Shin Nippon Air Technologies Co., Ltd. (1952) AI Stock Analysis

• Market Cap: ¥102.24B
• Dividend Yield: 3.72%
• Average Volume (3M): 158.94K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.98
• Revenue Growth: 4.34%
• EPS Growth: 6.84%
• Country: JP
• Employees: 1,649
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 126.78
• Shares Outstanding: 48,564,450
• 10 Day Avg. Volume: 130,210
• 30 Day Avg. Volume: 158,943
• PEG Ratio: -0.54
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

The stock is supported by strong financial performance, particularly in revenue growth and financial stability, although recent negative operating cash flow warrants attention. Technical indicators are bullish, suggesting positive market momentum. Valuation metrics indicate the stock is attractively priced with a solid dividend yield. Overall, the stock presents a compelling investment opportunity, barring concerns over cash flow management.

Shin Nippon Air Technologies Co., Ltd. Business Overview & Revenue Model

Company Description

Shin Nippon Air Technologies Co., Ltd., established in 1952, is a Japanese company specializing in the design, installation, and maintenance of air conditioning systems and related technologies. It operates primarily in the construction and engineering sectors, offering services that include HVAC (heating, ventilation, and air conditioning) systems, clean room facilities, and energy-saving solutions. The company serves a wide range of clients, including commercial, industrial, and institutional sectors, focusing on delivering customized and efficient climate control solutions.

How the Company Makes Money

Shin Nippon Air Technologies Co., Ltd. generates revenue through its comprehensive service offerings in the HVAC and related sectors. The company's primary revenue streams include the design and installation of air conditioning systems for new construction projects and the retrofitting of existing buildings to improve energy efficiency. Additionally, the company provides ongoing maintenance services to ensure the optimal performance of installed systems, which contributes to a steady stream of income. Significant partnerships with construction firms and government contracts also play a crucial role in securing large-scale projects, thereby enhancing its revenue. The company's emphasis on energy-saving solutions is aligned with global sustainability trends, potentially attracting clients looking to reduce their environmental footprint.

Shin Nippon Air Technologies Co., Ltd. Financial Statement Overview

Summary

Shin Nippon Air Technologies Co., Ltd. exhibits a strong financial position with excellent margins and low leverage. Revenue growth remains steady, though cash flow management poses a risk due to recent negative operating cash flows. Continued focus on cash flow improvements will be crucial for maintaining financial health.

Income Statement

The company shows a strong gross profit margin of 15.25% and a solid net profit margin of 5.33% for the TTM period. Revenue growth is positive at 2.30% from the previous annual report, indicating a steady increase. EBIT and EBITDA margins are healthy at 7.20% and 6.98%, respectively. However, the growth pace has slowed slightly compared to previous years.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.06, indicating prudent financial leverage. Return on equity is commendable at 10.61%, showing efficient use of equity capital. The equity ratio stands at 63.82%, suggesting a solid equity base supporting total assets. The company's financial structure is robust, promoting stability.

Cash Flow

Cash flow analysis shows a concerning negative operating cash flow in the recent annual report, contrasting with positive free cash flow in previous years. The free cash flow growth rate cannot be calculated due to the absence of current free cash flow data. Despite this, the company has managed its cash effectively over longer periods, warranting attention to recent cash flow management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
130.92B	127.98B	112.23B	106.72B	107.25B	120.11B
	Gross Profit
19.97B	18.70B	15.68B	14.55B	13.92B	14.19B
	EBIT
9.43B	9.23B	7.12B	6.88B	6.39B	6.41B
	EBITDA
9.14B	10.73B	7.54B	7.36B	6.86B	6.88B
	Net Income Common Stockholders
6.97B	7.17B	5.60B	5.40B	4.64B	4.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.52B	13.63B	25.00B	15.57B	12.17B	12.49B
	Total Assets
103.05B	117.35B	109.15B	99.97B	98.63B	98.92B
	Total Debt
3.77B	9.96B	3.73B	4.21B	6.94B	7.81B
	Net Debt
-7.44B	-3.67B	-21.27B	-11.35B	-5.23B	-4.68B
	Total Liabilities
37.30B	51.76B	50.94B	46.16B	47.93B	54.52B
	Stockholders Equity
65.75B	65.59B	58.21B	53.81B	50.70B	44.40B
Cash Flow		Free Cash Flow
0.00	-14.72B	12.11B	6.54B	1.68B	10.88B
	Operating Cash Flow
0.00	-13.56B	12.82B	7.00B	1.92B	11.17B
	Investing Cash Flow
0.00	-783.00M	-1.17B	414.00M	309.00M	179.00M
	Financing Cash Flow
0.00	2.52B	-2.27B	-4.41B	-2.50B	-6.99B

Shin Nippon Air Technologies Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2139.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1952, the sentiment is Positive. The current price of 2139 is above the 20-day moving average (MA) of 2075.00, above the 50-day MA of 1871.77, and above the 200-day MA of 1819.76, indicating a bullish trend. The MACD of 91.51 indicates Positive momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1952.

Shin Nippon Air Technologies Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1941	79 Outperform	¥185.34B	9.19	8.99%	3.41%	10.38%	151.57%
1952	78 Outperform	¥102.24B	10.15		3.72%	4.34%	6.84%
6370	74 Outperform	¥585.72B	28.85	6.03%	1.76%	5.12%	43.96%
1979	73 Outperform	$157.34B	14.04	7.46%	2.91%	-1.82%	5.42%
1926	72 Outperform	¥105.39B	12.65		3.69%	3.37%	8.07%
1975	67 Neutral	¥56.77B	8.75		5.67%	-4.07%	40.76%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%

Shin Nippon Air Technologies Co., Ltd. Corporate Events

Shin Nippon Air Technologies Revises Financial Forecasts Upward

Shin Nippon Air Technologies Co., Ltd. has revised its financial results and dividend forecasts for the fiscal year ended March 31, 2025, showing significant improvements in profitability. The revisions indicate a 20% increase in profit attributable to owners and a 3.5% rise in net sales, driven by enhanced construction project profitability and higher-than-expected order intake, suggesting a positive impact on the company’s financial health and market positioning.

Shin Nippon Air Technologies Announces Leadership Changes

Shin Nippon Air Technologies Co., Ltd. has announced changes in its leadership team, with a new candidate for Outside Director, Kenichi Muranaka, and a new Managing Officer, Hideki Takeuchi. These appointments are expected to bring fresh perspectives and expertise to the company, potentially enhancing its strategic direction and operational efficiency.

Shin Nippon Air Technologies Expects 2.0 Billion Yen Gain from Securities Sale

Shin Nippon Air Technologies Co., Ltd. has announced the planned sale of certain investment securities, expected to generate an extraordinary income of approximately 2.0 billion yen by the end of fiscal year 2024. This strategic move aligns with the company’s policy to reduce cross-shareholdings, reflecting its ongoing commitment to corporate governance improvements, and is not expected to alter the financial results forecast for the fiscal year ending March 31, 2025.

Shin Nippon Air Technologies Restructures Leadership for Strategic Growth

Shin Nippon Air Technologies Co., Ltd. announced organizational changes effective April 1, 2025, to enhance its management strategies and digital transformation efforts. The company is restructuring its Management & Planning Office into a Management & Planning Headquarters and adjusting the responsibilities of several key officers to better align with strategic goals, impacting the company’s leadership and operational efficiency.

Shin Nippon Air Technologies Reports Nine-Month Financial Results

Shin Nippon Air Technologies reported a slight increase in net sales and profits for the nine months ending December 31, 2024, compared to the previous year. Despite the growth in sales, the company saw a decrease in profit attributable to owners of the parent, likely influenced by the recent stock split. The financial results indicate stable performance with a forecasted increase in net sales and profit for the full fiscal year ending March 31, 2025, which may impact stakeholders positively as the company continues to consolidate its market position.

Shin Nippon Air Technologies Completes Share Buyback

Shin Nippon Air Technologies Co., Ltd. announced the completion of its acquisition of 23,300 shares of its common stock for 44,223,900 yen, concluding a buyback program authorized in November 2024. The company’s strategic repurchase, executed through market purchases on the Tokyo Stock Exchange, reflects its ongoing efforts to manage equity and potentially enhance shareholder value.