Chugai Mining Co., Ltd. (1491) AI Stock Analysis

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Chugai Mining Co., Ltd.

(TSE/TYO:1491)

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Rating:63Neutral

Price Target:JPY 540.00▲(6.51% Upside)

Action:reiterated

Date:08/18/26

The score is driven primarily by improved financial performance (rapid 2026 revenue growth, profitability rebound, and manageable leverage), tempered by structurally thin margins and past cash-flow volatility. Technicals are mixed-to-weak with the stock below longer-term moving averages, while valuation is supportive due to a high dividend yield and a moderate P/E.

Positive Factors

Rapid Revenue GrowthThe sharp 2026 revenue acceleration, alongside several years of expansion, indicates stronger activity across the company’s precious-metals and recycling-related operations. If sustained, this broader revenue base can improve operating scale, reinforce market reach, and support higher absolute earnings over the next several quarters.

Negative Factors

Structurally Thin MarginsVery low gross and net margins leave limited room to absorb weaker pricing, higher operating costs, or normal volatility in precious-metal-related activity. Margin compression versus earlier years also suggests that rapid revenue growth may not translate proportionately into durable earnings or downside protection.

Chugai Mining Co., Ltd. (1491) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.28B
Dividend Yield: 8.68%
Average Volume (3M): 38.23K
Price to Earnings (P/E): 51.3
Beta (1Y): 0.99
Revenue Growth: 54.71%
EPS Growth: -87.42%
Country: Japan
Employees: 163
Sector: Basic Materials
Sector Strength: 61
Industry: Other Precious Metals

Chugai Mining Co., Ltd. Business Overview & Revenue Model

Company Description

Chugai Mining Co., Ltd., founded in Tokyo, Japan, in 1932, is a diversified enterprise actively involved in various sectors both domestically and internationally. Historically rooted in precious metals, the company's Precious Metal Business unit now...

Chugai Mining Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth with a sharp acceleration in 2026 (~55%) and a meaningful profitability rebound (higher EBIT and net income). Balance sheet leverage is manageable (debt-to-equity ~0.39) and ROE improved to ~16%. Offsetting this, margins remain structurally thin (gross ~1.8%, net ~0.5%), cash flows have been volatile historically, and debt has trended upward—raising sensitivity to operating swings.

Income Statement

62Positive

Balance Sheet

71Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	298.15B	281.69B	162.35B	113.76B	84.82B	51.59B
Gross Profit	4.42B	5.08B	3.93B	2.88B	3.15B	2.36B
EBITDA	1.84B	2.56B	1.38B	318.97M	462.71M	559.06M
Net Income	798.44M	1.51B	1.22B	218.63M	398.35M	546.85M
Balance Sheet
Total Assets	18.74B	17.57B	16.54B	12.15B	10.77B	9.83B
Cash, Cash Equivalents and Short-Term Investments	3.35B	6.30B	4.14B	3.28B	3.42B	4.10B
Total Debt	4.29B	3.70B	2.77B	2.07B	1.83B	941.45M
Total Liabilities	10.42B	8.20B	8.36B	5.05B	3.60B	2.77B
Stockholders Equity	8.32B	9.37B	8.18B	7.11B	7.18B	7.07B
Cash Flow
Free Cash Flow	0	1.92B	331.18M	-89.36M	-1.24B	276.34M
Operating Cash Flow	0	2.60B	840.31M	491.39M	-1.12B	356.59M
Investing Cash Flow	0	-1.06B	-543.30M	-576.40M	-164.07M	-198.83M
Financing Cash Flow	0	618.30M	564.24M	-53.23M	608.38M	-19.27M

Chugai Mining Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price507.00

Price Trends

50DMA661.96Negative

100DMA690.32Negative

200DMA821.18Negative

Market Momentum

MACD-36.82Positive

RSI25.84Positive

STOCH15.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1491, the sentiment is Negative. The current price of 507.00 is below the 20-day moving average (MA) of 585.90, below the 50-day MA of 661.96, and below the 200-day MA of 821.18, indicating a bearish trend. The MACD of -36.82 indicates Positive momentum. The RSI at 25.84 is Positive, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1491.

Chugai Mining Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:1491 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5302	76Outperform	JPY 53.23B	21.74	4.48%	4.15%	1.48%	-57.60%
JP:5388	76Outperform	JPY 16.49B	10.32	―	3.13%	11.89%	34.21%
JP:5541	63Neutral	JPY 37.21B	8.70	―	6.54%	6.09%	―
JP:1491	63Neutral	JPY 6.57B	51.26	―	8.68%	54.71%	-87.42%
JP:9888	62Neutral	JPY 15.49B	5.82	―	2.46%	8.56%	284.31%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:5707	37Underperform	JPY 13.12B	2.12	50.13%	―	18.50%	―

* Basic Materials Sector Average

Performance Comparison

JP:1491 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1491	Chugai Mining Co., Ltd.	507.00	-253.00	-33.29%
JP:5302	Nippon Carbon Co	4820.00	550.41	12.89%
JP:5707	Toho Zinc Co., Ltd.	680.00	18.00	2.72%
JP:5388	Kunimine Industries Co., Ltd	1278.00	176.98	16.07%
JP:5541	Pacific Metals Co., Ltd.	2140.00	-9.72	-0.45%
JP:9888	UEX, Ltd.	1504.00	784.62	109.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 18, 2026

Chugai Mining Co., Ltd. AI Stock Analysis