Sinko Industries Ltd. (6458) AI Stock Analysis

• Market Cap: ¥97.37B
• Dividend Yield: 3.65%
• Average Volume (3M): 148.83K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.80
• Revenue Growth: 8.96%
• EPS Growth: -0.82%
• Country: JP
• Employees: 1,616
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 18.88
• Shares Outstanding: 77,373,700
• 10 Day Avg. Volume: 128,280
• 30 Day Avg. Volume: 148,826
• PEG Ratio: 0.51
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 37.91
• 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: 79 Outperform
• Price Target: ¥1,476.00 ▲(3.58% Upside)

Sinko Industries Ltd. demonstrates strong financial performance with robust profitability and a low-risk balance sheet. The technical analysis supports a positive outlook with upward price trends. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, making it appealing for both growth and income investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Profitability Margins

High profitability margins reflect efficient operations and cost management, enhancing the company's competitive position and financial health.

Balance Sheet Strength

Minimal leverage indicates low financial risk, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Negative Factors

Operating Cash Flow Decline

Decreasing operating cash flow could impact the company's ability to fund operations and growth initiatives, necessitating improved cash management strategies.

Stockholders' Equity Decrease

A decrease in equity might signal potential issues in retained earnings or asset management, requiring monitoring to ensure long-term financial stability.

Free Cash Flow Reduction

Reduced free cash flow could limit the company's ability to invest in new projects or return capital to shareholders, affecting future growth prospects.

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 through multiple streams, primarily by selling its manufactured products to businesses in different industries. Key revenue streams include direct sales of precision components to automotive and aerospace manufacturers, as well as custom contracts with consumer goods companies for specialized manufacturing solutions. The company also benefits from long-term partnerships with major industry players, which provide a stable income base and opportunities for collaborative projects. Additionally, Sinko may explore revenue through licensing its proprietary technologies and processes, further enhancing its income potential.

Sinko Industries Ltd. Financial Statement Overview

Summary

Sinko Industries Ltd. exhibits 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. While the cash flow statement indicates stable cash generation, there is potential for improvement in operating cash flows.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.58B	57.01B	51.94B	44.80B	41.96B	39.18B
Gross Profit	21.83B	21.80B	19.10B	15.26B	14.85B	15.20B
EBITDA	12.94B	13.23B	10.90B	7.84B	6.83B	8.40B
Net Income	7.58B	7.83B	6.58B	4.51B	4.10B	5.02B
Balance Sheet
Total Assets	87.01B	85.00B	88.04B	77.53B	72.05B	69.00B
Cash, Cash Equivalents and Short-Term Investments	21.66B	18.67B	22.73B	19.33B	19.13B	18.98B
Total Debt	8.95B	2.41B	2.59B	3.13B	3.59B	4.11B
Total Liabilities	24.56B	20.71B	24.13B	19.84B	18.07B	18.02B
Stockholders Equity	59.36B	60.97B	61.09B	55.16B	51.59B	48.93B
Cash Flow
Free Cash Flow	0.00	2.31B	6.03B	2.23B	2.37B	117.00M
Operating Cash Flow	0.00	5.74B	8.91B	4.09B	3.64B	5.62B
Investing Cash Flow	0.00	261.00M	-2.23B	-1.65B	-1.22B	-9.25B
Financing Cash Flow	0.00	-8.15B	-3.35B	-2.29B	-2.30B	308.00M

Sinko Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1425.00
• 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:6458, the sentiment is Positive. The current price of 1425 is above the 20-day moving average (MA) of 1347.60, above the 50-day MA of 1309.04, and above the 200-day MA of 1240.07, indicating a bullish trend. The MACD of 29.66 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 86.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6458.

Sinko Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1969	79 Outperform	¥608.61B	14.61	―	2.03%	15.98%	82.99%
6458	79 Outperform	¥97.37B	12.16	―	3.65%	8.96%	-0.82%
1979	76 Outperform	¥217.35B	16.51	8.53%	2.50%	5.14%	-10.92%
4216	72 Outperform	¥89.06B	12.89	―	2.41%	-2.39%	-29.17%
5273	65 Neutral	¥106.69B	12.41	―	1.95%	12.72%	28.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	49 Neutral	$496.45B	53.42	1.44%	4.93%	0.68%	―

Sinko Industries Ltd. Corporate Events

Sinko Industries Ltd. Reports No Share Repurchases in November

Sinko Industries Ltd. announced the status of its share repurchase program, revealing that no shares were repurchased in November 2025 despite a previous board resolution allowing for the repurchase of up to 7 million shares. This development may impact investor perceptions and the company’s stock performance, as the repurchase program was initially intended to enhance shareholder value.

Sinko Industries Reports Mixed Financial Results for First Half of 2025

Sinko Industries Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 6.9% increase in net sales compared to the previous year. Despite this, the company experienced a decline in profit attributable to owners of the parent by 16.8%, indicating challenges in maintaining profitability. The company also announced a dividend payment schedule and provided forecasts for the fiscal year ending March 31, 2026, with expectations of modest growth in net sales and operating profit, but a decrease in profit attributable to owners.

Sinko Industries to Cancel Over 4.8 Million Treasury Shares

Sinko Industries Ltd. announced the cancellation of 4,830,705 shares of its treasury stock, aligning with its policy to maintain treasury stock holdings at no more than 5% of total issued shares. This move, effective November 6, 2025, is expected to streamline the company’s share structure and potentially enhance shareholder value.

Sinko Industries Ltd. Updates on Share Repurchase Program

Sinko Industries Ltd. announced the status of its share repurchase program, acquiring 300,000 shares at a cost of ¥393,593,894 between September 1 and September 30, 2025. This is part of a broader initiative approved by the Board of Directors to repurchase up to 7,000,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

Sinko Industries Reports Share Repurchase Status

Sinko Industries Ltd. announced the status of its share repurchase program, revealing that no shares were repurchased between August 1 and August 31, 2025. Despite the lack of activity in August, the company has repurchased a total of 3,172,600 shares at a cost of approximately ¥3.84 billion since the Board of Directors authorized the buyback in March 2025. This move is part of a broader strategy to enhance shareholder value, with the potential to repurchase up to 7 million shares by March 2026.