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Gun Ei Chemical Industry Co., Ltd. (JP:4229)
:4229
Japanese Market
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Gun Ei Chemical Industry Co., Ltd. (4229) AI Stock Analysis

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JP:4229

Gun Ei Chemical Industry Co., Ltd.

(4229)

Rating:75Outperform
Price Target:
¥3,196.00
▲(11.01%Upside)
Gun Ei Chemical Industry Co., Ltd. holds a strong overall position driven by robust financial performance and attractive valuation metrics. Technical analysis suggests caution due to mixed momentum indicators, but the undervaluation and solid dividend yield offer a compelling opportunity for investors.

Gun Ei Chemical Industry Co., Ltd. (4229) vs. iShares MSCI Japan ETF (EWJ)

Gun Ei Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company DescriptionGun Ei Chemical Industry Co., Ltd. (4229) is a Japanese company that specializes in the production and distribution of chemical products. The company operates in the industrial sector, offering a range of chemicals such as adhesives, coatings, and sealants. Gun Ei Chemical Industry Co., Ltd. is known for its innovation in chemical solutions and serves a diverse clientele across various industries, including automotive, construction, and electronics.
How the Company Makes MoneyGun Ei Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products. The company's key revenue streams include the manufacturing and distribution of adhesives, coatings, and sealants to industrial clients. It leverages its expertise in chemical engineering to produce high-quality, specialized products that meet the needs of its clients. Additionally, the company may engage in partnerships and collaborations with other firms to enhance its product offerings and expand its market reach. These strategic alliances can lead to shared technology advancements, cost reductions, and expanded distribution channels, all of which contribute to the company's earnings.

Gun Ei Chemical Industry Co., Ltd. Financial Statement Overview

Summary
Gun Ei Chemical Industry Co., Ltd. demonstrates strong financial health with consistent revenue and profit growth, a solid capital structure, and effective cash flow management. The company is well-positioned for continued stability and growth in the specialty chemicals industry.
Income Statement
85
Very Positive
Gun Ei Chemical Industry Co., Ltd. shows strong performance in its income statement with consistent revenue and net income growth over the years. The gross profit margin and net profit margin indicate healthy profitability. Despite a slight dip in revenue and profitability in 2025, the overall trajectory remains positive.
Balance Sheet
90
Very Positive
The company maintains a robust balance sheet, characterized by a strong equity base and low debt levels. The debt-to-equity ratio is particularly favorable, reflecting financial stability. The equity ratio is high, indicating a solid capital structure and low financial risk.
Cash Flow
80
Positive
Cash flow analysis reveals a stable operating cash flow with positive free cash flow generation, although there was a decline in free cash flow in 2025. The operating cash flow to net income ratio remains strong, highlighting the company's ability to convert profits into cash effectively.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue30.55B30.31B31.39B29.41B25.19B
Gross Profit6.53B6.88B5.91B6.70B6.03B
EBITDA4.42B4.62B3.41B4.11B3.89B
Net Income1.92B2.04B1.20B1.93B1.61B
Balance Sheet
Total Assets63.02B61.01B54.60B54.68B51.98B
Cash, Cash Equivalents and Short-Term Investments10.95B9.55B9.26B10.69B11.14B
Total Debt735.00M690.00M662.00M633.00M91.00M
Total Liabilities11.28B10.73B8.49B9.78B8.23B
Stockholders Equity49.75B48.53B44.56B43.42B42.20B
Cash Flow
Free Cash Flow1.38B1.82B-533.00M1.28B2.29B
Operating Cash Flow4.33B3.64B1.20B2.45B3.57B
Investing Cash Flow-2.81B-2.16B-2.46B-942.00M-806.00M
Financing Cash Flow-875.00M-774.00M-687.00M-746.00M-1.31B

Gun Ei Chemical Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2879.00
Price Trends
50DMA
2864.78
Positive
100DMA
2913.96
Negative
200DMA
2794.66
Positive
Market Momentum
MACD
-7.27
Negative
RSI
56.16
Neutral
STOCH
56.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4229, the sentiment is Positive. The current price of 2879 is above the 20-day moving average (MA) of 2835.15, above the 50-day MA of 2864.78, and above the 200-day MA of 2794.66, indicating a bullish trend. The MACD of -7.27 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4229.

Gun Ei Chemical Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥19.17B12.97
2.32%4.85%80.14%
75
Outperform
¥19.08B9.94
3.47%0.78%-5.93%
72
Outperform
¥17.77B12.68
3.97%10.43%187.34%
71
Outperform
¥18.92B7.40
3.77%0.79%60.97%
68
Neutral
¥20.96B26.48
5.04%9.40%
62
Neutral
¥22.04B8.34
4.41%11.10%
57
Neutral
€1.20B6.34-1.74%4.20%26.43%-52.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4229
Gun Ei Chemical Industry Co., Ltd.
2,879.00
-160.11
-5.27%
JP:4092
Nippon Chemical Industrial Co., Ltd.
2,150.00
-255.35
-10.62%
JP:4113
Taoka Chemical Co., Ltd.
1,338.00
563.20
72.69%
JP:4410
Harima Chemicals Group, Inc.
833.00
-86.64
-9.42%
JP:4968
Arakawa Chemical Industries,Ltd.
1,111.00
-21.94
-1.94%
JP:4973
Japan Pure Chemical Co., Ltd.
3,170.00
-407.92
-11.40%

Gun Ei Chemical Industry Co., Ltd. Corporate Events

Gun Ei Chemical Completes Treasury Share Disposal for Executive Remuneration
Jul 18, 2025

Gun Ei Chemical Industry Co., Ltd. has completed the payment procedures for the disposal of 3,515 treasury shares as restricted stock remuneration, a decision made by its Board of Directors on June 20, 2025. This move is part of the company’s strategic financial management, potentially impacting its stock value and aligning executive incentives with shareholder interests.

Gun Ei Chemical Industry Announces Treasury Share Disposal for Executive Remuneration
Jun 20, 2025

Gun Ei Chemical Industry Co., Ltd. announced the disposal of 3,515 treasury shares as part of a restricted stock remuneration plan for its executive officers. This move aims to align the interests of the executives with shareholders by providing incentives to enhance corporate value. The plan was approved in previous shareholder meetings and involves the issuance or disposal of shares under specific conditions to ensure long-term commitment from the executives.

Gun-Ei Chemical Reports Fiscal Year 2025 Results with Modest Sales Growth
May 15, 2025

Gun-Ei Chemical Industry Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.8% to ¥30,545 million. However, there was a decline in operating profit by 16% and ordinary profit by 14.1%. The company plans to maintain its dividend payout, reflecting a stable approach despite the decrease in profits. The financial forecast for the next fiscal year indicates a modest growth in net sales by 1.5%, with a slight increase in operating profit, but a decrease in ordinary profit and profit attributable to owners of the parent.

Gun Ei Chemical Industry Announces Director Candidates for Shareholder Meeting
May 15, 2025

Gun Ei Chemical Industry Co., Ltd. announced a resolution by its Board of Directors to propose candidates for director positions at the upcoming Annual General Meeting of Shareholders. This decision includes both reappointments and new appointments, such as Mitsuhiro Arai’s elevation to Director Executive Officer and Division Manager of Sales & Marketing Division, reflecting strategic leadership continuity and potential shifts in company operations.

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: Jul 24, 2025