Hokkan Holdings Limited (5902) AI Stock Analysis

• Market Cap: ¥23.35B
• Dividend Yield: 4.49%
• Average Volume (3M): 15.43K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.46
• Revenue Growth: 1.63%
• EPS Growth: 19.59%
• Country: JP
• Employees: 2,231
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Packaging & Containers
• EPS (TTM): 15.51
• Shares Outstanding: 13,469,387
• 10 Day Avg. Volume: 20,320
• 30 Day Avg. Volume: 15,426
• PEG Ratio: -0.13
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.04
• 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

• Rating: 80 Outperform
• Price Target: ¥2,187.00 ▲(14.26%Upside)

Hokkan Holdings Limited has a strong overall stock score driven by solid financial performance and attractive valuation metrics. The positive technical indicators further support a bullish outlook for the stock. The absence of recent earnings call data or significant corporate events does not detract from the strength shown in existing data.

Hokkan Holdings Limited Business Overview & Revenue Model

Company Description

Hokkan Holdings Limited (5902) is a Japan-based company primarily engaged in the manufacture and sale of beverages and food products. The company operates through various segments including the Beverage Contract Manufacturing segment, which offers contract manufacturing services for a wide range of beverages, and the Food Products segment, which focuses on the production and distribution of food items. Hokkan Holdings is recognized for its innovative packaging solutions and strong distribution networks, catering to both domestic and international markets.

How the Company Makes Money

Hokkan Holdings Limited generates revenue primarily through its Beverage Contract Manufacturing segment, where it provides contract manufacturing services to other companies in the beverage industry. This includes producing beverages for major brands under contract agreements. The company also earns revenue from its Food Products segment by manufacturing and selling various food items. Additionally, Hokkan Holdings benefits from its advanced packaging solutions, which are tailored to meet client specifications and enhance product appeal. Strategic partnerships with key players in the beverage and food industries, along with a robust distribution network, significantly contribute to the company's earnings.

Hokkan Holdings Limited Financial Statement Overview

Summary

Hokkan Holdings Limited demonstrates overall financial strength with solid revenue and profit growth. The company shows good cash flow management and stable leverage ratios. However, attention should be paid to the consistency of operational margins and the potential impact of capital expenditures on free cash flow.

Income Statement

Hokkan Holdings Limited shows a positive trend in revenue growth, with a significant increase from the previous year. The company improved its net profit margin, reflecting better profitability management. However, historical data indicates fluctuating EBIT and EBITDA margins, suggesting operational challenges.

Balance Sheet

The balance sheet shows a stable equity base with an improving debt-to-equity ratio, indicating strong financial leverage management. However, the equity ratio suggests moderate reliance on debt, which may pose risks in volatile markets. Return on equity has improved, indicating better utilization of shareholder funds.

Cash Flow

Hokkan Holdings displays a robust operating cash flow, with a strong operating cash flow to net income ratio, suggesting efficient cash generation from operations. However, free cash flow growth is inconsistent, reflecting fluctuating capital expenditure needs which could impact liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	93.05B	92.42B	90.93B	93.66B	86.33B	109.37B
Gross Profit	20.70B	20.82B	20.66B	15.43B	16.83B	15.66B
EBITDA	9.69B	11.61B	10.63B	8.34B	6.78B	8.31B
Net Income	2.09B	3.26B	2.72B	-2.01B	-1.23B	-368.00M
Balance Sheet
Total Assets	131.23B	132.32B	134.05B	129.21B	142.33B	146.74B
Cash, Cash Equivalents and Short-Term Investments	6.08B	13.37B	12.80B	10.16B	10.07B	8.43B
Total Debt	37.61B	43.10B	43.42B	43.02B	55.43B	61.60B
Total Liabilities	67.57B	70.09B	73.18B	74.33B	85.30B	89.52B
Stockholders Equity	58.60B	57.49B	56.05B	50.59B	52.97B	53.78B
Cash Flow
Free Cash Flow	0.00	2.19B	3.19B	5.50B	3.71B	-839.00M
Operating Cash Flow	0.00	12.50B	7.36B	9.29B	11.86B	3.97B
Investing Cash Flow	0.00	-10.15B	-3.85B	4.09B	-3.60B	-5.58B
Financing Cash Flow	0.00	-1.76B	-1.23B	-13.43B	-7.21B	3.16B

Hokkan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1914.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5902, the sentiment is Positive. The current price of 1914 is above the 20-day moving average (MA) of 1889.45, above the 50-day MA of 1869.02, and above the 200-day MA of 1704.15, indicating a bullish trend. The MACD of 9.73 indicates Negative momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 83.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5902.

Hokkan Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5902	80 Outperform	¥23.35B	7.21		4.49%	1.63%	19.59%
3950	79 Outperform	¥65.26B	10.77		3.48%	2.76%	-3.98%
3946	74 Outperform	¥47.84B	7.37		3.77%	3.82%	22.43%
5901	73 Outperform	¥427.43B	22.06	3.29%	3.11%	-2.96%	1.03%
7864	73 Outperform	¥149.64B	12.15	8.65%	2.78%	8.00%	19.78%
7917	72 Outperform	¥70.88B	10.58	7.26%	0.54%	10.71%	45.44%
Sector *	67 Neutral	¥252.06B	13.21	6.57%	2.79%	5.06%	-11.45%

Hokkan Holdings Limited Corporate Events

Hokkan Holdings Reports Modest Growth and Increased Dividends

Hokkan Holdings Limited reported a slight increase in net sales and profits for the fiscal year ended March 31, 2025, with net sales reaching ¥92,419 million, a 1.6% increase from the previous year. The company also announced a higher year-end dividend, reflecting its stable financial performance and commitment to returning value to shareholders.

Hokkan Holdings Board Opposes Shareholder Proposals on Cross-Shareholdings

Hokkan Holdings Limited’s Board of Directors has opposed shareholder proposals to amend the Articles of Incorporation concerning the sale and disclosure of cross-shareholdings. The Board argues that the proposed amendments would undermine their strategic management decisions and could harm shareholder interests by enforcing a uniform policy that does not consider the company’s long-term value enhancement and business relationships.

Hokkan Holdings Revises Dividend Forecasts for FY2025

Hokkan Holdings Limited announced a revision to its dividend forecasts for the fiscal year ended March 31, 2025, increasing the year-end dividend per share to 70 yen and the annual dividend per share to 93 yen. This decision aligns with the company’s policy of maintaining a consolidated dividend payout ratio of 35% or more, reflecting its commitment to providing value to shareholders and possibly enhancing its market positioning.

Hokkan Holdings Revises Financial Forecast with Improved Profit Outlook

Hokkan Holdings Limited has revised its financial forecast for the fiscal year ended March 31, 2025, indicating a decrease in net sales but an increase in operating and ordinary profits. The adjustments are attributed to strong performance in the container business, cost reductions in factory and distribution expenses, and lower tax expenses, leading to a significant rise in profit attributable to owners of the parent.