Daiseki / 9793
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Daiseki / 9793 COVERAGE INITIATED ON: 2010.06.18 LAST UPDATE: 2019.01.07 Shared Research Inc. has produced this report by request from the company discussed in the report. The aim is to provide an “owner’s manual” to investors. We at Shared Research Inc. make every effort to provide an accurate, objective, and neutral analysis. In order to highlight any biases, we clearly attribute our data and findings. We will always present opinions from company management as such. Our views are ours where stated. We do not try to convince or influence, only inform. We appreciate your suggestions and feedback. Write to us at [email protected] or find us on Bloomberg. Research Coverage Report by Shared Research Inc. Daiseki / 9793 RCoverage LAST UPDATE: 2019.01.07 Research Coverage Report by Shared Research Inc. | www.sharedresearch.jp INDEX How to read a Shared Research report: This report begins with the trends and outlook section, which discusses the company’s most recent earnings. First-time readers should start at the business section later in the report. Key financial data ------------------------------------------------------------------------------------------------------------------------------------- 3 Recent updates ---------------------------------------------------------------------------------------------------------------------------------------- 5 Highlights ------------------------------------------------------------------------------------------------------------------------------------------------------------ 5 Trends and outlook ----------------------------------------------------------------------------------------------------------------------------------- 6 Monthly trends ----------------------------------------------------------------------------------------------------------------------------------------------------- 6 Quarterly trends and results ----------------------------------------------------------------------------------------------------------------------------------- 7 Full-year company forecasts --------------------------------------------------------------------------------------------------------------------------------- 16 Outlook ------------------------------------------------------------------------------------------------------------------------------------------------------------- 32 Business ------------------------------------------------------------------------------------------------------------------------------------------------ 43 Business description -------------------------------------------------------------------------------------------------------------------------------------------- 43 Strengths and weaknesses ------------------------------------------------------------------------------------------------------------------------------------ 51 Market and value chain ---------------------------------------------------------------------------------------------------------------------------------------- 52 Strategy ------------------------------------------------------------------------------------------------------------------------------------------------------------- 56 Financial statements ------------------------------------------------------------------------------------------------------------------------------- 57 Income statement ----------------------------------------------------------------------------------------------------------------------------------------------- 57 Balance sheet ----------------------------------------------------------------------------------------------------------------------------------------------------- 59 Cash flow statement -------------------------------------------------------------------------------------------------------------------------------------------- 59 Other information ---------------------------------------------------------------------------------------------------------------------------------- 61 History -------------------------------------------------------------------------------------------------------------------------------------------------------------- 61 Top management ----------------------------------------------------------------------------------------------------------------------------------------------- 62 Employees --------------------------------------------------------------------------------------------------------------------------------------------------------- 62 Major shareholders --------------------------------------------------------------------------------------------------------------------------------------------- 63 Dividends and shareholder returns ------------------------------------------------------------------------------------------------------------------------ 63 Investor relations ------------------------------------------------------------------------------------------------------------------------------------------------ 63 Historical performance and news -------------------------------------------------------------------------------------------------------------- 64 Historical performance ---------------------------------------------------------------------------------------------------------------------------------------- 64 News----------------------------------------------------------------------------------------------------------------------------------------------------------------- 77 Company profile ------------------------------------------------------------------------------------------------------------------------------------------------- 80 02/81 Daiseki / 9793 RCoverage LAST UPDATE: 2019.01.07 Research Coverage Report by Shared Research Inc. | www.sharedresearch.jp Key financial data Income statement FY02/07 FY02/08 FY02/09 FY02/10 FY02/11 FY02/12 FY02/13 FY02/14 FY02/15 FY02/16 FY02/17 FY02/18 FY02/19 (JPYmn) Cons. Cons. Cons. Cons. Cons. Cons. Cons. Cons. Cons. Cons. Cons. Cons. Est. Sales 26,968 35,160 37,224 29,080 31,477 36,513 36,013 42,100 45,738 50,809 44,232 49,185 50,200 YoY 24.6% 30.4% 5.9% -21.9% 8.2% 16.0% -1.4% 16.9% 8.6% 11.1% -12.9% 11.2% 2.1% Gross profit 8,959 12,011 11,699 8,841 9,686 10,502 10,275 12,298 12,908 13,088 12,367 14,484 15,050 YoY 28.9% 34.1% -2.6% -24.4% 9.6% 8.4% -2.2% 19.7%5.0%1.4%-5.5% 17.1% 3.9% GPM 33.2% 34.2% 31.4% 30.4% 30.8% 28.8% 28.5% 29.2% 28.2% 25.8% 28.0% 29.4% 30.0% Operating profit 5,697 8,201 7,539 4,865 5,390 5,750 5,404 7,298 7,302 7,849 7,120 8,777 9,100 YoY 39.6% 44.0% -8.1% -35.5% 10.8% 6.7% -6.0% 35.0%0.1%7.5%-9.3% 23.3% 3.7% OPM 21.1% 23.3% 20.3% 16.7% 17.1% 15.7% 15.0% 17.3% 16.0% 15.4% 16.1% 17.8% 18.1% Recurring profit 5,701 8,191 7,673 4,986 5,587 5,901 5,554 7,400 7,436 7,955 7,228 8,914 9,220 YoY 39.2% 43.7% -6.3% -35.0% 12.1% 5.6% -5.9% 33.2%0.5%7.0%-9.1% 23.3% 3.4% RPM 21.1% 23.3% 20.6% 17.1% 17.7% 16.2% 15.4% 17.6% 16.3% 15.7% 16.3% 18.1% 18.4% Net income 3,220 5,060 4,022 2,547 3,114 3,194 3,024 3,942 4,035 3,847 4,132 5,833 6,000 YoY 36.7% 57.1% -20.5% -36.7% 22.3% 2.6% -5.3% 30.4% 2.4% -4.7% 7.4% 41.2% 2.9% Net margin 11.9%14.4%10.8%8.8%9.9%8.7%8.4%9.4%8.8%7.6%9.3%11.9%12.0% Per share data (JPY; stock split adjusted) Shares issued (year-end; '000) 42,342 45,124 45,124 45,124 45,124 45,124 45,125 45,125 45,125 45,125 45,125 43,000 - EPS 76.2 113.4 89.3 56.6 69.2 70.9 67.2 87.5 89.6 85.8 95.8 136.5 140.3 Dividend per share 10.6 15.5 19.0 19.0 20.0 20.0 21.0 22.0 24.0 28.0 29.0 40.0 46.0 Book value per share 642 819 888 927 977 1,027 1,076 1,144 1,214 1,261 1,319 1,427 - Balance sheet (JPYmn) Cash and cash equivalents 12,548 20,716 18,440 17,015 17,917 19,723 20,174 24,416 26,763 28,830 27,256 28,183 Total current assets 18,766 29,658 26,584 23,885 26,191 28,277 28,477 34,773 38,554 40,194 39,240 39,849 Tangible fixed assets 18,886 21,295 24,573 26,497 28,243 28,831 30,991 29,798 32,122 30,155 33,163 37,354 Investments and other assets 2,699 2,815 5,726 8,373 9,094 9,463 9,595 7,977 7,699 6,267 8,052 9,053 Intangible fixed assets 286 1,192 1,395 1,619 2,527 2,247 1,967 1,690 1,422 1,021 938 850 Total assets 37,652 50,955 51,158 50,383 54,435 57,108 59,468 64,571 70,677 70,350 72,403 77,203 Accounts payable 2,014 2,335 1,870 1,835 2,403 2,650 2,651 3,296 3,811 3,521 3,877 3,420 Short-term debt 1,244 1,694 1,223 876 1,120 845 1,372 860 1,500 1,139 2,099449 Total current liabilities 7,466 8,346 6,893 5,017 6,932 7,300 7,429 8,075 10,485 9,147 9,228 8,814 Long-term debt 1,695 1,893 602 523 353 182 10 - - 725 425 500 Total fixed liabilities 2,421 2,687 1,448 1,415 1,324 1,279 1,203 1,360 1,573 1,919 1,666 1,755 Total liabilities 9,888 11,033 8,341 6,432 8,257 8,580 8,632 9,435 12,058 11,067 10,895 10,570 Net assets 27,764 39,921 42,816 43,950 46,177 48,528 50,835 55,136 58,618 59,283 61,508 66,633 Total interest-bearing debt 2,939 3,587 1,825 1,399 1,473 1,027 1,382 860 1,500 1,864 2,524 949 Cash flow statement (JPYmn) Cash flows from operating activities 4,805 5,650 6,944 4,817 5,476 4,922 5,041 6,093 5,241 7,509 5,813 9,938 Cash flows from investing activities -2,805 -4,729 -6,551 -4,873 -3,324 -1,709 -6,019 933 -2,493 -2,829 -4,452 -6,237 Cash flows from financing activities 738 7,206 -2,629 -1,367 -1,258 -1,396 -577 -841 -484 -3,702 -1,934 -2,957 Financial ratios ROA (RP-based) 16.4% 18.5% 15.0% 9.8% 10.7% 10.6% 9.5% 11.9% 11.0% 11.3% 10.1% 11.9% ROE 12.5% 15.8% 10.5% 6.2% 7.3% 7.1% 6.4% 7.9% 7.6% 7.0% 7.4% 9.9% Equity ratio 72.1% 72.4% 78.1% 82.9% 80.8% 81.0% 81.5% 79.8% 77.3% 77.7% 77.9% 79.0% Source: Shared Research based on company data 03/81 Daiseki / 9793 RCoverage LAST UPDATE: 2019.01.07