Japanese stock alert

JAP

Morning Alert: Kimuratan hits 52-week low Twenty-second time in one month 27 July 2017 10:56 JST

NEWS BITES - JAPAN

Kimuratan Corporation (TO:8107) hit a 52-week low of JPY6.0 earlier today for the 22nd time in the past one month, but later rebounded higher to JPY7.0.

SECTION 1: Technical indicators

Bearish:

The negative 0.02 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are falling - another bearish signal. In the past week, the stock's MACD has been negative in three days, a reinforcing bearish signal.

The stock has underperformed 75% of the Japan market over the past 6 months.

In the last one month the stock has hit a new 52-week low twenty-one times and in the last three months forty-two times, pointing to a significant downtrend.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 1.5 [0.7]

Price to Book of 4.9 [1.3]

Note

The stock is at a discount of 12.5% to the 12-month high of JPY8.0 on 25 May, 2017. It is also at a premium of 16.7% to the 12-month low of JPY6.0 on 27 Jul, 2017.

Bullish:

In the last three months the stock has hit a new 52-week high eighteen times, pointing to a significant uptrend.

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US million55In Bottom Quartile
52-week Range (in JPY)6.0-8.0
1-month Range (in JPY)6.0-7.0
Price/MAP2000.99In Bottom Quartile
Today's Volatility %16.7In Bottom 1%

SECTION 3: Earnings

Annual Report: Kimuratan reports Loss of JPY327m ($US2.9m)

Kimuratan (TO:8107) reported loss for the year-ended 31 March 2017 of JPY327m ($US2.9m).

Major changes compared with previous year:

Favourable Changes:

- Total revenue to total assets up from 1.5 to 1.8

- Interest expenses to Sales down from 0.3% to 0.2%

- Debt to Equity down 9.1% from 0.6 to 0.5

- Current Debtors to Total Assets up from 18.6% to 22.9%

- Total non-current assets to Total Assets up from 6.6% to 7.2%

Unfavourable Changes:

- Loss of JPY327.0m ($US2.9m)

- EBIT Margin of -7.5%

- Operating Cash Flow is negative

- Sales and marketing expenses to Sales up from 56.7% to 58.8%

- Current ratio down 20.4% from 3.1 to 2.5

- Working capital to total assets down from 63.1% to 55.1%

- Cash to Total Assets down from 32% to 11.7%

Note:

- Cost of Goods Sold to Sales down from 48.6% to 48.2%

- Total liabilities to Total assets steady at 0.4

- Total current assets to Total Assets down from 93.4% to 92.7%

- Current Inventory to Total Assets up from 41.2% to 56.8%

SECTION 4: Recent News of Kimuratan

June 02: Kimuratan announces AGM

Kimuratan has announced its Annual General Meeting will take place on Friday, June 23.

Kimuratan Corporation (TO:8107; TYO:8107; T:8107; JP:8107)

ISIN: JP3242400004

Source: www.BuySellSignals.com