Central General Development Co., Ltd. (3238) AI Stock Analysis

• Market Cap: ¥4.02B
• Dividend Yield: 3.36%
• Average Volume (3M): 8.40K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.38
• Revenue Growth: 31.33%
• EPS Growth: 174.39%
• Country: JP
• Employees: 172
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -55.87
• Shares Outstanding: 9,681,600
• 10 Day Avg. Volume: 6,160
• 30 Day Avg. Volume: 8,400
• PEG Ratio: -0.19
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -0.51
• 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: 63 Neutral
• Price Target: ¥450.00 ▲(8.43% Upside)

The stock's overall score is driven by its strong valuation metrics, despite financial pressures from high leverage and negative cash flows. Technical indicators suggest bearish momentum, but the low P/E ratio and attractive dividend yield provide a counterbalance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Operational Efficiency

Stable operational efficiency suggests effective cost management and resource utilization, contributing to sustainable profitability.

Asset Growth

Asset growth indicates expansion capacity and potential for increased revenue generation, enhancing competitive positioning.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, particularly if market conditions tighten or interest rates rise.

Negative Cash Flow

Negative cash flow suggests potential liquidity issues, which could impact the company's ability to invest in growth or meet obligations.

Net Profit Margin Volatility

Volatile net profit margins can indicate inconsistent cost control or revenue challenges, affecting long-term profitability.

Central General Development Co., Ltd. Business Overview & Revenue Model

Company Description

Central General Development Co., Ltd. (3238) is a leading company primarily engaged in the construction and real estate development sectors. The company offers a comprehensive range of services, including residential, commercial, and industrial property development, as well as infrastructure projects. With a commitment to quality and innovation, Central General Development focuses on delivering sustainable and modern living spaces that cater to diverse market needs.

How the Company Makes Money

Central General Development Co., Ltd. generates revenue primarily through the sale and leasing of developed properties. The company undertakes various projects, from residential complexes to commercial buildings, and earns profits from both direct sales and rental income. Additionally, it may engage in public infrastructure contracts, which provide significant revenue streams. Partnerships with governmental agencies and private sector stakeholders also contribute to its earnings, enabling the company to secure large-scale projects and enhance its market presence.

Central General Development Co., Ltd. Financial Statement Overview

Summary

The company shows robust revenue growth and operational efficiency but faces challenges with high leverage and negative cash flows, indicating financial pressures.

Income Statement

The company demonstrated stable revenue growth with a consistent increase from 2020 to 2024, peaking in 2024 before a slight dip in 2025. Gross profit margin remained relatively stable, suggesting good operational control. However, net profit margin showed volatility, particularly with a significant drop in 2025. EBIT and EBITDA margins were consistent, indicating operational efficiency. Overall, the company shows a solid growth trajectory but faces challenges in maintaining net profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. While total assets have grown, the equity ratio is moderate, reflecting a balanced asset financing mix. Return on equity shows improvement over time, but high leverage poses potential risks. The company's financial stability is decent, but high debt levels could affect long-term sustainability.

Cash Flow

Cash flow analysis highlights negative free cash flow in recent years, with operating cash flow consistently negative, indicating potential liquidity issues. The operating cash flow to net income ratio is unfavorable due to negative operating cash flow, suggesting reliance on external financing, as evidenced by positive financing cash flow. This reliance on external funding could pose a risk if access to capital markets becomes constrained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.57B	30.88B	31.93B	30.39B	29.31B	26.03B
Gross Profit	6.06B	5.76B	6.10B	5.18B	5.06B	4.53B
EBITDA	1.46B	1.41B	1.84B	1.64B	1.25B	1.21B
Net Income	497.45M	497.35M	904.57M	845.48M	630.07M	574.73M
Balance Sheet
Total Assets	47.04B	45.42B	36.59B	28.96B	29.24B	28.12B
Cash, Cash Equivalents and Short-Term Investments	1.05B	978.25M	1.42B	2.53B	2.04B	1.30B
Total Debt	33.23B	30.70B	22.39B	15.27B	16.50B	17.43B
Total Liabilities	37.26B	35.16B	26.65B	19.88B	20.89B	20.96B
Stockholders Equity	9.78B	10.26B	9.94B	9.09B	8.35B	7.16B
Cash Flow
Free Cash Flow	0.00	-8.60B	-8.09B	1.87B	1.11B	-2.95B
Operating Cash Flow	0.00	-7.61B	-6.85B	2.66B	2.36B	-2.35B
Investing Cash Flow	0.00	-969.22M	-1.25B	-789.67M	-1.25B	-606.22M
Financing Cash Flow	0.00	8.14B	6.98B	-1.38B	-370.72M	2.59B

Central General Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 415.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3238, the sentiment is Positive. The current price of 415 is above the 20-day moving average (MA) of 413.10, below the 50-day MA of 418.60, and below the 200-day MA of 430.73, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3238.

Central General Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3297	73 Outperform	¥3.05B	9.34	―	3.42%	4.57%	49.68%
3495	73 Outperform	¥6.69B	6.49	―	2.27%	14.92%	39.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3238	63 Neutral	¥4.02B	7.32	―	3.36%	31.33%	174.39%
8944	54 Neutral	¥4.60B	-2.12	―	2.46%	86.49%	82.93%
3474	49 Neutral	¥4.11B	-6.97	―	―	3.36%	-430.12%
3237	40 Neutral	¥3.35B	-7.27	―	―	4.15%	-14.18%