Daiko Tsusan (7673) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue rose 14.7% YoY to ¥5,544.3m; operating profit increased 64.9% to ¥375.9m and net income rose 56.5% to ¥262.0m.

• Growth reflected strong FTTH, indoor communications, disaster-prevention radio, solar-power and routine-trade demand; some project orders moved forward.

Financial highlights

• Gross profit was ¥889.0m, up 19.8% YoY; gross margin improved to 16.0% from 15.4%.

• Operating profit was ¥375.9m (+64.9%), ordinary profit ¥396.7m (+66.0%), and net income ¥262.0m (+56.5%).

• SG&A was ¥513.1m versus ¥514.1m a year earlier; operating profit growth reflected higher gross profit.

Outlook and guidance

• FY2027 guidance remains unchanged: revenue ¥22,500m (+2.3%), gross profit ¥3,360m (+2.4%), operating profit ¥1,373m (+8.5%), ordinary profit ¥1,426m (+9.4%) and net income ¥950m (+3.8%).

• H1 guidance: revenue ¥9,993m (+9.2%), operating profit ¥518m (-21.5%), ordinary profit ¥541m (-20.1%) and net income ¥351m (-24.8%).

• FY2027 forecast assumes continued FTTH, CATV center and subscriber-equipment, and disaster-prevention radio replacement projects; record full-year sales and profits are expected.

• Q1 progress was 24.6% for revenue and 27.8% for ordinary income; sales and ordinary income typically build from late Q2 through early Q4.