DAIKO XTECH (8023) investor relations material

Executive summary

• Revenue for Q1 FY2027 was ¥9,221 million, up 1.5% year-over-year, with order intake and backlog both increasing significantly.

• Operating profit remained flat at ¥151 million due to increased investment in human capital, including employee compensation and training.

• Net loss attributable to shareholders improved to ¥50 million from a ¥124 million loss a year ago.

• Growth in high-margin software and recurring business offset hardware delays and increased personnel investment.

• Strategic focus on strengthening core business and expanding high-growth solutions, especially in manufacturing, security, and digital transformation.

Financial highlights

• Revenue: ¥9,221 million (+1.5% YoY); Gross profit: ¥2,169 million (+4.4% YoY); Operating profit: ¥151 million (flat YoY).

• Order intake: ¥11,430 million (+10.9% YoY); Order backlog: ¥12,533 million (+15.2% YoY).

• Ordinary profit: ¥117 million (+23 million YoY); Net profit attributable to parent: ¥50 million (+74 million YoY).

• Gross profit margin improved to 23.5% (+0.7pt YoY).

• EPS: -¥3.97 (improved from -¥9.84 YoY).

Outlook and guidance

• Full-year FY2027 guidance maintained: revenue ¥43,500 million (+2.4% YoY), operating income ¥2,600 million (+36.6% YoY), net income ¥1,750 million (+21.3% YoY).

• Progress rates for revenue and gross profit are slightly lower than the previous year, but management anticipates higher growth in the second half.

• Medium-term plan targets FY2028 revenue of ¥45 billion and operating profit of ¥3 billion.

• Dividend forecast unchanged at ¥38 per share for the year.

• Management continues to focus on expanding high-margin software and recurring businesses.