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Harima Chemicals Group, Inc. (JP:4410)
:4410
Japanese Market
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Harima Chemicals Group, Inc. (4410) AI Stock Analysis

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JP:4410

Harima Chemicals Group, Inc.

(4410)

Rating:68Neutral
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. (4410) vs. iShares MSCI Japan ETF (EWJ)

Harima Chemicals Group, Inc. Business Overview & Revenue Model

Company DescriptionHarima 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 MoneyHarima 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
75
Positive
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
70
Positive
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
68
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue101.01B92.33B94.51B76.09B62.85B
Gross Profit21.26B17.92B19.21B17.98B14.96B
EBITDA5.63B3.06B5.22B5.44B4.93B
Net Income763.00M-1.16B885.73M1.75B1.09B
Balance Sheet
Total Assets100.04B98.58B92.44B78.91B69.39B
Cash, Cash Equivalents and Short-Term Investments4.75B6.85B6.30B6.63B3.48B
Total Debt42.56B39.37B33.67B21.50B17.68B
Total Liabilities62.03B57.70B51.62B38.80B31.95B
Stockholders Equity37.33B37.22B37.10B36.74B34.57B
Cash Flow
Free Cash Flow684.00M-3.08B-4.80B-22.99M712.74M
Operating Cash Flow6.14B353.00M-466.24M2.83B3.01B
Investing Cash Flow-4.98B-3.20B-6.65B-3.44B-1.86B
Financing Cash Flow-3.67B2.90B7.66B2.11B-1.56B

Harima Chemicals Group, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price833.00
Price Trends
50DMA
793.22
Positive
100DMA
811.16
Positive
200DMA
825.83
Positive
Market Momentum
MACD
8.90
Negative
RSI
70.37
Negative
STOCH
89.92
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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥19.16B12.96
2.32%4.85%80.14%
74
Outperform
¥17.38B11.11
2.47%5.96%182.60%
72
Outperform
¥17.99B12.84
3.97%10.43%187.34%
71
Outperform
¥18.88B7.38
3.77%0.79%60.97%
68
Neutral
¥20.86B26.35
5.04%9.40%
62
Neutral
¥22.26B8.42
4.41%11.10%
44
Neutral
AU$1.51B-6.22-41.37%3.85%-3.52%-43.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4410
Harima Chemicals Group, Inc.
833.00
-86.64
-9.42%
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:4409
Toho Chemical Industry Company, Limited
810.00
232.90
40.36%
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%

Harima Chemicals Group, Inc. Corporate Events

Harima Chemicals Announces Consistent Dividend Distribution for FY2024
May 20, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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
Apr 30, 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.

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 04, 2025