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Chori Co., Ltd. (JP:8014)
:8014
Japanese Market

Chori Co., Ltd. (8014) AI Stock Analysis

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JP

Chori Co., Ltd.

(8014)

Rating:80Outperform
Price Target:
¥4,561.00
▲(12.90%Upside)
Chori Co., Ltd. showcases strong financial performance with impressive revenue growth and profitability improvements. The technical indicators highlight positive momentum, although caution is advised due to high RSI. The company's valuation is attractive, with a low P/E ratio and a respectable dividend yield, enhancing its appeal to investors.

Chori Co., Ltd. (8014) vs. iShares MSCI Japan ETF (EWJ)

Chori Co., Ltd. Business Overview & Revenue Model

Company DescriptionChori Co., Ltd. engages in textiles, chemicals, and machinery businesses in China and internationally. The company offers polyester yarn for use in other materials; fabrics for use in car seats; nylon yarn; waterproof fabrics for sportswear; nonwoven fabrics for construction and hygienic applications; nonwoven sheets; raw thread/raw cotton for natural and synthetic fabrics; construction and civil engineering products, such as cloth, waterproof nonwoven cloth materials, etc.; and various linen products. It also provides lightweight and thin fabrics, black materials, and the traditional garment worn; basic materials and finished products; materials for innerwear, sportswear, fitness wear, golf wear, uniforms, and business wear, as well as men's and ladies' wear; and backing and interlining cloths. In addition, the company offers urethane materials used in shock absorption, insulation materials, adhesives, coating materials, films, cosmetic raw materials, biodegradable plastics, various materials in the water treatment field, and various other items; inorganic chemical materials, metal materials, agriculture and fertilizer related materials, glass substrate raw materials used in flat panel displays, and lithium-ion battery materials; and industrial chemicals, such as phosphoric acid, phosphate, plastic raw materials, and raw materials for metallic surface treatment. Further, it imports and sells pharmaceutical and agrochemical ingredients, and intermediates; functional organic intermediates; and proteins, sweeteners, and other food chemicals, as well as offers research and manufacturing outsourcing services. Additionally, the company sells transportation equipment comprising four-and two-wheel vehicles and trucks, as well as exports agricultural machinery, construction machinery, and industrial equipment. The company was founded in 1861 and is headquartered in Osaka, Japan. Chori Co., Ltd. is a subsidiary of Toray Industries, Inc.
How the Company Makes MoneyChori Co., Ltd. generates revenue through multiple streams across its core business sectors. In the textile segment, the company makes money by designing, manufacturing, and selling a variety of textile goods, ranging from apparel fabrics to industrial materials, catering to both domestic and international markets. The chemical segment contributes to the company's earnings through the import, export, and domestic sale of chemical products, serving industries such as agriculture, pharmaceuticals, and electronics. In the machinery sector, Chori Co., Ltd. earns revenue by distributing and selling machinery and equipment, often forming strategic partnerships with manufacturers to reach a broader market. The company's diversified approach and global presence allow it to leverage its extensive network and expertise to maintain and grow its revenue base.

Chori Co., Ltd. Financial Statement Overview

Summary
Chori Co., Ltd. demonstrates strong financial health with consistent revenue growth and improving profitability, supported by effective cost management. The balance sheet shows minimal leverage and a strong equity position, while cash flow analysis indicates robust cash generation, despite a decline in recent free cash flow growth.
Income Statement
85
Very Positive
Chori Co., Ltd. demonstrates strong profitability with a consistent increase in net income over the years. The company reported a net profit margin of 3.74% in 2025, up from 3.13% in 2024. The gross profit margin also improved slightly, reflecting effective cost management. Revenue growth is steady, with a year-over-year increase of 1.25% from 2024 to 2025. The EBIT margin increased to 4.93% in 2025, indicating efficient operations. Overall, the financial performance showcases robust revenue growth and improved profitability.
Balance Sheet
80
Positive
Chori Co., Ltd. maintains a solid balance sheet with a low debt-to-equity ratio of 0.015 in 2025, reflecting low financial leverage. The equity ratio stands at 62.98%, indicating a strong financial position with significant asset backing. Return on equity improved to 12.67% in 2025, highlighting effective utilization of shareholder funds. Although the company's equity base is strong, the slight increase in total liabilities over the years warrants monitoring.
Cash Flow
75
Positive
Chori Co., Ltd. exhibits stable cash flow generation with a free cash flow of ¥6,397 million in 2025, despite a decline from 2024. The operating cash flow to net income ratio is 0.61, indicating that operating activities generate sufficient cash to support earnings. The free cash flow to net income ratio of 0.55 suggests a good conversion of earnings into cash. While the decline in free cash flow growth is a concern, the company remains capable of sustaining its cash flow operations.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue304.60B311.55B307.70B329.39B284.10B216.23B
Gross Profit38.62B40.52B38.73B37.06B30.65B26.36B
EBITDA15.47B17.54B16.38B13.87B10.56B4.47B
Net Income10.68B11.66B9.62B8.12B6.81B1.25B
Balance Sheet
Total Assets143.69B146.08B143.35B143.20B134.12B110.59B
Cash, Cash Equivalents and Short-Term Investments16.41B23.81B21.46B16.46B12.24B14.83B
Total Debt2.37B1.40B2.75B5.06B5.30B2.28B
Total Liabilities55.01B53.97B61.25B71.04B69.03B51.76B
Stockholders Equity88.63B92.01B82.06B72.16B65.05B58.79B
Cash Flow
Free Cash Flow926.50M6.40B7.35B8.57B-2.56B4.70B
Operating Cash Flow1.03B7.14B9.69B9.60B-2.33B5.89B
Investing Cash Flow93.50M-1.03B-2.71B-261.00M197.00M-357.00M
Financing Cash Flow-1.07B-4.78B-5.38B-3.10B-4.01B-887.00M

Chori Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4040.00
Price Trends
50DMA
3766.60
Positive
100DMA
3393.69
Positive
200DMA
3556.95
Positive
Market Momentum
MACD
85.57
Negative
RSI
63.66
Neutral
STOCH
71.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8014, the sentiment is Positive. The current price of 4040 is above the 20-day moving average (MA) of 3927.75, above the 50-day MA of 3766.60, and above the 200-day MA of 3556.95, indicating a bullish trend. The MACD of 85.57 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8014.

Chori Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥3.40T9.3514.04%3.42%1.18%9.37%
80
Outperform
¥231.55B8.43
3.79%6.59%18.36%
80
Outperform
¥99.42B8.54
4.01%1.25%21.02%
79
Outperform
€224.72B4.9112.33%3.80%5.04%19.14%
79
Outperform
$4.49T8.0012.19%3.50%5.52%46.81%
78
Outperform
$741.27B7.0211.53%4.16%3.94%13.97%
65
Neutral
$10.81B15.655.50%1.89%3.10%-27.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8014
Chori Co., Ltd.
4,040.00
608.33
17.73%
JP:8020
Kanematsu Corporation
2,772.50
209.58
8.18%
JP:8078
Hanwa Co., Ltd.
5,530.00
-182.53
-3.20%
JP:8053
Sumitomo
3,712.00
-201.23
-5.14%
JP:8015
Toyota Tsusho
3,211.00
90.02
2.88%
JP:2768
Sojitz
3,605.00
-117.73
-3.16%

Chori Co., Ltd. Corporate Events

Chori Co., Ltd. Strengthens Position within Toray Group
Jun 20, 2025

Chori Co., Ltd. announced its strategic positioning within the Toray Industries corporate group, highlighting the benefits of being part of a larger entity, such as improved market understanding and credibility. The company maintains a level of independence with its own management plan and ensures effective governance and risk management while conducting transactions with its parent company.

Chori Co., Ltd. Announces Board of Directors Changes
May 8, 2025

Chori Co., Ltd. has announced changes in its board of directors, which will be finalized at the upcoming Annual General Meeting of Shareholders on June 20, 2025. The changes include the reappointment of current directors and the addition of Chizu Sekine as a new independent director, reflecting the company’s commitment to enhancing its governance structure. These changes are expected to strengthen Chori’s leadership and strategic direction, potentially impacting its market positioning and stakeholder relations.

Chori Co., Ltd. Announces Increased Year-End Dividend
Apr 28, 2025

Chori Co., Ltd. has announced an increase in its year-end dividend to 81 yen per share, up from the previously forecasted 61 yen, reflecting a commitment to returning profits to shareholders. This decision underscores the company’s policy of performance-based dividends and aims to ensure stable financial management while considering the fiscal year’s consolidated results.

Chori Co., Ltd. Achieves Record Financial Results and Increases Dividends
Apr 28, 2025

Chori Co., Ltd. has reported record-high financial results for the fiscal year ending March 2025, with a net profit attributable to owners reaching ¥11.7 billion. The company has successfully implemented a new mission-critical system and experienced increased profits in its Chemicals and Machinery businesses, despite a slight decrease in the Fibers, Textiles, and Garments sector. The equity ratio remains strong at 63.0%, and the company has announced an increased year-end dividend, reflecting its robust financial health and commitment to shareholder returns.

Chori Co., Ltd. Reports Fiscal Year 2025 Financial Results and Positive Outlook for 2026
Apr 28, 2025

Chori Co., Ltd. reported a slight increase in net sales for the fiscal year ending March 31, 2025, with a 1.3% rise to 311,546 million yen. Despite a decrease in operating profit by 3.6%, the company saw a significant 21.1% increase in net profit attributable to owners of the parent, reaching 11,658 million yen. The company also announced an increase in annual dividends per share, indicating a strong return to shareholders. Looking ahead, Chori forecasts a 5.9% increase in net sales for the fiscal year ending March 31, 2026, reflecting its positive outlook and strategic positioning in the market.

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: Jun 05, 2025