Announcement • Jun 01
Seikagaku Corporation to Report Q1, 2027 Results on Aug 05, 2026 Seikagaku Corporation announced that they will report Q1, 2027 results on Aug 05, 2026 Reported Earnings • May 15
Full year 2026 earnings released: EPS: JP¥26.98 (vs JP¥22.25 in FY 2025) Full year 2026 results: EPS: JP¥26.98 (up from JP¥22.25 in FY 2025). Revenue: JP¥36.6b (down 6.9% from FY 2025). Net income: JP¥1.47b (up 21% from FY 2025). Profit margin: 4.0% (up from 3.1% in FY 2025). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • May 14
Seikagaku Corporation, Annual General Meeting, Jun 19, 2026 Seikagaku Corporation, Annual General Meeting, Jun 19, 2026. Announcement • Apr 21
Seikagaku Corporation to Report Fiscal Year 2026 Results on May 13, 2026 Seikagaku Corporation announced that they will report fiscal year 2026 results on May 13, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 June 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Reported Earnings • Feb 07
Third quarter 2026 earnings released: EPS: JP¥16.30 (vs JP¥21.20 in 3Q 2025) Third quarter 2026 results: EPS: JP¥16.30 (down from JP¥21.20 in 3Q 2025). Revenue: JP¥9.02b (down 12% from 3Q 2025). Net income: JP¥890.0m (down 23% from 3Q 2025). Profit margin: 9.9% (down from 11% in 3Q 2025). Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Declared Dividend • Dec 03
First half dividend of JP¥15.00 announced Dividend of JP¥15.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 23rd June 2026 Dividend yield will be 4.4%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.4% per year over the past 10 years. However, payments have been volatile during that time. Announcement • Dec 02
Seikagaku Corporation to Report Q3, 2026 Results on Feb 06, 2026 Seikagaku Corporation announced that they will report Q3, 2026 results on Feb 06, 2026 Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: JP¥7.86 (vs JP¥0.55 in 2Q 2025) Second quarter 2026 results: EPS: JP¥7.86 (up from JP¥0.55 in 2Q 2025). Revenue: JP¥9.18b (down 9.9% from 2Q 2025). Net income: JP¥429.0m (up JP¥399.0m from 2Q 2025). Profit margin: 4.7% (up from 0.3% in 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. New Risk • Nov 12
New major risk - Revenue and earnings growth Earnings have declined by 27% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 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 27% per year over the past 5 years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.7%). Announcement • Sep 01
Seikagaku Corporation to Report Q2, 2026 Results on Nov 10, 2025 Seikagaku Corporation announced that they will report Q2, 2026 results on Nov 10, 2025 Reported Earnings • Aug 07
First quarter 2026 earnings released: JP¥3.67 loss per share (vs JP¥34.84 profit in 1Q 2025) First quarter 2026 results: JP¥3.67 loss per share (down from JP¥34.84 profit in 1Q 2025). Revenue: JP¥8.73b (down 13% from 1Q 2025). Net loss: JP¥200.0m (down 111% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 14
Now 22% overvalued Over the last 90 days, the stock has fallen 5.2% to JP¥637. The fair value is estimated to be JP¥522, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years. Earnings per share has declined by 9.7%. Declared Dividend • Jul 09
Final dividend of JP¥15.00 announced Dividend of JP¥15.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 4.8%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (59% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.4% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 25% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 27
Full year 2025 earnings released: EPS: JP¥22.25 (vs JP¥40.07 in FY 2024) Full year 2025 results: EPS: JP¥22.25 (down from JP¥40.07 in FY 2024). Revenue: JP¥39.4b (up 8.7% from FY 2024). Net income: JP¥1.21b (down 45% from FY 2024). Profit margin: 3.1% (down from 6.0% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 9% per year. Buy Or Sell Opportunity • Jun 16
Now 20% overvalued Over the last 90 days, the stock has fallen 21% to JP¥629. The fair value is estimated to be JP¥522, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years. Earnings per share has declined by 9.7%. Announcement • Jun 06
Seikagaku Corporation to Report Q1, 2026 Results on Aug 05, 2025 Seikagaku Corporation announced that they will report Q1, 2026 results on Aug 05, 2025 Reported Earnings • May 15
Full year 2025 earnings released: EPS: JP¥22.25 (vs JP¥40.07 in FY 2024) Full year 2025 results: EPS: JP¥22.25 (down from JP¥40.07 in FY 2024). Revenue: JP¥39.4b (up 8.7% from FY 2024). Net income: JP¥1.21b (down 45% from FY 2024). Profit margin: 3.1% (down from 6.0% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 6% per year. Announcement • May 13
Seikagaku Corporation, Annual General Meeting, Jun 20, 2025 Seikagaku Corporation, Annual General Meeting, Jun 20, 2025. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 59% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Announcement • Mar 01
Seikagaku Corporation to Report Fiscal Year 2025 Results on May 13, 2025 Seikagaku Corporation announced that they will report fiscal year 2025 results on May 13, 2025 Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥21.20 (vs JP¥10.98 in 3Q 2024) Third quarter 2025 results: EPS: JP¥21.20 (up from JP¥10.98 in 3Q 2024). Revenue: JP¥10.2b (up 9.8% from 3Q 2024). Net income: JP¥1.16b (up 93% from 3Q 2024). Profit margin: 11% (up from 6.4% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Declared Dividend • Dec 04
First half dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 3.7%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is covered by earnings (35% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.4% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 45% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Nov 30
Seikagaku Corporation to Report Q3, 2025 Results on Feb 07, 2025 Seikagaku Corporation announced that they will report Q3, 2025 results on Feb 07, 2025 Reported Earnings • Nov 10
Second quarter 2025 earnings released: EPS: JP¥0.55 (vs JP¥3.94 in 2Q 2024) Second quarter 2025 results: EPS: JP¥0.55 (down from JP¥3.94 in 2Q 2024). Revenue: JP¥10.2b (up 21% from 2Q 2024). Net income: JP¥30.0m (down 86% from 2Q 2024). Profit margin: 0.3% (down from 2.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 64% but the company is not cash flow positive. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.3%). Buy Or Sell Opportunity • Sep 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.6% to JP¥791. The fair value is estimated to be JP¥991, 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 58%. Revenue is forecast to decline by 0.8% in 2 years. Earnings are forecast to grow by 24% in the next 2 years. Announcement • Sep 03
Seikagaku Corporation to Report Q2, 2025 Results on Nov 08, 2024 Seikagaku Corporation announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 07
First quarter 2025 earnings released: EPS: JP¥34.84 (vs JP¥34.60 in 1Q 2024) First quarter 2025 results: EPS: JP¥34.84 (up from JP¥34.60 in 1Q 2024). Revenue: JP¥10.0b (up 3.7% from 1Q 2024). Net income: JP¥1.90b (flat on 1Q 2024). Profit margin: 19% (in line with 1Q 2024). Revenue is forecast to stay flat during the next 3 years compared to a 5.2% growth forecast for the Pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Aug 05
Now 26% undervalued The stock has been flat over the last 90 days, currently trading at JP¥737. The fair value is estimated to be JP¥991, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 54%. For the next 3 years, revenue is forecast to grow by 0.7% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Declared Dividend • Jul 11
Final dividend of JP¥15.00 announced Shareholders will receive a dividend of JP¥15.00. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 3.1%, which is higher than the industry average of 2.3%. Sustainability & Growth Dividend is not covered by earnings (163% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.4% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 81% to bring the payout ratio under control. EPS is expected to grow by 41% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Jun 10
Seikagaku Corporation to Report Q1, 2025 Results on Aug 05, 2024 Seikagaku Corporation announced that they will report Q1, 2025 results on Aug 05, 2024 Reported Earnings • May 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥40.07 (down from JP¥40.48 in FY 2023). Revenue: JP¥36.2b (up 8.2% from FY 2023). Net income: JP¥2.19b (down 2.2% from FY 2023). Profit margin: 6.0% (down from 6.7% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 16%. Revenue is forecast to stay flat during the next 3 years compared to a 4.5% growth forecast for the Pharmaceuticals industry in Japan. 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 12% per year, which means it has not declined as severely as earnings. Announcement • May 15
Seikagaku Corporation, Annual General Meeting, Jun 21, 2024 Seikagaku Corporation, Annual General Meeting, Jun 21, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥13.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 21 June 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.3%). Announcement • Mar 02
Seikagaku Corporation to Report Fiscal Year 2024 Results on May 13, 2024 Seikagaku Corporation announced that they will report fiscal year 2024 results on May 13, 2024 Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: JP¥10.98 (vs JP¥8.88 in 3Q 2023) Third quarter 2024 results: EPS: JP¥10.98 (up from JP¥8.88 in 3Q 2023). Revenue: JP¥9.32b (up 4.7% from 3Q 2023). Net income: JP¥599.0m (up 23% from 3Q 2023). Profit margin: 6.4% (up from 5.5% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.7% growth forecast for the Pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Nov 30
Seikagaku Corporation to Report Q3, 2024 Results on Feb 08, 2024 Seikagaku Corporation announced that they will report Q3, 2024 results on Feb 08, 2024 Major Estimate Revision • Nov 28
Consensus EPS estimates increase by 37% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥33.3b to JP¥36.1b. EPS estimate increased from JP¥34.80 to JP¥47.70 per share. Net income forecast to grow 82% next year vs 7.4% growth forecast for Pharmaceuticals industry in Japan. Consensus price target of JP¥800 unchanged from last update. Share price rose 3.5% to JP¥788 over the past week. Reported Earnings • Nov 09
Second quarter 2024 earnings released: EPS: JP¥3.94 (vs JP¥29.72 in 2Q 2023) Second quarter 2024 results: EPS: JP¥3.94 (down from JP¥29.72 in 2Q 2023). Revenue: JP¥8.40b (down 6.2% from 2Q 2023). Net income: JP¥215.0m (down 87% from 2Q 2023). Profit margin: 2.6% (down from 18% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥13.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 04 December 2023. Payout ratio is a comfortable 54% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.2%). Announcement • Sep 02
Seikagaku Corporation to Report Q2, 2024 Results on Nov 08, 2023 Seikagaku Corporation announced that they will report Q2, 2024 results on Nov 08, 2023 Reported Earnings • Aug 08
First quarter 2024 earnings released: EPS: JP¥34.60 (vs JP¥26.61 in 1Q 2023) First quarter 2024 results: EPS: JP¥34.60 (up from JP¥26.61 in 1Q 2023). Revenue: JP¥9.66b (up 16% from 1Q 2023). Net income: JP¥1.89b (up 26% from 1Q 2023). Profit margin: 20% (up from 18% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Pharmaceuticals 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 fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Jun 01
Seikagaku Corporation to Report Q1, 2024 Results on Aug 04, 2023 Seikagaku Corporation announced that they will report Q1, 2024 results on Aug 04, 2023 Reported Earnings • May 17
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: JP¥40.48 (down from JP¥66.31 in FY 2022). Revenue: JP¥33.5b (down 4.0% from FY 2022). Net income: JP¥2.24b (down 40% from FY 2022). Profit margin: 6.7% (down from 11% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to stay flat during the next 3 years compared to a 4.6% growth forecast for the Pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • May 13
Seikagaku Corporation, Annual General Meeting, Jun 20, 2023 Seikagaku Corporation, Annual General Meeting, Jun 20, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥13.00 per share at 3.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 22 June 2023. Payout ratio is a comfortable 28% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.3%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥8.88 (vs JP¥6.13 in 3Q 2022) Third quarter 2023 results: EPS: JP¥8.88 (up from JP¥6.13 in 3Q 2022). Revenue: JP¥8.90b (up 17% from 3Q 2022). Net income: JP¥487.0m (up 41% from 3Q 2022). Profit margin: 5.5% (up from 4.5% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Nov 30
Seikagaku Corporation to Report Q3, 2023 Results on Feb 08, 2023 Seikagaku Corporation announced that they will report Q3, 2023 results on Feb 08, 2023 Price Target Changed • Nov 16
Price target increased to JP¥900 Up from JP¥800, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of JP¥935. Stock is down 5.4% over the past year. The company is forecast to post earnings per share of JP¥41.20 for next year compared to JP¥66.31 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. 4 non-independent directors. Independent Outside Director Yasuyuki Sugiura 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. Reported Earnings • Nov 10
Second quarter 2023 earnings released: EPS: JP¥29.71 (vs JP¥24.29 in 2Q 2022) Second quarter 2023 results: EPS: JP¥29.71 (up from JP¥24.29 in 2Q 2022). Revenue: JP¥8.95b (up 2.3% from 2Q 2022). Net income: JP¥1.65b (up 21% from 2Q 2022). Profit margin: 18% (up from 16% in 2Q 2022). The increase in margin was primarily driven by higher revenue. Revenue is expected to decline by 1.2% p.a. on average during the next 3 years, while revenues in the Pharmaceuticals industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Buying Opportunity • Sep 26
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be JP¥1,038, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.5% over the last 3 years. Earnings per share has grown by 85%. Revenue is forecast to decline by 2.7% in 2 years. Earnings is forecast to grow by 14% in the next 2 years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥11.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 02 December 2022. Payout ratio is a comfortable 71% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.3%). Announcement • Aug 28
Seikagaku Corporation to Report Q2, 2023 Results on Nov 08, 2022 Seikagaku Corporation announced that they will report Q2, 2023 results on Nov 08, 2022 Major Estimate Revision • Aug 25
Consensus EPS estimates increase by 65% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from JP¥29.5b to JP¥31.0b. EPS estimate increased from JP¥24.90 to JP¥41.20 per share. Net income forecast to grow 38% next year vs 0.6% decline forecast for Pharmaceuticals industry in Japan. Consensus price target up from JP¥800 to JP¥900. Share price was steady at JP¥893 over the past week. Reported Earnings • Aug 07
First quarter 2023 earnings released: EPS: JP¥26.61 (vs JP¥64.72 in 1Q 2022) First quarter 2023 results: EPS: JP¥26.61 (down from JP¥64.72 in 1Q 2022). Revenue: JP¥8.31b (down 30% from 1Q 2022). Net income: JP¥1.49b (down 59% from 1Q 2022). Profit margin: 18% (down from 31% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the next year, revenue is expected to shrink by 5.9% compared to a 4.7% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • May 29
Seikagaku Corporation to Report Q1, 2023 Results on Aug 05, 2022 Seikagaku Corporation announced that they will report Q1, 2023 results on Aug 05, 2022 Major Estimate Revision • May 28
Consensus EPS estimates fall by 30% The consensus outlook for earnings per share (EPS) in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥30.0b to JP¥29.5b. EPS estimate also fell from JP¥35.60 per share to JP¥24.90 per share. Net income forecast to shrink 62% next year vs 4.3% growth forecast for Pharmaceuticals industry in Japan . Consensus price target down from JP¥1,100 to JP¥800. Share price fell 3.2% to JP¥763 over the past week. Reported Earnings • May 16
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥66.31 (down from JP¥75.53 in FY 2021). Revenue: JP¥34.9b (up 26% from FY 2021). Net income: JP¥3.73b (down 12% from FY 2021). Profit margin: 11% (down from 15% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) missed analyst estimates by 17%. Over the next year, revenue is expected to shrink by 14% compared to a 3.1% growth forecast for the pharmaceuticals industry in Japan. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • May 14
Seikagaku Corporation, Annual General Meeting, Jun 21, 2022 Seikagaku Corporation, Annual General Meeting, Jun 21, 2022. Board Change • Apr 27
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. 4 non-independent directors. Independent Outside Director Yasuyuki Sugiura 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. Announcement • Apr 02
Seikagaku Corporation to Report Fiscal Year 2022 Results on May 13, 2022 Seikagaku Corporation announced that they will report fiscal year 2022 results at 4:00 PM, Tokyo Standard Time on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.5%). Reported Earnings • Feb 09
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: JP¥6.13 (down from JP¥16.00 in 3Q 2021). Revenue: JP¥7.62b (up 4.6% from 3Q 2021). Net income: JP¥345.0m (down 62% from 3Q 2021). Profit margin: 4.5% (down from 12% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 18%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is expected to shrink by 12% compared to a 5.3% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS JP¥24.29 (vs JP¥7.92 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥8.75b (up 33% from 2Q 2021). Net income: JP¥1.37b (up 206% from 2Q 2021). Profit margin: 16% (up from 6.8% in 2Q 2021). The increase in margin was driven by higher revenue. 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 14% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥15.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 02 December 2021. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (2.1%). Reported Earnings • Aug 02
First quarter 2022 earnings released: EPS JP¥64.72 (vs JP¥9.38 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥11.8b (up 69% from 1Q 2021). Net income: JP¥3.65b (up JP¥3.12b from 1Q 2021). Profit margin: 31% (up from 7.6% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Jul 24
Seikagaku SHS Deleted from Other OTC Seikagaku Corporation SHS (Japan) has been deleted from Other OTC effective from July 23, 2021, due to Inactive Security. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,155, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 18x in the Pharmaceuticals industry in Japan. Total loss to shareholders of 24% over the past three years. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥75.53 (vs JP¥192 loss 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¥27.7b (down 3.4% from FY 2020). Net income: JP¥4.26b (up JP¥15.1b from FY 2020). Profit margin: 15% (up from net loss in FY 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • May 14
Seikagaku Corporation (TSE:4548) announces an Equity Buyback for 200,000 shares, representing 0.35% for ¥240 million. Seikagaku Corporation (TSE:4548) announces a share repurchase program. Under the program, the company will repurchase up to 200,000 shares, representing 0.35% of its issued share capital (excluding treasury stock), for a total purchase price of ¥240 million. The purpose of the program is to improve capital efficiency and shareholder returns. The program will continue through August 12, 2021. As of March 31, 2021, the company had 56,429,672 issued shares (excluding treasury stock) and 384,421 treasury shares. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 22 June 2021. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (2.7%). In line with average of industry peers (1.9%). Announcement • Mar 04
Seikagaku Corporation to Report Fiscal Year 2021 Results on May 12, 2021 Seikagaku Corporation announced that they will report fiscal year 2021 results on May 12, 2021 Reported Earnings • Feb 08
Third quarter 2021 earnings released: EPS JP¥16.00 (vs JP¥17.46 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: JP¥7.28b (down 5.3% from 3Q 2020). Net income: JP¥903.0m (down 8.3% from 3Q 2020). Profit margin: 12% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 77% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 08
New 90-day high: JP¥1,117 The company is up 6.0% from its price of JP¥1,053 on 10 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 7.0% over the same period. Analyst Estimate Surprise Post Earnings • Feb 08
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 11%, compared to a 5.4% growth forecast for the Pharmaceuticals industry in Japan. Announcement • Feb 06
Seikagaku Corporation Revises Earnings Guidance for the Fiscal Year Ending March 31, 2021 Seikagaku Corporation revised earnings Guidance for the fiscal year ending March 31, 2021. For the period, the company expects net sales to be of JPY 27,500 Million, Operating income of JPY 850 Million, Net income attributable to
owners of parent of JPY 1,700 Million and net income per share of JPY 30.13 compared to previous forecast of net sales of JPY 26,650 Million, Operating income of JPY 550 Million, Net income attributable to
owners of parent of JPY 1,150 Million and net income per share of JPY 20.38 respectively. Announcement • Dec 03
Seikagaku Corporation to Report Q3, 2021 Results on Feb 05, 2021 Seikagaku Corporation announced that they will report Q3, 2021 results on Feb 05, 2021 Price Target Changed • Dec 02
Price target lowered to JP¥1,200 Down from JP¥2,000, the current price target is provided by 1 analyst. The new target price is 15% above the current share price of JP¥1,042. As of last close, the stock is down 17% over the past year. Announcement • Oct 03
Eisai and Seikagaku Enter into Agreement for the Marketing Alliance of SI-613, A Treatment of Osteoarthritis, in South Korea Eisai Co., Ltd. and Seikagaku Corporation announced that the companies have entered into an agreement for the marketing alliance in South Korea for SI-613 (diclofenac conjugated sodium hyaluronate), a therapeutic agent for osteoarthritis discovered by Seikagaku. Eisai and Seikagaku signed an agreement for the co-development and marketing alliance in China of SI-613 on April 1, 2020. Thus, South Korea becomes the second country for the companies to conclude the marketing alliance for SI-613. On the basis of this agreement, Eisai Korea Inc., Eisai's subsidiary in South Korea, will acquire exclusive marketing rights for SI-613 in South Korea and apply for the manufacturing and marketing approval thereof. After obtaining approval, Seikagaku will supply products to Eisai, and Eisai will be responsible for distribution. Eisai will pay Seikagaku the upfront payment and sales milestones. Osteoarthritis is a disease caused by the articular cartilage damage due to aging and other factors, leading to inflammation and pain, which result in impaired quality of life (QOL). Knee osteoarthritis is one of the most frequent cases among the diseases thereof, and the number of patients with knee osteoarthritis in South Korea is estimated to be approximately 3.2 million.1 It is anticipated that the number will continue to increase as the population ages. SI-613 is diclofenac conjugated sodium hyaluronate created by Seikagaku using their proprietary drug-binding technology to chemically bond hyaluronic acid and diclofenac (an anti-inflammatory drug). This material has the analgesic and anti-inflammatory effects of diclofenac, which is designed to be sustained-released2 by a drug delivery system*3, in addition to the joint function improving effect of sodium hyaluronate. Hence, it is expected that SI-613 rapidly and continuously reduces the pain and inflammation associated with osteoarthritis. Under this agreement, Eisai aims to meet the unmet medical needs of patients with knee osteoarthritis by utilizing the knowledge and networks that Eisai has cultivated through its Korea business. Seikagaku will seek to maximize the value of SI-613 in South Korea by leveraging Eisai's business base in South Korea. Through the commercialization of SI-613, the companies will provide new treatment options in South Korea for knee osteoarthritis and contribute to improving the QOL of patients. 
