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Sinko Industries Ltd. (JP:6458)
:6458
Japanese Market
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Sinko Industries Ltd. (6458) AI Stock Analysis

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JP:6458

Sinko Industries Ltd.

(6458)

Rating:80Outperform
Price Target:
¥1,480.00
▲(15.35%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. (6458) vs. iShares MSCI Japan ETF (EWJ)

Sinko Industries Ltd. Business Overview & Revenue Model

Company DescriptionSinko Industries Ltd. (6458) is a prominent player in the manufacturing sector, specializing in the production of high-quality industrial components and engineering solutions. The company caters to various industries, including automotive, aerospace, and electronics, providing innovative and reliable products designed to meet the specific needs of its diverse client base.
How the Company Makes MoneySinko 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 robust growth and profitability with strong revenue growth and improved profit margins. The balance sheet is strong with low leverage and high equity, enhancing financial stability. However, the decrease in free cash flow is a concern, though cash flow metrics remain satisfactory.
Income Statement
82
Very Positive
Sinko Industries Ltd. has demonstrated strong revenue growth of 9.7% in the most recent year, coupled with a solid gross profit margin of 38.2%. The company's net profit margin also improved to 13.7%, showcasing effective cost management. The EBIT and EBITDA margins stand at 17.5% and 23.2%, respectively, reflecting efficient operations. Overall, Sinko Industries' income statement indicates robust growth and profitability.
Balance Sheet
88
Very Positive
The balance sheet of Sinko Industries is strong with a low debt-to-equity ratio of 0.04, indicating minimal leverage. The return on equity is favorable at 12.8%, suggesting good returns to shareholders. The equity ratio stands at 71.7%, reflecting a solid equity base and financial stability. The company's balance sheet is marked by low debt levels and high equity, enhancing its financial resilience.
Cash Flow
76
Positive
Sinko Industries has experienced a decrease in free cash flow by 61.7%, which could be a potential concern. However, the operating cash flow to net income ratio is 0.73, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.29, suggesting some room for improvement in cash conversion. Despite the decline in free cash flow, the company maintains satisfactory cash flow metrics.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue57.01B51.94B44.80B41.96B39.18B
Gross Profit21.80B19.10B15.26B14.85B15.20B
EBITDA13.23B10.90B7.19B6.83B7.61B
Net Income7.83B6.58B4.51B4.10B5.02B
Balance Sheet
Total Assets85.00B88.04B77.53B72.05B69.00B
Cash, Cash Equivalents and Short-Term Investments18.67B22.73B19.33B19.13B18.98B
Total Debt2.41B2.59B3.13B3.59B4.11B
Total Liabilities20.71B24.13B19.84B18.07B18.02B
Stockholders Equity60.97B61.09B55.16B51.59B48.93B
Cash Flow
Free Cash Flow2.31B6.03B2.23B2.37B117.00M
Operating Cash Flow5.74B8.91B4.09B3.64B5.62B
Investing Cash Flow261.00M-2.23B-1.65B-1.22B-9.25B
Financing Cash Flow-8.15B-3.35B-2.29B-2.30B308.00M

Sinko Industries Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1283.00
Price Trends
50DMA
1230.38
Positive
100DMA
1212.25
Positive
200DMA
1252.17
Positive
Market Momentum
MACD
17.18
Negative
RSI
63.17
Neutral
STOCH
65.83
Neutral
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 1283 is above the 20-day moving average (MA) of 1252.70, above the 50-day MA of 1230.38, and above the 200-day MA of 1252.17, indicating a bullish trend. The MACD of 17.18 indicates Negative momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.83 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥98.20B12.00
3.91%9.75%21.60%
79
Outperform
¥505.43B17.72
1.96%5.03%40.78%
77
Outperform
¥179.90B16.057.46%4.27%-5.91%-28.26%
76
Outperform
¥123.57B15.39
1.52%5.59%11.26%
75
Outperform
¥81.30B10.58
2.59%-1.93%-30.63%
71
Outperform
¥269.60B14.198.47%2.85%6.33%12.37%
62
Neutral
¥504.50B72.541.08%5.13%0.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6458
Sinko Industries Ltd.
1,292.00
124.67
10.68%
JP:1969
Takasago Thermal Engineering Co., Ltd.
7,376.00
2,261.72
44.22%
JP:4216
ASAHI YUKIZAI CORPORATION
4,355.00
400.45
10.13%
JP:5273
Mitani Sekisan Co., Ltd.
8,640.00
3,602.94
71.53%
JP:5938
LIXIL Group
1,755.00
158.47
9.93%
JP:1979
Taikisha
2,719.00
459.04
20.31%

Sinko Industries Ltd. Corporate Events

Sinko Industries Completes Treasury Share Disposal for Compensation Plan
Jul 23, 2025

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
Jul 3, 2025

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
Jun 25, 2025

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
Jun 6, 2025

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
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2025