Financials Heiwa Real Estate Co., Ltd.

Equities

8803

JP3834800009

Real Estate Development & Operations

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-02 am EDT			5-day change	1st Jan Change
3,880 ^JPY	-1.27%		-6.28%	+2.92%

2023	Heiwa Real Estate Co., Ltd. Reports Earnings Results for the Full Year Ended March 31, 2023	CI
2022	Tranche Update on Heiwa Real Estate Co., Ltd.'s Equity Buyback Plan announced on April 28, 2022.	CI

Valuation

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	82,435	105,849	128,496	144,779	135,450	140,655	-	-
Enterprise Value (EV) ¹	254,168	260,057	310,521	318,790	329,587	146,023	339,555	341,355
P/E ratio	13.4 x	15.1 x	18.2 x	16.7 x	14.9 x	17.3 x	16.5 x	15.3 x
Yield	2.25%	2%	2.23%	2.4%	2.75%	4.07%	3.05%	3.27%
Capitalization / Revenue	2.09 x	2.27 x	3.67 x	2.5 x	3.04 x	3.29 x	3.32 x	3.03 x
EV / Revenue	6.44 x	5.58 x	8.86 x	5.51 x	7.4 x	3.29 x	8.01 x	7.34 x
EV / EBITDA	18 x	16.5 x	19 x	17.7 x	20 x	18.4 x	18 x	17.1 x
EV / FCF	-9.88 x	15.1 x	-13.8 x	23.6 x	-20.2 x	37.3 x	-16.2 x	-20.5 x
FCF Yield	-10.1%	6.63%	-7.27%	4.23%	-4.94%	2.68%	-6.17%	-4.87%
Price to Book	0.76 x	0.99 x	1.08 x	1.21 x	1.14 x	1.16 x	1.1 x	1.07 x
Nbr of stocks (in thousands)	38,684	37,817	37,191	36,607	35,786	35,790	-	-
Reference price ²	2,131	2,799	3,455	3,955	3,785	3,930	3,930	3,930
Announcement Date	4/25/19	4/30/20	4/30/21	4/28/22	4/28/23	4/30/24	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	39,480	46,639	35,048	57,818	44,522	44,433	42,400	46,477
EBITDA ¹	14,101	15,717	16,305	18,033	16,452	18,300	18,900	20,000
EBIT ¹	9,335	10,903	11,228	12,615	10,784	13,022	12,300	13,390
Operating Margin	23.64%	23.38%	32.04%	21.82%	24.22%	29.31%	29.01%	28.81%
Earnings before Tax (EBT) ¹	9,700	9,972	10,216	12,544	13,260	12,409	-	-
Net income ¹	6,174	7,046	7,118	8,705	9,137	8,450	8,590	8,970
Net margin	15.64%	15.11%	20.31%	15.06%	20.52%	19.02%	20.26%	19.3%
EPS ²	158.7	184.8	189.8	236.7	254.3	236.1	238.6	257.2
Free Cash Flow ¹	-25,726	17,253	-22,580	13,484	-16,298	3,916	-20,937	-16,622
FCF margin	-65.16%	36.99%	-64.43%	23.32%	-36.61%	8.81%	-49.38%	-35.76%
FCF Conversion (EBITDA)	-	109.77%	-	74.77%	-	-	-	-
FCF Conversion (Net income)	-	244.86%	-	154.9%	-	46.34%	-	-
Dividend per Share ²	48.00	56.00	77.00	95.00	104.0	166.0	120.0	128.7
Announcement Date	4/25/19	4/30/20	4/30/21	4/28/22	4/28/23	4/30/24	-	-

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
Net sales ¹	30,882	21,406	7,441	41,281	7,105	9,432	17,385	7,569	24,954	7,179	12,389	19,568	15,028	13,163	28,191	7,524	8,718
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	5,860	6,696	2,440	7,299	2,018	3,298	2,990	2,077	5,067	1,773	3,944	5,717	6,447	2,807	9,254	1,697	2,071
Operating Margin	18.98%	31.28%	32.79%	17.68%	28.4%	34.97%	17.2%	27.44%	20.31%	24.7%	31.83%	29.22%	42.9%	21.32%	32.83%	22.55%	23.76%
Earnings before Tax (EBT) ¹	5,202	6,260	2,332	7,055	2,250	3,239	3,416	2,909	6,325	2,017	4,918	6,935	7,406	2,354	9,760	1,378	1,271
Net income ¹	3,459	4,303	1,619	4,765	1,631	2,309	2,186	2,054	4,240	1,429	3,468	4,897	5,001	1,658	6,659	955	836
Net margin	11.2%	20.1%	21.76%	11.54%	22.96%	24.48%	12.57%	27.14%	16.99%	19.91%	27.99%	25.03%	33.28%	12.6%	23.62%	12.69%	9.59%
EPS ²	90.03	114.3	44.09	128.9	44.67	63.17	60.22	57.31	117.5	40.04	96.70	136.7	139.8	46.31	186.1	26.68	23.38
Dividend per Share	25.00	32.00	41.00	41.00	-	54.00	-	50.00	50.00	-	54.00	-	-	58.00	58.00	-	-
Announcement Date	12/13/19	10/30/20	10/29/21	10/29/21	1/31/22	4/28/22	7/29/22	10/31/22	10/31/22	1/31/23	4/28/23	4/28/23	7/31/23	10/31/23	10/31/23	1/31/24	4/30/24

¹JPY in Million²JPY

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	171,733	154,208	182,025	174,011	194,137	196,800	198,900	200,700
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	12.18 x	9.812 x	11.16 x	9.65 x	11.8 x	10.75 x	10.52 x	10.04 x
Free Cash Flow ¹	-25,726	17,253	-22,580	13,484	-16,298	3,916	-20,937	-16,622
ROE (net income / shareholders' equity)	5.8%	6.5%	6.3%	7.3%	7.7%	6.9%	6.7%	7.17%
ROA (Net income/ Total Assets)	2.64%	2.96%	2.84%	3.06%	2.49%	2.85%	3.1%	3.2%
Assets ¹	233,765	237,701	250,457	284,937	366,798	296,451	277,097	280,312
Book Value Per Share ²	2,820	2,837	3,190	3,270	3,334	3,511	3,572	3,672
Cash Flow per Share	283.0	313.0	327.0	386.0	414.0	399.0	-	-
Capex ¹	21,824	11,805	30,872	26,429	44,112	15,668	35,000	35,000
Capex / Sales	55.28%	25.31%	88.08%	45.71%	99.08%	35.26%	82.55%	75.31%
Announcement Date	4/25/19	4/30/20	4/30/21	4/28/22	4/28/23	4/30/24	-	-

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 Heiwa Real Estate Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

3,930 JPY

Average target price

4,237 JPY

Spread / Average Target

+7.80%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Office Real Estate Development

	1st Jan change	Capi.
HEIWA REAL ESTATE CO., LTD.	+2.92%	893M
CA IMMOBILIEN ANLAGEN AG	-5.21%	3.18B
HUFVUDSTADEN AB	-8.80%	2.37B
ENTRA ASA	-10.92%	1.69B
HYSAN DEVELOPMENT COMPANY LIMITED	-19.74%	1.61B
PLATZER FASTIGHETER HOLDING AB	+5.70%	984M
CROMWELL PROPERTY GROUP	-7.14%	672M
BEIJING ELECTRONIC ZONE HIGH-TECH GROUP CO., LTD.	-15.44%	584M
EMPERADOR PROPERTIES SOCIMI, S.A.	-.--%	458M
TKP CORPORATION	-19.08%	371M

Office Real Estate Development