Daido Steel Co., Ltd., The Current Fiscal Year Net Income Revised Downward to an Unexpected 8% Decrease

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Wed Oct 30, 2024 10:40 am JST Earnings

5471 Daido Steel Co., Ltd. 【J-GAAP】

Earnings Report

Daido Steel Co., Ltd. <5471> [TSE-P] announced its financial results (based on IFRS) in the morning on October 30th (10:40). The consolidated net income for the cumulative second quarter of the fiscal year ending March 2025 (April to September) increased by 3.4% from the same period last year, reaching 12.1 billion yen.

However, the full-year consolidated net income has downwardly by 15.2%, from the previous forecast of 33 billion yen to 28 billion yen (compared to 30.5 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 8.4% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated net income for the October to March period (second half) is expected to decrease by 15.7% from the same period last year to 15.8 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated net income amounted to 5.37 billion yen, an increase of 2.8% compared to the same period last year. However, the operating profit margin worsened from 6.2% in the same period last year to 5.8%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Sep, 2022	281,857	23,225	24,092	18,294	85.8	50.1	Oct 28, 2022	J-GAAP
Apr - Sep, 2023	287,235	17,695	18,973	11,757	55.2	42.1	Oct 30, 2023	IFRS
Apr - Sep, 2024	283,439	18,258	19,608	12,152	57.0	46.1	Oct 30, 2024	IFRS
YoY	-1.3%	+3.2%	+3.3%	+3.4%	+3.3%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	290,000	22,000	23,000	15,000	70.4	21	May 10, 2024	IFRS
Apr - Sep, 2024 Results	283,439	18,258	19,608	12,152	57.0	21	Oct 30, 2024	IFRS
Revision Rate	-2.3%	-17.0%	-14.7%	-19.0%	-19.0%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	600,000	48,000	50,000	33,000	160.3	47	May 10, 2024	IFRS
Mar, 2025 New	580,000	40,000	42,500	28,000	136.0	47	Oct 30, 2024	IFRS
Revision Rate	-3.3%	-16.7%	-15.0%	-15.2%	-15.2%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	291,329	24,555	26,095	18,798	88.2	26	May 10, 2024	IFRS
Oct - Mar, 2024 Guidance	296,561	21,742	22,892	15,848	77.0	26	Oct 30, 2024	IFRS
YoY	+1.8%	-11.5%	-12.3%	-15.7%	-12.7%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	578,564	46,986	48,122	36,438	171.0	46	Apr 28, 2023	J-GAAP
Mar, 2024	578,564	42,250	45,068	30,555	143.4	46	May 10, 2024	IFRS
Mar, 2025 Guidance	580,000	40,000	42,500	28,000	136.0	47	Oct 30, 2024	IFRS
YoY	+0.2%	-5.3%	-5.7%	-8.4%	-5.1%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	145,349	8,956	9,025	5,229	24.5	6.2	Oct 30, 2023	IFRS
Oct - Dec, 2023	149,769	14,048	14,275	9,273	43.5	9.4	Jan 31, 2024	J-GAAP
Jan - Mar, 2024	140,201	9,199	9,710	9,817	46.1	6.6	May 10, 2024	IFRS
Apr - Jun, 2024	142,094	10,067	11,425	6,776	31.8	7.1	Jul 29, 2024	IFRS
Jul - Sep, 2024	141,345	8,191	8,183	5,376	25.2	5.8	Oct 30, 2024	IFRS
YoY	-2.8%	-8.5%	-9.3%	+2.8%	+2.8%