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

• Market Cap: HK$236.78M
• Dividend Yield: 6%
• Average Volume (3M): 85.80K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.09
• Revenue Growth: -0.75%
• EPS Growth: 35.42%
• Country: HK
• Employees: 1,307
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): <0.01
• Shares Outstanding: 1,195,850,500
• 10 Day Avg. Volume: 97,200
• 30 Day Avg. Volume: 85,800
• PEG Ratio: -0.66
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• 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. Business Overview & Revenue Model

Company Description

Niraku 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 Money

Niraku GC Holdings, Inc. generates revenue primarily through its pachinko and pachislot operations. These gaming halls attract a significant number of customers who spend money to play on the machines, providing a steady stream of income for the company. The company also invests in marketing and customer loyalty programs to retain and grow its customer base. Additionally, Niraku GC Holdings may engage in partnerships or collaborations that enhance its service offerings and contribute to its financial performance. Key factors influencing their earnings include the popularity of their gaming centers, operational efficiency, and their ability to adapt to changing regulatory environments in Japan.

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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.32B	26.95B	24.78B	22.21B	18.54B
Gross Profit	27.01B	6.82B	6.15B	4.06B	1.33B
EBITDA	6.78B	6.81B	6.63B	4.94B	-2.93B
Net Income	607.00M	415.00M	1.13B	-1.18B	-5.48B
Balance Sheet
Total Assets	63.65B	65.76B	65.80B	68.30B	77.49B
Cash, Cash Equivalents and Short-Term Investments	11.51B	12.80B	11.06B	11.80B	16.05B
Total Debt	35.81B	38.36B	39.94B	42.33B	50.11B
Total Liabilities	44.42B	46.78B	46.51B	49.28B	57.28B
Stockholders Equity	20.41B	20.16B	20.03B	19.63B	20.76B
Cash Flow
Free Cash Flow	4.03B	5.88B	4.91B	4.66B	1.07B
Operating Cash Flow	6.16B	8.10B	5.93B	5.39B	2.72B
Investing Cash Flow	-3.27B	-1.74B	-1.18B	-863.00M	-658.00M
Financing Cash Flow	-4.67B	-4.45B	-5.73B	-8.93B	-277.00M

Niraku GC Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.2 is below the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1245	76 Outperform	HK$236.78M	7.64	2.95%	6.00%	-0.75%	35.42%
Sector *	67 Neutral	¥261.79B	13.64	6.45%	2.57%	5.11%	-13.15%
MRU3	―	€10.63M	―	-8.56%	―	―	―
WORA	―	€5.85M	―		―	―	―
0582	45 Neutral	HK$255.60M	―	-7.19%	―	1.09%	38.09%
8308	39 Underperform	HK$71.01M	―	-28.31%	―	-0.38%	51.41%
0959	20 Underperform	HK$92.34M	―		―	―	63.60%

Niraku GC Holdings, Inc. Corporate Events

Niraku GC Holdings’ Subsidiary Enters Lease Agreement for Ryokan Inn

Niraku GC Holdings, Inc. announced that its non-wholly-owned subsidiary, NBI, has entered into a lease agreement with Core Global for the Ryokan Inn in Shizuoka Prefecture, Japan. This lease, effective from August 2025 to August 2027, involves a fixed monthly rent and a variable component tied to gross profits. The agreement is categorized as a continuing connected transaction under Hong Kong’s Listing Rules, necessitating announcement and annual review but exempt from shareholder approval.

Niraku GC Holdings Expands with Strategic Acquisition in Japan

Niraku GC Holdings, Inc., through its non-wholly-owned subsidiary NBI, has entered into agreements to acquire land and buildings in Minami-Izu-cho, Japan, for JPY516.3 million. This acquisition, classified as a discloseable transaction under Hong Kong’s Listing Rules, is expected to be completed on August 29, 2025, and involves the transfer of a ryokan inn business, enhancing the company’s asset portfolio.

Niraku GC Holdings Announces AGM Results and Director Appointments

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

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

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

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

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

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

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

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

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

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

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

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.