Strong Performance: Sojitz Corp (2768) Earnings in 2Q Surpass Estimates with 14% Increase in Net Income

Sojitz Corp on Smartkarma

Analysts on Smartkarma, like Rahul Jain, are closely following Sojitz Corp‘s strategic shift away from coal and resources towards Chemicals, Energy Solutions, and Healthcare. The recent research report titled “Sojitz – Non-Resource Pivot in Motion, Valuation Discount Persists” highlights how Sojitz is diversifying its earnings base to reduce reliance on coal. Despite trading at a discount compared to its peers, concerns around cash flow volatility, coal exposure, and smaller scale still linger.

Rahul Jain‘s analysis points out that by FY27, around 80% of Sojitz’s profits are expected to come from its non-resource segments, indicating a successful transition. With a flat profit guidance for FY25 at ¥115bn and a 4.2% yield, Sojitz’s shares are valued at a 30–40% discount to its competitors, presenting a potential opportunity for investors amid the ongoing transformation in the company’s earnings mix.

A look at Sojitz Corp Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Sojitz Corporation, a general trading company formed through a merger, shows a promising long-term outlook based on Smartkarma’s Smart Scores. With strong scores in Dividend and Value, Sojitz is projected to provide solid returns and steady income for investors. Additionally, a respectable Momentum score suggests positive market momentum for the company. However, with slightly lower scores in Growth and Resilience, Sojitz may face challenges in terms of future growth and resilience during fluctuations in the market.

Overall, Sojitz Corp‘s mix of high dividend yield and solid value, combined with decent momentum, indicate a positive trajectory for the company in the long term. Investors may find Sojitz an attractive option for steady returns and income generation, despite potential challenges in growth and resilience in the future.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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