Daiko Tsusan (7673) Q4 2024 earnings summary

Executive summary

• Revenue for the year ended May 2024 was ¥17,222 million, up 0.4% year-over-year, with net income at ¥602 million, down 2.1% year-over-year, and all profit categories were flat or slightly down, underperforming plan targets.

• Operating profit decreased 3.1% to ¥885 million, and ordinary profit fell 2.5% to ¥896 million compared to the previous year.

• Efforts to secure large-scale disaster prevention wireless projects helped minimize profit contraction despite rising procurement costs.

• The business environment saw normalization post-COVID, but uncertainty remains due to the Ukraine conflict and yen depreciation.

Financial highlights

• Revenue: ¥17,222 million (100.4% YoY, 95.4% of plan); gross profit: ¥2,612 million (15.2% margin, down 0.7% YoY); operating income: ¥885 million (5.1% margin, down 3.1% YoY); ordinary income: ¥896 million (5.2% margin, down 2.5% YoY); net income: ¥602 million (3.5% margin, down 2.1% YoY).

• EPS was ¥112.90, compared to ¥115.34 in the prior year.

• Total assets increased to ¥16,027 million, and net assets rose to ¥7,855 million.

• Operating cash flow: ¥2,164 million (up ¥2,799 million YoY); investment cash flow: -¥2,157 million; financing cash flow: ¥192 million.

Outlook and guidance

• FY2025 forecast: Revenue ¥19,000 million (+10.3% YoY), net income ¥661 million (+9.8% YoY), operating profit ¥983 million (+11.0% YoY), ordinary profit ¥1,002 million (+11.8% YoY).

• Focus on expanding customer base, product lineup, and capturing demand for FTTH, mobile base stations, and digital disaster prevention systems.