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Taiyo Holdings Co., Ltd. (JP:4626)
:4626
Japanese Market

Taiyo Holdings Co., Ltd. (4626) AI Stock Analysis

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JP

Taiyo Holdings Co., Ltd.

(4626)

Rating:77Outperform
Price Target:
¥7,658.00
▲(14.30%Upside)
The overall score is driven primarily by strong financial performance and positive technical trends. While the stock's valuation appears stretched, its high dividend yield offers a partial counterbalance. Investors should be aware of potential overbought conditions in the technical indicators.

Taiyo Holdings Co., Ltd. (4626) vs. iShares MSCI Japan ETF (EWJ)

Taiyo Holdings Co., Ltd. Business Overview & Revenue Model

Company DescriptionTaiyo Holdings Co., Ltd. (4626) is a Japan-based company primarily engaged in the development, production, and sale of chemical products, with a particular focus on the electronics industry. The company is known for its production of solder resist, which is an essential material used in the manufacturing of printed circuit boards (PCBs). Taiyo Holdings operates through its subsidiaries and maintains a significant presence in Asian markets, catering to various sectors including consumer electronics, automotive, and telecommunications.
How the Company Makes MoneyTaiyo Holdings Co., Ltd. generates revenue primarily through the sale of its chemical products, with solder resist being a significant contributor to its income. The company's revenue model is centered around its ability to supply these essential materials to manufacturers of printed circuit boards, which are used in a wide array of electronic devices. Key revenue streams include both direct sales to electronics manufacturers and through a network of distributors and partners. The company benefits from partnerships with major electronics firms and a strong focus on research and development, which allows it to innovate and meet the evolving needs of the electronics industry. Additionally, Taiyo Holdings leverages its global operational footprint to access and sustain a diverse customer base across multiple regions.

Taiyo Holdings Co., Ltd. Financial Statement Overview

Summary
Taiyo Holdings Co., Ltd. presents a positive financial outlook with strong revenue and profit growth, efficient cost management, and solid cash flow generation. The company is well-positioned to capitalize on growth opportunities in the specialty chemicals industry.
Income Statement
85
Very Positive
The company has demonstrated strong revenue growth, evidenced by a 13.6% increase in 2025 compared to 2024. Gross profit margin remains robust at 47.2% for 2025, indicating effective cost management. Net profit margin improved to 9.1%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 18.5% and 21.0% respectively, showcasing operational efficiency. Continued focus on margin improvement and cost control is evident.
Balance Sheet
78
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. Return on Equity (ROE) improved to 10.5%, reflecting efficient use of equity. The equity ratio is healthy at 53.6%, highlighting a strong equity base. The company exhibits a balanced approach to debt and equity management, though maintaining leverage at current levels is crucial for financial stability.
Cash Flow
82
Very Positive
Operating cash flow increased by 11.7% in 2025, supporting the company's ability to generate cash from operations. Free cash flow exhibited significant growth, rising from ¥2.4 billion in 2024 to ¥17.4 billion in 2025, driven by reduced capital expenditure. The operating cash flow to net income ratio is robust at 2.2, indicating strong cash conversion. The company effectively manages its cash flows, aiding in growth initiatives and financial flexibility.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue117.42B119.01B104.78B97.34B97.97B80.99B
Gross Profit55.52B56.19B48.83B42.79B42.87B34.87B
EBITDA31.41B24.94B21.73B23.75B25.94B21.42B
Net Income11.42B10.78B8.65B11.40B11.80B9.53B
Balance Sheet
Total Assets198.81B192.02B212.75B187.26B189.27B179.00B
Cash, Cash Equivalents and Short-Term Investments42.62B44.90B58.58B47.12B51.56B54.70B
Total Debt67.19B64.52B86.72B71.50B78.15B81.22B
Total Liabilities90.86B89.04B112.35B94.53B103.81B102.51B
Stockholders Equity107.95B102.97B100.39B92.73B85.46B76.14B
Cash Flow
Free Cash Flow0.0017.40B2.41B10.33B7.96B5.24B
Operating Cash Flow0.0023.71B21.22B22.74B18.31B16.31B
Investing Cash Flow0.00-8.31B-21.07B-13.16B-11.26B-11.60B
Financing Cash Flow0.00-29.22B8.95B-13.94B-11.28B19.75B

Taiyo Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6700.00
Price Trends
50DMA
5850.40
Positive
100DMA
5052.34
Positive
200DMA
4473.20
Positive
Market Momentum
MACD
263.54
Positive
RSI
56.79
Neutral
STOCH
16.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4626, the sentiment is Positive. The current price of 6700 is above the 20-day moving average (MA) of 6539.00, above the 50-day MA of 5850.40, and above the 200-day MA of 4473.20, indicating a bullish trend. The MACD of 263.54 indicates Positive momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4626.

Taiyo Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥376.67B34.27
4.53%13.59%24.32%
76
Outperform
¥375.39B19.706.45%0.24%6.09%-10.60%
74
Outperform
$298.68B11.907.16%4.60%10.04%-13.38%
74
Outperform
¥268.68B8.907.73%3.52%3.67%
73
Outperform
$245.56B9.695.38%3.60%5.89%11.95%
70
Neutral
¥174.11B11.046.29%3.52%3.95%5.88%
66
Neutral
$331.46B9.7213.00%2.85%4.72%-30.89%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4626
Taiyo Holdings Co., Ltd.
6,560.00
3,345.92
104.10%
JP:4203
Sumitomo Bakelite Co., Ltd.
4,194.00
-371.51
-8.14%
JP:4205
Zeon
1,528.00
209.03
15.85%
JP:4613
Kansai Paint Co
1,977.00
-506.40
-20.39%
JP:4631
DIC
2,860.00
-69.17
-2.36%
JP:4118
Kaneka
3,955.00
-128.30
-3.14%

Taiyo Holdings Co., Ltd. Corporate Events

Taiyo Holdings Announces New Management Structure and Strategic Review
Jul 1, 2025

Taiyo Holdings Co., Ltd. has transitioned to a new management structure with Hitoshi Saito appointed as President and CEO, while Eiji Sato becomes Senior Corporate Executive Officer. This change aims to enhance corporate value and secure shareholders’ interests. A special committee has been established to review proposals for capital and business alliances, and the company is examining the potential impact on its financial results for the fiscal year ending March 2026.

Taiyo Holdings Announces New Share Issuance for Executive Compensation
Jun 25, 2025

Taiyo Holdings Co., Ltd. has announced the issuance of new shares as part of a stock compensation plan aimed at enhancing corporate value and aligning the interests of executives with shareholders. This initiative involves issuing 51,703 new shares to executive board directors and officers under a restricted and performance-based stock compensation plan, which is expected to improve motivation and foster a sense of belonging among the management team.

Taiyo Holdings Affirms Independence Amid DIC Corporation’s Stake
Jun 22, 2025

Taiyo Holdings Co., Ltd. has announced its relationship with DIC Corporation, which holds a 20.08% stake in the company, classifying Taiyo as an equity-method affiliate. Despite this significant stake, Taiyo Holdings maintains its operational independence, with transactions involving DIC Corporation accounting for only 1.27% of its total raw material purchases. The company ensures that these transactions are rational and do not compromise its business autonomy or overall independence.

Taiyo Holdings Announces Corrections to Legal Reserve Reduction Schedule
Jun 22, 2025

Taiyo Holdings Co., Ltd. announced corrections to its previously disclosed schedule for reducing amounts of capital legal reserve and retained legal reserve. The changes involve adjustments to the dates for public notice of creditor objections and the final deadline for creditor objections, which may impact the company’s financial planning and stakeholder engagement.

Taiyo Holdings Announces Strategic Personnel Changes
Jun 22, 2025

Taiyo Holdings Co., Ltd. announced personnel changes following a Board of Directors meeting on June 21, 2025. These changes involve key positions within the company, including the roles of Board Director, Compliance Officer, and various executive positions across its subsidiaries. The restructuring is likely aimed at strengthening the company’s operational efficiency and strategic direction.

Taiyo Holdings Appoints New Chairman of the Board
Jun 22, 2025

Taiyo Holdings Co., Ltd. has appointed Keiko Tsuchiya as the Chairman of the Board of Directors, effective June 21, 2025. This strategic leadership change is expected to influence the company’s governance and potentially strengthen its market position, given Tsuchiya’s extensive experience in human resources and leadership roles across various industries.

Taiyo Holdings Restructures Board Responsibilities
Jun 22, 2025

Taiyo Holdings Co., Ltd. announced a reorganization of its Board of Directors’ responsibilities, with President and CEO Hitoshi Saito taking on multiple roles, including Risk Management Officer and CEO of the Electronics Company. This restructuring aims to streamline operations and enhance leadership across its global subsidiaries, potentially impacting the company’s strategic direction and governance.

Taiyo Holdings Announces Leadership Change
Jun 22, 2025

Taiyo Holdings Co., Ltd. announced a change in its Representative Director following a review of its management structure, as resolved in the recent Board of Directors meeting. This change, effective June 21, 2025, involves Hitoshi Saito assuming the role of President and Group CEO, while Eiji Sato becomes the Senior Corporate Executive Officer, indicating a strategic shift in leadership to potentially enhance the company’s operational efficiency and market positioning.

Taiyo Holdings Finalizes 2030 Committee Details
Jun 12, 2025

Taiyo Holdings Co., Ltd., a company listed on the Prime Market of the Tokyo Stock Exchange, has announced the finalization of the details regarding the members and working groups of its newly established 2030 Committee. This committee aims to enhance corporate value and secure shareholders’ interests over the medium to long term by ensuring objectivity and transparency in its discussions.

Taiyo Holdings Evaluates Acquisition Proposals and Forms 2030 Committee
May 28, 2025

Taiyo Holdings Co., Ltd. has received acquisition proposals from multiple private equity funds aiming to take the company private, though no official decision has been made. To enhance corporate value and ensure shareholder interests, Taiyo Holdings has formed a special committee and established a ‘2030 Committee’ to evaluate future initiatives and address management challenges.

Taiyo Holdings Establishes ‘2030 Committee’ to Enhance Corporate Value
May 28, 2025

Taiyo Holdings has announced the establishment of a ‘2030 Committee’ to enhance corporate value and ensure transparency and objectivity in its management strategies. This committee will include external experts and will focus on evaluating and recommending capital policies, growth strategies, and governance structures, with an interim report expected by August 2025.

Taiyo Holdings Board Opposes Shareholder Proposals for Director Dismissal
May 16, 2025

Taiyo Holdings’ Board of Directors has decided to oppose the shareholder proposals submitted by Oasis Japan Strategic Fund Y Ltd. for the upcoming General Shareholders’ Meeting. The proposals included the dismissal of two board directors, including the company’s President and CEO, Eiji Sato. This decision reflects the board’s stance on maintaining its current leadership structure, which may impact stakeholder confidence and influence the company’s governance dynamics.

Taiyo Holdings Announces Board Director Candidates for 2025
May 16, 2025

Taiyo Holdings Co., Ltd. has announced its candidates for the Board of Directors, which will be presented at the upcoming 79th Ordinary General Shareholders’ Meeting in June 2025. The company is reappointing key figures such as Eiji Sato as President and CEO and introducing new independent directors, signaling a strategic move to strengthen its governance and oversight. This reshuffle may impact the company’s strategic direction and reassure stakeholders of its commitment to robust corporate governance.

Taiyo Holdings Announces Capital Reserve Reductions for Enhanced Flexibility
May 16, 2025

Taiyo Holdings Co., Ltd. has announced a proposal to reduce its capital legal reserve and retained legal reserve to improve its distributable amount and maintain a flexible capital policy. This decision, which involves transferring the full amount of these reductions to other capital surplus and retained earnings, is expected to have no impact on the company’s net assets or operating results.

Taiyo Holdings Announces Increased Year-End Dividend
May 12, 2025

Taiyo Holdings Co., Ltd. has announced a year-end dividend of 150 yen per share for the fiscal year ended March 2025, as resolved by its Board of Directors. This decision aligns with the company’s policy of returning profits to shareholders, aiming for a consolidated total payout ratio of 100% until the fiscal year ending March 2028. The dividend reflects a significant increase from the previous year’s 42 yen per share, indicating the company’s commitment to shareholder returns and its strategic financial management.

Taiyo Holdings Announces Key Personnel Changes to Strengthen Operations
Apr 30, 2025

Taiyo Holdings Co., Ltd. announced several key personnel changes during its Board of Directors meeting on April 30, 2025. These changes, effective in June and July 2025, involve senior positions within its subsidiaries, including Taiyo Pharma Co., Ltd. and Taiyo Fine Chemicals Co., Ltd. These strategic shifts are expected to enhance the company’s operational efficiency and strengthen its position in the medical and pharmaceutical sectors.

Taiyo Holdings Releases FY2025 Financial Results
Apr 30, 2025

Taiyo Holdings Co., Ltd. has released its consolidated financial results for the fiscal year ending March 31, 2025. The announcement highlights the company’s diverse business segments, including ICT, fine chemicals, energy, and food. This financial disclosure may impact stakeholders by providing insights into the company’s operational performance and strategic positioning in its respective industries.

Taiyo Holdings Reports Extraordinary Losses on Non-Consolidated Financials
Apr 30, 2025

Taiyo Holdings Co., Ltd. has announced the recognition of extraordinary losses on its non-consolidated financial statements for the fiscal years ending March 31, 2024, and March 31, 2025. These losses, amounting to 4,784 million yen and 1,863 million yen respectively, are attributed to provisions for doubtful accounts related to loans to subsidiaries, including TAIYO Pharma Co., Ltd., which have experienced performance deterioration. However, these losses do not impact the consolidated financial statements, ensuring no direct effect on the overall financial health of the company.

Taiyo Holdings Reports Strong Financial Growth and Increased Dividends
Apr 30, 2025

Taiyo Holdings Co., Ltd. reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with net sales rising by 13.6% and operating income by 21.2%. The company also announced a substantial increase in dividends, reflecting strong profitability and a positive outlook for stakeholders.

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: Jun 25, 2025