Reported Earnings • May 20
Full year 2026 earnings released: JP¥147 loss per share (vs JP¥23.86 loss in FY 2025) Full year 2026 results: JP¥147 loss per share (further deteriorated from JP¥23.86 loss in FY 2025). Revenue: JP¥8.67b (down 17% from FY 2025). Net loss: JP¥3.33b (loss widened JP¥2.79b from FY 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Announcement • May 15
Linical Co., Ltd., Annual General Meeting, Jun 23, 2026 Linical Co., Ltd., Annual General Meeting, Jun 23, 2026. Buy Or Sell Opportunity • May 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to JP¥240. The fair value is estimated to be JP¥303, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.8% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Feb 14
Third quarter 2026 earnings released: JP¥27.63 loss per share (vs JP¥1.63 loss in 3Q 2025) Third quarter 2026 results: JP¥27.63 loss per share (further deteriorated from JP¥1.63 loss in 3Q 2025). Revenue: JP¥1.98b (down 22% from 3Q 2025). Net loss: JP¥624.0m (loss widened JP¥587.1m from 3Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 96 percentage points per year, which is a significant difference in performance. Announcement • Jan 08
Linical Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 Linical Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 New Risk • Nov 21
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 5.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 40% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥6.80b market cap, or US$43.3m). Reported Earnings • Nov 18
Second quarter 2026 earnings released: JP¥33.21 loss per share (vs JP¥8.77 loss in 2Q 2025) Second quarter 2026 results: JP¥33.21 loss per share (further deteriorated from JP¥8.77 loss in 2Q 2025). Revenue: JP¥2.23b (down 11% from 2Q 2025). Net loss: JP¥750.2m (loss widened 279% from 2Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Declared Dividend • Nov 17
Dividend of JP¥16.00 announced Dividend of JP¥16.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 11th June 2026 Dividend yield will be 5.2%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is covered by cash flows (62% cash payout ratio). The dividend has increased by an average of 8.6% 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. Announcement • Sep 30
Linical Co., Ltd. to Report Q2, 2026 Results on Nov 14, 2025 Linical Co., Ltd. announced that they will report Q2, 2026 results on Nov 14, 2025 Reported Earnings • Aug 15
First quarter 2026 earnings released: JP¥7.79 loss per share (vs JP¥3.63 loss in 1Q 2025) First quarter 2026 results: JP¥7.79 loss per share (further deteriorated from JP¥3.63 loss in 1Q 2025). Revenue: JP¥2.63b (down 10% from 1Q 2025). Net loss: JP¥176.0m (loss widened 115% from 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Announcement • Jul 02
Linical Co., Ltd. to Report Q1, 2026 Results on Aug 14, 2025 Linical Co., Ltd. announced that they will report Q1, 2026 results on Aug 14, 2025 Reported Earnings • Jun 30
Full year 2025 earnings released: JP¥23.86 loss per share (vs JP¥14.97 profit in FY 2024) Full year 2025 results: JP¥23.86 loss per share (down from JP¥14.97 profit in FY 2024). Revenue: JP¥10.4b (down 15% from FY 2024). Net loss: JP¥539.0m (down 260% from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Reported Earnings • May 21
Full year 2025 earnings released: JP¥23.86 loss per share (vs JP¥14.97 profit in FY 2024) Full year 2025 results: JP¥23.86 loss per share (down from JP¥14.97 profit in FY 2024). Revenue: JP¥10.4b (down 15% from FY 2024). Net loss: JP¥539.0m (down 260% from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Announcement • May 15
Linical Co., Ltd., Annual General Meeting, Jun 25, 2025 Linical Co., Ltd., Annual General Meeting, Jun 25, 2025. Announcement • Apr 05
Linical Co., Ltd. to Report Fiscal Year 2025 Results on May 15, 2025 Linical Co., Ltd. announced that they will report fiscal year 2025 results on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 12 June 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 4.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.8%). Reported Earnings • Feb 16
Third quarter 2025 earnings released: JP¥1.59 loss per share (vs JP¥3.32 profit in 3Q 2024) Third quarter 2025 results: JP¥1.59 loss per share (down from JP¥3.32 profit in 3Q 2024). Revenue: JP¥2.53b (down 21% from 3Q 2024). Net loss: JP¥36.0m (down 148% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Announcement • Jan 03
Linical Co., Ltd. to Report Q3, 2025 Results on Feb 14, 2025 Linical Co., Ltd. announced that they will report Q3, 2025 results on Feb 14, 2025 Declared Dividend • Nov 16
Dividend of JP¥16.00 announced Shareholders will receive a dividend of JP¥16.00. Ex-date: 28th March 2025 Payment date: 12th June 2025 Dividend yield will be 4.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is not covered by earnings (134% earnings payout ratio). However, it is well covered by cash flows (35% cash payout ratio). The dividend has increased by an average of 8.6% 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. The company's earnings per share (EPS) would need to grow by 49% to bring the payout ratio under control. EPS is expected to grow by 90% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Sep 28
Linical Co., Ltd. to Report Q2, 2025 Results on Nov 14, 2024 Linical Co., Ltd. announced that they will report Q2, 2025 results on Nov 14, 2024 Reported Earnings • Aug 16
First quarter 2025 earnings released: JP¥3.63 loss per share (vs JP¥0.13 profit in 1Q 2024) First quarter 2025 results: JP¥3.63 loss per share (down from JP¥0.13 profit in 1Q 2024). Revenue: JP¥2.93b (down 5.1% from 1Q 2024). Net loss: JP¥82.0m (down JP¥85.0m from profit in 1Q 2024). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Life Sciences industry in Asia. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 23% per year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥340, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 21x in the Life Sciences industry in Asia. Total loss to shareholders of 58% over the past three years. Buy Or Sell Opportunity • Jul 24
Now 23% undervalued Over the last 90 days, the stock has risen 3.9% to JP¥424. The fair value is estimated to be JP¥547, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has declined by 4.6%. For the next 3 years, revenue is forecast to grow by 1.5% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Announcement • Jul 07
Linical Co., Ltd. to Report Q1, 2025 Results on Aug 14, 2024 Linical Co., Ltd. announced that they will report Q1, 2025 results on Aug 14, 2024 Buy Or Sell Opportunity • Jul 05
Now 21% undervalued Over the last 90 days, the stock has risen 15% to JP¥441. The fair value is estimated to be JP¥556, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Earnings per share has declined by 4.6%. For the next 3 years, revenue is forecast to grow by 1.5% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Reported Earnings • May 19
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥14.97 (down from JP¥44.45 in FY 2023). Revenue: JP¥12.3b (down 1.7% from FY 2023). Net income: JP¥338.0m (down 66% from FY 2023). Profit margin: 2.7% (down from 8.0% in FY 2023). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 10%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Life Sciences industry in Asia. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • May 17
Consensus EPS estimates increase by 96% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥12.3b to JP¥12.6b. EPS estimate increased from JP¥13.60 to JP¥26.60 per share. Net income forecast to shrink 22% next year vs 28% growth forecast for Life Sciences industry in Japan . Consensus price target of JP¥500 unchanged from last update. Share price was steady at JP¥408 over the past week. Announcement • May 17
Linical Co., Ltd., Annual General Meeting, Jun 26, 2024 Linical Co., Ltd., Annual General Meeting, Jun 26, 2024. Major Estimate Revision • Apr 18
Consensus EPS estimates have been upgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥11.9b to JP¥12.3b. EPS estimate increased from JP¥0.00 per share to JP¥13.60 per share. Life Sciences industry in Japan expected to see average net income growth of 26% next year. Consensus price target of JP¥500 unchanged from last update. Share price rose 2.6% to JP¥399 over the past week. Announcement • Apr 03
Linical Co., Ltd. to Report Fiscal Year 2024 Results on May 15, 2024 Linical Co., Ltd. announced that they will report fiscal year 2024 results on May 15, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 10 June 2024. Payout ratio is a comfortable 47% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.3%). Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: JP¥3.32 (vs JP¥4.83 in 3Q 2023) Third quarter 2024 results: EPS: JP¥3.32 (down from JP¥4.83 in 3Q 2023). Revenue: JP¥3.18b (down 4.3% from 3Q 2023). Net income: JP¥75.0m (down 31% from 3Q 2023). Profit margin: 2.4% (down from 3.3% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Life Sciences 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 16% per year, which means it is significantly lagging earnings. Announcement • Dec 24
Linical Co., Ltd. to Report Q3, 2024 Results on Feb 14, 2024 Linical Co., Ltd. announced that they will report Q3, 2024 results on Feb 14, 2024 Major Estimate Revision • Nov 21
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥13.3b to JP¥13.0b. EPS estimate also fell from JP¥48.70 per share to JP¥40.70 per share. Net income forecast to grow 43% next year vs 13% growth forecast for Life Sciences industry in Japan. Consensus price target down from JP¥1,200 to JP¥1,000. Share price fell 6.1% to JP¥557 over the past week. New Risk • Nov 18
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: 5.6% Last year net profit margin: 8.4% 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 Profit margins are more than 30% lower than last year (5.6% net profit margin). Market cap is less than US$100m (JP¥12.3b market cap, or US$82.4m). Announcement • Oct 05
Linical Co., Ltd. to Report Q2, 2024 Results on Nov 14, 2023 Linical Co., Ltd. announced that they will report Q2, 2024 results on Nov 14, 2023 New Risk • Oct 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.0b (US$100.0m) 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. This is currently the only risk that has been identified for the company. Major Estimate Revision • Sep 06
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¥13.6b to JP¥13.3b. EPS estimate also fell from JP¥55.30 per share to JP¥48.70 per share. Net income forecast to grow 24% next year vs 5.2% growth forecast for Life Sciences industry in Japan. Consensus price target down from JP¥1,400 to JP¥1,200. Share price was steady at JP¥708 over the past week. New Risk • Aug 16
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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 15
First quarter 2024 earnings released: EPS: JP¥0.13 (vs JP¥3.37 in 1Q 2023) First quarter 2024 results: EPS: JP¥0.13 (down from JP¥3.37 in 1Q 2023). Revenue: JP¥3.08b (up 7.5% from 1Q 2023). Net income: JP¥3.00m (down 96% from 1Q 2023). Profit margin: 0.1% (down from 2.6% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Life Sciences industry in Japan. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jul 13
Linical Co., Ltd. to Report Q1, 2024 Results on Aug 14, 2023 Linical Co., Ltd. announced that they will report Q1, 2024 results on Aug 14, 2023 Buying Opportunity • Jun 23
Now 22% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be JP¥1,021, however this is not to be taken as a buy 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 grown by 37%. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings is also forecast to grow by 18% per annum over the same time period. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥827, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 17x in the Life Sciences industry in Japan. Total loss to shareholders of 6.3% over the past three years. Reported Earnings • May 18
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥44.45 (up from JP¥34.98 in FY 2022). Revenue: JP¥12.5b (up 8.3% from FY 2022). Net income: JP¥1.00b (up 27% from FY 2022). Profit margin: 8.0% (up from 6.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 17%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Life Sciences industry in Asia. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • May 16
Linical Co., Ltd., Annual General Meeting, Jun 22, 2023 Linical Co., Ltd., Annual General Meeting, Jun 22, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.00 per share at 2.0% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 09 June 2023. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 15
Third quarter 2023 earnings released: EPS: JP¥4.83 (vs JP¥12.04 in 3Q 2022) Third quarter 2023 results: EPS: JP¥4.83 (down from JP¥12.04 in 3Q 2022). Revenue: JP¥3.33b (up 7.6% from 3Q 2022). Net income: JP¥109.0m (down 60% from 3Q 2022). Profit margin: 3.3% (down from 8.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Life Sciences industry in Asia. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Dec 29
Linical Co., Ltd. to Report Q3, 2023 Results on Feb 14, 2023 Linical Co., Ltd. announced that they will report Q3, 2023 results on Feb 14, 2023 Price Target Changed • Nov 16
Price target increased to JP¥1,400 Up from JP¥1,300, the current price target is provided by 1 analyst. New target price is 94% above last closing price of JP¥721. Stock is down 22% over the past year. The company is forecast to post earnings per share of JP¥38.50 for next year compared to JP¥34.98 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 7 non-independent directors. Outside Independent Director Akio Osawa was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 15
Linical Co., Ltd. Provides Consolidated Earnings Guidance for the Year Ending March 31, 2023 Linical Co., Ltd. provided Consolidated Earnings Guidance for the year ending March 31, 2023. For the year, company expects Net sales to be JPY 12,440 million, Operating income to be JPY 1,224 million, Profit attributable to owners of parent to be JPY 871 million and Net income per share to be JPY 38.56. Announcement • Nov 02
Linical Co., Ltd. to Report Q2, 2023 Results on Nov 14, 2022 Linical Co., Ltd. announced that they will report Q2, 2023 results on Nov 14, 2022 Reported Earnings • Aug 14
First quarter 2023 earnings released: EPS: JP¥3.37 (vs JP¥2.97 in 1Q 2022) First quarter 2023 results: EPS: JP¥3.37 (up from JP¥2.97 in 1Q 2022). Revenue: JP¥2.87b (up 3.0% from 1Q 2022). Net income: JP¥76.0m (up 13% from 1Q 2022). Profit margin: 2.6% (up from 2.4% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 12%, compared to a 16% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Jul 17
Linical Co., Ltd. to Report Q1, 2023 Results on Aug 12, 2022 Linical Co., Ltd. announced that they will report Q1, 2023 results on Aug 12, 2022 Major Estimate Revision • May 26
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥12.0b to JP¥12.8b. EPS estimate increased from JP¥38.50 to JP¥44.30 per share. Net income forecast to grow 27% next year vs 36% growth forecast for Life Sciences industry in Japan. Consensus price target up from JP¥1,300 to JP¥1,400. Share price rose 5.9% to JP¥855 over the past week. Reported Earnings • May 20
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥34.98 (up from JP¥23.86 in FY 2021). Revenue: JP¥11.6b (up 12% from FY 2021). Net income: JP¥790.0m (up 47% from FY 2021). Profit margin: 6.8% (up from 5.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 36%. Over the next year, revenue is forecast to grow 3.9% compared to a 3.6% decline forecast for the pharmaceuticals 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 12% per year, which means it is significantly lagging earnings. Announcement • May 17
Linical Co., Ltd., Annual General Meeting, Jun 23, 2022 Linical Co., Ltd., Annual General Meeting, Jun 23, 2022. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 8 non-independent directors. Audit & Supervisory Board Member Yoshimitsu Ando was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Mar 31
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from JP¥28.80 to JP¥25.70 per share. Revenue forecast steady at JP¥11.5b. Net income forecast to shrink 12% next year vs 30% growth forecast for Life Sciences industry in Japan . Consensus price target of JP¥1,300 unchanged from last update. Share price rose 4.6% to JP¥913 over the past week. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥899, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 41x in the Life Sciences industry in Asia. Total loss to shareholders of 31% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 10 June 2022. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.3%). Reported Earnings • Feb 17
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥12.04 (up from JP¥7.53 in 3Q 2021). Revenue: JP¥3.09b (up 21% from 3Q 2021). Net income: JP¥272.0m (up 60% from 3Q 2021). Profit margin: 8.8% (up from 6.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.3%. Earnings per share (EPS) also surpassed analyst estimates by 126%. Over the next year, revenue is forecast to grow 3.9% while the industry in Japan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Announcement • Feb 03
Linical Co., Ltd. to Report Q3, 2022 Results on Feb 14, 2022 Linical Co., Ltd. announced that they will report Q3, 2022 results on Feb 14, 2022 Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS JP¥8.19 (vs JP¥8.24 in 2Q 2021) The company reported a mediocre second quarter result with weaker profit margins, although earnings were flat and revenues improved. Second quarter 2022 results: Revenue: JP¥2.74b (up 7.1% from 2Q 2021). Net income: JP¥185.0m (flat on 2Q 2021). Profit margin: 6.8% (down from 7.3% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 13% per year. Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥2.97 (vs JP¥8.81 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥2.78b (up 15% from 1Q 2021). Net income: JP¥67.0m (up JP¥266.0m from 1Q 2021). Profit margin: 2.4% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥979, the stock trades at a forward P/E ratio of 50x. Average forward P/E is 83x in the Life Sciences industry in Asia. Total loss to shareholders of 54% over the past three years. Reported Earnings • May 17
Full year 2021 earnings released: EPS JP¥23.86 (vs JP¥21.34 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: JP¥10.3b (down 6.0% from FY 2020). Net income: JP¥539.0m (up 12% from FY 2020). Profit margin: 5.2% (up from 4.4% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 29% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 11 June 2021. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.4%). Major Estimate Revision • Feb 19
Analysts lower EPS estimates to JP¥10.60 The 2021 consensus revenue estimate was lowered from JP¥10.4b to JP¥10.1b. Earning per share (EPS) estimate was also lowered from JP¥12.00 to JP¥10.60 for the same period. Net income is expected to grow by 62% next year compared to 27% growth forecast for the Life Sciences industry in Japan. The consensus price target was lowered from JP¥900 to JP¥800. Share price stayed mostly flat at JP¥762 over the past week. Reported Earnings • Feb 14
Third quarter 2021 earnings released: EPS JP¥7.53 (vs JP¥7.44 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥2.55b (down 9.4% from 3Q 2020). Net income: JP¥170.0m (up 1.2% from 3Q 2020). Profit margin: 6.7% (up from 6.0% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 14
Revenue and earnings miss expectations Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) also missed analyst estimates by 20%. Over the next year, revenue is forecast to grow 6.5%, compared to a 18% growth forecast for the Life Sciences industry in Japan. Announcement • Jan 08
Linical Co., Ltd. to Report Q3, 2021 Results on Feb 12, 2021 Linical Co., Ltd. announced that they will report Q3, 2021 results on Feb 12, 2021 Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥834, the stock is trading at a trailing P/E ratio of 78.8x, up from the previous P/E ratio of 66.7x. This compares to an average P/E of 49x in the Life Sciences industry in Japan. Total return to shareholders over the past three years is a loss of 46%.