| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39632.01 | 850 |
| Intrinsic value (DCF) | 15774.25 | 278 |
| Graham-Dodd Method | 3909.12 | -6 |
| Graham Formula | 10948.15 | 163 |
Akatsuki Eazima Co., Ltd. (1997.T) is a Japan-based company specializing in energy conservation and building renewal services. Founded in 1952 and headquartered in Mito, Japan, the company operates in the Engineering & Construction sector, focusing on comprehensive building diagnostics, renewal work, and maintenance of building equipment. Its services include the survey, design, and construction of renewal projects, as well as inspection and maintenance of cooling, refrigeration, and water supply systems. With a strong emphasis on energy efficiency, Akatsuki Eazima plays a vital role in Japan's push toward sustainable infrastructure. The company's expertise in building equipment maintenance and civil engineering projects positions it as a key player in Japan's industrial and urban development sectors. Its financial stability, reflected in a market cap of approximately ¥4.92 billion, underscores its established presence in the industry.
Akatsuki Eazima presents a stable investment opportunity with a low beta (0.341), indicating lower volatility compared to the broader market. The company reported solid financials for FY 2024, with revenue of ¥8.83 billion and net income of ¥559.3 million, translating to a diluted EPS of ¥275.74. Its strong operating cash flow (¥1.56 billion) and minimal capital expenditures (-¥10.2 million) suggest efficient operations. Additionally, the company maintains a healthy cash position (¥5.04 billion) with relatively low total debt (¥620.7 million). The dividend yield, at ¥75 per share, may appeal to income-focused investors. However, growth prospects may be limited by Japan's mature construction market and demographic challenges. Investors should weigh the company's stability against potential sector-wide stagnation.
Akatsuki Eazima Co., Ltd. operates in a niche segment of Japan's Engineering & Construction industry, focusing on energy conservation and building renewal. Its competitive advantage lies in its specialized expertise in building diagnostics and equipment maintenance, which differentiates it from general contractors. The company benefits from Japan's aging infrastructure and regulatory push toward energy efficiency, creating steady demand for its services. However, its regional focus (primarily Japan) limits diversification compared to global competitors. The firm's financial health—strong cash reserves and low debt—provides resilience but may also indicate conservative growth strategies. While its technical proficiency in building systems is a strength, competition from larger construction firms with broader service offerings could pressure margins. The company's ability to maintain profitability in a low-growth domestic market will depend on operational efficiency and potential expansion into adjacent services like smart building technologies.