Daishin Chemical Co., Ltd. (4629) AI Stock Analysis

• Market Cap: ¥7.53B
• Dividend Yield: 2.43%
• Average Volume (3M): 4.05K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.27
• Revenue Growth: 4.93%
• EPS Growth: 4.12%
• Country: JP
• Employees: 231
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 26.09
• Shares Outstanding: 4,592,000
• 10 Day Avg. Volume: 3,160
• 30 Day Avg. Volume: 4,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,739.00
• Price Target Upside: 5.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,739.00 ▲(5.71% Upside)

Daishin Chemical's strong financial stability and robust cash flow management are the primary strengths, supporting a solid overall score. The technical indicators suggest some short-term weakness, but the reasonable valuation and attractive dividend yield provide a balanced investment case.

Daishin Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Daishin Chemical Co., Ltd. (4629) is a Japanese company engaged in the manufacturing and sale of chemical products. The company specializes in the production of industrial chemicals, focusing on coatings, adhesives, and various specialty chemicals. Daishin Chemical's products are used across multiple industries, including automotive, construction, and electronics, providing essential materials that enhance the durability, performance, and efficiency of finished goods.

How the Company Makes Money

Daishin Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products. The company's key revenue streams include industrial coatings, adhesives, and specialty chemicals tailored for specific industrial applications. It supplies these products to a diverse range of industries such as automotive, construction, and electronics, where its chemical solutions are integrated into manufacturing processes to improve product quality and performance. Additionally, Daishin Chemical may engage in strategic partnerships and collaborations with other companies to enhance its product offerings and expand its market reach. These collaborations can lead to increased sales and a broader customer base, contributing significantly to the company's earnings.

Daishin Chemical Co., Ltd. Financial Statement Overview

Summary

Daishin Chemical shows strong financial stability with a robust balance sheet and effective cash flow management. Despite some pressure on profitability margins, the company's revenue growth and low leverage provide a solid foundation for potential improvement.

Income Statement

Daishin Chemical has demonstrated a consistent revenue growth trajectory, with a 6.93% increase from 2024 to 2025. The company maintains a solid gross profit margin of approximately 12.14% for 2025. However, the net profit margin has decreased to 1.69% due to rising costs or operational inefficiencies. Despite a reduction in EBIT margin to 2.30%, EBITDA margin remains relatively stable at 3.68%, suggesting operational resilience.

Balance Sheet

The balance sheet is robust, with a high equity ratio of 65.57%, indicating strong financial stability. The debt-to-equity ratio is exceptionally low at 0.07, signifying minimal leverage risks. ROE has decreased to 3.56%, highlighting a need for improved profitability to enhance shareholder returns.

Cash Flow

The cash flow situation is strong, with a significant turnaround in free cash flow, growing from negative in 2024 to positive in 2025. The operating cash flow to net income ratio is favorable at 4.67, demonstrating effective cash generation relative to profits. A free cash flow to net income ratio of 4.19 further underscores efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.71B	34.71B	32.46B	34.39B	31.30B	25.65B
Gross Profit	4.21B	4.21B	4.27B	4.55B	4.13B	4.86B
EBITDA	1.16B	1.28B	1.34B	1.68B	1.41B	2.04B
Net Income	587.66M	588.16M	627.19M	955.95M	694.14M	1.14B
Balance Sheet
Total Assets	25.20B	25.20B	24.13B	24.39B	23.26B	21.03B
Cash, Cash Equivalents and Short-Term Investments	7.13B	7.13B	4.86B	5.71B	4.59B	5.16B
Total Debt	12.14M	12.14M	22.21M	59.17M	130.00M	252.60M
Total Liabilities	8.68B	8.68B	8.11B	8.95B	8.74B	7.04B
Stockholders Equity	16.52B	16.52B	16.02B	15.44B	14.51B	13.99B
Cash Flow
Free Cash Flow	0.00	2.46B	-687.07M	1.45B	-202.80M	1.12B
Operating Cash Flow	0.00	2.75B	-185.14M	1.80B	60.44M	1.59B
Investing Cash Flow	0.00	-289.39M	-438.90M	-414.30M	-333.29M	-569.27M
Financing Cash Flow	0.00	-193.47M	-220.41M	-263.61M	-301.03M	-332.96M

Daishin Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1645.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4629, the sentiment is Positive. The current price of 1645 is above the 20-day moving average (MA) of 1575.05, above the 50-day MA of 1566.10, and above the 200-day MA of 1440.78, indicating a bullish trend. The MACD of 25.57 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4629.

Daishin Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.69B	13.16	2.21%	2.45%	0.68%	5.33%
4624	77 Outperform	¥5.54B	12.21	3.19%	1.36%	1.47%	17.40%
4629	75 Outperform	¥7.53B	11.72	―	2.43%	4.93%	4.12%
4623	73 Outperform	¥6.63B	9.32	4.96%	3.43%	-4.33%	58.53%
4616	65 Neutral	¥2.07B	20.66	5.30%	1.44%	-5.28%	-45.77%
4615	44 Neutral	¥4.42B	-17.06	-0.44%	―	8.91%	-42.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%