Sinko Industries Ltd. (6458) AI Stock Analysis

• Market Cap: ¥95.85B
• Dividend Yield: 3.94%
• Average Volume (3M): 169.36K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.81
• Revenue Growth: 7.20%
• EPS Growth: 5.74%
• Country: JP
• Employees: 1,616
• Sector: Industrials
• Sector Strength: 79
• Industry: Construction
• EPS (TTM): 18.79
• Shares Outstanding: 77,373,700
• 10 Day Avg. Volume: 202,530
• 30 Day Avg. Volume: 169,363
• 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: ¥1,480.00
• Price Target Upside: 16.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,480.00 ▲(16.72% Upside)

Sinko Industries Ltd. is well-positioned with strong financial performance, positive technical indicators, and attractive valuation metrics. The company's low debt and strong equity position further enhance its investment appeal. While cash flow generation could improve, the overall outlook remains positive.

Sinko Industries Ltd. Business Overview & Revenue Model

Company Description

Sinko Industries Ltd. manufactures, sells, and installs air conditioning equipment for various buildings worldwide. Its products include air conditioners, heat pump-type air conditioning systems, heat pump-type air-conditioning systems, desiccant dehumidifiers, fan coil units, heater units, air terminal units, heat exchangers, air purifiers, and room cleaner equipment, as well as natural refrigerant circulation systems. The company was founded in 1950 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sinko Industries Ltd. generates revenue primarily through the sale of its manufactured components and engineering solutions. The company operates a business-to-business (B2B) model, supplying its products directly to manufacturers and other industrial clients. Key revenue streams include long-term supply contracts with major automotive and aerospace companies, as well as custom engineering projects for electronics manufacturers. Additionally, Sinko Industries benefits from strategic partnerships with leading technology firms, enhancing its product offerings and expanding its market reach. The company's commitment to quality and innovation allows it to maintain competitive pricing and secure repeat business from its clients.

Sinko Industries Ltd. Financial Statement Overview

Summary

Sinko Industries Ltd. demonstrates strong financial health with consistent revenue growth and robust profitability margins. The balance sheet reflects a low-risk profile with minimal debt and strong equity. However, the cash flow statement indicates stable but improvable cash generation.

Income Statement

Sinko Industries Ltd. demonstrates strong financial performance with consistent revenue growth, evidenced by a 9.74% increase from 2024 to 2025. The company maintains healthy profitability metrics, with a Gross Profit Margin of 38.23% and a Net Profit Margin of 13.74% in 2025. The EBIT and EBITDA margins are also robust at 17.52% and 23.20%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a stable and growing business with strong profitability.

Balance Sheet

The balance sheet of Sinko Industries Ltd. is solid, with a low Debt-to-Equity Ratio of 0.04, indicating minimal leverage and financial risk. The Return on Equity (ROE) is a healthy 12.84%, showcasing effective use of shareholder funds to generate profit. The Equity Ratio stands at 71.72%, reflecting a strong equity position relative to total assets. While the company is financially stable, the slight decrease in Stockholders' Equity from 2024 to 2025 suggests a need for monitoring future equity trends.

Cash Flow

The cash flow statement shows a decline in Operating Cash Flow from 2024 to 2025, which may raise concerns about cash generation efficiency. However, the Free Cash Flow remains positive, albeit lower than the previous year, with a Free Cash Flow to Net Income Ratio of 0.29. The Operating Cash Flow to Net Income Ratio is 0.73, indicating that the company generates sufficient cash relative to its net income, though there is room for improvement. Overall, the cash flow position is stable but could benefit from enhanced cash generation strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.01B	51.94B	44.80B	41.96B	39.18B
Gross Profit	21.80B	19.10B	15.26B	14.85B	15.20B
EBITDA	13.23B	10.90B	7.84B	6.83B	8.40B
Net Income	7.83B	6.58B	4.51B	4.10B	5.02B
Balance Sheet
Total Assets	85.00B	88.04B	77.53B	72.05B	69.00B
Cash, Cash Equivalents and Short-Term Investments	18.67B	22.73B	19.33B	19.13B	18.98B
Total Debt	2.41B	2.59B	3.13B	3.59B	4.11B
Total Liabilities	20.71B	24.13B	19.84B	18.07B	18.02B
Stockholders Equity	60.97B	61.09B	55.16B	51.59B	48.93B
Cash Flow
Free Cash Flow	2.31B	6.03B	2.23B	2.37B	117.00M
Operating Cash Flow	5.74B	8.91B	4.09B	3.64B	5.62B
Investing Cash Flow	261.00M	-2.23B	-1.65B	-1.22B	-9.25B
Financing Cash Flow	-8.15B	-3.35B	-2.29B	-2.30B	308.00M

Sinko Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1268.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6458, the sentiment is Neutral. The current price of 1268 is below the 20-day moving average (MA) of 1296.95, above the 50-day MA of 1260.38, and above the 200-day MA of 1235.64, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 21.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6458.

Sinko Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6458	80 Outperform	¥95.85B	11.97		3.94%	7.20%	5.74%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
JSGCF	―	$3.72B	82.66	1.08%	4.68%	―	―
TKIAF	―	$1.31B	16.55	8.06%	―	―	―
5273	76 Outperform	¥127.86B	14.87		1.47%	8.66%	12.34%
4216	75 Outperform	¥85.32B	11.78		2.47%	-1.93%	-30.63%
1969	72 Outperform	¥578.75B	16.19		1.63%	14.04%	75.99%

Sinko Industries Ltd. Corporate Events

Sinko Industries Updates on Share Repurchase Program

Sinko Industries Ltd. has announced the status of its share repurchase program, which is part of a strategic move under the provisions of the Companies Act. As of July 31, 2025, the company repurchased 466,500 shares at a cost of ¥582,747,591. This is part of a larger plan approved by the Board of Directors to repurchase up to 7,000,000 shares by March 2026, with a total budget of ¥6.0 billion. This initiative is likely aimed at enhancing shareholder value and optimizing the capital structure.

Sinko Industries Completes Treasury Share Disposal for Compensation Plan

Sinko Industries Ltd. has completed the payment procedures for the disposal of 30,600 treasury shares as part of its restricted share-based compensation plan. This move, resolved at the Board of Directors meeting in June 2025, involves allocating shares to various directors and officers, potentially impacting the company’s equity structure and aligning management incentives with shareholder interests.

Sinko Industries Announces Progress in Share Repurchase Program

Sinko Industries Ltd. announced the status of its share repurchase program, revealing that it has repurchased 351,500 shares at a cost of ¥431,574,298 during June 2025. This is part of a larger plan approved by the Board of Directors to buy back up to 7,000,000 shares by March 2026, with a total budget of ¥6.0 billion. The repurchase is expected to impact the company’s stock value and shareholder returns positively.

Sinko Industries Announces Disposal of Treasury Shares for Compensation Plan

Sinko Industries Ltd. announced the disposal of 30,600 treasury shares as part of its restricted share-based compensation plan, aimed at aligning the interests of its directors and shareholders. This move is expected to incentivize directors to enhance corporate value and promote shared value with shareholders, impacting the company’s governance and stakeholder relations positively.

Sinko Industries Reports Progress on Share Repurchase Program

Sinko Industries Ltd. announced the status of its ongoing share repurchase program, reporting the acquisition of 455,000 shares at a cost of ¥552,856,094 during May 2025. This initiative is part of a broader plan approved by the Board of Directors to repurchase up to 7,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

Sinko Industries Ltd. Reports Strong Fiscal Year 2025 Financial Results

Sinko Industries Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in net sales and profits compared to the previous year. The company achieved a 9.7% rise in net sales to ¥57,005 million and a 19% increase in profit attributable to owners of the parent, amounting to ¥7,829 million. Despite a decrease in comprehensive income, the company maintained a strong financial position with a capital adequacy ratio of 71.7%. The announcement indicates a stable financial performance and a positive outlook for stakeholders, although a slight decline in profit is expected for the next fiscal year.