Duyuru • May 30
DKK Co., Ltd. Announces the Retirement of Nobuo Funabashi as Audit & Supervisory Board Member DKK Co., Ltd. at its Ordinary General Meeting of Shareholders to be held on June 26, 2026 announced the retirement of Nobuo Funabashi as Audit & Supervisory Board member. Reported Earnings • May 20
Full year 2026 earnings released: EPS: JP¥214 (vs JP¥83.32 in FY 2025) Full year 2026 results: EPS: JP¥214 (up from JP¥83.32 in FY 2025). Revenue: JP¥35.4b (up 8.8% from FY 2025). Net income: JP¥1.89b (up 143% from FY 2025). Profit margin: 5.3% (up from 2.4% in FY 2025). Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Duyuru • May 15
DKK Co., Ltd., Annual General Meeting, Jun 26, 2026 DKK Co., Ltd., Annual General Meeting, Jun 26, 2026. Duyuru • May 10
DKK Co., Ltd. to Report Fiscal Year 2026 Results on May 15, 2026 DKK Co., Ltd. announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 15, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.9%). Reported Earnings • Feb 16
Third quarter 2026 earnings released: EPS: JP¥68.82 (vs JP¥61.04 loss in 3Q 2025) Third quarter 2026 results: EPS: JP¥68.82 (up from JP¥61.04 loss in 3Q 2025). Revenue: JP¥10.2b (up 11% from 3Q 2025). Net income: JP¥600.0m (up JP¥1.16b from 3Q 2025). Profit margin: 5.9% (up from net loss in 3Q 2025). Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Duyuru • Dec 12
DKK Co., Ltd. to Report Q3, 2026 Results on Feb 13, 2026 DKK Co., Ltd. announced that they will report Q3, 2026 results on Feb 13, 2026 Declared Dividend • Dec 09
First half dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 3.0%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (59% 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 over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 18
Second quarter 2026 earnings released: EPS: JP¥40.52 (vs JP¥25.25 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥40.52 (up from JP¥25.25 loss in 2Q 2025). Revenue: JP¥8.93b (up 25% from 2Q 2025). Net income: JP¥355.0m (up JP¥591.0m from 2Q 2025). Profit margin: 4.0% (up from net loss in 2Q 2025). The move to profitability was driven by higher revenue. 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 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to JP¥2,395, the stock trades at a trailing P/E ratio of 26.6x. Average trailing P/E is 11x in the Communications industry in Japan. Total returns to shareholders of 25% over the past three years. Upcoming Dividend • Sep 24
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is on the higher end at 94% but the company is not cash flow positive. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (3.0%). Duyuru • Aug 19
DKK Co., Ltd. to Report Q2, 2026 Results on Nov 14, 2025 DKK Co., Ltd. announced that they will report Q2, 2026 results on Nov 14, 2025 Reported Earnings • Aug 16
First quarter 2026 earnings released: JP¥23.28 loss per share (vs JP¥22.76 loss in 1Q 2025) First quarter 2026 results: JP¥23.28 loss per share. Revenue: JP¥5.98b (flat on 1Q 2025). Net loss: JP¥212.0m (loss narrowed 2.8% from 1Q 2025). 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 5.4% 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 Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 58% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (5.4% average weekly change). Declared Dividend • Jul 09
Final dividend of JP¥40.00 announced Shareholders will receive a dividend of JP¥40.00. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 4.2%, which is higher than the industry average of 2.9%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased over the past 10 years. However, payments have been volatile during that time. Duyuru • Jun 27
DKK Co., Ltd. Announces Changes in Directors, Effective June 27, 2025 DKK Co., Ltd. hereby announces changes in its directors in accordance with the resolution at the meeting of the Board of Directors held on Jun 27, 2025. Name: Takashi Asai. New: Senior Executive Managing Director Current: Executive Managing Director. Name: Tsuyoshi Shimoda. New: Executive Managing Director. Current: Director, Managing Officer. Scheduled Date of Assuming Office: June 27, 2025. Duyuru • Jun 24
DKK Co., Ltd. to Report Q1, 2026 Results on Aug 14, 2025 DKK Co., Ltd. announced that they will report Q1, 2026 results on Aug 14, 2025 Reported Earnings • May 20
Full year 2025 earnings released: EPS: JP¥83.32 (vs JP¥199 loss in FY 2024) Full year 2025 results: EPS: JP¥83.32 (up from JP¥199 loss in FY 2024). Revenue: JP¥32.6b (up 13% from FY 2024). Net income: JP¥777.0m (up JP¥2.75b from FY 2024). Profit margin: 2.4% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Duyuru • May 15
DKK Co., Ltd., Annual General Meeting, Jun 27, 2025 DKK Co., Ltd., Annual General Meeting, Jun 27, 2025. Duyuru • May 14
DKK Co., Ltd. to Report Fiscal Year 2025 Results on May 15, 2025 DKK Co., Ltd. announced that they will report fiscal year 2025 results on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (3.0%). Reported Earnings • Mar 15
Third quarter 2025 earnings released: JP¥61.04 loss per share (vs JP¥105 loss in 3Q 2024) Third quarter 2025 results: JP¥61.04 loss per share (improved from JP¥105 loss in 3Q 2024). Revenue: JP¥9.20b (up 19% from 3Q 2024). Net loss: JP¥561.0m (loss narrowed 46% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. New Risk • Dec 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: JP¥15.1b (US$99.2m) 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: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 66% per year over the past 5 years. Minor Risk Market cap is less than US$100m (JP¥15.1b market cap, or US$99.2m). Reported Earnings • Nov 13
Second quarter 2025 earnings released: JP¥25.25 loss per share (vs JP¥33.95 loss in 2Q 2024) Second quarter 2025 results: JP¥25.25 loss per share (improved from JP¥33.95 loss in 2Q 2024). Revenue: JP¥7.15b (up 2.8% from 2Q 2024). Net loss: JP¥236.0m (loss narrowed 31% from 2Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 93 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.5%). Reported Earnings • Aug 15
First quarter 2025 earnings released: JP¥22.76 loss per share (vs JP¥45.76 loss in 1Q 2024) First quarter 2025 results: JP¥22.76 loss per share (improved from JP¥45.76 loss in 1Q 2024). Revenue: JP¥5.96b (up 6.9% from 1Q 2024). Net loss: JP¥218.0m (loss narrowed 54% from 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 112 percentage points per year, which is a significant difference in performance. Reported Earnings • May 12
Full year 2024 earnings released: JP¥199 loss per share (vs JP¥108 loss in FY 2023) Full year 2024 results: JP¥199 loss per share (further deteriorated from JP¥108 loss in FY 2023). Revenue: JP¥28.9b (down 9.3% from FY 2023). Net loss: JP¥1.98b (loss widened 67% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 114 percentage points per year, which is a significant difference in performance. Duyuru • May 12
DKK Co., Ltd., Annual General Meeting, Jun 27, 2024 DKK Co., Ltd., Annual General Meeting, Jun 27, 2024. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Japanese dividend payers (3.2%). In line with average of industry peers (2.6%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: JP¥105 loss per share (vs JP¥2.60 profit in 3Q 2023) Third quarter 2024 results: JP¥105 loss per share (down from JP¥2.60 profit in 3Q 2023). Revenue: JP¥7.75b (down 4.2% from 3Q 2023). Net loss: JP¥1.03b (down JP¥1.06b from profit in 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 110 percentage points per year, which is a significant difference in performance. Duyuru • Dec 27
DKK Co., Ltd. to Report Q3, 2024 Results on Feb 09, 2024 DKK Co., Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 New Risk • Nov 30
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 44% per year over the past 5 years. Minor Risk Shareholders have been diluted in the past year (13% increase in shares outstanding). Reported Earnings • Nov 11
Second quarter 2024 earnings released: JP¥33.95 loss per share (vs JP¥18.73 loss in 2Q 2023) Second quarter 2024 results: JP¥33.95 loss per share (further deteriorated from JP¥18.73 loss in 2Q 2023). Revenue: JP¥6.96b (down 11% from 2Q 2023). Net loss: JP¥341.0m (loss widened 65% from 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 100 percentage points per year, which is a significant difference in performance. Duyuru • Sep 24
DKK Co., Ltd. to Report Q2, 2024 Results on Nov 10, 2023 DKK Co., Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥30.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.7%). Reported Earnings • Aug 12
First quarter 2024 earnings released: JP¥45.76 loss per share (vs JP¥37.66 loss in 1Q 2023) First quarter 2024 results: JP¥45.76 loss per share (further deteriorated from JP¥37.66 loss in 1Q 2023). Revenue: JP¥5.57b (up 4.4% from 1Q 2023). Net loss: JP¥470.0m (loss widened 9.3% from 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Duyuru • Jun 26
DKK Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 DKK Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 14
Full year 2023 earnings released: JP¥102 loss per share (vs JP¥59.43 profit in FY 2022) Full year 2023 results: JP¥102 loss per share (down from JP¥59.43 profit in FY 2022). Revenue: JP¥31.8b (down 6.3% from FY 2022). Net loss: JP¥1.11b (down 258% from profit in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Duyuru • May 13
DKK Co., Ltd., Annual General Meeting, Jun 29, 2023 DKK Co., Ltd., Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥30.00 per share at 2.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.1%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥2.60 (vs JP¥24.85 in 3Q 2022) Third quarter 2023 results: EPS: JP¥2.60 (down from JP¥24.85 in 3Q 2022). Revenue: JP¥8.09b (down 7.7% from 3Q 2022). Net income: JP¥28.0m (down 91% from 3Q 2022). Profit margin: 0.3% (down from 3.4% in 3Q 2022). 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 17% per year, which means it has not declined as severely as earnings. Duyuru • Dec 26
DKK Co., Ltd. to Report Q3, 2023 Results on Feb 10, 2023 DKK Co., Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: JP¥18.73 loss per share (vs JP¥12.10 profit in 2Q 2022) Second quarter 2023 results: JP¥18.73 loss per share (down from JP¥12.10 profit in 2Q 2022). Revenue: JP¥7.85b (down 4.6% from 2Q 2022). Net loss: JP¥207.0m (down 244% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 33% 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. Board Change • Nov 16
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 8 new directors. 3 experienced directors. 1 highly experienced director. 4 independent directors (5 non-independent directors). Exec. Officer, Mngr of Technical - Overall Equipment Dept & Overall Equipment Dept & Director Tsuyoshi Shimoda is the most experienced director on the board, commencing their role in 2013. Independent Outside Director Atsushi Takahashi was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 13
Second quarter 2023 earnings released: JP¥18.73 loss per share (vs JP¥12.10 profit in 2Q 2022) Second quarter 2023 results: JP¥18.73 loss per share (down from JP¥12.10 profit in 2Q 2022). Revenue: JP¥7.85b (down 4.6% from 2Q 2022). Net loss: JP¥207.0m (down 244% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Duyuru • Sep 24
DKK Co., Ltd. to Report Q2, 2023 Results on Nov 11, 2022 DKK Co., Ltd. announced that they will report Q2, 2023 results on Nov 11, 2022 Reported Earnings • Aug 12
First quarter 2023 earnings released: JP¥37.66 loss per share (vs JP¥10.53 loss in 1Q 2022) First quarter 2023 results: JP¥37.66 loss per share (down from JP¥10.53 loss in 1Q 2022). Revenue: JP¥5.34b (down 20% from 1Q 2022). Net loss: JP¥430.0m (loss widened 241% from 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Reported Earnings • May 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥59.43 (down from JP¥96.11 in FY 2021). Revenue: JP¥34.0b (down 18% from FY 2021). Net income: JP¥705.0m (down 39% from FY 2021). Profit margin: 2.1% (down from 2.8% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 22%, compared to a 25% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Duyuru • May 14
DKK Co., Ltd., Annual General Meeting, Jun 29, 2022 DKK Co., Ltd., Annual General Meeting, Jun 29, 2022. Price Target Changed • Apr 27
Price target decreased to JP¥2,300 Down from JP¥3,100, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of JP¥2,373. Stock is down 6.4% over the past year. The company is forecast to post a net loss per share of JP¥8.40 compared to earnings per share of JP¥96.11 last year. Board Change • Apr 27
Less than half of directors are independent There are 8 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 8 new directors. 3 experienced directors. 1 highly experienced director. 4 independent directors (5 non-independent directors). Exec. Officer, Mngr of Technical - Overall Equipment Dept & Overall Equipment Dept & Director Tsuyoshi Shimoda is the most experienced director on the board, commencing their role in 2013. Independent Outside Director Atsushi Takahashi was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Duyuru • Apr 08
Denki Kogyo Co.,Ltd. to Report Fiscal Year 2022 Results on May 12, 2022 Denki Kogyo Co.,Ltd. announced that they will report fiscal year 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥60.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 30 June 2022. Payout ratio is a comfortable 47% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.9%). Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: JP¥24.85 (down from JP¥65.90 in 3Q 2021). Revenue: JP¥8.77b (down 21% from 3Q 2021). Net income: JP¥294.0m (down 63% from 3Q 2021). Profit margin: 3.4% (down from 7.2% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 5.4%. Over the next year, revenue is forecast to grow 10%, compared to a 26% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year and the company’s share price has also fallen by 3% per year. Duyuru • Feb 11
Denki Kogyo Co.,Ltd. (TSE:6706) announces an Equity Buyback for 1,100,000 shares, representing 9.26% for ¥2,500 million. Denki Kogyo Co.,Ltd. (TSE:6706) announces a share repurchase program. Under the program, the company will repurchase up to 1,100,000 shares, representing 9.26% of its issued share capital (excluding treasury stock), for a total purchase price of ¥2,500 million. The purpose of the program is to enable the execution of agile capital policies in response to changes in the business environment. The repurchase program will be valid till December 31, 2022. As of January 31, 2022, the company has 11,874,108 issued shares (excluding treasury stock) and 2,210,737 treasury shares. Price Target Changed • Dec 14
Price target decreased to JP¥2,800 Down from JP¥3,100, the current price target is an average from 2 analysts. New target price is 7.2% above last closing price of JP¥2,611. Stock is down 6.1% over the past year. The company is forecast to post earnings per share of JP¥117 for next year compared to JP¥96.11 last year. Reported Earnings • Nov 11
Second quarter 2022 earnings released: EPS JP¥12.10 (vs JP¥8.74 loss in 2Q 2021) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2022 results: Revenue: JP¥8.22b (down 8.5% from 2Q 2021). Net income: JP¥144.0m (up JP¥249.0m from 2Q 2021). Profit margin: 1.8% (up from net loss in 2Q 2021). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • Aug 13
First quarter 2022 earnings released: JP¥10.53 loss per share (vs JP¥30.29 loss in 1Q 2021) The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were flat. First quarter 2022 results: Revenue: JP¥6.65b (flat on 1Q 2021). Net loss: JP¥126.0m (loss narrowed 65% from 1Q 2021). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jun 12
Consensus EPS estimates fall to JP¥121 The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥43.7b to JP¥42.5b. EPS estimate also fell from JP¥152 to JP¥121. Net income forecast to grow 25% next year vs 35% growth forecast for Communications industry in Japan. Consensus price target down from JP¥3,100 to JP¥2,950. Share price fell 2.9% to JP¥2,235 over the past week. Major Estimate Revision • Jun 05
Consensus EPS estimates fall to JP¥117 The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from JP¥43.7b to JP¥43.0b. EPS estimate also fell from JP¥152 to JP¥117. Net income forecast to grow 21% next year vs 37% growth forecast for Communications industry in Japan. Consensus price target down from JP¥3,100 to JP¥3,000. Share price was steady at JP¥2,301 over the past week. Reported Earnings • May 19
Full year 2021 earnings released: EPS JP¥96.11 (vs JP¥148 in FY 2020) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥41.5b (down 7.9% from FY 2020). Net income: JP¥1.16b (down 35% from FY 2020). Profit margin: 2.8% (down from 4.0% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Duyuru • May 17
Denki Kogyo Co.,Ltd. (TSE:6706) announces an Equity Buyback for 135,000 shares, representing 1.12% for ¥300 million. Denki Kogyo Co.,Ltd. (TSE:6706) announces a share repurchase program. Under the program, the company will repurchase up to 135,000 shares, representing 1.12% of its issued share capital (excluding treasury stock), for a total purchase price of ¥300 million. The purpose of the program is to acquire treasury stock for the purpose of improving capital efficiency, implementing agile capital policies in response to changes in the business environment, and returning profits to shareholders. The program will be valid till July 31, 2021. As of April 30, 2021, the company had 12,076,151 issued shares (excluding treasury stock) and 2,008,694 treasury shares. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 29 June 2021. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.8%). Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥65.90 (vs JP¥46.60 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: JP¥11.0b (down 2.4% from 3Q 2020). Net income: JP¥792.0m (up 41% from 3Q 2020). Profit margin: 7.2% (up from 5.0% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Over the next year, revenue is forecast to grow 2.2%, compared to a 38% growth forecast for the Communications industry in Japan. Duyuru • Dec 26
Denki Kogyo Co.,Ltd. to Report Q3, 2021 Results on Feb 10, 2021 Denki Kogyo Co.,Ltd. announced that they will report Q3, 2021 results on Feb 10, 2021 Major Estimate Revision • Dec 14
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from JP¥117 to JP¥95.95. Revenue estimate was approximately flat at JP¥41.2b. Net income is expected to grow by 35% next year compared to 45% growth forecast for the Communications industry in Japan. The consensus price target of JP¥3,050 was unchanged from the last update. Share price is down by 1.9% to JP¥2,747 over the past week. Price Target Changed • Dec 01
Price target lowered to JP¥3,050 Down from JP¥3,350, the current price target is an average from 2 analysts. The new target price is close to the current share price of JP¥2,943. As of last close, the stock is down 6.9% over the past year. Is New 90 Day High Low • Dec 01
New 90-day high: JP¥2,943 The company is up 27% from its price of JP¥2,309 on 02 September 2020. The Japanese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥1,373 per share. Duyuru • Oct 10
Denki Kogyo Co.,Ltd. to Report Q2, 2021 Results on Nov 11, 2020 Denki Kogyo Co.,Ltd. announced that they will report Q2, 2021 results on Nov 11, 2020