NICHIRIN CO.,LTD.5184

Why the market may be pricing it low

• Disclosed reliance on the auto industry exceeds 90%, so the market prices in earnings swings tied to customers' procurement shifts.

  当社グループの事業は、自動車産業への依存度が90％以上であり…顧客企業の業績ならびに顧客の調達方針変更…により、当社グループの経営成績および財政状態に影響を及ぼす可能性があります。Risk factors

• North America, once a growth driver, saw operating profit collapse to roughly a quarter of last year due to tariffs.

  関税措置の影響もあり、営業利益は265百万円（前連結会計年度1,104百万円）となりました。MD&A

• Over 20% is held by Taiyo Koko, a nonferrous-metals firm listed as an "other affiliated company," an unusual ownership mix for an auto-hose maker.

  太陽鉱工株式会社 22.1%Shareholders

What could close the gap

• The new mid-term plan raises the dividend payout target to 45% from 2026 and sets a DOE floor, marking a shift in shareholder returns.

  DOE2.5％を下限とし、連結配当性向を2026年以降は目標45％に設定させていただきます。Dividend policy

• A newly set 4-billion-yen buyback framework for 2026-2028 could be a concrete catalyst for re-rating the capital policy stance.

  2026年～2028年の3年間で総額40億円程度の自己株式の取得枠を設定することとし、総還元性向の向上にも努めてまいります。Dividend policy

• Expansion into non-auto areas like housing and infrastructure could dilute the very auto-dependency concern weighing on the stock.

  住設・インフラなど非自動車領域の製品群を拡大することで、多様な価値を創出し、持続可能な企業集団をめざしてまいります。Management policy

How a buyer could still lose (value trap)

• Sales have grown for five straight years, yet ordinary profit has declined for two consecutive years, a pattern that could persist.

  Based on the figures below

• In China, local makers' rapid rise is eroding Japanese automakers' sales, a risk to the competitiveness of Nichirin's core customers.

  中国市場では、現地メーカーの急成長により日系メーカーの販売低迷が続いています。MD&A

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✗ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✗Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥73.7bn

Operating profit

¥9.1bn

Net profit

¥5.5bn

Operating cash flow

¥8.4bn

Cash

¥23.6bn

Debt

¥0.1bn

Equity

¥68.1bn

Annual report for the year to 2025-12-31