Hamai Industries Ltd. (6497) AI Stock Analysis

• Market Cap: ¥7.95B
• Dividend Yield: 2.89%
• Average Volume (3M): 3.68K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.31
• Revenue Growth: 5.71%
• EPS Growth: 169.04%
• Country: JP
• Employees: 288
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 23.29
• Shares Outstanding: 7,424,140
• 10 Day Avg. Volume: 3,620
• 30 Day Avg. Volume: 3,680
• PEG Ratio: -0.32
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 53.61
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,316.00 ▲(10.59% Upside)

Hamai Industries Ltd. has a solid financial foundation with strong revenue growth and efficient management, contributing significantly to the overall score. The stock's valuation is attractive, with a low P/E ratio and a reasonable dividend yield, enhancing its appeal. However, technical indicators suggest a lack of strong momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing the company's long-term market position.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, supporting sustainable growth and resilience to economic fluctuations.

Cash Generation

Improved cash flow management reflects the company's ability to generate cash efficiently, ensuring liquidity and funding for future investments.

Negative Factors

Net Income Decline

A decline in net income can impact profitability and shareholder returns, indicating potential challenges in cost management or market conditions.

Volatile Free Cash Flow Growth

Volatility in free cash flow growth suggests potential instability in cash reserves, which can affect the company's ability to invest and manage debt.

Moderate Return on Equity

A moderate ROE indicates room for improvement in generating returns for shareholders, which may affect investor confidence and capital attraction.

Hamai Industries Ltd. Business Overview & Revenue Model

Company Description

Hamai Industries Ltd. (6497) is a prominent player in the manufacturing sector, focusing on the production of advanced industrial equipment and components. The company operates primarily in the fields of precision machining, metal fabrication, and custom engineering solutions, catering to diverse industries such as automotive, aerospace, and electronics. With a commitment to innovation and quality, Hamai Industries has established itself as a trusted supplier for various OEMs (Original Equipment Manufacturers) and has expanded its product offerings to include automation solutions and smart manufacturing technologies.

How the Company Makes Money

Hamai Industries Ltd. generates revenue through multiple streams, primarily from the sale of its industrial equipment and components to various sectors. The company's revenue model is centered around direct sales to OEMs, which account for a significant portion of its earnings. Additionally, the company has developed long-term partnerships with key players in the automotive and aerospace industries, providing tailored solutions that enhance operational efficiency and reduce production costs for its clients. Hamai Industries also benefits from service contracts and maintenance agreements, ensuring a steady flow of income beyond initial equipment sales. Furthermore, the increasing demand for automation and smart manufacturing solutions has opened new avenues for revenues, allowing the company to capitalize on emerging trends in technology and production processes.

Hamai Industries Ltd. Financial Statement Overview

Summary

Hamai Industries Ltd. demonstrates strong financial performance with consistent revenue growth and efficient operational management. The balance sheet is solid with low leverage, and cash flow management shows improvements. However, there is room for enhancement in net income and return on equity to maximize shareholder value.

Income Statement

Hamai Industries Ltd. demonstrates strong financial performance with a consistent increase in total revenue, showcasing a revenue growth rate of 8.63% from 2023 to 2024. The gross profit margin is healthy, and the net profit margin has improved significantly, though it remains moderate at 3.28% in 2024. The EBIT and EBITDA margins are robust, indicating efficient operational management. However, net income has decreased, which affects overall profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial management. The equity ratio is high at 74.19%, suggesting a stable capital structure. The return on equity (ROE) is moderate at 2.47% in 2024, reflecting room for improvement in generating returns for shareholders.

Cash Flow

Hamai Industries Ltd. shows a positive trend in operating cash flow with a significant increase from 2023 to 2024, reflecting strong cash generation capabilities. Free cash flow has improved from a negative position to a positive one, indicating better capital expenditure management. However, the free cash flow growth rate is volatile, and the operating cash flow to net income ratio suggests challenges in converting accounting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.69B	12.09B	11.13B	11.20B	9.46B	8.28B
Gross Profit	2.36B	2.33B	2.25B	2.24B	1.61B	1.60B
EBITDA	1.80B	1.68B	1.59B	1.56B	947.74M	920.25M
Net Income	819.89M	396.77M	909.00M	949.23M	433.47M	377.46M
Balance Sheet
Total Assets	21.73B	21.65B	21.10B	19.79B	18.32B	17.41B
Cash, Cash Equivalents and Short-Term Investments	3.76B	4.36B	4.57B	4.49B	3.93B	4.01B
Total Debt	154.76M	168.60M	114.00M	74.67M	84.04M	118.03M
Total Liabilities	5.07B	5.59B	5.46B	5.50B	4.64B	4.20B
Stockholders Equity	16.66B	16.06B	15.64B	14.29B	13.68B	13.21B
Cash Flow
Free Cash Flow	0.00	134.45M	-150.00M	703.03M	64.39M	543.05M
Operating Cash Flow	0.00	535.70M	323.00M	1.07B	412.26M	1.15B
Investing Cash Flow	0.00	-442.83M	-10.36M	-322.24M	-192.69M	-524.89M
Financing Cash Flow	0.00	-310.27M	-237.00M	-206.68M	-207.97M	-211.81M

Hamai Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1190.00
• 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:6497, the sentiment is Positive. The current price of 1190 is below the 20-day moving average (MA) of 1193.45, below the 50-day MA of 1193.54, and above the 200-day MA of 1130.48, indicating a bullish trend. The MACD of 3.48 indicates Negative momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6497.

Hamai Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3440	75 Outperform	¥5.50B	6.57	―	4.31%	30.19%	-15.63%
6497	72 Outperform	¥7.95B	8.78	―	2.89%	5.71%	169.04%
5644	72 Outperform	¥15.30B	7.91	―	2.86%	2.38%	-5.80%
6998	71 Outperform	¥7.42B	10.77	―	3.43%	0.24%	20.23%
3435	70 Neutral	¥9.87B	9.21	―	3.03%	1.82%	-24.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5987	59 Neutral	¥2.81B	21.99	―	1.18%	2.94%	―