Shinden Hightex Corp. (3131) AI Stock Analysis

• Market Cap: ¥5.38B
• Dividend Yield: 4.52%
• Average Volume (3M): 29.22K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.05
• Revenue Growth: -3.70%
• EPS Growth: -23.37%
• Country: JP
• Employees: 92
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 36.59
• Shares Outstanding: 2,110,200
• 10 Day Avg. Volume: 38,260
• 30 Day Avg. Volume: 29,220
• PEG Ratio: 0.05
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 1.40
• 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: 71 Outperform
• Price Target: ¥2,979.00 ▲(11.24% Upside)

Shinden Hightex Corp. scores well due to its strong financial performance and attractive valuation. However, the technical analysis indicates a bearish trend, which slightly offsets the positive financial and valuation aspects. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product demand, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances liquidity and financial flexibility, enabling strategic investments and debt reduction.

Capital Structure

A stable capital structure with manageable leverage reduces financial risk and supports sustainable growth.

Negative Factors

Net Profit Margin

Low net profit margins indicate that a significant portion of revenue is absorbed by costs, limiting profitability improvements.

High Liabilities

High liabilities can strain financial resources and increase risk, potentially impacting long-term financial health.

Profit Margin Management

While gross margins improved, maintaining and enhancing profit margins is crucial for long-term profitability and competitiveness.

Shinden Hightex Corp. Business Overview & Revenue Model

Company Description

Shinden Hightex Corp. (3131) is a leading manufacturer and supplier in the textile and fabric industry, specializing in high-performance materials for various applications, including automotive, aerospace, and industrial sectors. The company focuses on innovative textile solutions that enhance durability, functionality, and aesthetic appeal, catering to both domestic and international markets. With a commitment to sustainability, Shinden Hightex also invests in eco-friendly production processes and materials.

How the Company Makes Money

Shinden Hightex Corp. generates revenue primarily through the sale of its high-performance textiles and fabrics. The company has established multiple key revenue streams, including direct sales to manufacturers in the automotive and aerospace industries, as well as partnerships with fashion brands requiring specialized materials. Additionally, Shinden Hightex benefits from long-term contracts with industrial clients that provide consistent revenue. The company also explores opportunities in emerging markets, leveraging technological advancements to create innovative products that meet evolving customer demands. Strategic collaborations with research institutions and other industry players further enhance its product offerings and market reach, contributing positively to its earnings.

Shinden Hightex Corp. Financial Statement Overview

Summary

Shinden Hightex Corp. shows strong financial health with consistent revenue growth, improved profitability, and robust cash flow generation. The company has enhanced operational efficiency and managed its capital structure well, but needs to focus on maintaining profit margins and managing liabilities.

Income Statement

Shinden Hightex Corp. demonstrated steady revenue growth with a 3.45% increase from 2024 to 2025, following a modest 0.86% rise the previous year. Gross profit margin has shown improvement, reaching 8.37% in 2025 from 9.27% in 2024, a sign of better cost management. However, the net profit margin remains low at 1.47% in 2025, indicating that a significant portion of revenue is absorbed by operating expenses and other costs. The EBIT and EBITDA margins have also shown improvement, reflecting enhanced operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position, with an equity ratio of 44.51% in 2025, up from 38.12% in 2021. The debt-to-equity ratio has improved to 0.81, suggesting a stable capital structure with manageable leverage. Return on equity is moderate at 8.68% in 2025, indicating effective use of equity capital to generate profits. However, the high total liabilities relative to assets could pose a risk if not managed carefully.

Cash Flow

Cash flow health is robust, with operating cash flow surging to ¥3,068 million in 2025, a significant improvement from ¥1,033 million in 2024. Free cash flow has also seen a substantial increase, indicating strong cash generation capabilities. The free cash flow to net income ratio is impressive at 4.75, highlighting the company's ability to convert net income into cash. The company has improved its cash reserves while reducing net debt, further strengthening its liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.98B	43.75B	42.29B	41.92B	43.46B	49.08B
Gross Profit	3.68B	3.66B	3.92B	4.30B	3.42B	2.80B
EBITDA	1.45B	1.42B	932.37M	1.68B	1.18B	835.33M
Net Income	749.70M	642.78M	292.55M	897.50M	748.17M	497.46M
Balance Sheet
Total Assets	15.51B	16.64B	18.58B	16.86B	20.89B	20.40B
Cash, Cash Equivalents and Short-Term Investments	5.11B	6.59B	5.97B	4.19B	6.33B	6.24B
Total Debt	5.48B	5.97B	8.09B	6.35B	11.44B	11.10B
Total Liabilities	8.26B	9.23B	11.50B	9.91B	14.50B	14.63B
Stockholders Equity	7.25B	7.40B	7.08B	6.93B	6.38B	5.77B
Cash Flow
Free Cash Flow	0.00	3.05B	1.02B	4.56B	746.32M	-604.69M
Operating Cash Flow	0.00	3.07B	1.03B	4.58B	747.66M	-602.42M
Investing Cash Flow	0.00	-39.26M	-70.61M	-15.93M	7.76M	1.85M
Financing Cash Flow	0.00	-2.46B	473.04M	-6.77B	-866.74M	862.45M

Shinden Hightex Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2678.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3131, the sentiment is Negative. The current price of 2678 is below the 20-day moving average (MA) of 3022.45, below the 50-day MA of 3184.58, and below the 200-day MA of 2700.24, indicating a bearish trend. The MACD of -181.13 indicates Positive momentum. The RSI at 37.08 is Neutral, neither overbought nor oversold. The STOCH value of 26.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3131.

Shinden Hightex Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	72 Outperform	¥50.76B	16.33	―	1.85%	3.60%	-17.45%
6855	72 Outperform	¥44.47B	11.67	―	1.48%	36.31%	101.77%
3131	71 Outperform	¥5.38B	9.51	―	4.52%	-3.70%	-23.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6656	49 Neutral	¥2.32B	-14.38	―	―	15.80%	43.81%
6614	46 Neutral	¥3.32B	-68.31	―	2.07%	-2.80%	-129.64%
6616	45 Neutral	¥17.86B	-7.46	―	3.65%	-6.84%	50.71%