RS Technologies Co. Ltd. (3445) AI Stock Analysis

• Market Cap: ¥94.30B
• Dividend Yield: 0.95%
• Average Volume (3M): 105.23K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.17
• Revenue Growth: 28.52%
• EPS Growth: 43.16%
• Country: JP
• Employees: 2,614
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 108.43
• Shares Outstanding: 26,488,503
• 10 Day Avg. Volume: 101,400
• 30 Day Avg. Volume: 105,226
• PEG Ratio: 0.43
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 21.75
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,997.00 ▲(9.06% Upside)

RS Technologies' strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust revenue growth, profitability, and balance sheet strength position it well in the semiconductor industry. While technical analysis indicates some short-term bearish trends, the longer-term outlook remains positive. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand for its products and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Profitability

High profitability margins indicate efficient operations and strong pricing power, contributing to sustained financial health and competitive advantage.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow can limit the company's ability to reinvest in growth initiatives and may impact long-term financial flexibility.

Cash Flow Efficiency

Moderate cash flow efficiency suggests potential challenges in converting earnings into cash, which could affect liquidity and investment capacity.

Free Cash Flow Volatility

Volatility in free cash flow can create uncertainty in financial planning and may hinder the company's ability to consistently fund strategic initiatives.

RS Technologies Co. Ltd. Business Overview & Revenue Model

Company Description

RS Technologies Co. Ltd. (3445) is a leading technology company specializing in the development and manufacturing of innovative solutions for the telecommunications and information technology sectors. The company focuses on providing high-quality products and services, including network infrastructure, smart devices, and integrated software solutions that enhance connectivity and data management for businesses and consumers alike. With a commitment to research and development, RS Technologies aims to stay at the forefront of technological advancements and meet the evolving needs of its customers.

How the Company Makes Money

RS Technologies generates revenue through a diverse range of business activities, primarily from the sale of its core products, including network hardware, software licenses, and smart devices. The company's revenue model is primarily based on direct sales to enterprises, telecom operators, and retail customers. Additionally, RS Technologies capitalizes on recurring revenue streams through ongoing service contracts, maintenance agreements, and subscription-based software solutions. Strategic partnerships with key players in the telecommunications sector further enhance its market presence and drive sales, allowing for collaborative projects that expand its product offerings and customer base. The company also benefits from research grants and government contracts, which contribute to its financial stability and growth.

RS Technologies Co. Ltd. Financial Statement Overview

Summary

RS Technologies demonstrates strong financial health with efficient revenue growth and profitability, a robust balance sheet with low leverage, and solid cash flow generation despite some fluctuations in free cash flow. The company's financial statements reflect a well-managed operation with a focus on growth and stability.

Income Statement

RS Technologies has consistently demonstrated strong revenue growth, with a notable 14.06% increase from 2023 to 2024. The company maintains solid profitability metrics, with a Gross Profit Margin of 32.73% and a Net Profit Margin of 15.95% for 2024. The EBIT and EBITDA margins are also impressive at 22.14% and 29.23%, respectively, highlighting effective cost management and operational efficiency. These factors contribute to a robust income statement performance.

Balance Sheet

The company exhibits a stable financial position, evidenced by strong equity and a low Debt-to-Equity Ratio of 0.18 in 2024. The Return on Equity is substantial at 13.78%, indicating efficient use of equity capital. The Equity Ratio of 37.65% underscores a healthy balance between liabilities and equity, ensuring financial stability and low risk exposure. These metrics reflect a strong balance sheet with prudent financial management.

Cash Flow

RS Technologies' cash flow statement reveals a mixed performance. The Operating Cash Flow to Net Income Ratio is robust at 1.39, indicating strong cash generation relative to net income. However, the Free Cash Flow declined significantly from 2023 to 2024, leading to a negative Free Cash Flow Growth Rate of -49.82%. Despite this, the company maintains a sound Free Cash Flow to Net Income Ratio of 0.44, showcasing moderate cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.13B	59.20B	51.89B	49.86B	34.62B	25.56B
Gross Profit	21.85B	19.38B	17.41B	18.43B	11.87B	8.68B
EBITDA	19.22B	21.45B	18.94B	18.77B	10.57B	6.51B
Net Income	9.41B	9.45B	7.70B	7.74B	3.30B	2.82B
Balance Sheet
Total Assets	173.18B	182.15B	140.67B	127.55B	79.06B	58.75B
Cash, Cash Equivalents and Short-Term Investments	76.25B	85.22B	70.76B	67.94B	27.77B	19.08B
Total Debt	10.12B	12.28B	6.66B	9.37B	9.41B	4.51B
Total Liabilities	40.74B	46.60B	25.24B	26.08B	24.05B	18.38B
Stockholders Equity	69.10B	68.56B	56.26B	47.12B	28.87B	23.92B
Cash Flow
Free Cash Flow	0.00	4.20B	8.36B	9.94B	228.73M	-2.87B
Operating Cash Flow	0.00	13.14B	13.86B	15.32B	9.34B	6.38B
Investing Cash Flow	0.00	-6.63B	-8.92B	-1.73B	-15.61B	-9.19B
Financing Cash Flow	0.00	1.96B	-4.84B	32.93B	8.07B	-776.11M

RS Technologies Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3665.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3445, the sentiment is Negative. The current price of 3665 is above the 20-day moving average (MA) of 3643.00, below the 50-day MA of 3719.80, and above the 200-day MA of 3247.26, indicating a neutral trend. The MACD of -23.55 indicates Negative momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3445.

RS Technologies Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3445	73 Outperform	¥94.30B	8.94	―	0.95%	28.52%	43.16%
6855	72 Outperform	¥44.85B	11.77	―	1.78%	36.31%	101.77%
6871	67 Neutral	¥224.32B	22.26	―	1.20%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6967	60 Neutral	―	―	―	―	2.41%	-3.95%
3436	55 Neutral	¥450.67B	171.58	―	1.24%	0.66%	-87.63%
6707	46 Neutral	¥112.91B	98.36	―	―	-51.82%	-96.08%

RS Technologies Co. Ltd. Corporate Events

RS Technologies Announces Further Delay in Agreement with Jiangxi Shinetech

RS Technologies Co., Ltd. has announced a further delay in the execution of an agreement and underwriting of new shares for Jiangxi Shinetech Precision Optical Co., Ltd., initially planned for the end of September 2025. The delay is due to additional procedural matters related to tax incentives that need confirmation, and the new dates are yet to be determined. The impact on RS Technologies’ financial results for the fiscal year ending December 2025 is expected to be minimal.

RS Technologies Reports Q3 FY 2025 Financial Results with Increased Wafer Production

RS Technologies Co., Ltd. announced its Q3 FY 2025 financial results, highlighting a steady progress in net sales as per their Medium-Term Management Plan 2025, despite operating income being slightly below expectations due to short-term trends in the Chinese market. The company’s wafer reclaimed business saw a 4.2% increase in sales year-over-year and a 13.2% rise in operating margin, attributed to increased production volumes from capital investments at their Sanbongi and Tainan plants. The completion of these investments has enhanced production capacity, positioning the company to meet rising demand.

RS Technologies Delays Agreement and Share Underwriting for Jiangxi Shinetech

RS Technologies Co., Ltd. announced a delay in the execution of an agreement and the underwriting of new shares for Jiangxi Shinetech Precision Optical Co., Ltd. due to additional matters requiring confirmation in the permit and approval procedures. The new planned dates for the agreement and subscription for the capital increase by third-party allotment are now set for the end of November and December 2025, respectively. The company anticipates minimal impact on its consolidated financial results for the fiscal year ending December 2025.

RS Technologies Expands VRFB Operations with New Chinese Subsidiary

RS Technologies Co., Ltd. has announced the establishment of a new subsidiary, RS Energy Technology (Panzhihua) Co., Ltd., in Sichuan Province, China. This joint venture with a Chinese state-owned enterprise aims to supply VRFB electrolytes for local storage power plants and manufacture powdered vanadium, leveraging proprietary technology for a stable supply. This move is part of RST’s strategy to expand its production capabilities in response to the growing VRFB market in China.

RS Technologies Expands into Automotive Camera Market with New Acquisition

RS Technologies Co., Ltd. has announced the acquisition of a 51% stake in Jiangxi Shinetech Precision Optical Co., Ltd., making it a consolidated subsidiary. This move is part of RS Technologies’ strategy to enter the automotive camera module market, aiming to combine Jiangxi Shinetech’s technological capabilities with its own quality control expertise. The acquisition is expected to strengthen RS Technologies’ business foundation and support global expansion, particularly in the automotive sector.

RS Technologies Suspends Transition to Holding Company Structure

RS Technologies Co., Ltd. has announced the suspension of its transition to a holding company structure, which was initially set to be effective on January 1, 2026. The decision was made after a comprehensive review of the business environment and internal control systems, indicating that further consideration is necessary. The postponement is not expected to significantly impact the company’s consolidated financial results, and the new timeline for the transition will be disclosed once decided.