Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥8,010, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 23x in the Semiconductor industry in Japan. Total returns to shareholders of 159% over the past three years. Live News • Jun 22
RS Technologies Approves 49% Stake in 99.82 MW Battery Storage Project in Tochigi RS Technologies has approved a 49% silent partnership stake in a grid-scale battery energy storage project in Otawara City, Tochigi Prefecture, with planned capacity of 99.82 MW and about 400 MWh, and targeted start of operations in October 2029 via GK CDH JAPAN BESS4.
The company describes this project as a new earnings base tied to renewable integration and grid stability in Japan, while indicating no impact on near-term earnings. This frames it as a long-horizon capital commitment.
RS Technologies’ share price is ¥7,230.00, with the stock up 95.9% over the past 90 days. This suggests the market has already priced in a significant shift in expectations around its medium- to long-term prospects.
This move ties RS Technologies more closely to Japan’s energy transition, but also introduces project execution, regulatory and long-dated return risks that could matter if timelines or economics change. Reported Earnings • May 17
First quarter 2026 earnings released: EPS: JP¥72.51 (vs JP¥64.99 in 1Q 2025) First quarter 2026 results: EPS: JP¥72.51 (up from JP¥64.99 in 1Q 2025). Revenue: JP¥19.2b (up 8.7% from 1Q 2025). Net income: JP¥1.93b (up 12% from 1Q 2025). Profit margin: 10% (in line with 1Q 2025). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Live News • May 15
RS Technologies Posts Strong Q1 and Outlines Growth Plan With Higher Dividends RS Technologies reported what it describes as strong Q1 FY2026 results, with sales, profits and equity all higher, which it says has strengthened its financial base.
The company reaffirmed its full-year FY2026 outlook, indicating its existing earnings guidance remains unchanged.
Management released a new medium-term plan for 2026 to 2028 and flagged a higher total annual dividend, pointing to a greater focus on shareholder returns.
The combination of solid early-year results, a maintained full-year forecast and a clearly outlined 2026 to 2028 plan gives you more visibility on how management is thinking about growth, capital allocation and dividends over the next few years.
When reviewing the higher dividend, it is worth weighing the income appeal against any changes in reinvestment, cash needs or balance sheet flexibility that might come with this policy shift. New Risk • May 07
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 9.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥5,370, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 82% over the past three years. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥4,280, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 36% over the past three years. Board Change • Mar 31
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Cuiping Zhang was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Mar 04
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. This is currently the only risk that has been identified for the company. Announcement • Feb 16
RS Technologies Co., Ltd., Annual General Meeting, Mar 27, 2026 RS Technologies Co., Ltd., Annual General Meeting, Mar 27, 2026. Reported Earnings • Feb 14
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥351 (down from JP¥358 in FY 2024). Revenue: JP¥76.7b (up 30% from FY 2024). Net income: JP¥9.30b (down 1.6% from FY 2024). Profit margin: 12% (down from 16% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 8.2%. Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 4% per year. Announcement • Feb 14
RS Technologies Co., Ltd. Announces Dividend of Surplus, Payable on March 10, 2026 RS Technologies Co., Ltd. announced that at the Board of Directors meeting held on February 13, 2026, RST resolved to pay a dividend of surplus of JPY 45.00 per share from the retained earnings with the record date of December 31, 2025. Effective date is March 10, 2026. Reason: RST positions the return of profits to shareholders as one of its most important management priorities, while striving to maximize corporate value through business investments aimed at future growth and investments in human resources. Based on this dividend policy, and after comprehensively considering RST's business performance and financial condition, RST decided that the year-end dividend for the fiscal year ending December 2025 has been set at JPY 45 per share, increasing JPY 10 from the previous fiscal year. Announcement • Feb 13
RS Technologies Co., Ltd. Announces Year-End Dividend for the Fiscal Year Ended December 31, 2025, Payable on March 10, 2026; Provides Year-End Dividend Guidance for the Fiscal Year Ending December 31, 2026 RS Technologies Co., Ltd. announced year-end dividend of JPY 45.00 per share for the fiscal year ended December 31, 2025 against JPY 35.00 per share a year ago. Scheduled date to commence dividend payments: March 10, 2026.
The company provided year-end dividend guidance for the fiscal year ending December 31, 2026. For the period, the company expects year-end dividend of JPY 55.00 compared to JPY 45.00 paid a year ago. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 11 March 2026. Payout ratio is a comfortable 8.8% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.2%). New Risk • Nov 21
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 • Nov 15
Third quarter 2025 earnings released: EPS: JP¥108 (vs JP¥66.73 in 3Q 2024) Third quarter 2025 results: EPS: JP¥108 (up from JP¥66.73 in 3Q 2024). Revenue: JP¥20.6b (up 42% from 3Q 2024). Net income: JP¥2.87b (up 63% from 3Q 2024). Profit margin: 14% (up from 12% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 15
Dividend increased to JP¥40.00 Dividend of JP¥40.00 is 14% higher than last year. Ex-date: 29th December 2025 Payment date: 11th March 2026 Dividend yield will be 1.2%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (10% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 47% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 27% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 15
First quarter 2025 earnings released: EPS: JP¥64.99 (vs JP¥67.57 in 1Q 2024) First quarter 2025 results: EPS: JP¥64.99 (down from JP¥67.57 in 1Q 2024). Revenue: JP¥17.6b (up 15% from 1Q 2024). Net income: JP¥1.72b (down 3.6% from 1Q 2024). Profit margin: 9.7% (down from 12% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. New Risk • Apr 07
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 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 05
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥358 (up from JP¥293 in FY 2023). Revenue: JP¥59.2b (up 14% from FY 2023). Net income: JP¥9.45b (up 23% from FY 2023). Profit margin: 16% (up from 15% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,598, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 14x in the Semiconductor industry in Japan. Total loss to shareholders of 9.9% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,849 per share. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥3,605, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 36% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,953 per share. New Risk • Feb 18
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. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 16
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥358 (up from JP¥293 in FY 2023). Revenue: JP¥59.2b (up 14% from FY 2023). Net income: JP¥9.45b (up 23% from FY 2023). Profit margin: 16% (up from 15% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 25%. Revenue is forecast to grow 8.9% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 14
RS Technologies Co., Ltd., Annual General Meeting, Mar 28, 2025 RS Technologies Co., Ltd., Annual General Meeting, Mar 28, 2025. Announcement • Jan 09
RS Technologies Co., Ltd. to Report Fiscal Year 2024 Results on Feb 14, 2025 RS Technologies Co., Ltd. announced that they will report fiscal year 2024 results on Feb 14, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 12 March 2025. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (1.7%). Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: JP¥66.73 (vs JP¥85.19 in 3Q 2023) Third quarter 2024 results: EPS: JP¥66.73 (down from JP¥85.19 in 3Q 2023). Revenue: JP¥14.5b (up 8.6% from 3Q 2023). Net income: JP¥1.76b (down 22% from 3Q 2023). Profit margin: 12% (down from 17% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Semiconductor 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 remained flat, which means it is significantly lagging earnings. Announcement • Nov 06
RS Technologies Co., Ltd. to Report Q3, 2024 Results on Nov 11, 2024 RS Technologies Co., Ltd. announced that they will report Q3, 2024 results on Nov 11, 2024 Announcement • Nov 04
GRINM Semiconductor Materials Co., Ltd. (SHSE:688432) agreed to acquire 70% stake in DG Technologies, Inc. from RS Technologies Co., Ltd. (TSE:3445). GRINM Semiconductor Materials Co., Ltd. (SHSE:688432) agreed to acquire 70% stake in DG Technologies, Inc. from RS Technologies Co., Ltd. (TSE:3445) on November 2, 2024. A cash consideration will be paid by GRINM Semiconductor Materials Co., Ltd. Announcement • Sep 20
RS Technologies Co., Ltd. (TSE:3445) agreed to acquire Sony Precision Devices (Huizhou) Co., Ltd. from Sony (China) Limited. RS Technologies Co., Ltd. (TSE:3445) agreed to acquire Sony Precision Devices (Huizhou) Co., Ltd. from Sony (China) Limited on September 19, 2024. The expected completion of the transaction is December 30, 2024. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: JP¥77.82 (vs JP¥76.76 in 2Q 2023) Second quarter 2024 results: EPS: JP¥77.82 (up from JP¥76.76 in 2Q 2023). Revenue: JP¥14.7b (up 5.2% from 2Q 2023). Net income: JP¥2.05b (up 1.7% from 2Q 2023). Profit margin: 14% (in line with 2Q 2023). Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Declared Dividend • Aug 11
Dividend increased to JP¥35.00 Dividend of JP¥35.00 is 17% higher than last year. Ex-date: 27th December 2024 Payment date: 12th March 2025 Dividend yield will be 1.2%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (12% earnings payout ratio) and cash flows (11% cash payout ratio). The dividend has increased by an average of 61% per year over the past 7 years and payments have been stable during that time. EPS is expected to grow by 36% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,678, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total loss to shareholders of 11% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,767 per share. Buy Or Sell Opportunity • Jul 18
Now 23% undervalued Over the last 90 days, the stock has risen 8.1% to JP¥3,285. The fair value is estimated to be JP¥4,265, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 43%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 4.7% in the next 2 years. Announcement • Jun 28
RS Technologies Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 RS Technologies Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Board Change • May 22
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Cuiping Zhang was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • May 16
RS Technologies Co., Ltd. Revises Dividend Forecast for the Fiscal Year Ending December 2024 RS Technologies Co., Ltd. announced that it resolved to forecast dividends at its Board of Directors held on May 13, 2024. The company revised dividend forecast of JPY 35.00 for the fiscal year ending December 2024 compared to JPY 30.00 paid last year. Reason for dividend increase: The company has increased the dividend by JPY 5 from the previous fiscal year to JPY 35 per share, considering that the consolidated group performance for the current fiscal year is progressing steadily toward medium-term management plan. Announcement • Feb 28
RS Technologies Co., Ltd. to Report Q1, 2024 Results on May 13, 2024 RS Technologies Co., Ltd. announced that they will report Q1, 2024 results on May 13, 2024 Announcement • Feb 15
RS Technologies Co., Ltd., Annual General Meeting, Mar 28, 2024 RS Technologies Co., Ltd., Annual General Meeting, Mar 28, 2024. Reported Earnings • Feb 14
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥293 (down from JP¥299 in FY 2022). Revenue: JP¥51.9b (up 4.1% from FY 2022). Net income: JP¥7.70b (flat on FY 2022). Profit margin: 15% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Revenue is forecast to grow 7.2% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 14
Now 24% undervalued Over the last 90 days, the stock has risen 7.5% to JP¥2,618. The fair value is estimated to be JP¥3,460, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 47%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 16% in the next 2 years. Announcement • Dec 05
RS Technologies Co., Ltd. to Report Fiscal Year 2023 Results on Feb 13, 2024 RS Technologies Co., Ltd. announced that they will report fiscal year 2023 results on Feb 13, 2024 Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: JP¥85.19 (vs JP¥94.91 in 3Q 2022) Third quarter 2023 results: EPS: JP¥85.19 (down from JP¥94.91 in 3Q 2022). Revenue: JP¥13.3b (flat on 3Q 2022). Net income: JP¥2.24b (down 8.6% from 3Q 2022). Profit margin: 17% (down from 18% in 3Q 2022). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. New Risk • Nov 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 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥2,857, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 74% over the past three years. Announcement • Sep 03
RS Technologies Co., Ltd. to Report Q3, 2023 Results on Nov 13, 2023 RS Technologies Co., Ltd. announced that they will report Q3, 2023 results on Nov 13, 2023 Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: JP¥76.76 (vs JP¥81.49 in 2Q 2022) Second quarter 2023 results: EPS: JP¥76.76 (down from JP¥81.49 in 2Q 2022). Revenue: JP¥14.0b (up 6.5% from 2Q 2022). Net income: JP¥2.02b (down 4.2% from 2Q 2022). Profit margin: 14% (down from 16% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Jun 10
RS Technologies Co., Ltd. to Report Q2, 2023 Results on Aug 10, 2023 RS Technologies Co., Ltd. announced that they will report Q2, 2023 results on Aug 10, 2023 Reported Earnings • Feb 14
Full year 2022 earnings: EPS in line with expectations, revenues disappoint Full year 2022 results: EPS: JP¥599 (up from JP¥128 in FY 2021). Revenue: JP¥49.9b (up 44% from FY 2021). Net income: JP¥7.74b (up 134% from FY 2021). Profit margin: 16% (up from 9.5% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 14 March 2023. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.4%). Announcement • Dec 06
RS Technologies Co., Ltd. to Report Fiscal Year 2022 Results on Feb 13, 2023 RS Technologies Co., Ltd. announced that they will report fiscal year 2022 results on Feb 13, 2023 Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. No independent directors (4 non-independent directors). Independent External Auditor Hiroyuki Kanamori was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: JP¥190 (vs JP¥86.33 in 3Q 2021) Third quarter 2022 results: EPS: JP¥190 (up from JP¥86.33 in 3Q 2021). Revenue: JP¥13.4b (up 48% from 3Q 2021). Net income: JP¥2.45b (up 120% from 3Q 2021). Profit margin: 18% (up from 12% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improved over the past week After last week's 24% share price gain to JP¥8,920, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 8x in the Semiconductor industry in Japan. Total returns to shareholders of 128% over the past three years. Announcement • Sep 09
RS Technologies Co., Ltd. to Report Q3, 2022 Results on Nov 11, 2022 RS Technologies Co., Ltd. announced that they will report Q3, 2022 results on Nov 11, 2022 Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: JP¥163 (vs JP¥90.50 in 2Q 2021) Second quarter 2022 results: EPS: JP¥163 (up from JP¥90.50 in 2Q 2021). Revenue: JP¥13.1b (up 48% from 2Q 2021). Net income: JP¥2.11b (up 80% from 2Q 2021). Profit margin: 16% (up from 13% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 14%, compared to a 20% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 16
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: JP¥94.99 (up from JP¥41.77 loss in 1Q 2021). Revenue: JP¥11.1b (up 66% from 1Q 2021). Net income: JP¥1.23b (up JP¥1.77b from 1Q 2021). Profit margin: 11% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) missed analyst estimates by 5.6%. Over the next year, revenue is forecast to grow 9.4%, compared to a 21% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 6 highly experienced directors. 2 independent directors (8 non-independent directors). Independent External Director Tadashi Utsumi was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 07
RS Technologies Co., Ltd. to Report Q1, 2022 Results on May 13, 2022 RS Technologies Co., Ltd. announced that they will report Q1, 2022 results on May 13, 2022 Reported Earnings • Feb 20
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: JP¥255 (up from JP¥219 in FY 2020). Revenue: JP¥34.6b (up 35% from FY 2020). Net income: JP¥3.30b (up 17% from FY 2020). Profit margin: 9.5% (down from 11% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 5.6%. Over the next year, revenue is forecast to grow 19%, compared to a 19% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Feb 16
RS Technologies Co., Ltd., Annual General Meeting, Mar 30, 2022 RS Technologies Co., Ltd., Annual General Meeting, Mar 30, 2022. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 15 March 2022. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (1.6%). Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS JP¥86.33 (vs JP¥49.82 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥9.09b (up 43% from 3Q 2020). Net income: JP¥1.12b (up 73% from 3Q 2020). Profit margin: 12% (up from 10% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥6,240, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Semiconductor industry in Japan. Total returns to shareholders of 37% over the past three years. Valuation Update With 7 Day Price Move • Aug 31
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥6,250, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 6.2% over the past three years. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS JP¥90.50 (vs JP¥66.81 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: JP¥8.88b (up 37% from 2Q 2020). Net income: JP¥1.17b (up 36% from 2Q 2020). Profit margin: 13% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorated over the past week After last week's 18% share price decline to JP¥5,180, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 18x in the Semiconductor industry in Japan. Total loss to shareholders of 23% over the past three years. Reported Earnings • Apr 04
Full year 2020 earnings released: EPS JP¥219 (vs JP¥237 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: JP¥25.6b (up 4.3% from FY 2019). Net income: JP¥2.82b (down 7.0% from FY 2019). Profit margin: 11% (down from 12% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Feb 14
Full year 2020 earnings released: EPS JP¥219 (vs JP¥237 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: JP¥25.6b (up 4.3% from FY 2019). Net income: JP¥2.82b (down 7.0% from FY 2019). Profit margin: 11% (down from 12% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has remained flat. Analyst Estimate Surprise Post Earnings • Feb 14
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) missed analyst estimates by 5.6%. Over the next year, revenue is forecast to stay flat compared to a 22% growth forecast for the Semiconductor industry in Japan.