DAISUI CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥49.55B
• Operating Income: ¥262M
• Net Income: ¥243M
• EPS: ¥17.42

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

For FY2026 Q2 (consolidated, JGAAP), Dai-sui Co., Ltd. delivered solid top-line growth with revenue of ¥49.549bn (+6.1% YoY), while profitability improved modestly at the operating level. Operating income rose to ¥262m (+15.4% YoY), evidencing positive operating leverage as costs were contained relative to sales. Ordinary income of ¥360m exceeded operating income by ¥98m, suggesting net non-operating gains (likely subsidies, dividend/interest income, or other non-operating items) more than offset interest expense. Net income was ¥236m, down 3.1% YoY, indicating pressure below the ordinary line, possibly from taxes or minority interests. The net margin remained thin at 0.48%, consistent with the company’s low-margin wholesale business model. DuPont analysis shows ROE of 1.96%, driven primarily by high asset turnover (1.783x) and moderated by very slim net margins, with financial leverage at 2.30x. Gross margin was 6.5% and operating margin 0.53%, both aligning with historical sector ranges for food/seafood distribution. Liquidity is robust: current ratio 186% and quick ratio 124% reflect ample short-term coverage, and interest coverage is strong at 26.2x. Capital structure appears balanced with liabilities/equity at 1.11x and an implied equity ratio of about 43% (calculated from total equity and total assets), despite the disclosed equity ratio field being unreported. Cash flow quality was weak this half: operating CF was negative ¥1.156bn, a substantial divergence from reported profits likely due to working capital outflows. Investing CF and cash balances were not disclosed in the dataset (zero placeholders), limiting free cash flow assessment; the reported FCF “0” should be treated as not available. Dividend data (DPS, payout, and FCF coverage) were also not disclosed, so policy and sustainability cannot be inferred from this release alone. Overall, the company shows healthy balance sheet resilience and improving operating profit, but earnings quality is tempered by negative operating cash flow and structurally low margins. The outlook hinges on sustaining gross margin discipline, managing working capital intensity, and maintaining non-operating income support. Given data limitations (notably cash, investing CF, shares outstanding, and dividend metrics), the analysis focuses on disclosed non-zero line items and inferred calculations.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 0.48% (NI ¥236m / Revenue ¥49,549m)
• asset_turnover: 1.783x (Revenue ¥49,549m / Assets ¥27,795m)
• financial_leverage: 2.30x (Assets ¥27,795m / Equity ¥12,064m)
• calculated_ROE: 1.96% (matches provided DuPont result) margin_quality:
• gross_margin: 6.5% (GP ¥3,203m / Revenue ¥49,549m)
• operating_margin: 0.53% (OP ¥262m / Revenue ¥49,549m), modest YoY improvement implied by +15.4% OP vs +6.1% sales
• ordinary_margin: 0.73% (Ordinary ¥360m / Revenue ¥49,549m) supported by non-operating gains
• net_margin: 0.48%, reflecting thin structural margins typical of distribution operating_leverage: Positive in the half: operating income grew ~2.5x the rate of revenue (+15.4% vs +6.1%), indicating some fixed-cost dilution and/or better gross margin discipline. Absolute margins remain very low, so incremental improvements have outsized ROE impact.

Growth Assessment

revenue_sustainability: Revenue growth of +6.1% YoY to ¥49.549bn suggests stable demand and/or pricing. Given the wholesale profile, growth likely reflects volume/pricing normalization rather than mix shift; sustainability will depend on market demand, procurement stability, and pass-through of cost changes. profit_quality: Operating profit improved faster than sales, but net income declined 3.1% YoY, indicating pressure below operating line (taxes/minorities/other). Ordinary income exceeded operating income by ¥98m, suggesting reliance on non-operating gains; sustainability of these items is uncertain. outlook: Key to maintaining momentum will be protecting the 6.5% gross margin, preventing SG&A creep, and moderating working capital needs to convert earnings to cash. With ROE at 1.96%, incremental margin gains or tighter capital use could materially lift returns, but sector-level margin ceilings constrain upside.

Financial Health

liquidity:

• current_ratio: 186.3% (CA ¥17,912m / CL ¥9,613m)
• quick_ratio: 124.3% ((CA−Inv) ¥11,953m / CL ¥9,613m)
• working_capital: ¥8,299m
• commentary: Short-term liquidity is comfortable; negative OCF indicates cash conversion risk despite strong static ratios. solvency:
• debt_to_equity: 1.11x (Total liabilities ¥13,382m / Equity ¥12,064m)
• implied_equity_ratio: ≈43.4% (Equity ¥12,064m / Assets ¥27,795m) despite undisclosed equity ratio field
• interest_coverage: 26.2x (Operating income ¥262m / Interest expense ¥10m)
• commentary: Leverage is moderate and coverage is strong; balance sheet appears resilient. capital_structure: Asset-light characteristics at the fixed-asset level (low D&A of ¥55m) and working capital-heavy model typical for wholesale; leverage provides ROE support without stressing coverage.

Cash Flow Quality

earnings_quality: Weak in this period: OCF of −¥1,156m vs NI of ¥236m (OCF/NI = −4.90) indicates profits did not translate into cash, likely due to inventory and receivables build (seasonality and procurement timing likely drivers). free_cash_flow_analysis: Investing CF not disclosed (reported as 0), so FCF cannot be reliably computed. Given negative OCF, underlying FCF is likely negative absent asset disposals or subsidies, but confirmation requires capex data. working_capital_dynamics: Inventories at ¥5,959m highlight WC intensity. The large OCF outflow points to WC expansion; monitoring turnover days for inventory and receivables will be critical in subsequent quarters.

Dividend Sustainability

payout_ratio_assessment: Dividend details (DPS and payout ratio) are not disclosed in usable form (zeros represent missing). With EPS at ¥17.42 for the half, earnings capacity exists, but payout behavior cannot be inferred. FCF_coverage: Not assessable due to unreported investing cash flows and negative OCF in the period; reported FCF '0' should be treated as unavailable. policy_outlook: Absent disclosed policy, sustainability will hinge on stabilizing OCF and maintaining balance sheet strength; historically, distributors’ payouts align with cash generation rather than accounting profit.

Risk Assessment

Business Risks:

• Thin structural margins (net margin 0.48%) leave limited buffer for input cost spikes.
• Procurement and price volatility in seafood/food markets affecting gross margin (6.5%).
• Dependence on non-operating income to augment ordinary income (¥98m gap vs OP) may be non-recurring.
• Working capital intensity and seasonality can strain cash conversion.
• Customer concentration and credit risk typical in wholesale channels.

Financial Risks:

• Negative operating cash flow (−¥1,156m) vs positive earnings raises liquidity management needs.
• Potential inventory and receivables build increasing funding requirements.
• Exposure to interest rate changes is low currently (coverage 26.2x) but could rise if leverage increases.
• Limited visibility on cash and investment flows due to undisclosed items.

Key Concerns:

• Sustained negative OCF would pressure balance sheet despite healthy current ratio.
• Margin compression risk if procurement costs cannot be passed through promptly.
• Reliance on non-operating items to support ordinary income may not persist.

Investment Implications

Key Takeaways:

• Top-line growth (+6.1% YoY) with positive operating leverage (+15.4% OP) in a low-margin model.
• ROE is low at 1.96%, constrained by thin net margins despite solid asset turnover.
• Balance sheet is sound (implied equity ratio ~43%, D/E 1.11x) with strong interest coverage.
• Cash conversion is the weak spot: OCF −¥1.156bn vs NI ¥236m.
• Dividend visibility is lacking; payouts cannot be assessed from current disclosure.

Metrics to Watch:

• Gross margin trajectory (currently 6.5%).
• Operating margin and SG&A ratio vs revenue.
• Working capital days (inventory and receivables turnover) and subsequent-quarter OCF rebound.
• Non-operating income sources supporting ordinary income.
• Leverage trends and any change in interest coverage.

Relative Positioning: Within Japan’s food/seafood wholesale peer set, the company exhibits typical low margins and high turnover with moderate leverage; liquidity is above average, but cash conversion this half is weaker than peers that maintained positive OCF.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis