Asian Star Co. (8946) AI Stock Analysis

• Market Cap: ¥1.80B
• Dividend Yield: N/A
• Average Volume (3M): 173.94K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.46
• Revenue Growth: 85.59%
• EPS Growth: 330.15%
• Country: JP
• Employees: 83
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 3.49
• Shares Outstanding: 23,808,200
• 10 Day Avg. Volume: 227,120
• 30 Day Avg. Volume: 173,936
• PEG Ratio: -1.80
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 3.57
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥100.00 ▲(31.58% Upside)

The overall stock score is primarily driven by strong financial performance, characterized by robust revenue growth and cash flow. However, bearish technical indicators and a lack of dividend yield weigh down the score. Improving profitability and addressing technical weaknesses could enhance the stock's attractiveness.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and successful product offerings, supporting long-term business expansion.

Cash Flow Strength

Robust cash flow growth enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Balance Sheet Health

A strong balance sheet with low leverage provides stability and capacity for growth, reducing financial risk.

Negative Factors

Net Profit Margin Decline

Declining net profit margins suggest challenges in cost management or pricing power, potentially impacting long-term profitability.

Return on Equity

Low return on equity indicates inefficiencies in generating profits from shareholders' equity, which may affect investor confidence.

Profitability Challenges

Ongoing profitability challenges could hinder the company's ability to maximize shareholder value and sustain growth.

Asian Star Co. Business Overview & Revenue Model

Company Description

Asian Star Co. (8946) is a leading player in the Asian market, primarily engaged in the manufacturing and distribution of high-quality electronic components and consumer electronics. The company operates in the sectors of technology and manufacturing, focusing on innovative solutions that cater to both B2B and B2C markets. Its core products include semiconductors, circuit boards, and a range of smart home devices, which are designed to enhance connectivity and functionality in modern living environments.

How the Company Makes Money

Asian Star Co. generates revenue through a diversified revenue model that includes direct sales of its electronic components to manufacturers, as well as retail sales of consumer electronics through various distribution channels. Key revenue streams include bulk orders from large tech companies, e-commerce sales, and partnerships with major retailers for branded products. Additionally, the company benefits from significant partnerships with technology firms that facilitate co-development of products, leading to shared revenue opportunities. Ongoing investments in research and development also enhance the company's product offerings, enabling it to stay competitive and responsive to market demands.

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	3.58B	3.35B	2.13B	2.49B	2.54B	1.95B
Gross Profit	960.00M	846.57M	820.00M	821.06M	813.98M	371.65M
EBITDA	146.03M	113.00M	128.92M	123.86M	68.78M	-153.55M
Net Income	33.10M	18.48M	40.95M	55.35M	-21.52M	-310.42M
Balance Sheet
Total Assets	3.44B	3.33B	3.62B	3.13B	3.06B	3.62B
Cash, Cash Equivalents and Short-Term Investments	954.53M	1.31B	1.28B	853.37M	430.46M	958.03M
Total Debt	535.56M	239.20M	429.00M	558.58M	500.29M	949.63M
Total Liabilities	1.25B	1.04B	1.45B	1.43B	1.43B	2.00B
Stockholders Equity	2.11B	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: Negative
• Last Price: 76.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 76 is below the 20-day moving average (MA) of 77.20, below the 50-day MA of 91.00, and below the 200-day MA of 95.08, indicating a bearish trend. The MACD of -4.37 indicates Negative momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8946.

Asian Star Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8946	66 Neutral	¥1.80B	11.50	―	―	85.59%	330.15%
8912	66 Neutral	¥2.25B	18.16	―	2.00%	6.86%	10.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2997	65 Neutral	¥2.13B	18.09	―	―	46.85%	27.62%
9816	65 Neutral	¥3.07B	18.15	―	1.51%	1.82%	332.58%
9635	63 Neutral	¥2.34B	6.34	―	―	1.57%	892.96%
2721	32 Underperform	¥1.75B	-5.62	―	―	-19.83%	39.61%