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WELLNEO SUGAR Co.Ltd. (JP:2117)
:2117
Japanese Market
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WELLNEO SUGAR Co.Ltd. (2117) AI Stock Analysis

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JP:2117

WELLNEO SUGAR Co.Ltd.

(2117)

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Outperform 79 (OpenAI - 4o)
Rating:79Outperform
Price Target:
¥2,817.00
▲(11.21% Upside)
WELLNEO SUGAR Co.Ltd. receives a strong overall score due to its robust financial performance and positive technical indicators. The company's solid revenue growth, profitability, and low leverage contribute significantly to its financial health. Technical analysis supports a bullish outlook, with the stock trading above key moving averages and strong momentum indicators. The valuation is reasonable, with an attractive dividend yield enhancing investor returns.

WELLNEO SUGAR Co.Ltd. (2117) vs. iShares MSCI Japan ETF (EWJ)

WELLNEO SUGAR Co.Ltd. Business Overview & Revenue Model

Company DescriptionNissin Sugar Co., Ltd. manufactures and sells sugar and other food products primarily in Japan. The company offers white soft, frost, granulated, powdered, brown soft, light brown crystal, white crystal, rock, liquid, kibi zato, calcium fortified, and cup sugar products. It also provides individually packed gum syrup, low calorie sweetener, cup oligo/GOS, and large pack for commercial use. In addition, the company operates a chain of Do Sports Plaza fitness club. Further, it is involved in the warehousing business. The company was founded in 1944 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyWELLNEO SUGAR Co.Ltd. generates revenue primarily through the sale of its sugar products. The company supplies its products to a range of customers including food manufacturers, retailers, and wholesalers. In addition to direct sales, WELLNEO SUGAR may engage in long-term supply agreements with key partners, ensuring a stable revenue stream. The company might also explore strategic partnerships or joint ventures to expand its market reach or enhance its production capabilities, contributing to its overall earnings.

WELLNEO SUGAR Co.Ltd. Financial Statement Overview

Summary
WELLNEO SUGAR Co.Ltd. demonstrates robust financial health with strong revenue growth and profitability. The balance sheet is solid with low leverage, and cash flows are generally healthy despite recent declines in free cash flow growth. The company is well-positioned in the food confectioners industry, but should monitor debt levels and cost pressures to sustain its financial performance.
Income Statement
85
Very Positive
WELLNEO SUGAR Co.Ltd. shows strong revenue growth with a 5.93% increase in the TTM period. The company maintains healthy profitability with a gross profit margin of 20.06% and a net profit margin of 5.73%. EBIT and EBITDA margins are also solid at 8.33% and 10.75%, respectively, indicating efficient operational management. However, the slight decline in EBIT margin compared to the previous annual report suggests potential cost pressures.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.24, indicating conservative leverage. The return on equity is modest at 7.68%, suggesting efficient use of equity capital. The equity ratio stands at 66.41%, highlighting a strong equity base. However, the increase in total debt over the periods warrants monitoring for potential leverage risks.
Cash Flow
70
Positive
Cash flow analysis reveals a slight decline in free cash flow growth at -2.77% in the TTM period, which could impact future liquidity. The operating cash flow to net income ratio is 1.73, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing effective conversion of income to cash. Despite the recent decline, the company maintains a solid cash flow position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue102.82B97.07B92.19B58.35B46.06B43.77B
Gross Profit20.23B19.47B16.24B9.27B8.21B8.75B
EBITDA10.79B10.56B9.81B3.57B3.88B3.96B
Net Income5.65B5.57B5.52B1.06B1.72B1.13B
Balance Sheet
Total Assets110.47B110.35B95.92B93.57B61.13B61.32B
Cash, Cash Equivalents and Short-Term Investments15.35B15.45B12.51B11.26B7.65B8.52B
Total Debt21.62B17.76B10.52B12.61B5.15B5.15B
Total Liabilities37.10B35.98B24.81B25.31B12.23B12.77B
Stockholders Equity73.36B72.89B71.11B68.26B48.90B48.54B
Cash Flow
Free Cash Flow8.68B8.89B4.87B-2.21B1.42B2.70B
Operating Cash Flow9.78B8.93B6.66B-1.63B2.18B3.32B
Investing Cash Flow-10.07B-8.98B-822.00M4.61B-651.00M-482.00M
Financing Cash Flow7.61B2.99B-4.59B-3.68B-2.40B-2.40B

WELLNEO SUGAR Co.Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2533.00
Price Trends
50DMA
2437.25
Positive
100DMA
2326.94
Positive
200DMA
2264.40
Positive
Market Momentum
MACD
35.61
Positive
RSI
50.12
Neutral
STOCH
7.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2117, the sentiment is Neutral. The current price of 2533 is below the 20-day moving average (MA) of 2561.97, above the 50-day MA of 2437.25, and above the 200-day MA of 2264.40, indicating a neutral trend. The MACD of 35.61 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2117.

WELLNEO SUGAR Co.Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥81.62B14.644.34%9.30%7.40%
76
Outperform
¥12.47B5.8912.85%2.18%2.91%62.43%
72
Outperform
¥27.32B10.2211.94%3.19%7.36%31.17%
71
Outperform
¥39.68B-12.313.66%2.75%-1.05%-140.53%
68
Neutral
¥98.01B16.505.49%4.13%4.33%5.96%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2117
WELLNEO SUGAR Co.Ltd.
2,525.00
424.59
20.21%
JP:2108
Nippon Beet Sugar Manufacturing Co., Ltd.
2,911.00
300.00
11.49%
JP:2109
Mitsui DM Sugar Holdings Co.Ltd
3,150.00
-98.22
-3.02%
JP:2112
Ensuiko Sugar Refining Co., Ltd.
459.00
193.09
72.61%
JP:2114
Fuji Nihon Seito Corporation
1,083.00
79.74
7.95%

WELLNEO SUGAR Co.Ltd. Corporate Events

WELLNEO SUGAR Co., Ltd. Resolves to Acquire Treasury Shares for Director Compensation
Aug 5, 2025

WELLNEO SUGAR Co., Ltd. announced a resolution to acquire treasury shares to implement a performance-linked restricted share compensation plan for its directors. This strategic move aims to align the interests of the company’s directors with its long-term performance goals, potentially enhancing shareholder value.

WELLNEO SUGAR Co., Ltd. Reports Strong Revenue Growth for Q2 2025
Aug 5, 2025

WELLNEO SUGAR Co., Ltd. reported a 23.6% increase in revenue for the three months ending June 30, 2025, compared to the same period in 2024, with operating profit rising by 9.5%. Despite these positive results, the company’s total comprehensive income decreased by 4.6%. The company maintained a stable financial position with a slight increase in total assets and equity. The dividend forecast for the fiscal year ending March 31, 2026, shows an increase, reflecting confidence in future performance. No significant changes in accounting policies or consolidation scope were reported.

WELLNEO SUGAR Co., Ltd. Announces Treasury Share Disposition for Director Compensation
Jul 22, 2025

WELLNEO SUGAR Co., Ltd. has announced the disposition of treasury shares as part of a performance-linked restricted share compensation plan for its directors. The plan aims to align the interests of directors with shareholders by linking compensation to performance indicators, such as return on equity, and is designed to motivate directors to enhance the company’s business performance and corporate value. The impact on the company’s share dilution is minimal, and the move is seen as a strategic effort to improve operational efficiency and shareholder value.

WELLNEO SUGAR Co., Ltd. Affirms Independence Amidst Major Shareholder Relationships
Jun 17, 2025

WELLNEO SUGAR Co., Ltd. announced its relationships with controlling shareholders, ITOCHU Corporation and Sumitomo Corporation, emphasizing its operational independence and adherence to market-based transactions. The company ensures fair transaction terms with its affiliates, safeguarding the interests of minority shareholders.

WELLNEO SUGAR Announces Key Personnel Changes Post-Merger
Jun 17, 2025

WELLNEO SUGAR Co., Ltd. announced personnel changes effective October 1, 2025, following its merger with its subsidiary, DAIICHI TOGYO CO., LTD. The merger will dissolve the subsidiary and integrate its operations, with key executives from DAIICHI TOGYO assuming new roles within WELLNEO SUGAR. This strategic move is expected to enhance operational efficiency and strengthen the company’s market position.

WELLNEO SUGAR Announces Strategic Merger with Toyo Sugar Refining
Jun 17, 2025

WELLNEO SUGAR Co., Ltd. has resolved to conduct an absorption-type merger with its wholly owned subsidiary, Toyo Sugar Refining Co., Ltd., effective October 1, 2026. This strategic move aims to enhance integrated management, improve efficiency, and maximize synergies within the Sugar and Food & Wellness Segments, following the company’s recent acquisition of Toyo Sugar Refining.

WELLNEO SUGAR Co., Ltd. Unveils FY3/25 Financial Results and Strategic Vision for 2027
May 28, 2025

WELLNEO SUGAR Co., Ltd. has announced its financial results for FY3/25 and provided forecasts for FY3/26, alongside progress on its medium-term management plan, WELLNEO Vision 2027. The company is prioritizing strategies such as expanding its food and wellness sectors, strengthening its sugar production, promoting human capital management, and enhancing sustainability management. These initiatives are expected to improve the company’s market position and provide better returns to shareholders.

WELLNEO SUGAR Co., Ltd. Achieves Compliance with TSE Prime Market Criteria
May 23, 2025

WELLNEO SUGAR Co., Ltd. has successfully met all the continued listing maintenance criteria for the Tokyo Stock Exchange Prime Market as of March 2025. This achievement follows the company’s strategic efforts to increase the liquidity of its shares and improve its tradable share ratio, ensuring compliance and positioning the company for sustainable growth and enhanced corporate value.

WELLNEO SUGAR Announces Merger with Subsidiary to Streamline Operations
May 23, 2025

WELLNEO SUGAR Co., Ltd. has announced a merger with its wholly-owned subsidiary, DAIICHI TOGYO CO., LTD., as part of a strategic move to streamline operations. The merger, which is expected to result in a loss on extinguishment of shares, is scheduled to be effective from October 1, 2025, pending shareholder approval. This consolidation is likely to enhance WELLNEO SUGAR’s operational efficiency and market positioning.

WELLNEO SUGAR Co., Ltd. Announces 2025 Financial Results and Strategic Changes
May 14, 2025

WELLNEO SUGAR Co., Ltd. reported its consolidated financial results for the year ended March 31, 2025, showing a revenue increase of 5.3% to 97,069 million yen and a 38.3% rise in operating profit to 8,024 million yen. The company also announced changes in its scope of consolidation, with the inclusion of Toyo Sugar Refining Co., Ltd. and TOHAN CORPORATION, and the exclusion of Nissin Sugar Co., Ltd. and ITOCHU Sugar Co., Ltd., which may impact its market positioning and stakeholder interests.

WELLNEO SUGAR Co., Ltd. Increases Annual Dividend Amid Strong Financial Performance
May 14, 2025

WELLNEO SUGAR Co., Ltd. announced an increase in its annual dividend to 102 yen per share, up from the previous forecast of 92 yen, due to better-than-expected financial performance. The decision reflects the company’s policy to prioritize shareholder returns, with a dividend payout ratio of 60% or a dividend on equity of 3%, whichever is higher, indicating a strong commitment to rewarding its shareholders.

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: Aug 29, 2025