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

• Market Cap: ¥22.37B
• Dividend Yield: 4.77%
• Average Volume (3M): 54.44K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.69
• Revenue Growth: 7.19%
• EPS Growth: N/A
• Country: JP
• Employees: 1,734
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 18.14
• Shares Outstanding: 26,080,397
• 10 Day Avg. Volume: 48,570
• 30 Day Avg. Volume: 54,443
• PEG Ratio: -0.16
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 30.14
• 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: 66 Neutral
• Price Target: ¥951.00 ▲(8.07% Upside)

The overall stock score reflects a strong financial performance with significant improvements in profitability and cash flow. Technical analysis indicates a neutral trend with some bullish momentum, while valuation suggests the stock is relatively expensive but offers a good dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

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

Cash Flow Generation

Improved cash flow generation enhances liquidity and provides the company with the flexibility to invest in growth opportunities and manage debt.

Margin Improvement

Margin improvements reflect effective cost management and operational efficiency, contributing to sustainable profitability and competitive positioning.

Negative Factors

Rising Leverage

Increased leverage could strain financial flexibility and elevate risk, necessitating careful management to maintain financial health.

Modest Return on Equity

A modest ROE indicates limited efficiency in generating returns on shareholders' equity, which could impact investor confidence and capital attraction.

Debt Monitoring

Rising debt levels require vigilant monitoring to prevent potential liquidity issues and ensure the company can meet its financial obligations.

Harima Chemicals Group, Inc. Business Overview & Revenue Model

Company Description

Harima Chemicals Group, Inc. (4410) is a prominent Japanese chemical manufacturer engaged in the production and supply of a diverse range of chemical products across several sectors, including pharmaceuticals, electronics, and advanced materials. The company specializes in the development of high-performance polymers, resins, and specialty chemicals, catering to various industries such as automotive, electronics, and healthcare. With a strong emphasis on innovation and sustainability, Harima Chemicals aims to enhance its product offerings while maintaining a commitment to environmental stewardship.

How the Company Makes Money

Harima Chemicals Group generates revenue primarily through the sale of its chemical products, which include high-performance polymers, resins, coatings, and specialty chemicals. The company benefits from multiple key revenue streams, including direct sales to manufacturers in various sectors such as automotive and electronics, as well as partnerships with other chemical companies and industries that require advanced materials. Additionally, Harima Chemicals engages in research and development activities to create innovative solutions, which can lead to premium pricing for its advanced products. The company's ability to adapt to market demands and invest in sustainable practices also plays a crucial role in maintaining its profitability and expanding its market share.

Harima Chemicals Group, Inc. Financial Statement Overview

Summary

Harima Chemicals Group, Inc. shows a solid turnaround, with marked improvements in profitability and cash flow generation while maintaining a stable equity position. The company's revenue growth and improved margins highlight effective operational strategies. Despite the increased leverage, financial stability remains intact, supported by a healthy equity base and robust cash flow generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.92B	101.01B	92.33B	94.51B	76.09B	62.85B
Gross Profit	22.40B	21.26B	17.92B	19.21B	17.98B	14.96B
EBITDA	6.10B	5.63B	3.06B	5.22B	5.44B	4.93B
Net Income	791.00M	763.00M	-1.16B	885.73M	1.75B	1.09B
Balance Sheet
Total Assets	101.00B	100.04B	98.58B	92.44B	78.91B	69.39B
Cash, Cash Equivalents and Short-Term Investments	4.93B	4.75B	6.85B	6.30B	6.63B	3.48B
Total Debt	42.03B	42.56B	39.37B	33.67B	21.50B	17.68B
Total Liabilities	64.06B	62.03B	57.70B	51.62B	38.80B	31.95B
Stockholders Equity	36.27B	37.33B	37.22B	37.10B	36.74B	34.57B
Cash Flow
Free Cash Flow	0.00	684.00M	-3.08B	-4.80B	-22.99M	712.74M
Operating Cash Flow	0.00	6.14B	353.00M	-466.24M	2.83B	3.01B
Investing Cash Flow	0.00	-4.98B	-3.20B	-6.65B	-3.44B	-1.86B
Financing Cash Flow	0.00	-3.67B	2.90B	7.66B	2.11B	-1.56B

Harima Chemicals Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 880.00
• 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 880 is above the 20-day moving average (MA) of 868.50, above the 50-day MA of 872.56, and above the 200-day MA of 830.42, indicating a bullish trend. The MACD of 6.71 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 89.44 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
4973	72 Outperform	¥18.63B	14.51	―	3.63%	18.02%	18.04%
4092	66 Neutral	¥24.12B	10.69	―	3.87%	-3.41%	-12.83%
4113	66 Neutral	¥17.71B	9.37	―	3.24%	13.09%	89.45%
4409	66 Neutral	¥15.40B	12.53	―	2.77%	1.30%	-5.03%
4410	66 Neutral	¥22.37B	22.03	―	4.77%	7.19%	―
4968	64 Neutral	¥22.85B	13.39	―	4.27%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Harima Chemicals Group, Inc. Corporate Events

Harima Chemicals Announces Senior Personnel Changes

Harima Chemicals Group, Inc. announced changes in its senior personnel, effective January 1, 2026, following a Board of Directors’ meeting. These changes include new appointments for key positions within the company, which may influence its strategic direction and operational efficiency, particularly in its paper chemicals division.

Harima Chemicals Exceeds Income Forecasts Despite Lower Sales

Harima Chemicals Group, Inc. reported a discrepancy between its forecasted and actual consolidated results for the second quarter of fiscal 2025. Despite lower net sales due to decreased sales in several business segments, the company achieved higher operating and net income than anticipated, primarily due to reduced raw material costs and equity-method gains.

Harima Chemicals Reports Q2 Financial Results with Increased Sales

Harima Chemicals Group, Inc. reported its consolidated financial results for the second quarter ending September 30, 2025, showing a 4.3% increase in net sales compared to the previous year. Despite a significant drop in comprehensive income, the company achieved notable growth in operating and ordinary income, reflecting a strong operational performance.