New Risk • May 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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). Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. Reported Earnings • May 20
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥652 (up from JP¥431 in FY 2025). Revenue: JP¥31.5b (up 31% from FY 2025). Net income: JP¥7.67b (up 51% from FY 2025). Profit margin: 24% (up from 21% in FY 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) also surpassed analyst estimates by 18%. Revenue is forecast to grow 3.8% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 117% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 15
santec Holdings Corporation, Annual General Meeting, Jun 24, 2026 santec Holdings Corporation, Annual General Meeting, Jun 24, 2026. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥33,150, the stock trades at a forward P/E ratio of 58x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 1,271% over the past three years. Announcement • May 10
santec Holdings Corporation to Report Fiscal Year 2026 Results on May 15, 2026 santec Holdings Corporation announced that they will report fiscal year 2026 results on May 15, 2026 Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥19,280, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 762% over the past three years. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥18,530, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 730% over the past three years. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥22,150, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 825% over the past three years. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥16,270, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 564% over the past three years. Reported Earnings • Jan 31
Third quarter 2026 earnings released: EPS: JP¥174 (vs JP¥113 in 3Q 2025) Third quarter 2026 results: EPS: JP¥174 (up from JP¥113 in 3Q 2025). Revenue: JP¥8.47b (up 59% from 3Q 2025). Net income: JP¥2.04b (up 53% from 3Q 2025). Profit margin: 24% (down from 25% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥10,320, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 286% over the past three years. Announcement • Nov 29
santec Holdings Corporation to Report Q3, 2026 Results on Jan 30, 2026 santec Holdings Corporation announced that they will report Q3, 2026 results on Jan 30, 2026 Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥8,900, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 204% over the past three years. Buy Or Sell Opportunity • Nov 27
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to JP¥8,770. The fair value is estimated to be JP¥7,031, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has grown by 26%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 18% in the next 2 years. New Risk • Nov 26
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 8.1% 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 (8.1% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 08
Second quarter 2026 earnings released: EPS: JP¥143 (vs JP¥90.81 in 2Q 2025) Second quarter 2026 results: EPS: JP¥143 (up from JP¥90.81 in 2Q 2025). Revenue: JP¥6.59b (up 16% from 2Q 2025). Net income: JP¥1.68b (up 57% from 2Q 2025). Profit margin: 25% (up from 19% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥75.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.7%). Announcement • Sep 01
santec Holdings Corporation to Report Q2, 2026 Results on Nov 07, 2025 santec Holdings Corporation announced that they will report Q2, 2026 results on Nov 07, 2025 Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥7,060, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 313% over the past three years. Reported Earnings • Aug 02
First quarter 2026 earnings released: EPS: JP¥118 (vs JP¥136 in 1Q 2025) First quarter 2026 results: EPS: JP¥118 (down from JP¥136 in 1Q 2025). Revenue: JP¥6.19b (down 1.9% from 1Q 2025). Net income: JP¥1.38b (down 14% from 1Q 2025). Profit margin: 22% (down from 25% in 1Q 2025). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Jul 30
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 Yoko Horie 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 • Jul 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 0% Dividend yield: 3.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Shares are highly illiquid. Minor Risk Dividend is not well covered by cash flows (0% cash payout ratio). Board Change • Jul 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 4 highly experienced directors. Independent Outside Director Yoko Horie was the last director to join the board, commencing their role in 2025. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jun 24
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥431 (up from JP¥327 in FY 2024). Revenue: JP¥24.0b (up 27% from FY 2024). Net income: JP¥5.07b (up 32% from FY 2024). Profit margin: 21% (in line with FY 2024). Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 7.8%. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 31
santec Holdings Corporation to Report Q1, 2026 Results on Aug 01, 2025 santec Holdings Corporation announced that they will report Q1, 2026 results on Aug 01, 2025 Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥4,940, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 248% over the past three years. Reported Earnings • May 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥431 (up from JP¥327 in FY 2024). Revenue: JP¥24.0b (up 27% from FY 2024). Net income: JP¥5.07b (up 32% from FY 2024). Profit margin: 21% (in line with FY 2024). Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 7.8%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 09
santec Holdings Corporation, Annual General Meeting, Jun 18, 2025 santec Holdings Corporation, Annual General Meeting, Jun 18, 2025. 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 8.0% 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 03
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥4,290, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 261% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 20 June 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Announcement • Mar 07
santec Holdings Corporation to Report Fiscal Year 2025 Results on May 09, 2025 santec Holdings Corporation announced that they will report fiscal year 2025 results on May 09, 2025 Buy Or Sell Opportunity • Feb 18
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.1% to JP¥6,330. The fair value is estimated to be JP¥7,938, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 4.1% in the next 2 years. Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥113 (vs JP¥66.07 in 3Q 2024) Third quarter 2025 results: EPS: JP¥113 (up from JP¥66.07 in 3Q 2024). Revenue: JP¥5.32b (up 23% from 3Q 2024). Net income: JP¥1.33b (up 71% from 3Q 2024). Profit margin: 25% (up from 18% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥7,500, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 409% over the past three years. Announcement • Nov 30
santec Holdings Corporation to Report Q3, 2025 Results on Feb 07, 2025 santec Holdings Corporation announced that they will report Q3, 2025 results on Feb 07, 2025 Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥6,840, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 332% over the past three years. Buy Or Sell Opportunity • Nov 11
Now 26% overvalued Over the last 90 days, the stock has fallen 8.6% to JP¥6,350. The fair value is estimated to be JP¥5,037, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 36% 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 10% in the next 2 years. Reported Earnings • Nov 09
Second quarter 2025 earnings released: EPS: JP¥90.81 (vs JP¥70.92 in 2Q 2024) Second quarter 2025 results: EPS: JP¥90.81 (up from JP¥70.92 in 2Q 2024). Revenue: JP¥5.69b (up 40% from 2Q 2024). Net income: JP¥1.07b (up 28% from 2Q 2024). Profit margin: 19% (down from 21% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year whereas the company’s share price has increased by 48% per year. Buy Or Sell Opportunity • Oct 07
Now 22% overvalued Over the last 90 days, the stock has fallen 33% to JP¥6,150. The fair value is estimated to be JP¥5,045, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has grown by 46%. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Announcement • Sep 27
santec Holdings Corporation to Report Q2, 2025 Results on Nov 08, 2024 santec Holdings Corporation announced that they will report Q2, 2025 results on Nov 08, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Buy Or Sell Opportunity • Sep 19
Now 20% overvalued Over the last 90 days, the stock has fallen 27% to JP¥6,020. The fair value is estimated to be JP¥5,009, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has grown by 46%. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥5,810, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 317% over the past three years. Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥136 (vs JP¥65.05 in 1Q 2024) First quarter 2025 results: EPS: JP¥136 (up from JP¥65.05 in 1Q 2024). Revenue: JP¥6.31b (up 76% from 1Q 2024). Net income: JP¥1.60b (up 109% from 1Q 2024). Profit margin: 25% (up from 21% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has increased by 72% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 31% After last week's 31% share price decline to JP¥5,650, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 348% over the past three years. Reported Earnings • Jun 25
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥327 (up from JP¥255 in FY 2023). Revenue: JP¥18.9b (up 24% from FY 2023). Net income: JP¥3.85b (up 28% from FY 2023). Profit margin: 20% (in line with FY 2023). Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has increased by 73% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 06
santec Holdings Corporation to Report Q1, 2025 Results on Aug 09, 2024 santec Holdings Corporation announced that they will report Q1, 2025 results on Aug 09, 2024 Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥7,770, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 442% over the past three years. Valuation Update With 7 Day Price Move • May 17
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to JP¥6,780, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 355% over the past three years. Reported Earnings • May 12
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥327 (up from JP¥255 in FY 2023). Revenue: JP¥18.9b (up 24% from FY 2023). Net income: JP¥3.85b (up 28% from FY 2023). Profit margin: 20% (in line with FY 2023). Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%. Revenue is forecast to grow 6.5% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year whereas the company’s share price has increased by 46% per year. Announcement • May 12
santec Holdings Corporation, Annual General Meeting, Jun 19, 2024 santec Holdings Corporation, Annual General Meeting, Jun 19, 2024. Announcement • Mar 23
santec Holdings Corporation to Report Fiscal Year 2024 Results on May 10, 2024 santec Holdings Corporation announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 24 June 2024. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to JP¥5,260, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Electronic industry in Japan. Total returns to shareholders of 236% over the past three years. New Risk • Feb 13
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 8.0% 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 • Feb 10
Third quarter 2024 earnings released: EPS: JP¥66.07 (vs JP¥46.26 in 3Q 2023) Third quarter 2024 results: EPS: JP¥66.07 (up from JP¥46.26 in 3Q 2023). Revenue: JP¥4.33b (up 11% from 3Q 2023). Net income: JP¥777.0m (up 43% from 3Q 2023). Profit margin: 18% (up from 14% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Announcement • Dec 23
santec Holdings Corporation to Report Q3, 2024 Results on Feb 09, 2024 santec Holdings Corporation announced that they will report Q3, 2024 results on Feb 09, 2024 Valuation Update With 7 Day Price Move • Nov 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥3,260, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 84% over the past three years. Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: JP¥70.92 (vs JP¥63.35 in 2Q 2023) Second quarter 2024 results: EPS: JP¥70.92 (up from JP¥63.35 in 2Q 2023). Revenue: JP¥4.06b (up 17% from 2Q 2023). Net income: JP¥834.0m (up 12% from 2Q 2023). Profit margin: 21% (in line with 2Q 2023). Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Sep 28
santec Holdings Corporation to Report Q2, 2024 Results on Nov 10, 2023 santec Holdings Corporation announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥40.00 per share at 3.1% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥2,501, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 48% over the past three years. Buying Opportunity • Aug 12
Now 22% undervalued Over the last 90 days, the stock is up 30%. The fair value is estimated to be JP¥3,731, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Earnings per share has grown by 46%. Revenue is forecast to grow by 24% in 2 years. Earnings is forecast to grow by 23% in the next 2 years. Reported Earnings • Jun 28
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: EPS: JP¥255 (up from JP¥141 in FY 2022). Revenue: JP¥15.2b (up 72% from FY 2022). Net income: JP¥3.00b (up 81% from FY 2022). Profit margin: 20% (up from 19% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. New Risk • Jun 27
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 5.2% 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 • Jun 24
Santec Holdings Corporation to Report Q1, 2024 Results on Aug 10, 2023 Santec Holdings Corporation announced that they will report Q1, 2024 results on Aug 10, 2023 Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,591, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 54% over the past three years. Reported Earnings • May 14
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: EPS: JP¥255 (up from JP¥141 in FY 2022). Revenue: JP¥15.2b (up 72% from FY 2022). Net income: JP¥3.00b (up 81% from FY 2022). Profit margin: 20% (up from 19% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 14
Santec Holdings Corporation, Annual General Meeting, Jun 21, 2023 Santec Holdings Corporation, Annual General Meeting, Jun 21, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share at 2.5% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥46.26 (vs JP¥29.85 in 3Q 2022) Third quarter 2023 results: EPS: JP¥46.26 (up from JP¥29.85 in 3Q 2022). Revenue: JP¥3.91b (up 79% from 3Q 2022). Net income: JP¥544.0m (up 55% from 3Q 2022). Profit margin: 14% (down from 16% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jan 06
Now 20% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be JP¥3,653, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 53% in 2 years. Earnings is forecast to grow by 33% in the next 2 years. Announcement • Dec 28
Santec Corporation to Report Q3, 2023 Results on Feb 10, 2023 Santec Corporation announced that they will report Q3, 2023 results on Feb 10, 2023 Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥3,000, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 69% over the past three years. Buying Opportunity • Dec 22
Now 21% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be JP¥3,981, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 53% in 2 years. Earnings is forecast to grow by 33% in the next 2 years. Buying Opportunity • Nov 30
Now 22% undervalued Over the last 90 days, the stock is up 14%. The fair value is estimated to be JP¥4,320, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 53% in 2 years. Earnings is forecast to grow by 33% in the next 2 years. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 4 non-independent directors. Auditor Ryoko Miyazaki was the last director to join the board, commencing their role in 2022. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥63.35 (vs JP¥23.81 in 2Q 2022) Second quarter 2023 results: EPS: JP¥63.35 (up from JP¥23.81 in 2Q 2022). Revenue: JP¥3.49b (up 79% from 2Q 2022). Net income: JP¥745.0m (up 166% from 2Q 2022). Profit margin: 21% (up from 14% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.6%). Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥2,234, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 11x in the Electronic industry in Japan. Total returns to shareholders of 20% over the past three years.