining industry in Japan. Total returns to shareholders of 1,075% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥24,219 per share. Buy Or Sell Opportunity • Mar 25
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 78% to JP¥31,820. The fair value is estimated to be JP¥25,418, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Earnings per share has grown by 56%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 9.9% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥140 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.5%). Buy Or Sell Opportunity • Mar 10
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 68% to JP¥30,920. The fair value is estimated to be JP¥25,233, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Earnings per share has grown by 56%. For the next 3 years, revenue is forecast to grow by 4.6% per annum. Earnings are also forecast to grow by 9.8% per annum over the same time period. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥38,630, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 15x in the Metals and Mining industry in Japan. Total returns to shareholders of 1,154% over the past three years. Major Estimate Revision • Feb 20
Consensus EPS estimates increase by 74% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥803 to JP¥1,395. Revenue forecast steady at JP¥729.8b. Net income forecast to grow 12% next year vs 11% growth forecast for Metals and Mining industry in Japan. Consensus price target up from JP¥22,878 to JP¥25,756. Share price rose 17% to JP¥31,180 over the past week. Price Target Changed • Feb 14
Price target increased by 9.9% to JP¥25,133 Up from JP¥22,878, the current price target is an average from 9 analysts. New target price is 5.3% below last closing price of JP¥26,540. Stock is up 486% over the past year. The company is forecast to post earnings per share of JP¥919 for next year compared to JP¥1,131 last year. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥25,990, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 15x in the Metals and Mining industry in Japan. Total returns to shareholders of 782% over the past three years. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥22,920, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 15x in the Metals and Mining industry in Japan. Total returns to shareholders of 673% over the past three years. Major Estimate Revision • Dec 11
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥707.1b to JP¥714.4b. EPS estimate increased from JP¥649 to JP¥723 per share. Net income forecast to grow 2.5% next year vs 7.9% growth forecast for Metals and Mining industry in Japan. Consensus price target up from JP¥17,775 to JP¥19,163. Share price was steady at JP¥17,725 over the past week. Price Target Changed • Dec 10
Price target increased by 14% to JP¥19,163 Up from JP¥16,750, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of JP¥18,415. Stock is up 285% over the past year. The company is forecast to post earnings per share of JP¥723 for next year compared to JP¥1,131 last year. Declared Dividend • Dec 10
First half dividend of JP¥110 announced Shareholders will receive a dividend of JP¥110. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 1.1%, which is lower than the industry average of 3.4%. Sustainability & Growth Dividend is well covered by both earnings (23% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 26% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Dec 04
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥507 to JP¥569. Revenue forecast steady at JP¥707.1b. Net income forecast to shrink 8.7% next year vs 9.6% growth forecast for Metals and Mining industry in Japan . Consensus price target up from JP¥16,750 to JP¥17,775. Share price fell 3.8% to JP¥17,525 over the past week. Price Target Changed • Dec 02
Price target increased by 8.9% to JP¥17,775 Up from JP¥16,325, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of JP¥16,975. Stock is up 251% over the past year. The company is forecast to post earnings per share of JP¥569 for next year compared to JP¥1,131 last year. Major Estimate Revision • Nov 26
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥693.7b to JP¥702.6b. EPS estimate increased from JP¥459 to JP¥507 per share. Net income forecast to shrink 14% next year vs 9.7% growth forecast for Metals and Mining industry in Japan . Consensus price target up from JP¥16,325 to JP¥16,750. Share price fell 7.7% to JP¥17,905 over the past week. Major Estimate Revision • Nov 18
Consensus EPS estimates increase by 28% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥668.8b to JP¥693.7b. EPS estimate increased from JP¥359 to JP¥459 per share. Net income forecast to shrink 18% next year vs 9.7% growth forecast for Metals and Mining industry in Japan . Consensus price target up from JP¥12,550 to JP¥16,325. Share price rose 26% to JP¥19,570 over the past week. Reported Earnings • Nov 13
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: JP¥437 (up from JP¥261 in 2Q 2025). Revenue: JP¥195.3b (up 9.5% from 2Q 2025). Net income: JP¥25.0b (up 68% from 2Q 2025). Profit margin: 13% (up from 8.4% in 2Q 2025). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 186%. Revenue is expected to decline by 1.7% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Japan are expected to grow by 2.9%. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has increased by 84% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 12
Price target increased by 12% to JP¥14,075 Up from JP¥12,550, the current price target is an average from 8 analysts. New target price is 27% below last closing price of JP¥19,150. Stock is up 300% over the past year. The company is forecast to post earnings per share of JP¥346 for next year compared to JP¥1,131 last year. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to JP¥19,105, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 12x in the Metals and Mining industry in Japan. Total returns to shareholders of 585% over the past three years. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥13,700, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 12x in the Metals and Mining industry in Japan. Total returns to shareholders of 417% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥5,725 per share. Price Target Changed • Oct 07
Price target increased by 12% to JP¥11,578 Up from JP¥10,300, the current price target is an average from 9 analysts. New target price is 11% below last closing price of JP¥13,075. Stock is up 161% over the past year. The company is forecast to post earnings per share of JP¥355 for next year compared to JP¥1,131 last year. Announcement • Oct 04
K&O Energy Group Inc. (TSE:1663) agreed to acquire 33.40% stake in Mitsui Mineral Development Engineering Co., Ltd. from Mitsui Kinzoku Company, Limited (TSE:5706). K&O Energy Group Inc. (TSE:1663) agreed to acquire 33.40% stake in Mitsui Mineral Development Engineering Co., Ltd. from Mitsui Kinzoku Company, Limited (TSE:5706) on October 2, 2025. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥100.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 08 December 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.2%). New Risk • Sep 18
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 7.5% 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.5% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Major Estimate Revision • Sep 06
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥303 to JP¥346. Revenue forecast steady at JP¥665.3b. Net income forecast to shrink 33% next year vs 10% growth forecast for Metals and Mining industry in Japan . Consensus price target up from JP¥7,167 to JP¥9,544. Share price was steady at JP¥10,550 over the past week. Price Target Changed • Aug 27
Price target increased by 22% to JP¥7,167 Up from JP¥5,867, the current price target is an average from 9 analysts. New target price is 30% below last closing price of JP¥10,265. Stock is up 122% over the past year. The company is forecast to post earnings per share of JP¥303 for next year compared to JP¥1,131 last year. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥8,442, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 12x in the Metals and Mining industry in Japan. Total returns to shareholders of 192% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,548 per share. Buy Or Sell Opportunity • Aug 13
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 79% to JP¥7,874. The fair value is estimated to be JP¥6,560, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 2.9% over the last 3 years. Earnings per share has grown by 23%. For the next 3 years, revenue is forecast to decline by 2.3% per annum. Earnings are forecast to grow by 7.8% per annum over the same time period. Reported Earnings • Aug 09
First quarter 2026 earnings: EPS misses analyst expectations First quarter 2026 results: JP¥104 loss per share (down from JP¥387 profit in 1Q 2025). Revenue: JP¥169.0b (flat on 1Q 2025). Net loss: JP¥5.97b (down 127% from profit in 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 115%. Revenue is expected to decline by 2.4% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Japan are expected to grow by 2.8%. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 28% per year. Major Estimate Revision • Jul 19
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥270 to JP¥303. Revenue forecast steady at JP¥642.6b. Net income forecast to shrink 73% next year vs 3.4% decline forecast for Metals and Mining industry in Japan. Consensus price target broadly unchanged at JP¥5,637. Share price was steady at JP¥5,254 over the past week. Declared Dividend • Jul 09
Final dividend of JP¥100.00 announced Shareholders will receive a dividend of JP¥100.00. Ex-date: 29th September 2025 Payment date: 8th December 2025 Dividend yield will be 3.7%, which is higher than the industry average of 3.4%. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 29% over the next 3 years. However, it would need to fall by 84% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Jul 01
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥1,131 (up from JP¥455 in FY 2024). Revenue: JP¥712.3b (up 10% from FY 2024). Net income: JP¥64.7b (up 149% from FY 2024). Profit margin: 9.1% (up from 4.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is expected to decline by 2.1% p.a. on average during the next 3 years, while revenues in the Metals and Mining industry in Japan are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 16% per year. Buy Or Sell Opportunity • Jun 19
Now 20% undervalued Over the last 90 days, the stock has risen 2.0% to JP¥4,747. The fair value is estimated to be JP¥5,946, 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 14%. For the next 3 years, revenue is forecast to decline by 2.1% per annum. Earnings are also forecast to decline by 10% per annum over the same time period. Major Estimate Revision • Jun 06
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¥701.7b to JP¥685.7b. EPS estimate also fell from JP¥534 per share to JP¥445 per share. Net income forecast to shrink 61% next year vs 2.8% growth forecast for Metals and Mining industry in Japan . Consensus price target up from JP¥5,232 to JP¥5,388. Share price was steady at JP¥5,030 over the past week. Reported Earnings • May 15
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥1,131 (up from JP¥455 in FY 2024). Revenue: JP¥712.3b (up 10% from FY 2024). Net income: JP¥64.7b (up 149% from FY 2024). Profit margin: 9.1% (up from 4.0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 1.3% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 10% per year. New Risk • May 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 7.4% 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: Major Risk Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risks High level of debt (44% net debt to equity). 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 (7.4% average weekly change). Announcement • May 14
Hi-Lex Corporation (TSE:7279) entered into share transfer agreement to acquire Mitsui Kinzoku ACT Corporation from Mitsui Mining & Smelting Co., Ltd. (TSE:5706) for ¥11.3 billion. Hi-Lex Corporation (TSE:7279) entered into share transfer agreement to acquire Mitsui Kinzoku ACT Corporation from Mitsui Mining & Smelting Co., Ltd. (TSE:5706) for ¥11.3 billion on May 13, 2025. A cash consideration of ¥11.3 billion will be paid by Hi-Lex Corporation for 14,800,000 shares.
For the period ending March 31, 2025, Mitsui Kinzoku ACT Corporation reported total revenue of ¥95.83 billion, EBIT of ¥1.01 billion and net loss of ¥370 million. As of March 31, 2025, Mitsui Kinzoku ACT Corporation reported total assets of ¥78.21 billion and total common equity of ¥43.8 billion.
The transaction is subject to approval by Japanese and foreign competition law authorities and other conditions, such as approval or authorization by the relevant authorities as required by law. The expected completion of the transaction is from October 2025 to December 2025. Announcement • May 13
Mitsui Mining & Smelting Co., Ltd., Annual General Meeting, Jun 27, 2025 Mitsui Mining & Smelting Co., Ltd., Annual General Meeting, Jun 27, 2025. Announcement • May 08
Mitsui Mining & Smelting Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 Mitsui Mining & Smelting Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 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 6.1% 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 14% per year for the foreseeable future. Minor Risks High level of debt (44% net debt to equity). 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 (6.1% average weekly change). Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥3,795, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 8x in the Metals and Mining industry in Japan. Total returns to shareholders of 28% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (4.1%). Major Estimate Revision • Feb 19
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥690.5b to JP¥697.4b. EPS estimate increased from JP¥793 to JP¥918 per share. Net income forecast to shrink 38% next year vs 5.3% growth forecast for Metals and Mining industry in Japan . Consensus price target of JP¥5,609 unchanged from last update. Share price fell 6.6% to JP¥4,379 over the past week. Reported Earnings • Feb 13
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: JP¥264 (up from JP¥123 in 3Q 2024). Revenue: JP¥177.8b (up 8.1% from 3Q 2024). Net income: JP¥15.1b (up 115% from 3Q 2024). Profit margin: 8.5% (up from 4.3% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.1%. Earnings per share (EPS) also surpassed analyst estimates by 41%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Feb 13
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at JP¥4,594. The fair value is estimated to be JP¥5,799, 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 11%. For the next 3 years, revenue is forecast to grow by 1.8% per annum. Earnings are forecast to decline by 15% per annum over the same time period. Announcement • Jan 23
Kinik Company (TWSE:1560) entered into a formal acquisition agreement to acquire Mitsui Grinding Wheel Co., Ltd. from Mitsui Mining & Smelting Co., Ltd. (TSE:5706) for ¥1.9 billion. Kinik Company (TWSE:1560) entered into a formal acquisition agreement to acquire Mitsui Grinding Wheel Co., Ltd. from Mitsui Mining & Smelting Co., Ltd. (TSE:5706) for ¥1.9 billion on January 22, 2025.
The transaction is subject to approval of offer by acquirer board. The deal has been approved by the board. Wu, Meng-da of Crowe (TW) CPAs/Taipei acted as the accountant for Kinik Company (TWSE:1560). Announcement • Jan 21
CK SAN-ETSU Co., Ltd. (TSE:5757) agreed to acquire an additional 71.15% stake in Mitani Shindo Co., Ltd. from Mitsui Mining & Smelting Co., Ltd. (TSE:5706) for ¥2.6 billion. CK SAN-ETSU Co., Ltd. (TSE:5757) agreed to acquire an additional 71.15% stake in Mitani Shindo Co., Ltd. from Mitsui Mining & Smelting Co., Ltd. (TSE:5706) for ¥2.6 billion on January 21, 2025. Upon completion, CK SAN-ETSU Co., Ltd. will own 75.20% stake in Mitani Shindo Co., Ltd.
For the period ending March 31, 2024, Mitani Shindo Co., Ltd. reported total revenue of ¥11.86 billion, EBIT of ¥46 million, net income of ¥120 million, total assets of ¥7.11 billion and total common equity of ¥2.94 billion.
The expected completion of the transaction is April 1, 2025. Declared Dividend • Dec 07
First half dividend of JP¥75.00 announced Shareholders will receive a dividend of JP¥75.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 3.5%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 27% over the next 3 years. However, it would need to fall by 83% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Nov 09
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: JP¥261 (up from JP¥97.96 in 2Q 2024). Revenue: JP¥178.3b (up 8.3% from 2Q 2024). Net income: JP¥14.9b (up 167% from 2Q 2024). Profit margin: 8.4% (up from 3.4% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 137%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Metals and Mining industry in Japan. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 December 2024. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (4.3%). Major Estimate Revision • Sep 13
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥659.7b to JP¥666.9b. EPS estimate increased from JP¥542 to JP¥600 per share. Net income forecast to shrink 25% next year vs 2.8% growth forecast for Metals and Mining industry in Japan . Consensus price target broadly unchanged at JP¥5,783. Share price was steady at JP¥4,458 over the past week. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to JP¥3,572, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Metals and Mining industry in Japan. Total returns to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,540 per share. New Risk • Aug 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 5.8% 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 High level of debt (59% net debt to equity). 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 (5.8% average weekly change). Buy Or Sell Opportunity • Jul 29
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 1.3% to JP¥5,033. The fair value is estimated to be JP¥4,170, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years. Earnings per share has declined by 57%. For the next 3 years, revenue is forecast to grow by 2.5% per annum. Earnings are also forecast to grow by 6.3% per annum over the same time period.