Heiwa Paper Co., Ltd. (9929) AI Stock Analysis

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Heiwa Paper Co., Ltd.

(TSE/TYO:9929)

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Rating:53Neutral

Price Target:JPY 473.00▲(1.72% Upside)

Action:reiterated

Date:08/18/26

The score is held back primarily by weak and unstable profitability (thin recent margins and soft revenue) and volatile historical free cash flow, despite a conservative balance sheet. Technicals are broadly neutral with slightly weak momentum, while valuation is a headwind due to a high P/E that is only partly offset by a moderate dividend yield.

Positive Factors

Conservative leverage and stable equityLow leverage and stable equity provide resilience for a distribution business exposed to inventory and working-capital needs. This financial flexibility can help Heiwa Paper absorb operating volatility and continue serving customers without excessive debt pressure.

Negative Factors

Very thin profitabilityExtremely thin operating and net margins leave limited protection against procurement-cost increases, pricing pressure or logistics inflation. Small changes in gross spread or operating expenses could therefore materially affect earnings and shareholder returns.

Heiwa Paper Co., Ltd. (9929) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.35B
Dividend Yield: 2.58%
Average Volume (3M): 1,898
Price to Earnings (P/E): 36.7
Beta (1Y): 0.17
Revenue Growth: 1.27%
EPS Growth: 53.89%
Country: Japan
Employees: 188
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

Heiwa Paper Co., Ltd. Business Overview & Revenue Model

Company Description

Heiwa Paper Co., Ltd., founded in 1946 and based in Tokyo, Japan, operates as a global paper trading enterprise. The company's activities involve the import, development, sale, and export of a diverse array of paper types. Its portfolio encompasses s...

How the Company Makes Money

Heiwa Paper makes money mainly through the sale and distribution of paper and related materials. Its core revenue model is wholesale distribution: it procures paper products from manufacturers, holds and manages inventory and logistics, and sells the...

Heiwa Paper Co., Ltd. Financial Statement Overview

Summary

Balance sheet strength is a clear positive (conservative leverage and stable equity), but recent operating performance is weak with flat-to-down revenue and very thin 2026 margins (~0.4% operating, ~0.5% net). Cash flow improved in 2026 with positive free cash flow, yet multi-year free-cash-flow volatility (negative in 2023 and 2025) limits confidence in earnings quality and consistency.

Income Statement

44Neutral

Balance Sheet

72Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.80B	15.80B	16.03B	16.12B	16.07B	15.62B
Gross Profit	3.29B	3.10B	3.11B	3.18B	3.13B	2.82B
EBITDA	287.25M	251.86M	304.78M	272.51M	241.09M	262.90M
Net Income	78.63M	78.63M	117.03M	136.33M	874.80M	87.26M
Balance Sheet
Total Assets	17.77B	17.77B	18.17B	19.04B	17.78B	15.90B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.22B	2.67B	2.84B	3.07B	3.32B
Total Debt	1.83B	1.83B	2.45B	2.46B	2.41B	2.15B
Total Liabilities	7.53B	7.53B	8.26B	8.94B	8.37B	7.37B
Stockholders Equity	10.25B	10.25B	9.92B	10.10B	9.41B	8.53B
Cash Flow
Free Cash Flow	0	533.05M	-264.78M	96.00M	-1.13B	228.18M
Operating Cash Flow	0	1.05B	260.77M	122.83M	121.11M	234.00M
Investing Cash Flow	0	-383.85M	-554.34M	-13.21M	-408.28M	-13.88M
Financing Cash Flow	0	-838.28M	-171.47M	-344.65M	43.13M	-123.12M

Heiwa Paper Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price465.00

Price Trends

50DMA467.79Negative

100DMA465.13Negative

200DMA462.19Positive

Market Momentum

MACD-1.66Positive

RSI47.63Neutral

STOCH29.23Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9929, the sentiment is Positive. The current price of 465.00 is below the 20-day moving average (MA) of 467.55, below the 50-day MA of 467.79, and above the 200-day MA of 462.19, indicating a neutral trend. The MACD of -1.66 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9929.

Heiwa Paper Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:9929 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3892	75Outperform	JPY 7.77B	8.82	―	3.17%	-0.25%	2.38%
JP:3895	70Outperform	JPY 3.28B	5.89	―	3.86%	-4.88%	-35.39%
JP:3168	67Neutral	JPY 12.78B	4.68	―	4.35%	29.57%	―
JP:3945	66Neutral	JPY 2.90B	3.69	―	5.72%	1.07%	-31.39%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:3955	58Neutral	JPY 8.74B	25.27	―	3.42%	-2.18%	-68.23%
JP:9929	53Neutral	JPY 4.46B	36.66	―	2.58%	1.27%	53.89%

* Basic Materials Sector Average

Performance Comparison

JP:9929 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9929	Heiwa Paper Co., Ltd.	465.00	29.20	6.70%
JP:3168	Kurotani Corporation	919.00	375.93	69.22%
JP:3892	Okayama Paper Industries Co., Ltd.	1575.00	73.73	4.91%
JP:3895	Havix Corporation	415.00	23.80	6.08%
JP:3945	Superbag Company, Limited	1923.00	-684.30	-26.25%
JP:3955	IMURA & Co.,Ltd.	878.00	-85.50	-8.87%

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

Heiwa Paper Co., Ltd. AI Stock Analysis