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Shinwa Co., Ltd. (JP:7607)
:7607
Japanese Market

Shinwa Co., Ltd. (7607) AI Stock Analysis

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JP:7607

Shinwa Co., Ltd.

(7607)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
¥3,322.00
▲(10.73% Upside)
Shinwa Co., Ltd. has a strong financial foundation with consistent revenue growth and solid operational performance, contributing significantly to the overall score. The valuation is attractive with a low P/E ratio and high dividend yield. However, technical analysis indicates bearish momentum, which slightly offsets the positive financial and valuation aspects.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Shinwa's products and effective market strategies, supporting long-term business expansion.
Balance Sheet Health
A robust balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and resilience in economic downturns.
Cash Flow Generation
Improved cash flow generation supports operational needs and growth initiatives, ensuring the company can sustain its business model and invest in future opportunities.
Negative Factors
Profitability Margins
Low net profit margins may limit reinvestment capabilities and shareholder returns, posing a challenge to enhancing long-term profitability.
Cash Flow Stability
Volatile cash flow growth can impact financial planning and investment capacity, potentially hindering consistent business operations and strategic initiatives.
Profitability Margins
Although operational performance is solid, the need to enhance profitability margins remains a concern for achieving optimal financial health and competitiveness.

Shinwa Co., Ltd. (7607) vs. iShares MSCI Japan ETF (EWJ)

Shinwa Co., Ltd. Business Overview & Revenue Model

Company DescriptionShinwa Co., Ltd. (7607) is a Japanese company primarily engaged in the manufacturing and sales of precision measuring tools, including calipers, micrometers, and other measuring instruments. The company serves various sectors, including manufacturing, construction, and engineering, providing essential tools that ensure accuracy and quality in measurement processes. Shinwa is known for its commitment to innovation and quality, developing products that cater to both professional and consumer markets.
How the Company Makes MoneyShinwa Co., Ltd. generates revenue primarily through the sale of its precision measuring tools and instruments, which are distributed both domestically and internationally. The company benefits from various revenue streams, including direct sales to retailers, online sales, and bulk orders from industrial clients. Additionally, Shinwa may engage in partnerships with distributors and retailers to expand its market reach. Key factors contributing to its earnings include the demand for high-quality measurement tools in manufacturing and construction sectors, as well as ongoing investments in research and development to innovate and improve product offerings.

Shinwa Co., Ltd. Financial Statement Overview

Summary
Shinwa Co., Ltd. exhibits a strong financial position with consistent revenue growth and solid operational performance. The balance sheet is well-managed with low leverage, and cash flow generation has improved significantly. While profitability margins could be enhanced, the company is on a positive trajectory with a stable financial foundation.
Income Statement
78
Positive
Shinwa Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase in the latest year. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.
Balance Sheet
85
Very Positive
The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is satisfactory, showcasing effective utilization of shareholder funds. The equity ratio is robust, highlighting a solid capital structure and financial stability.
Cash Flow
72
Positive
Shinwa Co., Ltd. has shown significant improvement in operating and free cash flows in recent years. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. However, historical volatility in free cash flow growth suggests potential risks in cash flow stability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue85.27B86.15B77.85B76.11B71.06B61.16B
Gross Profit14.03B13.28B11.53B12.95B12.27B10.28B
EBITDA6.17B5.93B4.98B6.03B6.30B4.89B
Net Income3.60B3.31B2.73B3.59B3.78B2.77B
Balance Sheet
Total Assets74.57B74.41B65.60B58.92B62.70B56.91B
Cash, Cash Equivalents and Short-Term Investments28.52B29.64B19.86B17.80B19.34B14.88B
Total Debt1.77B663.18M792.01M521.02M469.12M1.66B
Total Liabilities31.66B30.80B23.97B19.68B26.45B24.95B
Stockholders Equity42.76B43.47B41.47B39.10B36.11B31.84B
Cash Flow
Free Cash Flow0.0010.53B3.32B-524.25M5.97B-1.90B
Operating Cash Flow0.0011.34B3.97B1.22B7.50B-1.04B
Investing Cash Flow0.00-810.40M-702.67M-1.87B-1.55B-1.02B
Financing Cash Flow0.00-1.49B-1.37B-1.14B-2.33B-3.59M

Shinwa Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3000.00
Price Trends
50DMA
3114.90
Positive
100DMA
3159.60
Positive
200DMA
3131.79
Positive
Market Momentum
MACD
1.54
Positive
RSI
56.95
Neutral
STOCH
69.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7607, the sentiment is Positive. The current price of 3000 is below the 20-day moving average (MA) of 3153.50, below the 50-day MA of 3114.90, and below the 200-day MA of 3131.79, indicating a bullish trend. The MACD of 1.54 indicates Positive momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 69.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7607.

Shinwa Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥58.91B15.583.47%13.90%6.51%
76
Outperform
¥60.09B13.212.79%2.85%3.17%
72
Outperform
¥43.42B10.363.32%18.47%64.23%
70
Outperform
¥40.10B12.094.07%10.66%21.24%
68
Neutral
¥38.25B11.993.14%4.54%-1.41%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥43.85B25.092.53%6.56%23.98%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7607
Shinwa Co., Ltd.
3,180.00
439.96
16.06%
JP:6237
Iwaki Co. Ltd.
2,703.00
521.07
23.88%
JP:6240
Yamashin-Filter Corp.
628.00
25.61
4.25%
JP:6247
Hisaka Works,Ltd.
1,607.00
601.10
59.76%
JP:6309
TOMOE ENGINEERING CO LTD (TOMOE KOGYO CO LTD)
2,033.00
840.43
70.47%
JP:7438
KONDOTEC INC.
1,512.00
223.04
17.30%

Shinwa Co., Ltd. Corporate Events

Shinwa to Establish Industrial Equipment Sales Subsidiary in Vietnam
Dec 22, 2025

Shinwa Co., Ltd. has approved the establishment of a new local subsidiary in Hanoi, Vietnam, to strengthen its ability to serve the growing equipment needs of Japanese manufacturers that have rapidly expanded into the country. The new entity, Cong Ty TNHH SHINWA-INTEC VIET NAM, scheduled to be founded in June 2026 with share capital of USD 850,000, will mainly handle sales of welding equipment, materials and industrial machinery, and will be majority owned (95%) by the company’s Thai subsidiary with Shinwa itself holding the remaining 5%. By leveraging organic collaboration between its Thai and Vietnamese bases, Shinwa aims to expand its overseas business footprint and sharpen its competitive positioning in the regional industrial equipment market, while noting that the initiative will have only a minor impact on its consolidated results for the fiscal year ending August 31, 2026.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3322.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Completes Treasury Shares Disposal for Stock Remuneration
Dec 12, 2025

Shinwa Co., Ltd. has completed the payment procedures for the disposal of 13,100 treasury shares as restricted stock remuneration, following a resolution by its Board of Directors. This move, involving a total disposal price of ¥40,348,000, is aimed at compensating five directors and five executive officers, potentially impacting the company’s governance and aligning management interests with shareholder value.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Announces Disposal of Treasury Shares for Executive Remuneration
Nov 20, 2025

Shinwa Co., Ltd. has resolved to dispose of 13,100 treasury shares as part of a Restricted Stock Remuneration Plan aimed at aligning the interests of its directors and executive officers with those of shareholders. This move is intended to enhance corporate value and ensure sustained value sharing, with the disposal priced at ¥3,080 per share, totaling ¥40,348,000.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Unveils New Management Structure
Nov 20, 2025

Shinwa Co., Ltd. has announced a new management structure effective November 20, 2025, following its 75th Annual General Meeting of Shareholders. This restructuring includes appointments to key positions such as Chairman, President & CEO, and various directors, aiming to enhance business integration and strategic development, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Corrects Financial Forecast with Positive Results
Oct 14, 2025

Shinwa Co., Ltd. announced a correction to its financial results forecast for the fiscal year ended August 31, 2025, highlighting discrepancies between the forecasted and actual results. The correction indicates a higher-than-expected performance in net sales and profits, which could positively impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Exceeds Financial Forecasts Amid Strong Domestic Performance
Oct 14, 2025

Shinwa Co., Ltd. reported a significant difference between its forecasted and actual financial results for the fiscal year ended August 31, 2025. The company exceeded its forecasted net sales, operating profit, and profit attributable to owners of the parent, driven by strong capital investment in the automotive sector and effective cost improvements. Despite challenges from a slowing Chinese economy affecting Japanese automobile manufacturers, Shinwa’s solid performance in domestic markets contributed to its financial success.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Revises 2026 Performance Targets Amid Market Challenges
Oct 14, 2025

Shinwa Co., Ltd. has revised its performance targets for the fiscal year ending August 31, 2026, due to a changing business environment. The company cites a slowdown in the electric vehicle and vehicle-mounted battery market, decreased competitiveness of Japanese automobile manufacturers in China, and postponed investments by semiconductor post-processing manufacturers as reasons for the revision. Despite these challenges, Shinwa aims to enhance corporate value and achieve sustainable growth by improving return on capital, expanding shareholder returns, and promoting sustainability management.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Reports Strong Financial Growth and Strategic Expansion
Oct 14, 2025

Shinwa Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended August 31, 2025, with net sales rising by 10.7% and operating profit by 27.5% compared to the previous year. The company also announced the inclusion of a new subsidiary, SHINWA (INDIA) ENGINEERING & TRADING PRIVATE LIMITED, indicating a strategic expansion. The financial results suggest a positive impact on Shinwa’s market positioning, with increased dividends reflecting confidence in sustained growth.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Announces Increased Dividend Payout
Oct 14, 2025

Shinwa Co., Ltd. has announced a resolution to pay dividends of surplus, with a record date of August 31, 2025, which will be presented at the company’s upcoming Annual General Meeting. The dividend per share is set at ¥68, an increase from the previous forecast, reflecting the company’s commitment to returning profits to shareholders and its policy of maintaining a stable profit distribution.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

Shinwa Co., Ltd. Announces Leadership Changes to Strengthen Governance
Oct 14, 2025

Shinwa Co., Ltd. announced changes in its board of directors and executive officers, effective November 20, 2025. These changes include the appointment of Morio Matsuura as an outside director and the promotion of Shuji Ishikawa to Director/Senior Managing Executive Officer, as well as Hideyuki Inaba to Senior Executive Officer. These strategic leadership adjustments are expected to enhance the company’s governance and operational efficiency.

The most recent analyst rating on (JP:7607) stock is a Buy with a Yen3724.00 price target. To see the full list of analyst forecasts on Shinwa Co., Ltd. stock, see the JP:7607 Stock Forecast page.

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: Dec 19, 2025