New Risk • May 25
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 9.7% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (9.7% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 238% Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥964, the stock trades at a forward P/E ratio of 56x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 61% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥417 per share. Reported Earnings • May 19
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥13.21 (up from JP¥8.85 in FY 2025). Revenue: JP¥39.6b (up 2.4% from FY 2025). Net income: JP¥420.0m (up 47% from FY 2025). Profit margin: 1.1% (up from 0.7% in FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 74%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 7.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Announcement • May 14
Daishinku Corp., Annual General Meeting, Jun 26, 2026 Daishinku Corp., Annual General Meeting, Jun 26, 2026. Announcement • May 10
Daishinku Corp. to Report Fiscal Year 2026 Results on May 14, 2026 Daishinku Corp. announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 14, 2026 Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥754, the stock trades at a forward P/E ratio of 51x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥447 per share. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). New Risk • Mar 19
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 6.3% 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: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 238% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.0% net profit margin). Major Estimate Revision • Mar 18
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from JP¥9.22 to JP¥7.59 per share. Revenue forecast steady at JP¥39.8b. Net income forecast to grow 27% next year vs 13% growth forecast for Electronic industry in Japan. Consensus price target broadly unchanged at JP¥605. Share price fell 2.4% to JP¥661 over the past week. Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥13.36 (vs JP¥15.92 in 3Q 2025) Third quarter 2026 results: EPS: JP¥13.36 (down from JP¥15.92 in 3Q 2025). Revenue: JP¥9.96b (down 1.5% from 3Q 2025). Net income: JP¥425.0m (down 17% from 3Q 2025). Profit margin: 4.3% (down from 5.1% in 3Q 2025). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Jan 20
Consensus EPS estimates increase by 60% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥4.70 to JP¥7.53. Revenue forecast steady at JP¥40.1b. Net income forecast to shrink 3.8% next year vs 11% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥610 to JP¥640. Share price rose 2.4% to JP¥601 over the past week. Announcement • Dec 06
Daishinku Corp. to Report Q3, 2026 Results on Feb 10, 2026 Daishinku Corp. announced that they will report Q3, 2026 results on Feb 10, 2026 Major Estimate Revision • Dec 02
Consensus EPS estimates fall by 75% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from JP¥18.90 to JP¥4.70 per share. Revenue forecast steady at JP¥40.0b. Net income forecast to shrink 2.4% next year vs 11% growth forecast for Electronic industry in Japan . Consensus price target of JP¥610 unchanged from last update. Share price rose 2.6% to JP¥558 over the past week. Declared Dividend • Dec 02
First half dividend of JP¥14.00 announced Dividend of JP¥14.00 is the same as last year. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 5.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is not covered by earnings (193% earnings payout ratio) and 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 27% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 115% to bring the payout ratio under control. EPS is expected to grow by 299% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥3.76 (vs JP¥27.17 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥3.76 (up from JP¥27.17 loss in 2Q 2025). Revenue: JP¥10.2b (up 6.3% from 2Q 2025). Net income: JP¥119.5m (up JP¥996.5m from 2Q 2025). Profit margin: 1.2% (up from net loss in 2Q 2025). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 01 December 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Announcement • Sep 11
Daishinku Corp. to Report Q2, 2026 Results on Nov 12, 2025 Daishinku Corp. announced that they will report Q2, 2026 results at 3:00 PM, Tokyo Standard Time on Nov 12, 2025 Reported Earnings • Aug 14
First quarter 2026 earnings released: JP¥13.82 loss per share (vs JP¥11.74 profit in 1Q 2025) First quarter 2026 results: JP¥13.82 loss per share (down from JP¥11.74 profit in 1Q 2025). Revenue: JP¥9.38b (down 4.6% from 1Q 2025). Net loss: JP¥439.0m (down 216% from profit in 1Q 2025). Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 67 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Jul 11
Consensus EPS estimates increase by 34% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from JP¥39.4b to JP¥39.9b. EPS estimate increased from JP¥9.42 to JP¥12.58 per share. Net income forecast to grow 40% next year vs 6.8% growth forecast for Electronic industry in Japan. Consensus price target down from JP¥645 to JP¥620. Share price was steady at JP¥558 over the past week. Declared Dividend • Jul 09
Final dividend of JP¥14.00 announced Dividend of JP¥14.00 is the same as last year. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 5.0%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is not covered by earnings (123% earnings payout ratio) and 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 14% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 37% to bring the payout ratio under control. EPS is expected to grow by 333% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Board Change • Jul 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Director Toshiro Hiroshima was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 06
Daishinku Corp. to Report Q1, 2026 Results on Aug 12, 2025 Daishinku Corp. announced that they will report Q1, 2026 results on Aug 12, 2025 Major Estimate Revision • Jun 03
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from JP¥42.7b to JP¥38.0b. EPS estimate fell from JP¥39.26 to JP¥25.20 per share. Net income forecast to grow 180% next year vs 9.8% growth forecast for Electronic industry in Japan. Consensus price target of JP¥685 unchanged from last update. Share price rose 5.9% to JP¥521 over the past week. Reported Earnings • May 17
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥8.85 (down from JP¥58.12 in FY 2024). Revenue: JP¥38.6b (down 1.8% from FY 2024). Net income: JP¥285.0m (down 85% from FY 2024). Profit margin: 0.7% (down from 4.8% in FY 2024). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 66%. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 43 percentage points per year, which is a significant difference in performance. New Risk • May 14
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 123% The company is paying a dividend despite having no free cash flows. Dividend yield: 5.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 123% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Announcement • May 13
Daishinku Corp., Annual General Meeting, Jun 27, 2025 Daishinku Corp., Annual General Meeting, Jun 27, 2025. New Risk • Apr 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥14.6b (US$100.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. 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 (6.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.7% net profit margin). Market cap is less than US$100m (JP¥14.6b market cap, or US$100.0m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥460, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 10x in the Electronic industry in Japan. Total loss to shareholders of 50% over the past three years. Major Estimate Revision • Apr 05
Consensus EPS estimates increase by 31% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥19.93 to JP¥26.13. Revenue forecast unchanged at JP¥39.6b. Net income forecast to grow 7.9% next year vs 10% growth forecast for Electronic industry in Japan. Consensus price target broadly unchanged at JP¥685. Share price fell 15% to JP¥500 over the past week. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is on the higher end at 84% but the company is not cash flow positive. Trailing yield: 4.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Announcement • Mar 06
Daishinku Corp. to Report Fiscal Year 2025 Results on May 13, 2025 Daishinku Corp. announced that they will report fiscal year 2025 results on May 13, 2025 Major Estimate Revision • Feb 20
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥22.53 to JP¥19.43 per share. Revenue forecast steady at JP¥39.6b. Net income forecast to shrink 4.0% next year vs 11% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥705 to JP¥690. Share price fell 6.2% to JP¥593 over the past week. Reported Earnings • Feb 06
Third quarter 2025 earnings released: EPS: JP¥16.89 (vs JP¥7.25 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥16.89 (up from JP¥7.25 loss in 3Q 2024). Revenue: JP¥10.1b (down 2.3% from 3Q 2024). Net income: JP¥545.0m (up JP¥779.0m from 3Q 2024). Profit margin: 5.4% (up from net loss in 3Q 2024). Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Price Target Changed • Jan 25
Price target decreased by 13% to JP¥705 Down from JP¥815, the current price target is an average from 2 analysts. New target price is 10.0% above last closing price of JP¥641. Stock is down 29% over the past year. The company is forecast to post earnings per share of JP¥22.53 for next year compared to JP¥58.12 last year. New Risk • Jan 22
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 5.1% 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: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 455% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (5.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.8% net profit margin). Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥653, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 13x in the Electronic industry in Japan. Total loss to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥444 per share. Buy Or Sell Opportunity • Jan 16
Now 30% overvalued Over the last 90 days, the stock has fallen 5.3% to JP¥576. The fair value is estimated to be JP¥444, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 38%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 504% in the next 2 years. Announcement • Jan 16
Daishinku Corp. (TSE:6962) announces an Equity Buyback for 500,000 shares, representing 1.55% for ¥300 million. Daishinku Corp. (TSE:6962) announces a share repurchase program. Under the program, the company will repurchase up to 500,000 shares, representing 1.55% of its issued share capital (excluding treasury stock), for ¥300 million. The purpose of the program is to increase shareholder returns and improve capital efficiency. The program will run until March 10, 2025. As of December 31, 2024, the company had 32,276,911 shares in issue (excluding treasury stock) and 3,920,057 shares in treasury. Announcement • Dec 05
Daishinku Corp. to Report Q3, 2025 Results on Feb 05, 2025 Daishinku Corp. announced that they will report Q3, 2025 results on Feb 05, 2025 Buy Or Sell Opportunity • Dec 05
Now 21% overvalued Over the last 90 days, the stock has fallen 13% to JP¥536. The fair value is estimated to be JP¥444, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 38%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 504% in the next 2 years. Major Estimate Revision • Dec 03
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥31.00 to JP¥26.35 per share. Revenue forecast steady at JP¥40.5b. Net income forecast to grow 236% next year vs 14% growth forecast for Electronic industry in Japan. Consensus price target broadly unchanged at JP¥815. Share price was steady at JP¥531 over the past week. Declared Dividend • Nov 30
First half dividend of JP¥14.00 announced Shareholders will receive a dividend of JP¥14.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 5.4%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is not covered by earnings (455% earnings payout ratio) and 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 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 405% to bring the payout ratio under control. EPS is expected to grow by 290% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Buy Or Sell Opportunity • Nov 15
Now 20% overvalued Over the last 90 days, the stock has fallen 15% to JP¥534. The fair value is estimated to be JP¥444, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 38%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 510% in the next 2 years. Reported Earnings • Nov 08
Second quarter 2025 earnings released: JP¥26.30 loss per share (vs JP¥29.49 profit in 2Q 2024) Second quarter 2025 results: JP¥26.30 loss per share (down from JP¥29.49 profit in 2Q 2024). Revenue: JP¥9.61b (down 4.0% from 2Q 2024). Net loss: JP¥849.0m (down 189% from profit in 2Q 2024). Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 28% per year, which means it has not declined as severely as earnings. Announcement • Sep 26
Daishinku Corp. to Report Q2, 2025 Results on Nov 05, 2024 Daishinku Corp. announced that they will report Q2, 2025 results on Nov 05, 2024 Major Estimate Revision • Sep 21
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from JP¥37.95 to JP¥32.53 per share. Revenue forecast steady at JP¥41.0b. Net income forecast to shrink 44% next year vs 8.0% growth forecast for Electronic industry in Japan . Consensus price target broadly unchanged at JP¥805. Share price rose 4.0% to JP¥603 over the past week. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Reported Earnings • Aug 07
First quarter 2025 earnings released: EPS: JP¥20.51 (vs JP¥13.60 in 1Q 2024) First quarter 2025 results: EPS: JP¥20.51 (up from JP¥13.60 in 1Q 2024). Revenue: JP¥9.83b (up 5.5% from 1Q 2024). Net income: JP¥662.0m (up 51% from 1Q 2024). Profit margin: 6.7% (up from 4.7% in 1Q 2024). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to JP¥562, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 12x in the Electronic industry in Japan. Total loss to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥318 per share. New Risk • Jul 11
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 5.3% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.8% net profit margin). Major Estimate Revision • Jul 11
Consensus EPS estimates fall by 12%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from JP¥40.7b to JP¥41.1b. EPS estimate fell from JP¥40.30 to JP¥35.65 per share. Net income forecast to shrink 50% next year vs 12% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥865 to JP¥815. Share price rose 5.5% to JP¥787 over the past week. Declared Dividend • Jul 11
Final dividend of JP¥14.00 announced Shareholders will receive a dividend of JP¥14.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 3.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 2.3% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 15
Daishinku Corp. to Report Q1, 2025 Results on Aug 05, 2024 Daishinku Corp. announced that they will report Q1, 2025 results on Aug 05, 2024 Reported Earnings • May 16
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥58.12 (down from JP¥99.38 in FY 2023). Revenue: JP¥39.3b (up 2.4% from FY 2023). Net income: JP¥1.88b (down 42% from FY 2023). Profit margin: 4.8% (down from 8.3% in FY 2023). Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥704, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥388 per share. Announcement • Apr 13
Daishinku Corp., Annual General Meeting, Jun 27, 2024 Daishinku Corp., Annual General Meeting, Jun 27, 2024. Agenda: To consider changes in the Representative Director (retirement) and executive appointments. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Announcement • Mar 09
Daishinku Corp. to Report Fiscal Year 2024 Results on May 13, 2024 Daishinku Corp. announced that they will report fiscal year 2024 results on May 13, 2024 Reported Earnings • Feb 07
Third quarter 2024 earnings released: JP¥7.24 loss per share (vs JP¥5.45 loss in 3Q 2023) Third quarter 2024 results: JP¥7.24 loss per share (further deteriorated from JP¥5.45 loss in 3Q 2023). Revenue: JP¥10.4b (up 11% from 3Q 2023). Net loss: JP¥233.7m (loss widened 33% from 3Q 2023). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic 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 14% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Jan 23
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥55.80 to JP¥46.50 per share. Revenue forecast steady at JP¥38.6b. Net income forecast to shrink 13% next year vs 9.2% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥700 to JP¥1,050. Share price rose 5.4% to JP¥931 over the past week. Price Target Changed • Jan 17
Price target increased by 50% to JP¥1,050 Up from JP¥700, the current price target is provided by 1 analyst. New target price is 12% above last closing price of JP¥941. Stock is up 28% over the past year. The company is forecast to post earnings per share of JP¥52.70 for next year compared to JP¥99.38 last year. New Risk • Dec 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 25% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 25% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.2% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.3% net profit margin). Announcement • Dec 08
Daishinku Corp. to Report Q3, 2024 Results on Feb 05, 2024 Daishinku Corp. announced that they will report Q3, 2024 results on Feb 05, 2024 New Risk • Nov 30
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 5.5% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.3% net profit margin). Reported Earnings • Nov 07
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥29.49 (down from JP¥30.08 in 2Q 2023). Revenue: JP¥10.0b (flat on 2Q 2023). Net income: JP¥952.0m (down 2.0% from 2Q 2023). Profit margin: 9.5% (in line with 2Q 2023). Revenue exceeded analyst estimates by 5.1%. Earnings per share (EPS) also surpassed analyst estimates by 28%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 16% per year. Announcement • Sep 27
Daishinku Corp. to Report Q2, 2024 Results on Nov 06, 2023 Daishinku Corp. announced that they will report Q2, 2024 results on Nov 06, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥14.00 per share at 3.7% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 30 November 2023. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Major Estimate Revision • Sep 05
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥37.70 to JP¥42.86. Revenue forecast steady at JP¥37.2b. Net income forecast to shrink 7.3% next year vs 5.4% growth forecast for Electronic industry in Japan . Consensus price target of JP¥730 unchanged from last update. Share price was steady at JP¥805 over the past week. Major Estimate Revision • Aug 22
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from JP¥36.5b to JP¥36.9b. EPS estimate increased from JP¥33.77 to JP¥37.70 per share. Net income forecast to shrink 15% next year vs 6.4% growth forecast for Electronic industry in Japan . Consensus price target broadly unchanged at JP¥730. Share price was steady at JP¥723 over the past week. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to JP¥710, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 62% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥338 per share. New Risk • Aug 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.4% Last year net profit margin: 12% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.4% net profit margin). Reported Earnings • Aug 09
First quarter 2024 earnings released: EPS: JP¥13.60 (vs JP¥62.42 in 1Q 2023) First quarter 2024 results: EPS: JP¥13.60 (down from JP¥62.42 in 1Q 2023). Revenue: JP¥9.32b (down 9.4% from 1Q 2023). Net income: JP¥439.0m (down 78% from 1Q 2023). Profit margin: 4.7% (down from 20% in 1Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 12
Price target decreased by 24% to JP¥720 Down from JP¥950, the current price target is an average from 2 analysts. New target price is 15% above last closing price of JP¥624. Stock is down 28% over the past year. The company is forecast to post earnings per share of JP¥37.39 for next year compared to JP¥99.38 last year. Announcement • Jun 26
Daishinku Corp. to Report Q1, 2024 Results on Aug 04, 2023 Daishinku Corp. announced that they will report Q1, 2024 results on Aug 04, 2023 Major Estimate Revision • Jun 02
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥39.2b to JP¥37.0b. EPS estimate rose from JP¥73.92 to JP¥82.07. Net income forecast to shrink 17% next year vs 5.3% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥950 to JP¥920. Share price fell 6.4% to JP¥647 over the past week. Announcement • May 17
Daishinku Corp., Annual General Meeting, Jun 29, 2023 Daishinku Corp., Annual General Meeting, Jun 29, 2023. Reported Earnings • May 16
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥99.38 (down from JP¥119 in FY 2022). Revenue: JP¥38.4b (down 7.0% from FY 2022). Net income: JP¥3.21b (down 17% from FY 2022). Profit margin: 8.3% (down from 9.3% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.2%. Revenue is forecast to grow 3.9% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.00 per share at 3.9% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Major Estimate Revision • Mar 07
Consensus EPS estimates increase by 15% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from JP¥80.53 to JP¥92.92. Revenue forecast steady at JP¥38.5b. Net income forecast to shrink 17% next year vs 5.5% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,300 unchanged from last update. Share price rose 2.3% to JP¥757 over the past week. Major Estimate Revision • Feb 25
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥39.2b to JP¥38.7b. EPS estimate also fell from JP¥89.83 per share to JP¥80.53 per share. Net income forecast to shrink 25% next year vs 6.1% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥1,500 to JP¥1,300. Share price was steady at JP¥744 over the past week. Reported Earnings • Feb 12
Third quarter 2023 earnings released: JP¥5.45 loss per share (vs JP¥22.93 profit in 3Q 2022) Third quarter 2023 results: JP¥5.45 loss per share (down from JP¥22.93 profit in 3Q 2022). Revenue: JP¥9.31b (down 9.0% from 3Q 2022). Net loss: JP¥176.0m (down 124% from profit in 3Q 2022). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth.