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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:1245

Niraku GC Holdings, Inc.

(1245)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
HK$0.27
▲(27.62% Upside)
Niraku GC Holdings, Inc. scores well due to its strong financial recovery and attractive valuation. The technical indicators show positive momentum, although caution is advised due to potential overbought conditions. The company's high leverage is a risk factor, but its solid cash flow management provides some mitigation.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a successful expansion strategy and increasing market demand for the company's gaming services.
Operational Efficiency
A strong EBITDA margin suggests effective cost management and operational efficiency, supporting long-term profitability.
Cash Flow Management
Robust cash flow management ensures the company can meet its financial obligations and invest in future growth opportunities.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns.
Net Profit Margin
A low net profit margin indicates challenges in translating revenue growth into bottom-line profitability, affecting long-term financial health.
Free Cash Flow Growth
Declining free cash flow growth could constrain future investments and limit the company's ability to reduce debt or return capital to shareholders.

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., an investment holding company, operates pachinko and pachislot halls in Japan. It also operates hotels; a Spanish restaurant franchise under the LIZARRAN brand; cafes under the KOMEDA; and a food court under the YOKOCHO brand. In addition, the company engages in the property investment and cleaning service businesses. Further, it operates amusement centre; and wholesales computer games, and sporting and other recreational goods. The company was formerly known as Niraku Global Community Holdings Inc. Niraku GC Holdings, Inc. was founded in 1950 and is headquartered in Koriyama, Japan.
How the Company Makes MoneyNiraku GC Holdings generates revenue through multiple streams primarily derived from its gaming operations. The core revenue comes from the operation of pachinko and pachislot parlors, where players pay to play games and potentially win prizes. The company also earns money from the sale and leasing of gaming machines to other operators. Additionally, Niraku GC benefits from ancillary services such as food and beverage sales within its facilities. Strategic partnerships with machine manufacturers and gaming suppliers further bolster its revenue, providing exclusive access to new gaming technologies and products, thereby enhancing customer satisfaction and loyalty.

Niraku GC Holdings, Inc. Financial Statement Overview

Summary
Niraku GC Holdings, Inc. shows a strong recovery in revenue and improved profitability, with a significant increase in gross profit margin. However, the net profit margin remains low, and the company has relatively high leverage, which impacts financial stability. Solid operational cash flow and effective cost management are positive indicators.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
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
Neutral
Last Price0.21
Price Trends
50DMA
0.20
Positive
100DMA
0.20
Positive
200DMA
0.18
Positive
Market Momentum
MACD
<0.01
Positive
RSI
47.75
Neutral
STOCH
44.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1245, the sentiment is Neutral. The current price of 0.21 is below the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.20, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 44.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1245.

Niraku GC Holdings, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$251.13M8.112.95%8.10%-0.75%35.42%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
49
Neutral
HK$113.88M-1.66-34.01%-0.31%34.83%
46
Neutral
HK$438.18M-0.41-7.56%-15.22%59.00%
43
Neutral
HK$106.64M-1.08-10.06%1.24%-96.15%
41
Neutral
HK$36.29M-0.5066.22%73.39%
20
Underperform
HK$92.34M-10.2763.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1245
Niraku GC Holdings, Inc.
0.21
<0.01
5.00%
HK:0070
Rich Goldman Holdings Limited
0.06
<0.01
14.58%
HK:1371
China Ecotourism Group Limited
0.24
0.07
41.57%
HK:0959
Century Entertainment International Holdings Limited
0.72
0.24
50.00%
HK:0582
Shin Hwa World Limited
0.12
-0.05
-29.41%
HK:8308
Gudou Holdings Limited
0.08
-0.09
-52.94%

Niraku GC Holdings, Inc. Corporate Events

Niraku GC Holdings Reports Strong Interim Results with Increased Revenue and Profit
Nov 25, 2025

Niraku GC Holdings, Inc. announced its interim results for the six months ended September 30, 2025, showing a positive financial performance. The company reported a 3.5% increase in gross pay-ins and a 9.1% rise in revenue compared to the same period last year. Profit before income tax surged by 32.2%, and profit attributable to the company’s owners increased by ¥247 million. The board declared an interim dividend of ¥0.20 per common share, reflecting confidence in the company’s growth and stability.

Niraku GC Holdings Declares Interim Dividend with Tax Implications
Nov 25, 2025

Niraku GC Holdings, Inc. has announced an interim dividend of ¥0.20 or HK$0.010 per common share for the six months ended 30 September 2025, payable on 12 January 2026. The announcement also outlines the tax implications and procedures for shareholders, including withholding tax rates and potential refunds under applicable tax treaties, which may impact the company’s stakeholders and financial operations.

Niraku GC Holdings Announces Interim Dividend for 2025
Nov 25, 2025

Niraku GC Holdings, Inc. has announced an interim dividend for the six months ending 30 September 2025, with a declared dividend of JPY 0.2 per share. Shareholders have the option to receive the dividend in either Japanese yen or Hong Kong dollars, with the payment date set for 12 January 2026. The announcement outlines the withholding tax rates applicable to different types of shareholders, depending on their residency and shareholding percentage.

Niraku GC Holdings Announces Sale of Trust Beneficial Interest in ‘KAI Aso’
Nov 20, 2025

Niraku GC Holdings, Inc., through its non-wholly-owned subsidiary, has entered into an agreement to sell the Trust Beneficial Interest of ‘KAI Aso’ to an independent third party for JPY955.7 million. This transaction, classified as a discloseable transaction under the Hong Kong Listing Rules, is set to be effective on December 2, 2025, and involves the transfer of 100% interest in the Trust Real Estate, which will be operated as a ryokan inn by the purchaser.

Niraku GC Holdings Announces Disposal of Trust Beneficial Interest
Nov 20, 2025

Niraku GC Holdings, Inc., a company incorporated in Japan, announced a discloseable transaction involving the disposal of trust beneficial interest in ‘Hana no Omotenashi Nanraku’. The transaction involves the sale of 100% interest in the trust real estate to an independent third party for JPY875.2 million, with the effective date of assignment set for December 2, 2025. This move is subject to reporting and announcement requirements under the Hong Kong Listing Rules, reflecting a strategic decision to streamline operations and potentially reallocate resources.

Niraku GC Holdings to Review Interim Results and Dividend
Nov 13, 2025

Niraku GC Holdings, Inc. has announced that its board of directors will meet on November 25, 2025, to review and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Niraku GC Holdings Announces Delay in Circular Dispatch for Major Asset Disposal
Oct 16, 2025

Niraku GC Holdings, Inc., a company incorporated in Japan, has announced a further delay in the dispatch of a circular related to a major transaction involving the disposal of land, buildings, and assets in Miyagino, Japan. The company has received a waiver from the Stock Exchange to extend the dispatch deadline to 31 October 2025, allowing more time to finalize necessary information.

Niraku GC Holdings Expands Real Estate Portfolio with New Acquisition in Japan
Oct 16, 2025

Niraku GC Holdings, Inc., through its wholly-owned subsidiary NBI, has entered into a Purchase and Sale Agreement with Keeth Partners to acquire land and buildings in Ajiro, Atami, Shizuoka Prefecture, Japan, for JPY790.6 million. This acquisition, considered a discloseable transaction under the Listing Rules, reflects the company’s strategic investment in real estate, with completion expected on 4 November 2025. The transaction was negotiated based on local market conditions and appraised market value, deemed fair and reasonable by the company’s directors.

Niraku GC Holdings Acquires Pachinko Halls from GAIA
Sep 30, 2025

Niraku GC Holdings, Inc. has announced the acquisition of pachinko halls from GAIA, an independent third party, through an absorption-type company split. This transaction, valued at approximately JPY520 million, will see the target business become wholly owned by Niraku and integrated into the company’s financial statements. The acquisition is classified as a discloseable transaction under Hong Kong’s listing rules, requiring reporting and announcement but exempt from circular and shareholder approval.

Niraku GC Holdings Delays Dispatch of Circular for Major Asset Disposal
Sep 19, 2025

Niraku GC Holdings, Inc. announced a delay in the dispatch of a circular related to a major transaction involving the disposal of land, buildings, and assets in Miyagino, Japan. The company has received a waiver from the Stock Exchange to extend the dispatch deadline to October 10, 2025, allowing additional time to finalize necessary information. This delay may impact stakeholders’ timelines and expectations regarding the transaction.

Niraku GC Holdings Announces Trust Beneficial Interest Disposal
Sep 18, 2025

Niraku GC Holdings, Inc. has announced a discloseable transaction involving the disposal of its beneficial interest in a trust. The transaction, which involves a non-wholly-owned subsidiary of the company, entails the assignment of the Trust Beneficial Interest to an independent third party for JPY600.0 million. This disposal is subject to certain reporting requirements under the Listing Rules but does not require shareholder approval. The trust’s real estate includes land and a 10-storey ryokan inn in Japan, and the effective date of the assignment is set for 30 September 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: Nov 30, 2025