Harima Chemicals Group, Inc. (4410) AI Stock Analysis

• Market Cap: ¥20.86B
• Dividend Yield: 5.04%
• Average Volume (3M): 34.90K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.67
• Revenue Growth: 9.40%
• EPS Growth: N/A
• Country: JP
• Employees: 1,734
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 1.60
• Shares Outstanding: 26,080,397
• 10 Day Avg. Volume: 42,010
• 30 Day Avg. Volume: 34,900
• PEG Ratio: 0.08
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥814.00
• Price Target Upside: -2.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥870.00 ▲(4.44%Upside)

The stock shows a solid overall performance, driven by strong financial recovery and a healthy dividend yield. Technical indicators suggest cautious optimism, though the stock is trading slightly below key long-term averages, indicating potential resistance. Valuation appears reasonable, supported by a high dividend yield.

Harima Chemicals Group, Inc. Business Overview & Revenue Model

Company Description

Harima Chemicals Group, Inc. (4410) is a Japanese company primarily engaged in the manufacture and sale of chemical products. The company operates in several sectors, including paper chemicals, electronics materials, and pine chemicals. Harima is known for its extensive product range, which includes printing inks, resins, adhesives, and other specialty chemicals designed to serve industries such as printing, electronics, and construction.

How the Company Makes Money

Harima Chemicals Group, Inc. generates revenue through the sale of its diverse range of chemical products. Key revenue streams include the paper chemicals segment, which supplies essential additives and chemicals to the paper manufacturing industry, and the electronics materials segment, which provides advanced materials used in the production of semiconductors and electronic devices. The company also benefits from its pine chemicals division, which produces derivatives from pine trees used in adhesives, inks, and coatings. Significant partnerships with industrial manufacturers enhance the company's market reach and contribute to its earnings. Harima's strategic focus on innovation and quality helps maintain its competitive edge and drive profitability in the global chemical market.

Harima Chemicals Group, Inc. Financial Statement Overview

Summary

The company has shown a strong recovery in its financial performance with improvements in income statement metrics such as gross and net profit margins, as well as cash flow dynamics. The balance sheet reflects a strong equity base, though rising leverage needs monitoring.

Income Statement

The company has shown a strong recovery in its income statement performance. Gross profit margin improved from previous years, with a gross profit margin of 21.05% in the latest year. Net profit margin turned positive at 0.76%, signaling a return to profitability after a year of losses. Revenue growth was notable at 9.37% compared to the previous year, indicating strong market demand. The EBIT margin improved significantly to 2.06% from a negative position, and the EBITDA margin rose to 5.58%. These improvements suggest effective cost management and increased operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity base with a debt-to-equity ratio of 1.14, which is manageable but has increased over the years, indicating a rise in leverage. The return on equity (ROE) is modest at 2.04%, reflecting a cautious yet steady return for shareholders. The equity ratio remains healthy at 37.32%, pointing to a stable financial structure with substantial equity backing the company's assets. However, the increase in total debt warrants careful monitoring.

Cash Flow

Cash flow dynamics show improvement, with operating cash flow significantly rebounding to 6,145 million yen. Free cash flow also turned positive, reflecting better capital expenditure management. The operating cash flow to net income ratio is robust at 8.05, suggesting strong cash generation relative to net earnings. The free cash flow to net income ratio is 0.90, indicating that most earnings are being converted into free cash flow, which is a positive sign for liquidity and investment potential. Despite these improvements, the company should continue to focus on sustaining cash flow growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	101.01B	92.33B	94.51B	76.09B	62.85B
Gross Profit	21.26B	17.92B	19.21B	17.98B	14.96B
EBITDA	5.63B	3.06B	5.22B	5.44B	4.93B
Net Income	763.00M	-1.16B	885.73M	1.75B	1.09B
Balance Sheet
Total Assets	100.04B	98.58B	92.44B	78.91B	69.39B
Cash, Cash Equivalents and Short-Term Investments	4.75B	6.85B	6.30B	6.63B	3.48B
Total Debt	42.56B	39.37B	33.67B	21.50B	17.68B
Total Liabilities	62.03B	57.70B	51.62B	38.80B	31.95B
Stockholders Equity	37.33B	37.22B	37.10B	36.74B	34.57B
Cash Flow
Free Cash Flow	684.00M	-3.08B	-4.80B	-22.99M	712.74M
Operating Cash Flow	6.14B	353.00M	-466.24M	2.83B	3.01B
Investing Cash Flow	-4.98B	-3.20B	-6.65B	-3.44B	-1.86B
Financing Cash Flow	-3.67B	2.90B	7.66B	2.11B	-1.56B

Harima Chemicals Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 833.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4410, the sentiment is Positive. The current price of 833 is above the 20-day moving average (MA) of 807.05, above the 50-day MA of 793.22, and above the 200-day MA of 825.83, indicating a bullish trend. The MACD of 8.90 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 89.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4410.

Harima Chemicals Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4113	77 Outperform	¥19.16B	12.96		2.32%	4.85%	80.14%
4409	74 Outperform	¥17.38B	11.11		2.47%	5.96%	182.60%
4973	72 Outperform	¥17.99B	12.84		3.97%	10.43%	187.34%
4092	71 Outperform	¥18.88B	7.38		3.77%	0.79%	60.97%
4410	68 Neutral	¥20.86B	26.35		5.04%	9.40%	―
4968	62 Neutral	¥22.26B	8.42		4.41%	11.10%	―
Sector *	44 Neutral	AU$1.51B	-6.22	-41.37%	3.85%	-3.52%	-43.04%

Harima Chemicals Group, Inc. Corporate Events

Harima Chemicals Announces Consistent Dividend Distribution for FY2024

Harima Chemicals Group, Inc. announced a dividend distribution from surplus, maintaining a dividend per share of 21 yen for FY2024, consistent with the previous fiscal year. This decision reflects the company’s stable financial performance and commitment to returning value to shareholders, indicating a positive outlook for stakeholders.

Harima Chemicals Group Announces Senior Personnel Changes

Harima Chemicals Group, Inc. announced significant senior personnel changes, which were decided at the Board of Directors’ Meeting and will be finalized at the upcoming Shareholders’ Meeting. These changes include reassignments and new appointments in several key positions, reflecting the company’s strategic direction and potentially impacting its operational focus and market positioning.

Harima Chemicals Reports Lower-than-Expected Fiscal 2024 Results and Extraordinary Loss

Harima Chemicals Group, Inc. reported a significant discrepancy between its forecasted and actual consolidated results for fiscal 2024, with decreases in net sales, operating income, ordinary income, and net income attributable to the company. The decline was attributed to lower sales in the Lawter business due to reduced selling prices, increased raw material costs in the Electronic Materials sector, and higher overseas interest expenses. Additionally, an extraordinary loss was recorded due to an impairment of assets in its New Zealand subsidiary, impacting the company’s financial performance.

Harima Chemicals Reports Strong Financial Recovery for FY 2025

Harima Chemicals Group, Inc. reported a significant improvement in its financial performance for the fiscal year ended March 31, 2025, with net sales increasing by 9.4% to 101,006 million yen. The company also returned to profitability, posting a net income of 763 million yen compared to a loss in the previous year. This positive turnaround is attributed to strategic operational adjustments and market conditions, positioning the company favorably for future growth.