Dawn Corporation (2303) AI Stock Analysis

• Market Cap: ¥7.98B
• Dividend Yield: 0.96%
• Average Volume (3M): 9.51K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.63
• Revenue Growth: 9.73%
• EPS Growth: 9.24%
• Country: JP
• Employees: 63
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 53.72
• Shares Outstanding: 3,300,000
• 10 Day Avg. Volume: 4,130
• 30 Day Avg. Volume: 9,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 80 Outperform
• Price Target: ―

Dawn Corporation scores highly due to its strong financial performance with high revenue growth and profitability margins. The balance sheet is strong with no debt, and cash flow metrics are healthy, supporting future growth. Technical analysis indicates upward momentum, though caution is advised due to the MACD. Valuation is fair, with a reasonable P/E ratio and modest dividend yield. Overall, the company is well-positioned in the software application industry with minimal financial risk.

Dawn Corporation Business Overview & Revenue Model

Company Description

Dawn Corporation (2303) is a diversified enterprise operating primarily in the technology and manufacturing sectors. The company is renowned for its innovative approach to developing cutting-edge electronic components and consumer electronics. Dawn Corporation is a key player in the design, production, and distribution of semiconductors, which are integral to a wide array of electronic devices and systems. Additionally, the company engages in the development of software solutions that complement its hardware offerings, ensuring seamless integration and optimal performance.

How the Company Makes Money

Dawn Corporation generates revenue through multiple streams, primarily centered around the manufacturing and sale of electronic components. The company's semiconductor division is a significant contributor to its income, with products being sold to various industries, including telecommunications, automotive, and consumer electronics. Dawn Corporation has established long-term partnerships with leading global tech firms, securing contracts to supply essential components for their products. Additionally, the company earns revenue from its software solutions, which are often bundled with its hardware products or sold separately as standalone offerings. The company's strategic investments in research and development also foster innovation, allowing it to maintain a competitive edge and attract new business opportunities.

Dawn Corporation Financial Statement Overview

Summary

Dawn Corporation exhibits excellent financial health with strong revenue growth of 9.7% and a net profit margin of 25.9%. The balance sheet is robust with zero debt and a high equity ratio of 88.1%. Cash flow metrics are solid, with a free cash flow growth rate of 10.9%, indicating strong cash generation and operational efficiency.

Income Statement

Dawn Corporation shows strong growth in revenue and profitability. Revenue grew by 9.7% from last year, and net income increased significantly, contributing to a healthy net profit margin of 25.9%. The gross profit margin stands at 67.8%, while EBIT and EBITDA margins are robust at 35.5% and 35.8%, respectively. The company's ability to maintain high profitability metrics indicates excellent operational efficiency and cost management.

Balance Sheet

The company's balance sheet is exceptionally strong, with zero debt and a high equity ratio of 88.1%. This indicates financial stability and a low risk of leverage. Moreover, the return on equity is impressive at 15.6%, reflecting efficient use of shareholders' capital. The company's substantial cash reserves further bolster its financial position.

Cash Flow

Dawn Corporation demonstrates solid cash flow generation, with a free cash flow growth rate of 10.9%. The operating cash flow to net income ratio is 1.07, indicating strong cash conversion. The free cash flow to net income ratio at 1.02 further highlights the company's ability to generate cash relative to its earnings, supporting potential future investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.65B	1.50B	1.37B	1.22B	1.12B
Gross Profit	1.07B	1.08B	1.02B	888.64M	818.80M	735.09M
EBITDA	565.56M	579.78M	538.00M	446.43M	403.36M	343.90M
Net Income	400.35M	418.77M	388.12M	321.06M	283.50M	237.72M
Balance Sheet
Total Assets	2.82B	3.07B	2.82B	2.50B	2.37B	2.10B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.73B	1.92B	1.79B	2.07B	1.78B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	184.32M	323.98M	334.94M	269.32M	229.27M	220.34M
Stockholders Equity	2.63B	2.75B	2.48B	2.23B	2.14B	1.88B
Cash Flow
Free Cash Flow	-10.00M	301.18M	397.07M	358.14M	254.40M	227.76M
Operating Cash Flow	-9.00M	302.57M	414.66M	365.69M	257.07M	228.54M
Investing Cash Flow	-238.00M	-336.79M	-129.51M	-58.83M	-102.67M	-110.78M
Financing Cash Flow	-61.00M	-161.19M	-149.18M	-244.50M	-38.37M	-31.86M

Dawn Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2490.00
• 50DMA: Positive
• 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 JP:2303, the sentiment is Positive. The current price of 2490 is below the 20-day moving average (MA) of 2533.20, above the 50-day MA of 2427.28, and above the 200-day MA of 2273.95, indicating a neutral trend. The MACD of 8.03 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 32.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2303.

Dawn Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2303	80 Outperform	¥7.98B	18.22		0.96%	9.73%	9.24%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
2186	―	¥7.24B	16.56		3.56%	―	―
5259	73 Outperform	¥10.76B	48.11		0.40%	12.37%	199.06%
4845	57 Neutral	¥7.50B	7.46		3.91%	-25.27%	―
4397	46 Neutral	¥9.08B	113.16		―	9.91%	―
9561	43 Neutral	¥5.06B	―		―	4.16%	-381.07%

Dawn Corporation Corporate Events

Dawn Corporation Reports Strong Financial Performance for H1 2024

Dawn Corporation reported a positive financial performance for the six months ended November 30, 2024, with significant year-on-year growth in net sales, operating profit, ordinary profit, and net income. The company demonstrated a stable financial position with an increase in net assets and a high capital adequacy ratio. The forecast for the fiscal year ending May 31, 2025, shows continued growth, although at a more modest pace, reflecting stable operations and a positive outlook for stakeholders.