Why is Shinnihon Corp. ?
1
High Management Efficiency with a high ROE of 11.32%
2
Company has very low debt and has enough cash to service the debt requirements
3
With ROE of 10.48%, it has a very attractive valuation with a 0.80 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 31.97%, its profits have risen by 4.3% ; the PEG ratio of the company is 1.8
- At the current price, the company has a high dividend yield of 0
4
Consistent Returns over the last 3 years
- Along with generating 31.97% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you buy?
- Overall Portfolio exposure to Shinnihon Corp. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shinnihon Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shinnihon Corp.
28.15%
1.07
22.73%
Japan Nikkei 225
28.54%
1.14
25.81%
Quality key factors
Factor
Value
Sales Growth (5y)
3.19%
EBIT Growth (5y)
4.18%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
1.15
Tax Ratio
30.22%
Dividend Payout Ratio
25.56%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
59.94%
ROE (avg)
11.32%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.80
EV to EBIT
0.86
EV to EBITDA
0.84
EV to Capital Employed
0.40
EV to Sales
0.12
PEG Ratio
1.78
Dividend Yield
0.03%
ROCE (Latest)
46.17%
ROE (Latest)
10.48%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Bullish
OBV
Bullish
Bullish
Technical Movement
6What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -38.61% (YoY
CASH AND EQV(HY)
Highest at JPY 155,563 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 1.9%
NET SALES(Q)
At JPY 25,610 MM has Grown at 19.97%
PRE-TAX PROFIT(Q)
At JPY 3,751 MM has Grown at 95.87%
NET PROFIT(Q)
At JPY 2,666 MM has Grown at 102.74%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Shinnihon Corp.
Net Sales
At JPY 25,610 MM has Grown at 19.97%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Pre-Tax Profit
At JPY 3,751 MM has Grown at 95.87%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 2,666 MM has Grown at 102.74%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Cash and Eqv
Highest at JPY 155,563 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 1.9%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -38.61% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Shinnihon Corp.
Non Operating Income
Highest at JPY 0.03 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






