Buy Or Sell Opportunity • Jun 05
Now 20% overvalued Over the last 90 days, the stock has fallen 3.1% to JP¥7,300. The fair value is estimated to be JP¥6,061, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 11% in the next 2 years. Valuation Update With 7 Day Price Move • May 27
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥5,490, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 937% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,002 per share. Reported Earnings • May 20
Third quarter 2026 earnings released Third quarter 2026 results: Revenue: JP¥10.2b (up 191% from 3Q 2025). Net income: JP¥956.0m (up JP¥961.0m from 3Q 2025). Profit margin: 9.3% (up from net loss in 3Q 2025). The move to profitability was driven by higher revenue. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has increased by 132% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • May 09
AIMECHATEC, Ltd. to Report Q3, 2026 Results on May 15, 2026 AIMECHATEC, Ltd. announced that they will report Q3, 2026 results on May 15, 2026 Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to JP¥8,210, the stock trades at a forward P/E ratio of 44x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 1,605% over the past three years. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥5,760, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total returns to shareholders of 1,105% over the past three years. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥19,460, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 19x in the Semiconductor industry in Japan. Total returns to shareholders of 1,361% over the past three years. Major Estimate Revision • Mar 13
Consensus revenue estimates increase by 35% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥25.8b to JP¥34.8b. EPS estimate increased from JP¥298 to JP¥510 per share. Net income forecast to grow 18% next year vs 23% growth forecast for Semiconductor industry in Japan. Consensus price target of JP¥30,000 unchanged from last update. Share price was steady at JP¥22,270 over the past week. Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥19,350, the stock trades at a forward P/E ratio of 57x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 1,340% over the past three years. Reported Earnings • Feb 16
Second quarter 2026 earnings released: EPS: JP¥291 (vs JP¥24.89 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥291 (up from JP¥24.89 loss in 2Q 2025). Revenue: JP¥11.4b (up 103% from 2Q 2025). Net income: JP¥1.83b (up JP¥1.98b from 2Q 2025). Profit margin: 16% (up from net loss in 2Q 2025). The move to profitability was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 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 7% per year but the company’s share price has increased by 100% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to JP¥10,540, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 21x in the Semiconductor industry in Japan. Total returns to shareholders of 715% over the past three years. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥8,430, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 20x in the Semiconductor industry in Japan. Total returns to shareholders of 510% over the past three years. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥6,050, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 18x in the Semiconductor industry in Japan. Total returns to shareholders of 335% over the past three years. Price Target Changed • Dec 31
Price target increased by 17% to JP¥6,800 Up from JP¥5,800, the current price target is provided by 1 analyst. New target price is 38% above last closing price of JP¥4,930. Stock is up 62% over the past year. The company is forecast to post earnings per share of JP¥298 for next year compared to JP¥54.50 last year. Duyuru • Dec 05
AIMECHATEC, Ltd. to Report Q2, 2026 Results on Feb 13, 2026 AIMECHATEC, Ltd. announced that they will report Q2, 2026 results on Feb 13, 2026 Reported Earnings • Nov 18
First quarter 2026 earnings released: EPS: JP¥6.26 (vs JP¥98.81 loss in 1Q 2025) First quarter 2026 results: EPS: JP¥6.26 (up from JP¥98.81 loss in 1Q 2025). Revenue: JP¥3.26b (up 118% from 1Q 2025). Net income: JP¥39.0m (up JP¥652.0m from 1Q 2025). Profit margin: 1.2% (up from net loss in 1Q 2025). Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 52% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 15
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 46% to JP¥4,850. The fair value is estimated to be JP¥4,006, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.4% over the last 3 years. Earnings per share has declined by 50%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 42% per annum over the same time period. Duyuru • Sep 02
AIMECHATEC, Ltd. to Report Q1, 2026 Results on Nov 14, 2025 AIMECHATEC, Ltd. announced that they will report Q1, 2026 results on Nov 14, 2025 New Risk • Aug 16
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 18% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥54.50 (up from JP¥19.27 in FY 2024). Revenue: JP¥21.0b (up 36% from FY 2024). Net income: JP¥337.0m (up 204% from FY 2024). Profit margin: 1.6% (up from 0.7% in FY 2024). Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) also surpassed analyst estimates by 76%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Semiconductor industry in Japan. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 38% per year, which means it is well ahead of earnings. Duyuru • Aug 08
AIMECHATEC, Ltd., Annual General Meeting, Sep 26, 2025 AIMECHATEC, Ltd., Annual General Meeting, Sep 26, 2025. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 29 September 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (4.0%). Lower than average of industry peers (1.7%). Duyuru • Jun 03
AIMECHATEC, Ltd. to Report Fiscal Year 2025 Results on Aug 08, 2025 AIMECHATEC, Ltd. announced that they will report fiscal year 2025 results on Aug 08, 2025 Reported Earnings • May 20
Third quarter 2025 earnings released: JP¥0.81 loss per share (vs JP¥13.07 loss in 3Q 2024) Third quarter 2025 results: JP¥0.81 loss per share (improved from JP¥13.07 loss in 3Q 2024). Revenue: JP¥3.52b (down 1.5% from 3Q 2024). Net loss: JP¥5.00m (loss narrowed 93% from 3Q 2024). Revenue is forecast to grow 18% 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 fallen by 48% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. New Risk • Apr 07
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 2.1% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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 Share price has been highly volatile over the past 3 months (8.2% average weekly change). Minor Risk Paying a dividend despite being loss-making. Duyuru • Mar 07
AIMECHATEC, Ltd. to Report Q3, 2025 Results on May 15, 2025 AIMECHATEC, Ltd. announced that they will report Q3, 2025 results on May 15, 2025 Reported Earnings • Feb 16
Second quarter 2025 earnings released: JP¥24.89 loss per share (vs JP¥18.08 profit in 2Q 2024) Second quarter 2025 results: JP¥24.89 loss per share (down from JP¥18.08 profit in 2Q 2024). Revenue: JP¥5.60b (up 43% from 2Q 2024). Net loss: JP¥153.0m (down 252% from profit in 2Q 2024). Revenue is forecast to grow 17% p.a. on average during the next 3 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 fallen by 36% per year but the company’s share price has increased by 47% per year, which means it is well ahead of earnings. Duyuru • Dec 03
AIMECHATEC, Ltd. to Report Q2, 2025 Results on Feb 14, 2025 AIMECHATEC, Ltd. announced that they will report Q2, 2025 results on Feb 14, 2025 New Risk • Nov 24
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (11% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Shareholders have been diluted in the past year (12% increase in shares outstanding). Market cap is less than US$100m (JP¥14.9b market cap, or US$96.1m). Board Change • Oct 29
Less than half of directors are independent There are 7 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: 7 new directors. 4 experienced directors. 1 highly experienced director. 4 independent directors (5 non-independent directors). Chairman, Executive Officer & President Isao Abe is the most experienced director on the board, commencing their role in 2016. Independent Outside Director Yuichi Honma 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. Lack of experienced directors. New Risk • Oct 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.2b (US$99.8m) 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 Risk Share price has been highly volatile over the past 3 months (14% average weekly change). Minor Risks Profit margins are more than 30% lower than last year (0.7% net profit margin). Shareholders have been diluted in the past year (12% increase in shares outstanding). Market cap is less than US$100m (JP¥15.2b market cap, or US$99.8m). Reported Earnings • Oct 03
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥19.27 (down from JP¥212 in FY 2023). Revenue: JP¥15.4b (flat on FY 2023). Net income: JP¥111.0m (down 91% from FY 2023). Profit margin: 0.7% (down from 7.7% in FY 2023). Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 37%. Revenue is forecast to grow 17% 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 5% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Sep 26
AIMECHATEC, Ltd. (TSE:6227) announces an Equity Buyback for 90,000 shares, representing 1.47% for ¥250 million. AIMECHATEC, Ltd. (TSE:6227) announces a share repurchase program. Under the program, the company will repurchase up to 90,000 shares, representing 1.47% of its issued share capital, for ¥250 million. The purpose of the program is to enable the implementation of a flexible capital policy in response to changes in the business environment. The program will be valid till October 21, 2024. As of June 30, 2024, the company has 6,113,858 issued shares (excluding treasury stock) and 9,142 treasury shares. Duyuru • Sep 25
AIMECHATEC, Ltd. to Report Q1, 2025 Results on Nov 14, 2024 AIMECHATEC, Ltd. announced that they will report Q1, 2025 results on Nov 14, 2024 Reported Earnings • Aug 13
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥19.27 (down from JP¥212 in FY 2023). Revenue: JP¥15.4b (flat on FY 2023). Net income: JP¥111.0m (down 91% from FY 2023). Profit margin: 0.7% (down from 7.7% in FY 2023). Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 37%. Revenue is forecast to grow 18% 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 5% per year whereas the company’s share price has increased by 2% per year. Duyuru • Aug 08
AIMECHATEC, Ltd., Annual General Meeting, Sep 26, 2024 AIMECHATEC, Ltd., Annual General Meeting, Sep 26, 2024. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to JP¥1,521, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total loss to shareholders of 9.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥624 per share. Duyuru • Jun 23
AIMECHATEC, Ltd. to Report Fiscal Year 2024 Results on Aug 08, 2024 AIMECHATEC, Ltd. announced that they will report fiscal year 2024 results on Aug 08, 2024 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 30 September 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.1%). New Risk • May 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.5b (US$98.5m) 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (10% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 106% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.4% net profit margin). Shareholders have been diluted in the past year (9.0% increase in shares outstanding). Market cap is less than US$100m (JP¥15.5b market cap, or US$98.5m). Reported Earnings • May 19
Third quarter 2024 earnings released: JP¥13.07 loss per share (vs JP¥144 profit in 3Q 2023) Third quarter 2024 results: JP¥13.07 loss per share (down from JP¥144 profit in 3Q 2023). Revenue: JP¥3.57b (up 39% from 3Q 2023). Net loss: JP¥74.0m (down 109% from profit in 3Q 2023). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Japan. Valuation Update With 7 Day Price Move • May 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,760, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 22x in the Semiconductor industry in Japan. Total returns to shareholders of 99% over the past year. Duyuru • Mar 24
AIMECHATEC, Ltd. to Report Q3, 2024 Results on May 15, 2024 AIMECHATEC, Ltd. announced that they will report Q3, 2024 results on May 15, 2024 Duyuru • Mar 07
AIMECHATEC, Ltd. announced that it has received ¥7.39849 million in funding from Mizuho Securities Co., Ltd. On March 7, 2024, AIMECHATEC, Ltd. closed the transaction. Duyuru • Feb 21
AIMECHATEC, Ltd. announced that it expects to receive ¥7.39849 million in funding AIMECHATEC, Ltd. announced a private placement to issue 6,530 third stock acquisition rights through third-party allotment at an issue price of ¥1,133 per stock acquisition right for the gross proceeds of ¥7,398,490 on February 20, 2024. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment deteriorates as stock falls 31% After last week's 31% share price decline to JP¥3,805, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 19x in the Semiconductor industry in Japan. Total returns to shareholders of 182% over the past year. Reported Earnings • Feb 19
Second quarter 2024 earnings released: EPS: JP¥18.08 (vs JP¥32.51 in 2Q 2023) Second quarter 2024 results: EPS: JP¥18.08 (down from JP¥32.51 in 2Q 2023). Revenue: JP¥3.91b (flat on 2Q 2023). Net income: JP¥101.0m (down 45% from 2Q 2023). Profit margin: 2.6% (down from 4.7% in 2Q 2023). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Japan. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥5,960, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 20x in the Semiconductor industry in Japan. Total returns to shareholders of 318% over the past year. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to JP¥6,060, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 17x in the Semiconductor industry in Japan. Total returns to shareholders of 339% over the past year. Duyuru • Dec 23
AIMECHATEC, Ltd. to Report Q2, 2024 Results on Feb 14, 2024 AIMECHATEC, Ltd. announced that they will report Q2, 2024 results on Feb 14, 2024 Reported Earnings • Nov 16
First quarter 2024 earnings released: JP¥69.81 loss per share (vs JP¥71.58 loss in 1Q 2023) First quarter 2024 results: JP¥69.81 loss per share (improved from JP¥71.58 loss in 1Q 2023). Revenue: JP¥1.38b (up 5.6% from 1Q 2023). Net loss: JP¥393.0m (loss narrowed 2.5% from 1Q 2023). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Semiconductor industry in Japan. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to JP¥5,230, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 311% over the past year. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥3,505, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 15x in the Semiconductor industry in Japan. Total returns to shareholders of 150% over the past year. Board Change • Oct 19
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Outside Director Tsukasa Honkawa was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥3,265, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 149% over the past year. Duyuru • Sep 29
AIMECHATEC, Ltd. (TSE:6227) announces an Equity Buyback for 100,000 shares, representing 1.78% for ¥350 million. AIMECHATEC, Ltd. (TSE:6227) announces a share repurchase program. Under the program, the company will repurchase up to 100,000 shares, representing 1.78% of its issued share capital (excluding treasury stock), for a total purchase price of ¥350 million. The company will acquire treasury stock in order to enable the execution of flexible capital policies in response to changes in the business environment. As of June 30, 2023, the company had 5,629,980 issued shares (excluding treasury stock) and 20 treasury shares. Duyuru • Sep 28
AIMECHATEC, Ltd. to Report Q1, 2024 Final Results on Nov 13, 2023 AIMECHATEC, Ltd. announced that they will report Q1, 2024 final results on Nov 13, 2023 Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥2,879, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 121% over the past year. New Risk • Aug 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (JP¥12.8b market cap, or US$88.3m). Duyuru • Aug 10
AIMECHATEC, Ltd., Annual General Meeting, Sep 27, 2023 AIMECHATEC, Ltd., Annual General Meeting, Sep 27, 2023. Reported Earnings • Aug 10
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥259 (up from JP¥84.90 in FY 2022). Revenue: JP¥15.5b (up 5.3% from FY 2022). Net income: JP¥1.46b (up 205% from FY 2022). Profit margin: 9.4% (up from 3.3% in FY 2022). Revenue missed analyst estimates by 5.8%. Earnings per share (EPS) also missed analyst estimates by 2.9%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Semiconductor industry in Japan. Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥2,566, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Semiconductor industry in Japan. Total returns to shareholders of 105% over the past year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥45.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 29 September 2023. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (1.4%). Duyuru • Jun 16
AIMECHATEC, Ltd. to Report Fiscal Year 2023 Results on Aug 08, 2023 AIMECHATEC, Ltd. announced that they will report fiscal year 2023 results on Aug 08, 2023 Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,909, the stock trades at a trailing P/E ratio of 9.1x. Average trailing P/E is 13x in the Semiconductor industry in Japan. Total returns to shareholders of 39% over the past year. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,659, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 12x in the Semiconductor industry in Japan. Total returns to shareholders of 23% over the past year. Reported Earnings • Feb 10
Second quarter 2023 earnings released: EPS: JP¥32.51 (vs JP¥36.06 loss in 2Q 2022) Second quarter 2023 results: EPS: JP¥32.51 (up from JP¥36.06 loss in 2Q 2022). Revenue: JP¥3.90b (up 187% from 2Q 2022). Net income: JP¥183.0m (up JP¥386.0m from 2Q 2022). Profit margin: 4.7% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Duyuru • Dec 01
AIMECHATEC, Ltd. to Report Q2, 2023 Results on Feb 07, 2023 AIMECHATEC, Ltd. announced that they will report Q2, 2023 results on Feb 07, 2023 Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,642, the stock trades at a trailing P/E ratio of 67x. Average trailing P/E is 10x in the Semiconductor industry in Japan. Total returns to shareholders of 21% over the past year. Reported Earnings • Nov 10
First quarter 2023 earnings released: JP¥71.58 loss per share (vs JP¥107 profit in 1Q 2022) First quarter 2023 results: JP¥71.58 loss per share (down from JP¥107 profit in 1Q 2022). Revenue: JP¥1.30b (down 73% from 1Q 2022). Net loss: JP¥403.0m (down 167% from profit in 1Q 2022). Buying Opportunity • Oct 28
Now 22% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be JP¥1,841, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Earnings per share has declined by 10%. Buying Opportunity • Oct 11
Now 24% undervalued Over the last 90 days, the stock is up 16%. The fair value is estimated to be JP¥1,825, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Earnings per share has declined by 10%. Duyuru • Sep 28
AIMECHATEC, Ltd. to Report Q1, 2023 Results on Nov 08, 2022 AIMECHATEC, Ltd. announced that they will report Q1, 2023 results on Nov 08, 2022 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥1,459, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 9x in the Semiconductor industry in Japan. Total loss to shareholders of 2.8% over the past year. Duyuru • Jun 29
AIMECHATEC, Ltd. to Report Fiscal Year 2022 Results on Aug 09, 2022 AIMECHATEC, Ltd. announced that they will report fiscal year 2022 results on Aug 09, 2022 Valuation Update With 7 Day Price Move • May 23
Investor sentiment improved over the past week After last week's 20% share price gain to JP¥1,403, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 12x in the Semiconductor industry in Japan. Duyuru • Apr 08
AIMECHATEC, Ltd. to Report Q3, 2022 Results on May 13, 2022 AIMECHATEC, Ltd. announced that they will report Q3, 2022 results on May 13, 2022 Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improved over the past week After last week's 18% share price gain to JP¥1,530, the stock trades at a trailing P/E ratio of 12.4x. Average trailing P/E is 20x in the Semiconductor industry in Japan. Reported Earnings • Oct 05
Full year 2021 earnings released: EPS JP¥124 (vs JP¥51.69 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥16.1b (up 11% from FY 2020). Net income: JP¥696.0m (up 139% from FY 2020). Profit margin: 4.3% (up from 2.0% in FY 2020). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improved over the past week After last week's 21% share price gain to JP¥1,828, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 20x in the Semiconductor industry in Japan.