Chino Corporation (6850) AI Stock Analysis

• Market Cap: ¥23.90B
• Dividend Yield: 2.97%
• Average Volume (3M): 32.28K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.97
• Revenue Growth: 6.15%
• EPS Growth: 2.98%
• Country: JP
• Employees: 1,095
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 20.77
• Shares Outstanding: 18,520,231
• 10 Day Avg. Volume: 41,830
• 30 Day Avg. Volume: 32,276
• PEG Ratio: 0.64
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 9.19
• 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): 19,234.96
• Revenue Forecast (FY): ¥4.67T

• Rating: 80 Outperform
• Price Target: ¥1,576.00 ▲(16.91% Upside)

Chino Corporation's strong financial performance and reasonable valuation are the primary drivers of its high stock score. The positive technical indicators further support the stock's potential for growth. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and expansion.

Profit Margins

Improved profit margins reflect operational efficiency and cost management, enhancing profitability and competitive advantage over time.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Debt Levels

Although currently manageable, debt levels require careful monitoring to prevent potential financial strain and ensure long-term stability.

Earnings Call Absence

Lack of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Corporate Events Absence

Absence of notable corporate events may indicate a lack of strategic initiatives or partnerships, potentially impacting future growth prospects.

Chino Corporation Business Overview & Revenue Model

Company Description

Chino Corporation (6850) is a prominent player in the manufacturing sector, specializing in the production of high-quality electronic components and systems. The company operates primarily in the electronics and telecommunications industries, offering a diverse range of products that include semiconductors, circuit boards, and communication devices. With a focus on innovation and technological advancement, Chino Corporation is committed to delivering reliable solutions that meet the evolving needs of its global clientele.

How the Company Makes Money

Chino Corporation generates revenue through multiple key streams, primarily by selling its electronic components and systems to various industries, including telecommunications, automotive, and consumer electronics. The company's revenue model is heavily reliant on direct sales to manufacturers and distributors, alongside long-term contracts with major corporations that require bulk components. Additionally, Chino benefits from strategic partnerships with technology firms, enhancing its market reach and product offerings. The company also invests in research and development, aiming to create cutting-edge products that can command higher prices and maintain competitive advantages in the market.

Chino Corporation Financial Statement Overview

Summary

Chino Corporation exhibits strong financial performance with robust revenue growth, improved profit margins, and solid cash flow management. The balance sheet shows prudent financial leverage and a stable equity base, indicating minimal financial risks.

Income Statement

Chino Corporation has demonstrated robust revenue growth, with a significant increase from previous years. The Gross Profit Margin and Net Profit Margin have also improved, indicating strong operational efficiency. The EBIT and EBITDA margins have steadily increased, showcasing enhanced profitability. Overall, the income statement reflects strong growth and profitability with minimal weaknesses.

Balance Sheet

The company maintains a solid Debt-to-Equity Ratio, highlighting prudent financial leverage. The Return on Equity is commendable, driven by consistent profitability. The Equity Ratio demonstrates a stable financial position with a strong equity base. While the debt levels are manageable, continuous monitoring is advisable to maintain financial stability.

Cash Flow

Chino Corporation has shown substantial improvement in Free Cash Flow, reflecting strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio are healthy, indicating efficient cash management. Although prior years showed fluctuations, recent trends are positive, suggesting improved cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.44B	29.33B	27.43B	23.79B	21.91B	21.08B
Gross Profit	9.17B	9.37B	8.39B	7.87B	7.08B	6.36B
EBITDA	3.58B	4.08B	3.58B	3.10B	2.52B	2.73B
Net Income	1.90B	1.99B	1.76B	1.54B	1.05B	1.29B
Balance Sheet
Total Assets	36.67B	37.77B	36.53B	36.29B	31.55B	30.40B
Cash, Cash Equivalents and Short-Term Investments	8.28B	8.13B	7.30B	9.18B	7.33B	6.99B
Total Debt	2.48B	2.61B	3.02B	3.38B	2.26B	2.59B
Total Liabilities	12.12B	12.73B	13.34B	14.72B	11.40B	10.90B
Stockholders Equity	21.62B	21.98B	20.26B	18.78B	17.56B	16.64B
Cash Flow
Free Cash Flow	316.00M	1.84B	-1.34B	1.05B	970.00M	1.39B
Operating Cash Flow	522.50M	2.54B	101.00M	1.62B	1.88B	2.34B
Investing Cash Flow	-189.50M	-667.00M	81.00M	-564.00M	-578.00M	-748.72M
Financing Cash Flow	-336.50M	-1.10B	-1.10B	655.00M	-978.00M	-968.70M

Chino Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1348.00
• 50DMA: Negative
• 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:6850, the sentiment is Neutral. The current price of 1348 is below the 20-day moving average (MA) of 1374.85, below the 50-day MA of 1361.44, and above the 200-day MA of 1178.66, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6850.

Chino Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥23.90B	12.56	―	2.97%	6.15%	2.98%
6626	73 Outperform	¥24.56B	7.69	―	1.87%	4.47%	12.28%
6848	73 Outperform	¥16.64B	16.22	―	2.62%	1.66%	-12.21%
6853	72 Outperform	¥18.20B	17.67	―	3.09%	-1.58%	12.24%
6874	72 Outperform	¥20.59B	9.08	―	2.90%	8.78%	16.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥33.60B	31.07	―	2.01%	6.10%	―

Chino Corporation Corporate Events

Chino Corporation Announces Treasury Share Repurchase

Chino Corporation announced the repurchase of 42,100 treasury shares as part of a broader strategy to enhance shareholder value. This move, approved by the Board of Directors, is part of a larger plan to repurchase up to 860,000 shares by November 2026, with the intention of canceling these shares to benefit shareholders.

Chino Corporation Announces Share Buyback to Enhance Shareholder Value

Chino Corporation announced a decision by its Board of Directors to repurchase up to 860,000 of its own shares, representing 5.05% of the total issued shares, excluding treasury shares. This buyback, with a maximum cost of 1.3 billion yen, aims to enhance shareholder returns and improve capital efficiency, with the shares intended for cancellation.

Chino Corporation Reports Mixed Financial Results for First Half of 2025

Chino Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a 7.8% increase in net sales to 14,187 million yen. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with respective decreases of 14.0%, 16.0%, and 26.1% compared to the previous year. Despite these challenges, Chino Corporation maintains a stable financial position with an equity ratio of 61.1%. The company also announced a share split and provided forecasts for the fiscal year ending March 31, 2026, projecting modest growth in net sales and profits.