DAIKO XTECH (8023) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 rose 12.1% year-over-year to ¥9,749 million, driven by strong sales in solution services and hardware.

• Operating income increased 84.1% year-over-year to ¥288 million, and net income attributable to shareholders surged 160.1% to ¥200 million.

• The company continued to focus on high-value solution services, digital transformation, and new cloud-based ERP offerings.

Financial highlights

• Gross profit increased due to robust sales of high-margin solution services.

• Operating profit reached ¥288 million (up 84.1% year-over-year), and ordinary profit was ¥326 million (up 84.6%).

• Net income attributable to shareholders was ¥200 million, up 160.1% year-over-year.

• Comprehensive income for the quarter was ¥259 million, a slight decrease of 3.0% year-over-year.

• Total assets at quarter-end were ¥26,651 million, down from ¥27,828 million at the previous fiscal year-end.

Outlook and guidance

• Full-year revenue is forecast at ¥41,000 million, a 5.5% decrease from the previous year.

• Operating profit is projected at ¥2,200 million (up 24.1%), and net income at ¥1,450 million (up 21.1%).

• Dividend forecast is unchanged at ¥30 per share for FY2025.