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Advance Create Co., Ltd. (JP:8798)
:8798
Japanese Market
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Advance Create Co., Ltd. (8798) AI Stock Analysis

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JP:8798

Advance Create Co., Ltd.

(8798)

Rating:39Underperform
Price Target:
¥274.00
▼(-1.44%Downside)
Advance Create Co., Ltd. is facing substantial financial challenges, with negative equity, declining revenues, and negative cash flows. Technical indicators suggest a weak market momentum, and the lack of profitability further exacerbates valuation concerns. Immediate attention to operational and financial restructuring is needed to improve the outlook.

Advance Create Co., Ltd. (8798) vs. iShares MSCI Japan ETF (EWJ)

Advance Create Co., Ltd. Business Overview & Revenue Model

Company DescriptionAdvance Create Co., Ltd. (8798) is a Japan-based company primarily engaged in the insurance industry. The company specializes in the operation and provision of insurance agency services, offering a wide range of life and non-life insurance products. It caters to individual and corporate clients, providing personalized insurance solutions to meet their diverse needs. With a strong focus on customer satisfaction, Advance Create Co., Ltd. leverages its expertise in insurance brokerage to deliver reliable and effective services.
How the Company Makes MoneyAdvance Create Co., Ltd. generates revenue through its role as an insurance agency, earning commissions and fees from the sale of life and non-life insurance policies. The company acts as an intermediary between insurance providers and clients, offering products from various insurers, which allows them to cater to a broad customer base. Key revenue streams include commission income from insurance premiums sold, advisory fees for insurance-related services, and potential partnerships with insurance carriers that may offer additional incentives. The company's earnings are significantly influenced by its ability to maintain strong relationships with insurance providers and effectively meet the needs of its clients.

Advance Create Co., Ltd. Financial Statement Overview

Summary
Advance Create Co., Ltd. faces significant financial challenges, with declining revenue and profitability, negative equity, and worsening cash flow position. The company's high gross profit margin is a positive, but it is overshadowed by operational inefficiencies and financial instability.
Income Statement
35
Negative
Advance Create Co., Ltd. has shown a decline in revenue over the past year, with total revenue falling from ¥10.16 billion to ¥7.86 billion. The company has been operating at a net loss, which widened significantly to ¥2.25 billion. Gross profit margins remain relatively high at 73.6%, but the negative EBIT and EBITDA margins reflect operational inefficiencies and challenges in managing expenses.
Balance Sheet
25
Negative
The balance sheet reveals a concerning negative equity situation, with stockholders' equity at -¥4.97 billion. The debt-to-equity ratio is not meaningful due to negative equity, indicating high financial risk. The reduction in total assets and high leverage could pose significant long-term risks to financial stability.
Cash Flow
30
Negative
Free cash flow has deteriorated from -¥907.72 million to -¥2.32 billion, highlighting liquidity problems. Operating cash flow has turned negative, suggesting difficulties in generating cash from core operations. The cash flow to net income ratios are not meaningful due to negative net income, indicating potential operational challenges.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue7.86B10.16B11.86B11.02B10.51B
Gross Profit5.78B6.20B9.22B8.57B7.36B
EBITDA-2.12B-1.65B2.44B2.35B1.45B
Net Income-2.25B-1.77B1.31B1.30B700.41M
Balance Sheet
Total Assets6.86B10.51B12.49B11.81B10.31B
Cash, Cash Equivalents and Short-Term Investments994.48M1.24B2.27B3.34B2.63B
Total Debt4.24B2.32B1.67B1.34B1.58B
Total Liabilities11.83B5.87B5.35B5.09B4.70B
Stockholders Equity-4.97B4.64B7.15B6.72B5.61B
Cash Flow
Free Cash Flow-2.32B-907.72M-255.43M1.22B959.62M
Operating Cash Flow-1.67B-206.71M364.64M1.64B1.35B
Investing Cash Flow-117.13M-668.80M-391.92M-485.56M-527.71M
Financing Cash Flow1.51B-217.50M-956.43M-488.70M1.10B

Advance Create Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price278.00
Price Trends
50DMA
312.82
Negative
100DMA
299.91
Negative
200DMA
453.44
Negative
Market Momentum
MACD
-13.12
Positive
RSI
44.12
Neutral
STOCH
22.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8798, the sentiment is Negative. The current price of 278 is below the 20-day moving average (MA) of 284.00, below the 50-day MA of 312.82, and below the 200-day MA of 453.44, indicating a bearish trend. The MACD of -13.12 indicates Positive momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 22.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8798.

Advance Create Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥6.34B6.45
4.66%6.40%12.37%
71
Outperform
¥6.54B27.02
3.76%15.65%-50.81%
67
Neutral
¥757.60B11.127.57%3.18%7.70%14.02%
65
Neutral
¥36.36B18.294.69%1.57%12.75%0.13%
44
Neutral
¥6.37B
-42.77%48.15%
39
Underperform
¥6.22B
10.84%-29.87%-21.60%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8798
Advance Create Co., Ltd.
283.00
-771.00
-73.15%
JP:3113
UNIVA Oak Holdings Limited
79.00
-8.00
-9.20%
JP:7192
Mortgage Service Japan Limited
429.00
42.25
10.92%
JP:7343
Broad-minded Co., Ltd.
1,117.00
-346.89
-23.70%
JP:7326
SBI Insurance Group Co., Ltd.
1,476.00
544.66
58.48%

Advance Create Co., Ltd. Corporate Events

Advance Create Completes Warrant Acquisition and Cancellation
Aug 1, 2025

Advance Create Co., Ltd. announced the completion of its acquisition and cancellation of the 10th Series of Moving Strike Warrant, initially issued in June 2024. This move, involving 1,569,000 shares at a total cost of 12,552,000 yen, is expected to have a minimal impact on the company’s full-year earnings forecast.

Advance Create Co., Ltd. Cancels 10th Series of Moving Strike Warrants
Jul 17, 2025

Advance Create Co., Ltd. has resolved to acquire and cancel its 10th Series of Moving Strike Warrants, initially issued in June 2024, due to the current share price trading below the exercise price, making it impractical to keep the warrants active. This decision aligns with their capital policy and market trends, and the impact on the company’s full-year earnings forecast is expected to be minimal.

Advance Create Co., Ltd. Announces Extraordinary Shareholders Meeting Details
Jul 17, 2025

Advance Create Co., Ltd. announced the details of its upcoming Extraordinary Meeting of Shareholders, scheduled for August 19, 2025, at its headquarters in Osaka. The meeting will address several key proposals, including amendments to the Articles of Incorporation, issuance of new shares through third-party allotment, and financial adjustments such as the disposal of surplus and reduction of share capital and capital reserve. These decisions are expected to impact the company’s financial structure and shareholder composition.

Advance Create Co., Ltd. Announces Share Issuance and Strategic Alliances
Jul 17, 2025

Advance Create Co., Ltd. has announced a significant restructuring involving the issuance of new shares through third-party allotment to several major insurance companies, including SBI Holdings and LIFENET INSURANCE COMPANY. This move, which includes a reduction in share capital and amendments to the Articles of Incorporation, aims to strengthen business alliances and adjust the company’s shareholder structure. The changes are expected to impact the company’s major shareholders and require shareholder approval at an upcoming Extraordinary Meeting.

Advance Create Co., Ltd. Reports Decline in June 2025 Sales
Jul 16, 2025

Advance Create Co., Ltd. reported a decline in its insurance agency business for June 2025, with significant decreases in face-to-face, collaborative, and non-face-to-face sales compared to the previous month and the same month last year. Despite the drop in sales, the company saw improved marketing efficiency with a decrease in the cost per acquisition. In their ASP business, the company experienced a decrease in ‘Dynamic OMO’ IDs but an increase in ‘GOYOKIKI’ and ‘DECHI’ IDs, indicating a mixed performance across their service offerings.

Advance Create Revises Earnings Forecast and Suspends Shareholder Benefits
Jul 2, 2025

Advance Create Co., Ltd. has revised its full-year earnings forecast for the fiscal year ending September 30, 2025, due to lower-than-expected business performance, particularly in new insurance interviews and cooperative agencies. The company is also temporarily suspending its shareholder benefit plan to prioritize improving its financial condition, given its current liabilities and the need for capital reinforcement measures.

Advance Create Co., Ltd. Reports No Exercise of Moving Strike Warrants for June 2025
Jul 1, 2025

Advance Create Co., Ltd. announced that there was no exercise of the 10th series of moving strike warrants in June 2025 due to a suspension that began in November 2024. This suspension means that no shares were delivered or rights exercised, maintaining the status quo for the company’s share acquisition rights and potentially impacting future financial strategies.

Advance Create Extends Warrant Exercise Suspension Period
Jun 25, 2025

Advance Create Co., Ltd. has announced a change in the exercise suspension period for its 10th Series of Moving Strike Warrant, initially issued in June 2024. The suspension period has been extended to September 30, 2025, allowing more time for stakeholders to exercise their warrants, potentially impacting investment strategies and market dynamics.

Advance Create Reschedules Shareholder Meeting to Finalize Financial Measures
Jun 24, 2025

Advance Create Co., Ltd. has announced the cancellation and resetting of the record date for its Extraordinary Meeting of Shareholders. The new record date is set for July 10, 2025, allowing the company more time to finalize capital reinforcement measures aimed at eliminating excess liabilities and improving financial stability.

Advance Create Co., Ltd. Reports Mixed May 2025 Results with Improved Marketing Efficiency
Jun 23, 2025

Advance Create Co., Ltd. reported mixed results for May 2025, with face-to-face sales remaining stable month-on-month but declining year-on-year. Collaborative and non-face-to-face sales showed month-on-month growth but significant year-on-year declines. Despite these challenges, the company improved its marketing efficiency, with a 25% increase in customer acquisitions and a 21% reduction in cost per acquisition. In the ASP business, while ‘Dynamic OMO’ IDs decreased, ‘GOYOKIKI’ and ‘DECHI’ systems saw growth, indicating a shift in client preferences and operational focus.

Advance Create Co., Ltd. Submits Improvement Report to Stock Exchanges
Jun 20, 2025

Advance Create Co., Ltd. has submitted an ‘Improvement Report’ to the Tokyo, Fukuoka, and Sapporo Stock Exchanges following a request to correct past financial disclosures. The company is committed to enhancing its governance and compliance systems to regain stakeholder trust and improve corporate value.

Advance Create Reports No Exercise of 10th Series Warrants in May 2025
Jun 2, 2025

Advance Create Co., Ltd. announced that there was no exercise of the 10th series of moving strike warrants in May 2025, as the exercise of these rights has been suspended since November 2024. This suspension means there were no changes in the number of shares delivered or exercised, maintaining the status quo for the company’s share acquisition rights.

Advance Create Faces Penalty and Compliance Measures
May 26, 2025

Advance Create Co., Ltd. has been required to submit Improvement Reports and will face a 33.6 million yen penalty for a listing agreement violation by the Tokyo Stock Exchange. The penalty will be recorded as an extraordinary loss, but the impact on the company’s full-year forecast is negligible. The company is committed to implementing measures to prevent recurrence and restore stakeholder confidence.

Advance Create Co., Ltd. Reports Mixed April 2025 Business Results
May 23, 2025

Advance Create Co., Ltd. reported a mixed performance in April 2025, with face-to-face insurance sales rising 16% year-on-year, while collaborative and non-face-to-face sales saw declines. The company’s ASP business experienced a decrease in ‘DECHI’ IDs but an increase in ‘Dynamic OMO’ IDs, reflecting shifts in client engagement and technology adoption. The overall impact suggests a need for strategic adjustments to maintain growth and efficiency in customer acquisition and service delivery.

Advance Create Co., Ltd. Reports Significant Extraordinary Losses
May 15, 2025

Advance Create Co., Ltd. has reported extraordinary losses in its consolidated financial results for the first and second quarters of the fiscal year ending September 30, 2025. These losses, attributed to a decline in the profitability of fixed assets, include store closure costs, impairment losses, and expenses related to prior period corrections, impacting the company’s financial standing and causing concern among stakeholders.

Advance Create Co., Ltd. Reports Progress on Meeting Listing Criteria
May 15, 2025

Advance Create Co., Ltd. has announced a progress report on its plan to meet the listing maintenance criteria after becoming insolvent as of the fiscal year ending September 30, 2024. The company is working to correct past financial discrepancies and improve its net asset status by the end of September 2025 to avoid delisting. Efforts include strengthening internal controls, increasing capital, and stabilizing business operations.

Advance Create Revises Earnings Forecast Amid Financial Adjustments
May 15, 2025

Advance Create Co., Ltd. has revised its full-year earnings forecast for the fiscal year ending September 30, 2025, due to recent business performance trends and the need to correct past financial results. The company has appointed Aoi & Co. as its new independent auditor to ensure accurate financial reporting, which has led to a conservative estimate for the current fiscal year’s earnings.

Advance Create Co., Ltd. Reports Significant Financial Decline
May 15, 2025

Advance Create Co., Ltd. reported a significant decline in its consolidated financial results for the six months ending March 31, 2025, with net sales dropping by 39.3% compared to the previous year. The company experienced a substantial operating loss, and its equity-to-asset ratio has deteriorated, indicating financial challenges that may impact its market positioning and stakeholder confidence.

Advance Create Co., Ltd. Reports Significant Financial Decline
May 15, 2025

Advance Create Co., Ltd. reported a significant decline in its financial performance for the three months ended December 31, 2024, with net sales dropping by 44.8% compared to the previous year. The company faced substantial losses, including an operating loss of ¥655 million and a net loss of ¥1,010 million, which reflects ongoing challenges in its operations and market environment.

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 23, 2025