Hokkan Holdings Limited (5902) AI Stock Analysis

• Market Cap: ¥26.11B
• Dividend Yield: 4.4%
• Average Volume (3M): 22.54K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.44
• Revenue Growth: -1.28%
• EPS Growth: 30.53%
• Country: JP
• Employees: 2,231
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 127.58
• Shares Outstanding: 13,469,387
• 10 Day Avg. Volume: 18,150
• 30 Day Avg. Volume: 22,536
• PEG Ratio: 0.32
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 9.32
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,502.00 ▲(10.17% Upside)

Hokkan Holdings Limited's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's solid revenue growth and efficient cash flow management are complemented by a low P/E ratio and high dividend yield, making it an appealing investment. Technical indicators support a positive trend, though they are less influential than the financial and valuation metrics.

Positive Factors

Cash Generation Ability

Efficient cash generation from operations indicates strong financial health, enabling reinvestment in growth and cushioning against market fluctuations.

Balance Sheet Health

A stable equity base and improved debt management enhance financial stability, reducing risk and supporting long-term strategic investments.

Profitability Management

Enhanced profitability management through improved net margins suggests effective cost control and pricing strategies, supporting sustainable growth.

Negative Factors

Revenue Growth Challenges

Despite recent growth, historical fluctuations in revenue suggest potential challenges in maintaining consistent growth, impacting long-term planning.

Operational Margin Fluctuations

Inconsistent operational margins highlight potential inefficiencies or market pressures, which could affect profitability and strategic flexibility.

Free Cash Flow Inconsistency

Inconsistent free cash flow growth due to variable capital expenditures may constrain liquidity, affecting the ability to fund new initiatives or weather downturns.

Hokkan Holdings Limited Business Overview & Revenue Model

Company Description

Hokkan Holdings Limited, through its subsidiaries, engages in the container, filling, and machinery production businesses in Taiwan. The company manufactures cans for food and beverages; and plastic bottles, as well as special use containers, such as spray cans and design cans. It also provides aerosol containers comprising pesticide, hair spray, paint, and lighter gas containers; and art cans. In addition, the company offers filling services for beverage companies with a capacity of 1,200 bottles per a minute. Further, it provides a range of machine manufacturing services, including container molds for cans and PET bottles, beverage containers manufacturing machines, and filling machines, as well as engages in maintenance and engineering activities. Additionally, the company manufactures and sells cosmetic products. Hokkan Holdings Limited was founded in 1921 and is based in Tokyo, Japan.

How the Company Makes Money

Hokkan Holdings Limited generates revenue through multiple key streams, primarily from the sale of its food and beverage products. The company leverages its manufacturing capabilities to produce high-quality items that appeal to a broad consumer base. Additionally, Hokkan Holdings engages in strategic partnerships with retailers and distributors, enhancing its market reach and ensuring a steady flow of sales. The company also benefits from economies of scale in production and distribution, allowing it to maintain competitive pricing while maximizing profit margins. Furthermore, Hokkan Holdings invests in research and development to innovate and expand its product offerings, which contributes to revenue growth and customer retention.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.91B	92.42B	90.93B	93.66B	86.33B	109.37B
Gross Profit	20.53B	20.82B	20.66B	15.43B	16.83B	15.66B
EBITDA	11.35B	11.61B	10.63B	8.34B	6.78B	8.31B
Net Income	3.09B	3.26B	2.72B	-2.01B	-1.23B	-368.00M
Balance Sheet
Total Assets	134.83B	132.32B	134.05B	129.21B	142.33B	146.74B
Cash, Cash Equivalents and Short-Term Investments	10.30B	13.37B	12.80B	10.16B	10.07B	8.43B
Total Debt	42.93B	43.10B	43.42B	43.02B	55.43B	61.60B
Total Liabilities	72.21B	70.09B	73.18B	74.33B	85.30B	89.52B
Stockholders Equity	58.01B	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: 2271.00
• 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:5902, the sentiment is Positive. The current price of 2271 is above the 20-day moving average (MA) of 2254.50, above the 50-day MA of 2226.79, and above the 200-day MA of 1943.58, indicating a bullish trend. The MACD of 24.33 indicates Negative momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 39.50 is Neutral, 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
3950	82 Outperform	¥74.79B	12.41	―	6.79%	2.85%	-9.13%
5901	79 Outperform	¥510.84B	13.49	6.55%	2.71%	-0.06%	137.47%
7917	78 Outperform	¥86.80B	12.24	7.53%	3.08%	5.44%	45.99%
7864	78 Outperform	$149.80B	11.46	10.46%	2.39%	4.56%	49.23%
5902	76 Outperform	¥26.11B	8.53	―	4.40%	-1.28%	30.53%
3946	68 Neutral	¥56.78B	7.72	―	3.58%	4.40%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Hokkan Holdings Limited Corporate Events

Hokkan Holdings Reports Mixed Financial Results for First Half of 2025

Hokkan Holdings Limited reported a decrease in net sales and operating profits for the six months ending September 30, 2025, compared to the previous year. Despite this, the company saw a significant increase in profit attributable to owners of the parent, indicating improved efficiency or cost management. The equity-to-asset ratio also improved slightly, suggesting a stronger financial position. The company maintained its dividend forecast, reflecting confidence in its long-term financial stability.