New Risk • May 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.2% per year for the foreseeable future. Minor Risks High level of debt (46% net debt to equity). Profit margins are more than 30% lower than last year (1.5% net profit margin). Upcoming Dividend • May 21
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 28 May 2026. Payment date: 21 August 2026. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.0%). Announcement • May 09
Daikokutenbussan Co.,Ltd. to Report Fiscal Year 2026 Results on Jul 09, 2026 Daikokutenbussan Co.,Ltd. announced that they will report fiscal year 2026 results at 9:00 AM, Tokyo Standard Time on Jul 09, 2026 Reported Earnings • Apr 11
Third quarter 2026 earnings released: EPS: JP¥65.52 (vs JP¥126 in 3Q 2025) Third quarter 2026 results: EPS: JP¥65.52 (down from JP¥126 in 3Q 2025). Revenue: JP¥80.0b (up 9.7% from 3Q 2025). Net income: JP¥879.0m (down 50% from 3Q 2025). Profit margin: 1.1% (down from 2.4% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Declared Dividend • Jan 16
Dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 28th May 2026 Payment date: 21st August 2026 Dividend yield will be 0.7%, which is lower than the industry average of 1.6%. Reported Earnings • Jan 15
Second quarter 2026 earnings released: EPS: JP¥51.47 (vs JP¥92.61 in 2Q 2025) Second quarter 2026 results: EPS: JP¥51.47 (down from JP¥92.61 in 2Q 2025). Revenue: JP¥77.2b (up 11% from 2Q 2025). Net income: JP¥703.0m (down 46% from 2Q 2025). Profit margin: 0.9% (down from 1.9% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.2% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Jan 14
Daikokutenbussan Co.,Ltd. Revises Consolidated and Non-Consolidated Earnings Guidance for the Full Year Ending May 31, 2026 Daikokutenbussan Co.,Ltd. revised consolidated and non-consolidated earnings guidance for the full year ending May 31, 2026. For the year, on consolidated basis, the company now expects net sales of JPY 319,900 million, operating profit of JPY 6,700 million, profit attributable to owners of parent of JPY 4,400 million and earnings per share of JPY 319.92 against previous guidance of net sales of JPY 312,900 million, operating profit of JPY 10,300 million, profit attributable to owners of parent of JPY 6,900 million and earnings per share of JPY 498.23.
For the year, on non-consolidated basis, the company now expects net sales of JPY 283,100 million, profit of JPY 4,200 million and earnings per share of JPY 305.38 against previous guidance of net sales of JPY 276,700 million, profit of JPY 6,400 million and earnings per share of JPY 462.13. Reasons for the differences and the revision: Forecast for full-year earnings of the fiscal year ending May 2026 was revised due to differences between forecasts and actual results for the first half of the fiscal year. Forecast for year on year change of ordinary profit for the cumulative period of the first half of the fiscal year was 95.0%; however, ordinary profit dropped more than initially planned due to the pressure on gross profit caused by delaying the timing of price increases in response to high raw materials prices, increased costs due to implementation of advertising as a measure to reduction of number of customers with price revisions, and upfront investment such as hiring costs and personnel expenses for promptly opening multiple stores in the future; as a result, the ordinary profit was 66.9% of the initial consolidated earnings forecast; accordingly, we revise our full-year earnings forecasts in the form of revising its earnings forecasts for the first half and the second half. New Risk • Dec 04
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 5.5% 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. This is currently the only risk that has been identified for the company. New Risk • Oct 29
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 5.3% 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. This is currently the only risk that has been identified for the company. Announcement • Oct 21
Daikokutenbussan Co.,Ltd. (TSE:2791) announces an Equity Buyback for 437,300 shares, representing 3.16% for ¥3,000 million. Daikokutenbussan Co.,Ltd. (TSE:2791) announces a share repurchase program. Under the program, the company will repurchase 437,300 shares, representing 3.16% of the outstanding shares for ¥3,000 million. The shares will be repurchased at ¥6,860 per share. The purpose of the program is to execute a flexible capital policy in response to changes in the business environment. The program will expire on October 22, 2025. As of August 31, 2025, the company had 13,848,893 shares outstanding and 653,507 shares in treasury. Reported Earnings • Oct 15
First quarter 2026 earnings released: EPS: JP¥80.73 (vs JP¥124 in 1Q 2025) First quarter 2026 results: EPS: JP¥80.73 (down from JP¥124 in 1Q 2025). Revenue: JP¥78.9b (up 8.7% from 1Q 2025). Net income: JP¥1.12b (down 36% from 1Q 2025). Profit margin: 1.4% (down from 2.4% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 3.9% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • Jul 13
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥486 (up from JP¥453 in FY 2024). Revenue: JP¥292.9b (up 8.5% from FY 2024). Net income: JP¥6.77b (up 7.4% from FY 2024). Profit margin: 2.3% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.6%. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. 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 5.5% 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. This is currently the only risk that has been identified for the company. Announcement • Jun 25
Daikokutenbussan Co.,Ltd. Announces Shoji Oga, Representative Director and Chairperson, Passes Away on June 22, 2025 Daikokutenbussan Co.,Ltd. announced Representative Director and Chairperson of the company, Shoji Oga, passed away on June 22, 2025 and retired from Representative Director on the same day. Date of birth is September 30, 1956. Career summary: April 1974 Joined Fujitoku Bussan Co. Ltd.; April 1980 Joined Kinoshin Co. Ltd.; June 1986 Established Kurashiki Kinoshin Ltd.; President and Representative Director at Kurashiki Kinoshin; June 1993 Reorganized Kurashiki Kinoshin as DAIKOKUTENBUSSAN CO.,LTD.; President and Representative Director of the Company; February 2006 Representative Director, Ebisuten Inc.; June 2012 Representative Director, Nishigen Co. Ltd.; December 2016 Representative Director, Setouchi Maple Farm Co. Ltd.; June 2018 Chairperson and Representative Director of Oda Shoten Inc.; December 2018 Chairperson and Representative Director of Mammy's Co. Ltd.; August 2024 Chairperson and Representative Director, the Company. Due to his death and retirement, the number of the Company's Directors will be reduced by one, but the number of directors still satisfies the requirements stipulated in the Articles of Incorporation. Upcoming Dividend • May 22
Upcoming dividend of JP¥33.00 per share Eligible shareholders must have bought the stock before 29 May 2025. Payment date: 25 August 2025. Payout ratio is a comfortable 6.7% and the cash payout ratio is 80%. Trailing yield: 0.4%. Lower than top quartile of Japanese dividend payers (4.0%). Lower than average of industry peers (1.7%). Announcement • May 01
Daikokutenbussan Co.,Ltd. to Report Fiscal Year 2025 Results on Jul 10, 2025 Daikokutenbussan Co.,Ltd. announced that they will report fiscal year 2025 results on Jul 10, 2025 Announcement • Apr 16
Daikokutenbussan Co.,Ltd. (TSE:2791) announces an Equity Buyback for 140,000 shares, representing 1% for ¥1,041.6 million. Daikokutenbussan Co.,Ltd. (TSE:2791) announces a share repurchase program. Under the program, the company will repurchase 140,000 shares, representing 1% of the outstanding shares for ¥1,041.6 million. The shares will be repurchased at ¥7,440 per share. The purpose of the program is to execute a flexible capital policy in response to changes in the business environment. As of February 28, 2025, the company had 13,956,893 shares outstanding and 545,507 shares in treasury. Reported Earnings • Apr 12
Third quarter 2025 earnings released: EPS: JP¥126 (vs JP¥122 in 3Q 2024) Third quarter 2025 results: EPS: JP¥126 (up from JP¥122 in 3Q 2024). Revenue: JP¥72.9b (up 6.7% from 3Q 2024). Net income: JP¥1.76b (up 3.2% from 3Q 2024). Profit margin: 2.4% (down from 2.5% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.5% p.a. on average during the next 2 years, compared to a 2.8% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Apr 11
Daikokutenbussan Co.,Ltd. Provides Consolidated Earnings Guidance for the Full Year of Fiscal Year Ending May 31, 2025 Daikokutenbussan Co.,Ltd. provided consolidated earnings guidance for the full year of fiscal year ending May 31, 2025. For the year, the company expects net sales of JPY 292,400 million, operating profit of JPY 10,500 million, profit attributable to owners of parent of JPY 6,400 million and basic earnings per share of JPY 458.95. New Risk • Mar 12
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 5.6% 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. This is currently the only risk that has been identified for the company. Declared Dividend • Jan 16
Dividend of JP¥33.00 announced Dividend of JP¥33.00 is the same as last year. Ex-date: 29th May 2025 Payment date: 25th August 2025 Dividend yield will be 0.4%, which is lower than the industry average of 1.6%. Payout Ratios Payout ratio: 7%. Cash payout ratio: 80%. Reported Earnings • Jan 15
Second quarter 2025 earnings released: EPS: JP¥92.61 (vs JP¥89.74 in 2Q 2024) Second quarter 2025 results: EPS: JP¥92.61 (up from JP¥89.74 in 2Q 2024). Revenue: JP¥69.6b (up 6.5% from 2Q 2024). Net income: JP¥1.29b (up 3.4% from 2Q 2024). Profit margin: 1.9% (in line with 2Q 2024). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥10,370, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Consumer Retailing industry in Japan. Total returns to shareholders of 63% over the past three years. Reported Earnings • Jul 16
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: JP¥453 (up from JP¥224 in FY 2023). Revenue: JP¥270.1b (up 12% from FY 2023). Net income: JP¥6.31b (up 102% from FY 2023). Profit margin: 2.3% (up from 1.3% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.1%. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. New Risk • May 27
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 5.7% 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. This is currently the only risk that has been identified for the company. Upcoming Dividend • May 23
Upcoming dividend of JP¥33.00 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 26 August 2024. Payout ratio is a comfortable 7.2% and this is well supported by cash flows. Trailing yield: 0.4%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.7%). Announcement • May 03
Daikokutenbussan Co.,Ltd. to Report Fiscal Year 2024 Results on Jul 11, 2024 Daikokutenbussan Co.,Ltd. announced that they will report fiscal year 2024 results on Jul 11, 2024 Reported Earnings • Apr 12
Third quarter 2024 earnings released: EPS: JP¥122 (vs JP¥65.98 in 3Q 2023) Third quarter 2024 results: EPS: JP¥122 (up from JP¥65.98 in 3Q 2023). Revenue: JP¥68.3b (up 12% from 3Q 2023). Net income: JP¥1.70b (up 85% from 3Q 2023). Profit margin: 2.5% (up from 1.5% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.9% p.a. on average during the next 2 years, compared to a 2.8% growth forecast for the Consumer Retailing 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 increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Jan 13
Second quarter 2024 earnings released: EPS: JP¥89.74 (vs JP¥33.17 in 2Q 2023) Second quarter 2024 results: EPS: JP¥89.74 (up from JP¥33.17 in 2Q 2023). Revenue: JP¥65.3b (up 12% from 2Q 2023). Net income: JP¥1.25b (up 171% from 2Q 2023). Profit margin: 1.9% (up from 0.8% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 2.7% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Oct 14
Daikokutenbussan Co.,Ltd. Provides Dividend Guidance for the Year Ending May 31, 2024 Daikokutenbussan Co.,Ltd. expected to pay the dividend of JPY 29 per share for the year ending May 31, 2024. Reported Earnings • Oct 13
First quarter 2024 earnings released: EPS: JP¥88.88 (vs JP¥22.18 in 1Q 2023) First quarter 2024 results: EPS: JP¥88.88 (up from JP¥22.18 in 1Q 2023). Revenue: JP¥66.5b (up 14% from 1Q 2023). Net income: JP¥1.24b (up 301% from 1Q 2023). Profit margin: 1.9% (up from 0.5% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 2.4% growth forecast for the Consumer Retailing industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. New Risk • Jul 08
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 5.6% 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 Risk High level of non-cash earnings (26% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.6% average weekly change). Profit margins are more than 30% lower than last year (1.3% net profit margin). Reported Earnings • Jul 07
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥224 (down from JP¥403 in FY 2022). Revenue: JP¥242.2b (up 8.1% from FY 2022). Net income: JP¥3.12b (down 45% from FY 2022). Profit margin: 1.3% (down from 2.5% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • May 23
Upcoming dividend of JP¥29.00 per share at 0.5% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 25 August 2023. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (1.6%). Reported Earnings • Apr 15
Third quarter 2023 earnings released: EPS: JP¥65.98 (vs JP¥111 in 3Q 2022) Third quarter 2023 results: EPS: JP¥65.98 (down from JP¥111 in 3Q 2022). Revenue: JP¥61.2b (up 8.6% from 3Q 2022). Net income: JP¥919.0m (down 41% from 3Q 2022). Profit margin: 1.5% (down from 2.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jan 13
Second quarter 2023 earnings released: EPS: JP¥33.17 (vs JP¥83.42 in 2Q 2022) Second quarter 2023 results: EPS: JP¥33.17 (down from JP¥83.42 in 2Q 2022). Revenue: JP¥58.3b (up 8.3% from 2Q 2022). Net income: JP¥462.0m (down 60% from 2Q 2022). Profit margin: 0.8% (down from 2.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 8 non-independent directors. GM of Product Division & Director Atsushi Fujikawa was the last director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 15
First quarter 2023 earnings released: EPS: JP¥22.18 (vs JP¥95.84 in 1Q 2022) First quarter 2023 results: EPS: JP¥22.18 (down from JP¥95.84 in 1Q 2022). Revenue: JP¥58.5b (up 5.6% from 1Q 2022). Net income: JP¥309.0m (down 77% from 1Q 2022). Profit margin: 0.5% (down from 2.4% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorated over the past week After last week's 24% share price decline to JP¥4,370, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 13x in the Consumer Retailing industry in Japan. Total returns to shareholders of 32% over the past three years. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improved over the past week After last week's 37% share price gain to JP¥5,290, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Consumer Retailing industry in Japan. Total returns to shareholders of 62% over the past three years. Reported Earnings • Jul 09
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: JP¥403 (up from JP¥396 in FY 2021). Revenue: JP¥224.2b (up 1.2% from FY 2021). Net income: JP¥5.62b (up 1.8% from FY 2021). Profit margin: 2.5% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. Over the next year, revenue is forecast to grow 7.1%, compared to a 15% growth forecast for the retail industry in Japan. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 23
Upcoming dividend of JP¥29.00 per share Eligible shareholders must have bought the stock before 30 May 2022. Payment date: 26 August 2022. Payout ratio is a comfortable 8.0% and this is well supported by cash flows. Trailing yield: 0.6%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (1.8%). Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 8 non-independent directors. GM of Product Division & Director Atsushi Fujikawa was the last director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 14
Third quarter 2022 earnings released: EPS: JP¥111 (vs JP¥117 in 3Q 2021) Third quarter 2022 results: EPS: JP¥111 (down from JP¥117 in 3Q 2021). Revenue: JP¥56.4b (flat on 3Q 2021). Net income: JP¥1.55b (down 5.1% from 3Q 2021). Profit margin: 2.8% (down from 2.9% in 3Q 2021). Over the next year, revenue is forecast to grow 7.1%, compared to a 20% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Jan 14
Daikokutenbussan Co.,Ltd. Provides Consolidated Earnings Guidance for the Full Year Ending May 31, 2022 Daikokutenbussan Co.,Ltd. provided consolidated earnings guidance for the full year ending May 31, 2022. For the Year, Company estimates Net Sales of JPY 222,700 million, Operating profit of JPY 7,900 million, Profit attributable to owners of parent of JPY 4,800 million and Earnings per share of JPY 344.60. Reported Earnings • Jan 13
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: JP¥83.42 (down from JP¥84.50 in 2Q 2021). Revenue: JP¥53.8b (flat on 2Q 2021). Net income: JP¥1.16b (down 1.3% from 2Q 2021). Profit margin: 2.2% (in line with 2Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jan 13
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 22%. The fair value is estimated to be JP¥6,390, however is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.9% per annum over the last 3 years. Earnings per share has grown by 53% per annum over the last 3 years. Reported Earnings • Oct 14
First quarter 2022 earnings released: EPS JP¥95.84 (vs JP¥124 in 1Q 2021) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥55.4b (down 3.2% from 1Q 2021). Net income: JP¥1.34b (down 23% from 1Q 2021). Profit margin: 2.4% (down from 3.0% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Jul 16
Daikokutenbussan Co Kurashiki Ordinary Shares to Be Deleted from Other OTC Daikokutenbussan Co Ltd. Kurashiki Ordinary Shares (Japan) will be deleted from other OTC effective from July 16, 2021, due to Inactive Security. Reported Earnings • Jul 10
Full year 2021 earnings released: EPS JP¥396 (vs JP¥267 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥221.6b (up 4.5% from FY 2020). Net income: JP¥5.52b (up 48% from FY 2020). Profit margin: 2.5% (up from 1.8% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment deteriorated over the past week After last week's 16% share price decline to JP¥6,860, the stock trades at a trailing P/E ratio of 15.3x. Average trailing P/E is 15x in the Consumer Retailing industry in Japan. Total returns to shareholders of 46% over the past three years. Upcoming Dividend • May 21
Upcoming dividend of JP¥27.00 per share Eligible shareholders must have bought the stock before 28 May 2021. Payment date: 20 August 2021. Trailing yield: 0.3%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (1.5%). Reported Earnings • Apr 14
Third quarter 2021 earnings released: EPS JP¥117 (vs JP¥62.01 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥56.1b (up 7.1% from 3Q 2020). Net income: JP¥1.64b (up 89% from 3Q 2020). Profit margin: 2.9% (up from 1.7% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Mar 07
Daikokutenbussan Co.,Ltd. to Report Q3, 2021 Results on Apr 12, 2021 Daikokutenbussan Co.,Ltd. announced that they will report Q3, 2021 results on Apr 12, 2021