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Niraku GC Holdings, Inc. (HK:1245)
:1245
Hong Kong Market

Niraku GC Holdings, Inc. (1245) AI Stock Analysis

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HK

Niraku GC Holdings, Inc.

(1245)

Rating:76Outperform
Price Target:
HK$0.00
▼(-100.00%Downside)
Niraku GC Holdings, Inc. receives a solid score driven primarily by strong technical indicators and attractive valuation. While financial performance shows recovery, high leverage remains a concern. The combination of bullish market momentum and potential undervaluation makes the stock appealing, but investors should monitor financial stability closely.

Niraku GC Holdings, Inc. (1245) vs. iShares MSCI Hong Kong ETF (EWH)

Niraku GC Holdings, Inc. Business Overview & Revenue Model

Company DescriptionNiraku GC Holdings, Inc. is a Japan-based company primarily engaged in the operation and management of gaming and entertainment facilities. The company's core business revolves around the management of pachinko and pachislot halls, which are popular gaming venues in Japan. In addition to its gaming operations, the company is involved in the real estate business, focusing on property development and management.
How the Company Makes MoneyNiraku GC Holdings, Inc. generates revenue primarily through the operation of its pachinko and pachislot halls. These gaming establishments attract a significant number of customers who play pachinko and pachislot machines, which are similar to slot machines and video poker found in Western casinos. The company earns money from the margins on these games, as well as from the sale of prizes that customers win and exchange for cash at separate establishments. Another revenue stream for Niraku GC Holdings is its real estate segment, where the company develops and manages properties, earning income through leasing and sales. These core activities are supported by strategic partnerships and collaborations within the gaming and real estate sectors, contributing to the company's overall earnings.

Niraku GC Holdings, Inc. Financial Statement Overview

Summary
Niraku GC Holdings, Inc. demonstrates a recovering financial trajectory with strong revenue growth and improved profitability. Leverage remains high, but operational cash flow is strong, and cost management is effective. The company is resilient, though further improvements in net profitability and debt management are needed.
Income Statement
75
Positive
The income statement shows a strong recovery in revenue with a positive growth trajectory, increasing from HK$22.2 billion in 2022 to HK$28.3 billion in 2025. Gross profit margin improved significantly from 18.3% in 2022 to 95.4% in 2025, indicating better cost management. However, net profit margin remains relatively low at 2.1% in 2025, despite recovery from negative margins in previous years. EBITDA margin is solid at 23.9% in 2025, highlighting operational efficiency.
Balance Sheet
60
Neutral
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.75 in 2025, indicating relatively high leverage. Stockholders' equity has been stable, showing resilience. The equity ratio stands at 32.1% in 2025, suggesting a moderate level of financial stability. Return on equity improved to 3.0% in 2025 from negative values, demonstrating a positive, yet modest, return for shareholders.
Cash Flow
70
Positive
Cash flow statements reveal strong operating cash flows with a consistent ability to generate cash from operations, as reflected by an operating cash flow to net income ratio of 10.15 in 2025. Free cash flow to net income ratio is robust, indicating effective cash management. Despite decreasing free cash flow growth, the company maintains a healthy free cash flow position, supporting future investments and debt obligations.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue28.20B28.32B26.95B24.78B22.21B18.54B
Gross Profit7.66B27.01B6.82B6.15B4.06B1.33B
EBITDA5.05B6.78B6.81B6.63B4.94B-2.93B
Net Income461.00M607.00M415.00M1.13B-1.18B-5.48B
Balance Sheet
Total Assets64.68B63.65B65.76B65.80B68.30B77.49B
Cash, Cash Equivalents and Short-Term Investments11.13B11.51B12.80B11.06B11.80B16.05B
Total Debt37.23B35.81B38.36B39.94B42.33B50.11B
Total Liabilities45.47B44.42B46.78B46.51B49.28B57.28B
Stockholders Equity20.38B20.41B20.16B20.03B19.63B20.76B
Cash Flow
Free Cash Flow5.35B4.03B5.88B4.91B4.66B1.07B
Operating Cash Flow7.46B6.16B8.10B5.93B5.39B2.72B
Investing Cash Flow-2.91B-3.27B-1.74B-1.18B-863.00M-658.00M
Financing Cash Flow-5.52B-4.67B-4.45B-5.73B-8.93B-277.00M

Niraku GC Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.21
Price Trends
50DMA
0.18
Positive
100DMA
0.18
Positive
200DMA
0.19
Positive
Market Momentum
MACD
<0.01
Negative
RSI
68.42
Neutral
STOCH
90.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1245, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.18, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.42 is Neutral, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1245.

Niraku GC Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$254.72M8.222.95%3.29%-0.75%35.42%
56
Neutral
HK$24.58B3.79-2.03%6.58%-0.32%-67.68%
50
Neutral
HK$74.12M
6.90%-80.61%
49
Neutral
HK$91.12M-8.56%12.77%-223.45%
45
Neutral
HK$226.70M-7.19%1.09%38.09%
39
Underperform
HK$59.80M-28.31%-0.38%51.41%
20
Underperform
HK$92.34M
63.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1245
Niraku GC Holdings, Inc.
0.21
0.00
0.00%
HK:8308
Gudou Holdings Limited
0.05
-0.05
-50.00%
HK:0582
Shin Hwa World Limited
0.15
-0.14
-48.28%
HK:0959
Century Entertainment International Holdings Limited
0.72
0.50
227.27%
HK:0070
Rich Goldman Holdings Limited
0.05
>-0.01
-4.08%
HK:1371
China Ecotourism Group Limited
0.48
0.25
106.01%

Niraku GC Holdings, Inc. Corporate Events

Niraku GC Holdings Announces AGM Results and Director Appointments
Jun 30, 2025

Niraku GC Holdings, Inc. held its Annual General Meeting on June 30, 2025, where all proposed resolutions were passed unanimously. The meeting included the re-election of several directors and the appointment of a new non-executive director, Mr. Hidenori Morota. Additionally, PricewaterhouseCoopers Japan LLC was re-appointed as the company’s accounting auditor.

Niraku GC Holdings Announces Board Composition and Committee Roles
Jun 30, 2025

Niraku GC Holdings, Inc. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the membership of three key board committees: Audit, Nomination, and Remuneration, highlighting the roles and responsibilities of each director within these committees. This update is significant for stakeholders as it outlines the governance structure and leadership roles within the company, potentially impacting its strategic direction and operational oversight.

Niraku GC Holdings Updates Final Dividend Details for FY2025
Jun 13, 2025

Niraku GC Holdings, Inc. has announced an update regarding its final dividend for the financial year ending March 31, 2025. The company declared a dividend of JPY 0.12 per share, with shareholders having the option to receive it in either Japanese yen or Hong Kong dollars. The ex-dividend date is set for June 12, 2025, and the payment date is July 15, 2025. This announcement provides clarity on the closing date and time for option election, which is June 30, 2025. The update also includes details about withholding tax rates applicable to different categories of shareholders, highlighting the company’s commitment to transparent communication with its stakeholders.

Niraku GC Holdings Announces Currency Election for Final Dividend
Jun 13, 2025

Niraku GC Holdings, Inc. has announced a procedure for its shareholders to elect or change the currency in which they receive their final dividend for the year ending March 31, 2025. Shareholders must submit a completed currency election form by June 30, 2025, to choose between receiving dividends in Japanese yen or Hong Kong dollars. This announcement is crucial for shareholders as it affects how they will receive their dividend payments, with specific instructions for those holding shares through the Central Clearing and Settlement System.

Niraku GC Holdings Announces Annual General Meeting and Key Resolutions
Jun 5, 2025

Niraku GC Holdings, Inc. has announced its Annual General Meeting scheduled for June 30, 2025, in Koriyama-shi, Fukushima, Japan. The meeting will cover the company’s business and financial reports for the year ending March 31, 2025, and will include resolutions to re-elect several directors and appoint auditors. Additionally, the company seeks approval for a general mandate to issue shares, which could impact its capital structure and shareholder value.

Niraku GC Holdings Reports Mixed Financial Results for FY2025
May 26, 2025

Niraku GC Holdings, Inc. reported its annual results for the year ended March 31, 2025, showing a 10.1% increase in gross pay-ins and a 5.0% rise in revenue compared to the previous year. Despite these gains, the company experienced a 9.8% decrease in profit from continuing operations before income tax and a reduction in profit attributable to owners, reflecting challenges in maintaining profitability amidst rising operational costs and impairments.

Niraku GC Holdings Declares Final Dividend for FY2025
May 26, 2025

Niraku GC Holdings, Inc. has announced a final dividend of ¥0.12 per common share for the fiscal year ending March 31, 2025, payable on July 15, 2025. The dividend is subject to Japanese withholding tax, with provisions for reduced rates under applicable tax treaties for shareholders residing outside Japan. This announcement underscores the company’s commitment to shareholder returns and may impact its financial positioning and investor relations.

Niraku GC Holdings Announces Final Dividend for FY2025
May 26, 2025

Niraku GC Holdings, Inc. announced a final cash dividend of JPY 0.12 per share for the financial year ending March 31, 2025. Shareholders have the option to receive the dividend in either Japanese yen or Hong Kong dollars, with the payment date set for July 15, 2025. The announcement outlines the applicable withholding tax rates for different categories of shareholders, impacting both Japanese and non-Japanese residents.

Niraku GC Holdings Announces Board Composition and Committee Roles
May 26, 2025

Niraku GC Holdings, Inc. has announced the composition and roles of its board of directors, highlighting the structure and membership of its executive, non-executive, and independent non-executive directors. The company also detailed the membership of its three key board committees: Audit, Nomination, and Remuneration, indicating the leadership and participation of its board members in these committees.

Niraku GC Holdings Updates Nomination Committee Rules
May 26, 2025

Niraku GC Holdings, Inc. has updated the rules for its Nomination Committee, which was initially established in 2014. The new rules, adopted in May 2025, emphasize compliance with the Corporate Governance Code by the HKEx and outline the structure and operational procedures of the committee, including its membership and meeting frequency.

Niraku GC Holdings Announces 2025 AGM Date
May 23, 2025

Niraku GC Holdings, Inc. has announced the scheduling of its 2025 Annual General Meeting (AGM) for June 30, 2025. Shareholders registered by June 24, 2025, will have the right to attend and vote at the meeting. This announcement is part of the company’s compliance with the listing rules of the Hong Kong Stock Exchange, ensuring transparency and shareholder engagement.

Niraku GC Holdings Schedules Board Meeting to Approve Annual Results
May 14, 2025

Niraku GC Holdings, Inc. has announced a board meeting scheduled for May 26, 2025, to discuss and approve the annual results for the fiscal year ending March 31, 2025, and to consider the payment of a final dividend. This meeting is significant for the company’s stakeholders as it will reveal the company’s financial performance and potential dividend payouts, impacting investor decisions and market perception.

Niraku GC Holdings Acquires Property in Japan for HK$42.3 Million
Apr 22, 2025

Niraku GC Holdings, Inc. has announced a discloseable transaction involving the acquisition of land and buildings in Kokonoe-machi, Japan. The purchase, valued at JPY798.4 million (approximately HK$42.3 million), includes a ryokan inn and involves the transfer of existing lease obligations to the purchaser. This strategic acquisition is seen as a fair investment based on market conditions and is expected to enhance the company’s asset portfolio.

Niraku GC Holdings Announces Acquisition in Japan
Apr 17, 2025

Niraku GC Holdings, Inc. has announced a discloseable transaction involving the acquisition of land and a building in Shizukuishi-cho, Iwate-gun, Japan. The transaction, valued at JPY358.4 million (approximately HK$19.0 million), involves a non-wholly-owned subsidiary of the company purchasing a 10-storey ryokan inn and surrounding land. This acquisition is subject to certain reporting requirements but does not require shareholder approval. The deal is contingent upon a court order permitting the sale, with completion expected by the end of April 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025