Reported Earnings • Aug 05
First quarter 2027 earnings: Revenues and EPS in line with analyst expectations First quarter 2027 results: EPS: JP¥118 (up from JP¥82.49 in 1Q 2026). Revenue: JP¥55.5b (up 13% from 1Q 2026). Net income: JP¥2.78b (up 41% from 1Q 2026). Profit margin: 5.0% (up from 4.0% in 1Q 2026). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jul 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥11,800, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Electrical industry in Japan. Total returns to shareholders of 136% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥9,829 per share. Declared Dividend • Jul 25
Final dividend of JP¥105 announced Shareholders will receive a dividend of JP¥105. Ex-date: 29th September 2026 Payment date: 3rd December 2026 Dividend yield will be 1.4%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 18% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 61% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥14,740, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 18x in the Electrical industry in Japan. Total returns to shareholders of 195% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥9,608 per share. Annonce • Jul 07
DAIHEN Corporation to Report Q1, 2027 Results on Aug 04, 2026 DAIHEN Corporation announced that they will report Q1, 2027 results on Aug 04, 2026 Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥18,250, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 19x in the Electrical industry in Japan. Total returns to shareholders of 248% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥8,835 per share. Price Target Changed • Jun 11
Price target increased by 12% to JP¥17,225 Up from JP¥15,350, the current price target is an average from 4 analysts. New target price is 19% above last closing price of JP¥14,440. Stock is up 126% over the past year. The company is forecast to post earnings per share of JP¥755 for next year compared to JP¥591 last year. Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥15,270, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 19x in the Electrical industry in Japan. Total returns to shareholders of 231% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,709 per share. Reported Earnings • May 12
Full year 2026 earnings: Revenues and EPS in line with analyst expectations Full year 2026 results: EPS: JP¥591 (up from JP¥493 in FY 2025). Revenue: JP¥237.7b (up 5.0% from FY 2025). Net income: JP¥14.1b (up 18% from FY 2025). Profit margin: 5.9% (up from 5.3% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Annonce • May 11
DAIHEN Corporation, Annual General Meeting, Jun 24, 2026 DAIHEN Corporation, Annual General Meeting, Jun 24, 2026. Actualités en direct • May 11
Daihen Lifts Dividend and Targets Double-Digit Growth With Overseas Expansion Plans Daihen reported higher sales and profits for fiscal 2026, supported by what it describes as stronger operations and a solid balance sheet.
The company raised its year-end dividend to ¥96 per share, taking the total annual dividend to ¥180, which is ¥15 more than the previous year.
Management plans to keep a dividend payout ratio of at least 30%, lift dividends further, expand overseas with a new subsidiary in Mexico, and is forecasting double-digit growth in net sales and operating profit for fiscal 2027.
The combination of higher fiscal 2026 earnings, a larger dividend and explicit targets for double-digit growth suggests management is signaling confidence in the current business position and overseas expansion plan.
Investors may want to watch how the Mexico subsidiary and other overseas efforts contribute to earnings and whether the company can maintain its targeted payout ratio if conditions become less supportive. Annonce • May 10
DAIHEN Corporation to Report Fiscal Year 2026 Results on May 11, 2026 DAIHEN Corporation announced that they will report fiscal year 2026 results on May 11, 2026 Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥13,950, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 18x in the Electrical industry in Japan. Total returns to shareholders of 243% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥16,112 per share. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥92.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 29 June 2026. Payout ratio is a comfortable 29% and the cash payout ratio is 78%. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.2%). Buy Or Sell Opportunity • Mar 20
Now 25% undervalued Over the last 90 days, the stock has risen 29% to JP¥12,370. The fair value is estimated to be JP¥16,395, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 42% in the next 2 years. Price Target Changed • Mar 09
Price target increased by 11% to JP¥12,900 Up from JP¥11,625, the current price target is an average from 4 analysts. New target price is 11% above last closing price of JP¥11,620. Stock is up 73% over the past year. The company is forecast to post earnings per share of JP¥581 for next year compared to JP¥493 last year. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥11,680, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 18x in the Electrical industry in Japan. Total returns to shareholders of 191% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,171 per share. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥13,580, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 17x in the Electrical industry in Japan. Total returns to shareholders of 248% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,198 per share. Reported Earnings • Feb 05
Third quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2026 results: EPS: JP¥175 (up from JP¥141 in 3Q 2025). Revenue: JP¥58.2b (down 2.6% from 3Q 2025). Net income: JP¥4.19b (up 22% from 3Q 2025). Profit margin: 7.2% (up from 5.8% in 3Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) exceeded analyst estimates by 6.8%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Feb 03
DAIHEN Corporation (TSE:6622) announces an Equity Buyback for 300,000 shares, representing 1.25% for ¥4,000 million. DAIHEN Corporation (TSE:6622) announces a share repurchase program. Under the program, the company will repurchase up to 300,000 shares, representing 1.25% of its issued share capital (excluding treasury stock), for ¥4,000 million. The purpose of the program is to strengthen shareholder returns and improve capital efficiency in order to increase shareholder value. The repurchased shares will be cancelled. The program is valid till March 31, 2026. As of January 30, 2026, there are 24,019,322 issued shares (excluding treasury stock) and 1,183,969 shares in treasury. Price Target Changed • Jan 07
Price target increased by 10% to JP¥11,375 Up from JP¥10,325, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥10,860. Stock is up 34% over the past year. The company is forecast to post earnings per share of JP¥582 for next year compared to JP¥493 last year. Annonce • Dec 27
DAIHEN Corporation to Report Q3, 2026 Results on Feb 03, 2026 DAIHEN Corporation announced that they will report Q3, 2026 results on Feb 03, 2026 Declared Dividend • Dec 04
First half dividend of JP¥92.00 announced Shareholders will receive a dividend of JP¥92.00. Ex-date: 30th March 2026 Payment date: 29th June 2026 Dividend yield will be 1.9%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (31% earnings payout ratio) and cash flows (79% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 54% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Dec 02
Price target increased by 7.6% to JP¥10,325 Up from JP¥9,600, the current price target is an average from 4 analysts. New target price is 19% above last closing price of JP¥8,660. Stock is up 21% over the past year. The company is forecast to post earnings per share of JP¥603 for next year compared to JP¥493 last year. Reported Earnings • Nov 08
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: JP¥134 (down from JP¥147 in 2Q 2025). Revenue: JP¥56.2b (up 6.5% from 2Q 2025). Net income: JP¥3.20b (down 11% from 2Q 2025). Profit margin: 5.7% (down from 6.8% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Oct 27
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 43% to JP¥10,010. The fair value is estimated to be JP¥8,118, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 8.1%. Revenue is forecast to grow by 9.5% in 2 years. Earnings are forecast to grow by 27% in the next 2 years. Price Target Changed • Oct 09
Price target increased by 12% to JP¥9,600 Up from JP¥8,575, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥9,480. Stock is up 38% over the past year. The company is forecast to post earnings per share of JP¥571 for next year compared to JP¥493 last year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥84.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.5%). Annonce • Sep 12
DAIHEN Corporation to Report Q2, 2026 Results on Nov 06, 2025 DAIHEN Corporation announced that they will report Q2, 2026 results on Nov 06, 2025 Valuation Update With 7 Day Price Move • Aug 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥8,150, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Electrical industry in Japan. Total returns to shareholders of 132% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,385 per share. Reported Earnings • Aug 07
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: JP¥82.49 (up from JP¥26.13 in 1Q 2025). Revenue: JP¥49.1b (up 13% from 1Q 2025). Net income: JP¥1.97b (up 210% from 1Q 2025). Profit margin: 4.0% (up from 1.5% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.8%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 09
Final dividend of JP¥84.00 announced Shareholders will receive a dividend of JP¥84.00. Ex-date: 29th September 2025 Payment date: 3rd December 2025 Dividend yield will be 2.4%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (26% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 58% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 01
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥493 (down from JP¥673 in FY 2024). Revenue: JP¥226.4b (up 20% from FY 2024). Net income: JP¥12.0b (down 28% from FY 2024). Profit margin: 5.3% (down from 8.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) missed analyst estimates by 5.6%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Jun 27
DAIHEN Corporation to Report Q1, 2026 Results on Aug 05, 2025 DAIHEN Corporation announced that they will report Q1, 2026 results on Aug 05, 2025 Reported Earnings • May 09
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: JP¥493 (down from JP¥673 in FY 2024). Revenue: JP¥226.4b (up 20% from FY 2024). Net income: JP¥12.0b (down 28% from FY 2024). Profit margin: 5.3% (down from 8.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) missed analyst estimates by 4.8%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Annonce • May 08
DAIHEN Corporation, Annual General Meeting, Jun 26, 2025 DAIHEN Corporation, Annual General Meeting, Jun 26, 2025. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥5,540, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Electrical industry in Japan. Total returns to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥9,087 per share. Annonce • Mar 29
DAIHEN Corporation to Report Fiscal Year 2025 Results on May 08, 2025 DAIHEN Corporation announced that they will report fiscal year 2025 results on May 08, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥82.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 31% and the cash payout ratio is 78%. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.9%). Reported Earnings • Feb 05
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: JP¥141 (down from JP¥293 in 3Q 2024). Revenue: JP¥59.7b (up 24% from 3Q 2024). Net income: JP¥3.44b (down 52% from 3Q 2024). Profit margin: 5.8% (down from 15% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Feb 05
DAIHEN Corporation (TSE:6622) announces an Equity Buyback for 400,000 shares, for ¥2,864 million. DAIHEN Corporation (TSE:6622) announces a share repurchase program. Under the program, the company will repurchase up to 400,000 shares, representing 1.64% of its issued share capital (excluding treasury stock), for ¥2864 million. The shares will be repurchased at ¥7160 per share. The purpose of the program is to strengthen shareholder returns and improve capital efficiency in order to increase shareholder value. The repurchased shares will be cancelled. As of January 31, 2024, there are 24,417,889 issued shares (excluding treasury stock) and Treasury stock: 1,185,402 shares. Annonce • Dec 13
DAIHEN Corporation to Report Q3, 2025 Results on Feb 04, 2025 DAIHEN Corporation announced that they will report Q3, 2025 results on Feb 04, 2025 Declared Dividend • Dec 04
First half dividend of JP¥82.50 announced Shareholders will receive a dividend of JP¥82.50. Ex-date: 28th March 2025 Payment date: 27th June 2025 Dividend yield will be 2.3%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is covered by both earnings (24% earnings payout ratio) and cash flows (79% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 08
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: JP¥147 (up from JP¥138 in 2Q 2024). Revenue: JP¥52.8b (up 21% from 2Q 2024). Net income: JP¥3.58b (up 5.3% from 2Q 2024). Profit margin: 6.8% (down from 7.8% in 2Q 2024). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 63%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 17% per year. Annonce • Sep 27
DAIHEN Corporation to Report Q2, 2025 Results on Nov 06, 2024 DAIHEN Corporation announced that they will report Q2, 2025 results on Nov 06, 2024 Price Target Changed • Sep 21
Price target decreased by 7.9% to JP¥9,325 Down from JP¥10,125, the current price target is an average from 4 analysts. New target price is 40% above last closing price of JP¥6,640. Stock is up 26% over the past year. The company is forecast to post earnings per share of JP¥510 for next year compared to JP¥673 last year. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥82.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 05 December 2024. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.0%). Reported Earnings • Aug 07
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: JP¥26.13 (down from JP¥28.04 in 1Q 2024). Revenue: JP¥43.3b (up 23% from 1Q 2024). Net income: JP¥636.0m (down 7.6% from 1Q 2024). Profit margin: 1.5% (down from 1.9% in 1Q 2024). Revenue exceeded analyst estimates by 6.3%. Earnings per share (EPS) missed analyst estimates by 75%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 10% per year. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.8% average weekly change). High level of non-cash earnings (20% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥5,490, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Electrical industry in Japan. Total returns to shareholders of 19% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥82.50 announced Shareholders will receive a dividend of JP¥82.50. Ex-date: 27th September 2024 Payment date: 5th December 2024 Dividend yield will be 1.9%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is covered by earnings (27% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • Jul 07
DAIHEN Corporation to Report Q1, 2025 Results on Aug 05, 2024 DAIHEN Corporation announced that they will report Q1, 2025 results on Aug 05, 2024 New Risk • May 12
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • May 11
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥673 (up from JP¥538 in FY 2023). Revenue: JP¥188.6b (up 1.8% from FY 2023). Net income: JP¥16.5b (up 25% from FY 2023). Profit margin: 8.7% (up from 7.1% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.9%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Electrical industry in Japan. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Annonce • May 11
DAIHEN Corporation, Annual General Meeting, Jun 26, 2024 DAIHEN Corporation, Annual General Meeting, Jun 26, 2024. New Risk • Apr 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.8% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥10,590, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 15x in the Electrical industry in Japan. Total returns to shareholders of 135% over the past three years. Annonce • Apr 07
DAIHEN Corporation to Report Fiscal Year 2024 Results on May 09, 2024 DAIHEN Corporation announced that they will report fiscal year 2024 results on May 09, 2024 
