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

• Market Cap: HK$240.37M
• Dividend Yield: 8.1%
• Average Volume (3M): 213.07K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.17
• Revenue Growth: -0.75%
• EPS Growth: 35.42%
• Country: HK
• Employees: 1,307
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.03
• Shares Outstanding: 1,195,850,500
• 10 Day Avg. Volume: 220,400
• 30 Day Avg. Volume: 213,066
• PEG Ratio: -0.17
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 0.92
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$0.22 ▲(12.00% 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

Operating Cash Flow Strength

Sustained strong operating cash generation, reflected by an operating cash flow to net income ratio above 10, supports long-term capital allocation. Reliable cash conversion underpins debt servicing, maintenance capex, and selective reinvestment, reducing reliance on external financing and supporting durable operations.

Revenue Recovery Trend

A multi-year revenue rebound from HK$22.2bn to HK$28.3bn indicates recovering end-market demand and effective commercial execution. Persistent top-line recovery enhances scale economics, supports fixed-cost absorption in gaming facilities, and strengthens the company’s position in the domestic pachinko/pachislot market over the medium term.

Improved Gross and EBITDA Margins

Material improvement in gross and solid EBITDA margins signal improved pricing power or operating leverage in core gaming operations. Higher core profitability supports internal funding for maintenance and growth, and creates a buffer against industry cyclicality, enhancing long-term cash generation potential.

Negative Factors

High Financial Leverage

Relatively high leverage (debt/equity ~1.75) constrains financial flexibility and raises refinancing and interest rate risk over time. During adverse industry cycles, elevated debt increases default and liquidity pressures, limiting capacity for opportunistic investments or rapid strategic responses in the medium term.

Low Net Profit Margin

A low net margin (~2.1%) undermines the company’s ability to retain earnings and build equity organically. Even with strong gross and EBITDA metrics, limited bottom-line profitability reduces reinvestment capacity and resilience to cost shocks, making long-term capital accumulation and shareholder returns more challenging.

Modest Return on Equity

A modest ROE of around 3% indicates limited effectiveness in converting equity into profitable growth. Over the medium term, low ROE can signal constrained competitive returns and may pressure the company to either increase leverage or pursue higher-risk initiatives to elevate shareholder returns.

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 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 recovering financial trajectory with strong revenue growth and improved profitability. Despite high leverage, the company demonstrates solid operational cash flow and effective cost management. Further improvements in net profitability and debt management could enhance financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.32B	28.32B	26.95B	24.78B	22.21B	18.54B
Gross Profit	27.01B	27.01B	6.82B	6.15B	4.06B	1.33B
EBITDA	6.78B	6.78B	6.81B	6.63B	4.94B	-2.93B
Net Income	607.00M	607.00M	415.00M	1.13B	-1.18B	-5.48B
Balance Sheet
Total Assets	63.65B	63.65B	65.76B	65.80B	68.30B	77.49B
Cash, Cash Equivalents and Short-Term Investments	11.51B	11.51B	12.80B	11.06B	11.80B	16.05B
Total Debt	35.81B	35.81B	38.36B	39.94B	42.33B	50.11B
Total Liabilities	44.42B	44.42B	46.78B	46.51B	49.28B	57.28B
Stockholders Equity	20.41B	20.41B	20.16B	20.03B	19.63B	20.76B
Cash Flow
Free Cash Flow	2.26B	4.03B	5.88B	4.91B	4.66B	1.07B
Operating Cash Flow	3.45B	6.16B	8.10B	5.93B	5.39B	2.72B
Investing Cash Flow	-2.34B	-3.27B	-1.74B	-1.18B	-863.00M	-658.00M
Financing Cash Flow	-3.28B	-4.67B	-4.45B	-5.73B	-8.93B	-277.00M

Niraku GC Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	HK$240.37M	7.76	2.95%	8.10%	-0.75%	35.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0582	48 Neutral	HK$704.94M	-0.48	-7.56%	―	-15.22%	59.00%
0959	44 Neutral	HK$92.34M	-10.27	―	―	―	63.51%
0070	43 Neutral	HK$93.06M	-0.94	-10.06%	―	1.24%	-96.15%
1371	43 Neutral	HK$28.72M	-0.40	―	―	66.22%	73.39%
8308	42 Neutral	HK$88.88M	-1.30	-34.01%	―	-0.31%	34.83%

Niraku GC Holdings, Inc. Corporate Events

Niraku GC Holdings Offers Currency Choice for Interim Dividends

Niraku GC Holdings, Inc. has announced a process for shareholders to elect or change the currency in which they receive their interim dividends. Shareholders listed on the company’s register by December 9, 2025, can choose between Japanese yen and Hong Kong dollars for their dividend payments, with the deadline for submitting the currency election form set for December 24, 2025. This announcement is significant for shareholders as it provides flexibility in currency selection, potentially impacting their financial planning and investment strategies.

The most recent analyst rating on (HK:1245) stock is a Buy with a HK$0.27 price target. To see the full list of analyst forecasts on Niraku GC Holdings, Inc. stock, see the HK:1245 Stock Forecast page.

Niraku GC Holdings Announces Interim Dividend with Currency Options

Niraku GC Holdings, Inc. has announced an interim dividend of JPY 0.2 per share for the six months ended 30 September 2025, with the payment date set for 12 January 2026. Shareholders have the option to receive the dividend in either Japanese yen or Hong Kong dollars, with specific withholding tax rates applicable depending on the shareholder’s residency and shareholding percentage.

The most recent analyst rating on (HK:1245) stock is a Buy with a HK$0.27 price target. To see the full list of analyst forecasts on Niraku GC Holdings, Inc. stock, see the HK:1245 Stock Forecast page.

Niraku GC Holdings Reports Strong Interim Results with Increased Revenue and Profit

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

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

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’

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

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

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.