Financials Hanwa Co., Ltd.

Equities

8078

JP3777800008

Iron & Steel

Delayed Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
5,910 ^JPY	+1.37%		+2.96%	+18.32%

Feb. 26	Hanwa Co., Ltd. agreed to acquire unknown stake in Shinx Co., Ltd. from Buyout Fund No.1, managed by Mercuria Investment Co., Ltd.	CI
Feb. 14	HG Metal Manufacturing Unit Exits Myanmar JV for SG$2.4 Million	MT

Valuation

Fiscal Period: Marzo	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	125,361	68,353	137,965	131,665	160,313	240,350	-	-
Enterprise Value (EV) ¹	426,706	329,513	386,929	646,088	424,096	493,872	522,616	546,245
P/E ratio	9.01 x	-5 x	7.03 x	3.02 x	3.11 x	6.43 x	6.25 x	5.75 x
Yield	4.86%	5.95%	1.77%	3.09%	3.3%	2.88%	3.21%	3.76%
Capitalization / Revenue	0.06 x	0.04 x	0.08 x	0.06 x	0.06 x	0.09 x	0.09 x	0.09 x
EV / Revenue	0.21 x	0.17 x	0.22 x	0.3 x	0.16 x	0.19 x	0.2 x	0.2 x
EV / EBITDA	12.8 x	10.1 x	11 x	9.38 x	5.92 x	7.78 x	7.48 x	7.44 x
EV / FCF	-82 x	5.26 x	34.5 x	-2.18 x	1.53 x	-118 x	51.6 x	-245 x
FCF Yield	-1.22%	19%	2.9%	-45.8%	65.5%	-0.85%	1.94%	-0.41%
Price to Book	0.67 x	0.42 x	0.73 x	0.56 x	0.53 x	0.71 x	0.66 x	0.6 x
Nbr of stocks (in thousands)	40,636	40,638	40,638	40,637	40,637	40,668	-	-
Reference price ²	3,085	1,682	3,395	3,240	3,945	5,910	5,910	5,910
Announcement Date	5/13/19	5/13/20	5/12/21	5/13/22	5/12/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: Marzo	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	2,074,600	1,907,493	1,745,501	2,164,049	2,668,228	2,557,797	2,669,165	2,772,626
EBITDA ¹	33,417	32,575	35,179	68,882	71,666	63,464	69,902	73,411
EBIT ¹	28,904	27,330	29,232	62,367	64,105	59,347	62,175	65,420
Operating Margin	1.39%	1.43%	1.67%	2.88%	2.4%	2.32%	2.33%	2.36%
Earnings before Tax (EBT) ¹	20,955	-19,995	28,839	63,138	75,961	53,658	55,975	60,550
Net income ¹	13,914	-13,674	19,617	43,617	51,505	37,243	38,460	41,767
Net margin	0.67%	-0.72%	1.12%	2.02%	1.93%	1.46%	1.44%	1.51%
EPS ²	342.4	-336.5	482.7	1,073	1,267	919.7	946.2	1,028
Free Cash Flow ¹	-5,206	62,664	11,222	-295,745	277,687	-4,200	10,119	-2,232
FCF margin	-0.25%	3.29%	0.64%	-13.67%	10.41%	-0.16%	0.38%	-0.08%
FCF Conversion (EBITDA)	-	192.37%	31.9%	-	387.47%	-	14.48%	-
FCF Conversion (Net income)	-	-	57.21%	-	539.15%	-	26.31%	-
Dividend per Share ²	150.0	100.0	60.00	100.0	130.0	170.0	190.0	222.5
Announcement Date	5/13/19	5/13/20	5/12/21	5/13/22	5/12/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2020 S1	2021 S1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2024 S2	2025 Q1	2025 Q2	2025 S1	2025 Q3	2025 Q4	2025 S2
Net sales ¹	946,024	801,053	527,738	980,342	560,740	622,967	665,580	673,385	1,338,965	684,511	644,752	-	608,742	592,534	1,201,276	625,324	634,850	1,299,400	631,750	637,550	1,288,600	664,900	662,600	1,365,000
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	13,618	11,077	16,923	30,426	18,808	13,133	24,143	17,231	41,374	14,694	8,037	-	16,277	10,062	26,339	16,128	14,700	31,600	14,700	14,650	30,200	16,100	14,900	31,500
Operating Margin	1.44%	1.38%	3.21%	3.1%	3.35%	2.11%	3.63%	2.56%	3.09%	2.15%	1.25%	-	2.67%	1.7%	2.19%	2.58%	2.32%	2.43%	2.33%	2.3%	2.34%	2.42%	2.25%	2.31%
Earnings before Tax (EBT) ¹	7,812	10,726	-	30,615	17,586	-	33,853	-	53,450	11,233	11,278	-	16,012	10,809	26,821	16,683	12,050	25,800	12,700	13,100	25,800	14,000	13,000	27,000
Net income ¹	5,157	6,861	11,504	20,996	12,181	10,440	23,917	13,272	37,189	7,735	6,581	-	11,492	7,584	19,076	11,624	7,300	18,100	9,200	9,100	18,100	9,900	8,800	18,900
Net margin	0.55%	0.86%	2.18%	2.14%	2.17%	1.68%	3.59%	1.97%	2.78%	1.13%	1.02%	-	1.89%	1.28%	1.59%	1.86%	1.15%	1.39%	1.46%	1.43%	1.4%	1.49%	1.33%	1.38%
EPS	126.9	168.8	-	516.7	299.7	-	588.6	-	915.2	190.3	-	-	282.8	-	469.3	287.3	-	-	-	-	-	-	-	-
Dividend per Share	75.00	30.00	-	50.00	-	-	-	-	50.00	-	-	80.00	-	-	85.00	-	-	-	-	-	-	-	-	-
Announcement Date	11/11/19	11/9/20	11/10/21	11/10/21	2/10/22	5/13/22	8/12/22	11/10/22	11/10/22	2/10/23	5/12/23	5/12/23	8/8/23	11/8/23	11/8/23	2/8/24	-	-	-	-	-	-	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	301,345	261,160	248,964	514,423	263,783	253,522	282,266	305,895
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	9.018 x	8.017 x	7.077 x	7.468 x	3.681 x	3.995 x	4.038 x	4.167 x
Free Cash Flow ¹	-5,206	62,664	11,222	-295,745	277,687	-4,200	10,119	-2,233
ROE (net income / shareholders' equity)	7.4%	-7.8%	11.1%	20.5%	19.1%	11.7%	11.1%	11%
ROA (Net income/ Total Assets)	2.61%	-1.45%	3.55%	4.94%	4.47%	4.7%	-	-
Assets ¹	533,862	939,826	552,358	883,211	1,151,210	792,406	-	-
Book Value Per Share ²	4,633	4,027	4,656	5,835	7,459	8,278	9,018	9,829
Cash Flow per Share	453.0	-207.0	618.0	1,224	1,449	-	-	-
Capex ¹	7,718	11,597	7,782	11,561	22,179	10,000	7,500	8,000
Capex / Sales	0.37%	0.61%	0.45%	0.53%	0.83%	0.39%	0.28%	0.29%
Announcement Date	5/13/19	5/13/20	5/12/21	5/13/22	5/12/23	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Hanwa Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

5,910 JPY

Average target price

6,038 JPY

Spread / Average Target

+2.16%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Metallic Rolling & Drawing Products

	1st Jan change	Capi.
HANWA CO., LTD.	+18.32%	1.53B
BORUSAN MANNESMANN BORU SANAYI VE TICARET	+0.85%	2.6B
ALLEIMA AB	-10.73%	1.56B
SICHUAN FURONG TECHNOLOGY CO., LTD.	+15.68%	1.44B
FANGDA SPECIAL STEEL TECHNOLOGY CO., LTD.	-9.98%	1.33B
TIANJIN YOU FA STEEL PIPE GROUP STOCK CO., LTD.	-7.80%	1.1B
YONGJIN TECHNOLOGY GROUP CO., LTD.	-5.98%	915M
JIANGSU CHANGBAO STEELTUBE CO.,LTD	+9.17%	734M
PAO TMK	-.--%	685M
AL YAMAMAH STEEL INDUSTRIES COMPANY	+61.28%	561M

Metallic Rolling & Drawing Products