Asian Star Co. (8946) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 660.25K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 0.38
• Revenue Growth: 43.09%
• EPS Growth: 12.52%
• Country: JP
• Employees: 83
• Sector: Real Estate
• Sector Strength: 49
• Industry: Real Estate - Services
• EPS (TTM): -1.89
• Shares Outstanding: 23,808,200
• 10 Day Avg. Volume: 317,310
• 30 Day Avg. Volume: 660,250
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥112.00
• Price Target Upside: 5.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥112.00 ▲(5.66% Upside)

The overall stock score of 61 reflects strong financial performance, particularly in revenue growth and cash flow, but is offset by weak technical indicators and high valuation concerns. The lack of earnings call data and corporate events means these factors did not influence the score.

Asian Star Co. Business Overview & Revenue Model

Company Description

Asian Star Co. (8946) is a prominent player in the diamond and jewelry industry, specializing in the manufacturing, trading, and retailing of polished diamonds and diamond-studded jewelry. The company operates across multiple segments, including diamond cutting and polishing, jewelry design and manufacturing, and international trading. Asian Star Co. is known for its high-quality products and innovative designs, catering to a global clientele with a strong presence in major international markets.

How the Company Makes Money

Asian Star Co. generates revenue primarily through the sale of polished diamonds and diamond-studded jewelry. The company sources rough diamonds, which are then processed in its cutting and polishing facilities to create high-quality polished diamonds. These polished diamonds are sold to wholesalers, retailers, and jewelry manufacturers worldwide. Additionally, Asian Star Co. designs and manufactures its own line of jewelry, which is marketed and sold under its brand. Key revenue streams include direct sales to clients in the diamond and jewelry sectors, as well as exports to international markets. Strategic partnerships with retailers and distributors further enhance the company's market reach and contribute to its earnings.

Asian Star Co. Financial Statement Overview

Summary

Asian Star Co. demonstrates a strong financial position with substantial revenue growth and healthy cash flow. The balance sheet is resilient, characterized by low leverage and high equity ratios. However, net profit margins remain a challenge, impacting return on equity. The company shows potential for continued growth, although improving profitability will be crucial to maximize shareholder value.

Income Statement

Asian Star Co. has shown a strong recovery in revenue growth with a 57.7% increase from 2023 to 2024, indicating significant business expansion. Gross profit margin remains healthy at 25.3% in 2024. However, the net profit margin decreased to 0.5% from 1.9% in 2023, highlighting pressure on profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency improvements. Despite revenue growth, the decline in net profit margin is a concern.

Balance Sheet

The company's balance sheet is robust with a high equity ratio of 66.8% in 2024, reflecting financial stability. The debt-to-equity ratio is low at 0.11, indicating prudent leverage management. Return on equity is modest at 0.8%, reflecting subdued profitability relative to equity. Strong equity and low debt levels suggest a solid financial foundation, though profitability needs improvement.

Cash Flow

The cash flow situation is strong, with a significant free cash flow growth of 301.4% from 2023 to 2024. The company has an impressive operating cash flow to net income ratio, indicating effective cash conversion from operations. Free cash flow to net income ratio is also high, reflecting efficient capital expenditure management. The robust cash flow performance enhances financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.65B	3.35B	2.13B	2.49B	2.54B	1.95B
Gross Profit	927.60M	846.57M	820.00M	821.06M	813.98M	371.65M
EBITDA	177.57M	113.00M	126.00M	123.86M	68.78M	-153.55M
Net Income	81.81M	18.48M	40.00M	55.35M	-21.52M	-310.42M
Balance Sheet
Total Assets	3.26B	3.33B	3.62B	3.13B	3.06B	3.62B
Cash, Cash Equivalents and Short-Term Investments	801.87M	1.31B	1.28B	853.37M	430.46M	958.03M
Total Debt	224.58M	239.20M	429.00M	558.58M	500.29M	949.63M
Total Liabilities	1.03B	1.04B	1.45B	1.43B	1.43B	2.00B
Stockholders Equity	2.17B	2.22B	2.16B	1.70B	1.63B	1.61B
Cash Flow
Free Cash Flow	0.00	556.99M	141.00M	444.58M	119.03M	150.25M
Operating Cash Flow	0.00	568.38M	145.00M	455.16M	121.17M	183.91M
Investing Cash Flow	0.00	-266.00M	6.92M	-73.49M	-226.53M	120.25M
Financing Cash Flow	0.00	-282.76M	272.81M	89.58M	-449.49M	-118.33M

Asian Star Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.00
• 50DMA: Positive
• 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:8946, the sentiment is Positive. The current price of 106 is below the 20-day moving average (MA) of 111.75, below the 50-day MA of 107.82, and above the 200-day MA of 90.42, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8946.

Asian Star Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9635	62 Neutral	¥2.42B	42.19		―	4.72%	111.08%
8946	61 Neutral	¥2.56B	73.55		―	43.09%	12.52%
2997	60 Neutral	¥1.80B	16.89		―	38.03%	-5.62%
8912	60 Neutral	¥2.37B	22.71		1.89%	6.32%	-10.34%
9816	59 Neutral	¥2.50B	45.09		1.86%	0.32%	-45.61%
Sector *	53 Neutral	$1.24B	3.03	-6.08%	5.65%	-8.21%	-81.31%
2721	32 Underperform	¥1.79B	―		―	-24.53%	43.58%