New Risk • Jul 01
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended March 2025. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported March 2025 fiscal period end). Share price has been highly volatile over the past 3 months (10% average weekly change). Revenue has declined by 54% over the past year. High level of non-cash earnings (43% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (JP¥9.70b market cap, or US$59.6m). Announcement • May 27
Abalance Corporation (TSE:3856) announces an Equity Buyback for 1,000,000 shares, representing 5.28% for ¥500 million. Abalance Corporation (TSE:3856) announces a share repurchase program. Under the program, the company will repurchase up to 1,000,000 shares, representing 5.28% of its total shares outstanding (excluding treasury shares), for a total of ¥500 million. The purpose of repurchase program is to improve capital efficiency and implement a motivating capital policy that responds to changes in the business environment. The repurchase program is valid till December 31, 2026. As of March 31, 2026, the company had 18,950,642 issued shares and had 82,551 shares in treasury. Announcement • May 09
Abalance Corporation to Report Fiscal Year 2026 Results on May 15, 2026 Abalance Corporation announced that they will report fiscal year 2026 results on May 15, 2026 Board Change • Apr 24
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent Outside Director Masaru Honma 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. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥521, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 25x in the Semiconductor industry in Japan. Total loss to shareholders of 95% over the past three years. New Risk • Mar 31
New major risk - Revenue and earnings growth Revenue has declined by 54% over the past year. 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 revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue 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 Share price has been highly volatile over the past 3 months (14% average weekly change). Revenue has declined by 54% over the past year. High level of non-cash earnings (43% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported March 2025 fiscal period end). Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (JP¥12.1b market cap, or US$75.9m). Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥491, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 24x in the Semiconductor industry in Japan. Total loss to shareholders of 91% over the past three years. New Risk • Jan 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). High level of non-cash earnings (43% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported March 2025 fiscal period end). Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (JP¥12.0b market cap, or US$75.8m). Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥455, the stock trades at a trailing P/E ratio of 6.8x. Average trailing P/E is 22x in the Semiconductor industry in Japan. Total loss to shareholders of 82% over the past three years. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥553, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 20x in the Semiconductor industry in Japan. Total loss to shareholders of 78% over the past three years. Announcement • Dec 02
Abalance Corporation to Report Q3, 2026 Results on Feb 13, 2026 Abalance Corporation announced that they will report Q3, 2026 results on Feb 13, 2026 New Risk • Nov 13
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.4b (US$92.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). High level of non-cash earnings (43% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (JP¥14.4b market cap, or US$92.8m). Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥756, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 20x in the Semiconductor industry in Japan. Total loss to shareholders of 74% over the past three years. Announcement • Oct 17
Abalance Corporation to Report Q2, 2026 Results on Nov 14, 2025 Abalance Corporation announced that they will report Q2, 2026 results on Nov 14, 2025 Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥1,030, the stock trades at a trailing P/E ratio of 15.4x. Average trailing P/E is 17x in the Semiconductor industry in Japan. Total loss to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥1,229, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 15x in the Semiconductor industry in Japan. Total loss to shareholders of 39% over the past three years. Board Change • Aug 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Shigeto Yanase 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. Board Change • Aug 21
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 Shigeto Yanase 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. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥1,044, the stock trades at a trailing P/E ratio of 15.6x. Average trailing P/E is 16x in the Semiconductor industry in Japan. Total loss to shareholders of 48% over the past three years. Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥731, the stock trades at a trailing P/E ratio of 2.8x. Average trailing P/E is 15x in the Semiconductor industry in Japan. Total loss to shareholders of 52% over the past three years. Announcement • Jun 03
Abalance Corporation to Report Q1, 2026 Results on Aug 14, 2025 Abalance Corporation announced that they will report Q1, 2026 results on Aug 14, 2025 Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥639, the stock trades at a trailing P/E ratio of 2.4x. Average trailing P/E is 14x in the Semiconductor industry in Japan. Total loss to shareholders of 39% over the past three years. Reported Earnings • May 20
Third quarter 2025 earnings released: EPS: JP¥34.28 (vs JP¥106 in 3Q 2024) Third quarter 2025 results: EPS: JP¥34.28 (down from JP¥106 in 3Q 2024). Revenue: JP¥27.8b (down 41% from 3Q 2024). Net income: JP¥610.0m (down 67% from 3Q 2024). Profit margin: 2.2% (down from 3.9% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • May 16
Abalance Corporation, Annual General Meeting, Jun 28, 2025 Abalance Corporation, Annual General Meeting, Jun 28, 2025. Announcement • Apr 29
Abalance Corporation announced that it has received ¥490.07931 million in funding from Core Competence Corporation, DL Green Investments LPF On April 28, 2025, Abalance Corporation closed the transaction. Announcement • Apr 10
Abalance Corporation announced that it expects to receive ¥490.07931 million in funding from Core Competence Corporation, DL Green Investments LPF and another investor Abalance Corporation announced a private placement to issue 408,700 common shares at issue price of ¥465 for gross proceeds of ¥190,045,500 and 693,800 common shares at issue price ¥432.45 for gross proceeds of ¥300,033,810 for aggregate proceeds of ¥490,079,310 on April 10, 2025. The transaction includes participation from Junsei Ryu for 322,600 shares, Core Competence Corporation for 86,100 shares and DL Green Investments LPF for 693,800 shares. The transaction will happen through third party allocation. The issue date will be April 28, 2025. The transaction has been approved at board of director meeting of the company. The company will bear issuance expenses of ¥10,000,000 and will receive net proceeds of ¥480,079,310. Junsei Ryu held 24.43% stake before offering and 24.71% stake after the offering. DL Green Investments LPF will hold 3.66% after the offering. 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 7.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risk Market cap is less than US$100m (JP¥7.94b market cap, or US$54.3m). Announcement • Mar 19
Abalance Corporation Shs Common Shares to Be Deleted from OTC Equity Abalance Corporation Shs Common Shares (Japan) will be deleted from OTC Equity effective March 18, 2025, due to Inactive Security. Announcement • Mar 01
Abalance Corporation to Report Fiscal Year 2025 Results on May 15, 2025 Abalance Corporation announced that they will report fiscal year 2025 results on May 15, 2025 Reported Earnings • Feb 16
Second quarter 2025 earnings released: EPS: JP¥52.04 (vs JP¥109 in 2Q 2024) Second quarter 2025 results: EPS: JP¥52.04 (down from JP¥109 in 2Q 2024). Revenue: JP¥24.0b (down 53% from 2Q 2024). Net income: JP¥926.0m (down 51% from 2Q 2024). Profit margin: 3.9% (up from 3.7% in 2Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥3.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. Payout ratio is a comfortable 1.9% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (1.7%). Announcement • Dec 03
Abalance Corporation to Report Q2, 2025 Results on Feb 14, 2025 Abalance Corporation announced that they will report Q2, 2025 results on Feb 14, 2025 Reported Earnings • Dec 01
First quarter 2025 earnings released: JP¥32.49 loss per share (vs JP¥101 profit in 1Q 2024) First quarter 2025 results: JP¥32.49 loss per share (down from JP¥101 profit in 1Q 2024). Revenue: JP¥21.7b (down 63% from 1Q 2024). Net loss: JP¥578.0m (down 133% from profit in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥963, the stock trades at a trailing P/E ratio of 2.4x. Average trailing P/E is 14x in the Semiconductor industry in Japan. Total loss to shareholders of 25% over the past three years. New Risk • Nov 15
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥13.9b (US$89.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.4% average weekly change). Minor Risks Shareholders have been diluted in the past year (2.7% increase in shares outstanding). Market cap is less than US$100m (JP¥13.9b market cap, or US$89.3m). Declared Dividend • Oct 16
Final dividend of JP¥3.00 announced Dividend of JP¥3.00 is the same as last year. Ex-date: 27th December 2024 Payment date: 31st March 2025 Dividend yield will be 0.8%, which is lower than the industry average of 1.0%. Payout Ratios Payout ratio: 2%. Cash payout ratio: 0.4193%. Reported Earnings • Oct 03
Full year 2024 earnings released: EPS: JP¥548 (vs JP¥293 in FY 2023) Full year 2024 results: EPS: JP¥548 (up from JP¥293 in FY 2023). Revenue: JP¥209.0b (down 2.9% from FY 2023). Net income: JP¥9.53b (up 92% from FY 2023). Profit margin: 4.6% (up from 2.3% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Board Change • Oct 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Independent Outside Director Masaru Honma was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Sep 04
Abalance Corporation Announces Dividend for the Fiscal Year Ended June 30, 2024, Payable on September 27, 2024 Abalance Corporation announced dividend for the fiscal year ended June 30, 2024 of JPY 5.00 per share compared to JPY 5.00 per share a year ago. Scheduled date to commence dividend payments is September 27, 2024. Announcement • Aug 27
Abalance Corporation to Report Q1, 2025 Results on Nov 14, 2024 Abalance Corporation announced that they will report Q1, 2025 results on Nov 14, 2024 Reported Earnings • Aug 19
Full year 2024 earnings released: EPS: JP¥548 (vs JP¥293 in FY 2023) Full year 2024 results: EPS: JP¥548 (up from JP¥293 in FY 2023). Revenue: JP¥209.0b (down 2.9% from FY 2023). Net income: JP¥9.53b (up 92% from FY 2023). Profit margin: 4.6% (up from 2.3% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Aug 15
Abalance Corporation, Annual General Meeting, Sep 26, 2024 Abalance Corporation, Annual General Meeting, Sep 26, 2024. New Risk • Aug 06
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.5b (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks High level of debt (67% net debt to equity). Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Market cap is less than US$100m (JP¥14.5b market cap, or US$99.9m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to JP¥817, the stock trades at a trailing P/E ratio of 2.2x. Average trailing P/E is 15x in the Semiconductor industry in Japan. Total loss to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to JP¥1,602, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 22x in the Semiconductor industry in Japan. Total loss to shareholders of 22% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 27 September 2024. Payout ratio is a comfortable 1.3% and this is well supported by cash flows. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.1%). Announcement • Jun 06
Abalance Corporation to Report Fiscal Year 2024 Results on Aug 14, 2024 Abalance Corporation announced that they will report fiscal year 2024 results on Aug 14, 2024 Valuation Update With 7 Day Price Move • May 30
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥1,605, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 1.6% over the past three years. Announcement • May 28
Abalance Corporation Provides Consolidated Earnings Guidance for the Year Ending June 30, 2024 Abalance Corporation provided consolidated earnings guidance for the year ending June 30, 2024. For the year, the company expects net sales of JPY 185,000 million, operating profit of JPY 20,600 million and profit attributable to owners of parent of JPY 8,000 million or JPY 461.49 per basic share. Reported Earnings • May 20
Third quarter 2024 earnings released: EPS: JP¥106 (vs JP¥93.95 in 3Q 2023) Third quarter 2024 results: EPS: JP¥106 (up from JP¥93.95 in 3Q 2023). Revenue: JP¥47.1b (down 7.9% from 3Q 2023). Net income: JP¥1.83b (up 14% from 3Q 2023). Profit margin: 3.9% (up from 3.2% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. New Risk • May 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks High level of debt (60% net debt to equity). Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥2,367, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 43% over the past three years. Announcement • Apr 27
Abalance Corporation announced that it expects to receive CAD 862.884 million in funding from Athos Capital Limited Abalance Corporation announced a private placement of 440,000 common shares at a price of ¥1,961.1 per share for the gross proceeds of ¥862,884,000 on April 26, 2024. The transaction has been approved by the shareholders of the company and is expected to close on May 13, 2024. The transaction will include participation from new investor Athos Asia Event Driven Master Fund managed by Athos Capital Limited. Announcement • Mar 29
Abalance Corporation Announces Dividend for the Second Quarter End of Fiscal Year Ending June 30, 2024, Payable on March 29, 2024 Abalance Corporation announced dividend for the second quarter end of Fiscal year ending June 30, 2024. For the period, the company announced dividend of JPY 3.00 per share against JPY 3.00 per share paid a year ago. Scheduled date to commence dividend payments: March 29, 2024. Declared Dividend • Mar 29
First half dividend of JP¥5.00 announced Dividend of JP¥5.00 is the same as last year. Ex-date: 27th June 2024 Payment date: 27th September 2024 Dividend yield will be 0.3%, which is lower than the industry average of 1.0%. Payout Ratios Payout ratio: 2%. Cash payout ratio: 1%. Announcement • Mar 29
Abalance Corporation to Report Q3, 2024 Results on May 15, 2024 Abalance Corporation announced that they will report Q3, 2024 results on May 15, 2024 Reported Earnings • Mar 17
Second quarter 2024 earnings released: EPS: JP¥109 (vs JP¥102 in 2Q 2023) Second quarter 2024 results: EPS: JP¥109 (up from JP¥102 in 2Q 2023). Revenue: JP¥50.8b (down 9.3% from 2Q 2023). Net income: JP¥1.89b (up 11% from 2Q 2023). Profit margin: 3.7% (up from 3.0% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥2,356, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 23x in the Semiconductor industry in Japan. Total returns to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,217, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 25% over the past three years. Buy Or Sell Opportunity • Jan 29
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to JP¥2,759. The fair value is estimated to be JP¥3,497, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 85% over the last 3 years. Earnings per share has grown by 90%. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥5.00 per share at 0.2% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 15 March 2024. Payout ratio is a comfortable 2.1% and this is well supported by cash flows. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.2%). Announcement • Nov 29
Abalance Corporation Provides Earnings Guidance for the Fiscal Years Ending June 30, 2024 Abalance Corporation provided earnings guidance for the fiscal years ending June 30, 2024. For the year, the company expected net sales of JPY 251,800 million and operating profit of JPY 15,800 million, Profit attributable to owners of parent of 7,000 and Basic earnings per share of 413.53. Announcement • Nov 26
Abalance Corporation to Report Q2, 2024 Results on Feb 14, 2024 Abalance Corporation announced that they will report Q2, 2024 results on Feb 14, 2024 Reported Earnings • Nov 18
First quarter 2024 earnings released: EPS: JP¥100 (vs JP¥31.95 in 1Q 2023) First quarter 2024 results: EPS: JP¥100 (up from JP¥31.95 in 1Q 2023). Revenue: JP¥57.7b (up 3.6% from 1Q 2023). Net income: JP¥1.74b (up 227% from 1Q 2023). Profit margin: 3.0% (up from 1.0% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 65% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥4,025, the stock trades at a trailing P/E ratio of 12.8x. Average trailing P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 372% over the past three years. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥2,935, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Electrical industry in Japan. Total returns to shareholders of 547% over the past three years. Announcement • Sep 04
Abalance Corporation to Report Q1, 2024 Results on Nov 14, 2023 Abalance Corporation announced that they will report Q1, 2024 results on Nov 14, 2023 Buying Opportunity • Aug 31
Now 27% undervalued after recent price drop Over the last 90 days, the stock is down 60%. The fair value is estimated to be JP¥5,598, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 93% over the last 3 years. Earnings per share has grown by 87%. Revenue is forecast to grow by 61% in 2 years. Earnings is forecast to grow by 84% in the next 2 years. Reported Earnings • Aug 20
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: JP¥322 (up from JP¥52.77 in FY 2022). Revenue: JP¥217.4b (up 135% from FY 2022). Net income: JP¥5.45b (up JP¥4.58b from FY 2022). Profit margin: 2.5% (up from 0.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 9.4%. Earnings per share (EPS) exceeded analyst estimates by 7.0%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has increased by 198% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥7,280, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 13x in the Electrical industry in Japan. Total returns to shareholders of 2,529% over the past three years. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥8,830, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 13x in the Electrical industry in Japan. Total returns to shareholders of 2,786% over the past three years. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥3.00 per share at 0.1% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 29 September 2023. Payout ratio is a comfortable 2.4% and this is well supported by cash flows. Trailing yield: 0.1%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.8%). Valuation Update With 7 Day Price Move • May 23
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥9,890, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 12x in the Electrical industry in Japan. Total returns to shareholders of 5,038% over the past three years. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥10,300, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 12x in the Electrical industry in Japan. Total returns to shareholders of 4,960% over the past three years. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to JP¥7,990, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 4,044% over the past three years. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥9,310, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 4,987% over the past three years. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥7,440, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 4,379% over the past three years. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥6,250, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 3,072% over the past three years. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥4,515, the stock trades at a trailing P/E ratio of 33.4x. Average trailing P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 1,861% over the past three years. Reported Earnings • Feb 16
Second quarter 2023 earnings released: EPS: JP¥105 (vs JP¥3.16 loss in 2Q 2022) Second quarter 2023 results: EPS: JP¥105 (up from JP¥3.16 loss in 2Q 2022). Revenue: JP¥56.3b (up 234% from 2Q 2022). Net income: JP¥1.74b (up JP¥1.79b from 2Q 2022). Profit margin: 3.1% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has increased by 157% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 13
Abalance Corporation announced that it has received ¥1.3995912 billion in funding from Oasis Management Company Ltd., Catalyst Investment Group Co.,Ltd., Meiji Machine Co., Ltd., Aioi Nissay Dowa Insurance Co., Ltd., Ocean Links Ltd. On January 12, 2023, Abalance Corporation, closed the transaction. The transaction included participation from Oasis Investments II Master Fund Ltd. for 227,000 shares, Catalyst Investment Group Co.,Ltd. for 181,600 shares, Meiji Machine Co., Ltd. for 136,200 shares, Aioi Nissay Dowa Insurance Co., Ltd. for 45,400 shares, Ocean Links Ltd. for 45,400 shares. Announcement • Dec 28
Abalance Corporation announced that it expects to receive ¥1.3995912 billion in funding from Oasis Management Company Ltd., Catalyst Investment Group Co.,Ltd., Meiji Machine Co., Ltd., Aioi Nissay Dowa Insurance Co., Ltd., Ocean Links Ltd. Abalance Corporation announced a private placement of 635,600 shares at a price of ¥2,202 per share for gross proceeds of ¥1,399,591,200 on December 26, 2022. The transaction will include participation from Oasis Investments II Master Fund Ltd., a fund managed by Oasis Management Company Ltd. for 227,000 shares; Catalyst Investment Group Co.,Ltd. for 181,600 shares; Meiji Machine Co., Ltd. for 136,200 shares; Aioi Nissay Dowa Insurance Co., Ltd. for 45,400 shares, and Ocean Links Ltd. for 45,400 shares. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥2.30 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 15 March 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 0.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.1%).