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Financial results presentation6706DKK Co.,Ltd.Electrical Equipment and Precision Instruments

Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue increased 25.1% year on year as demand for telecommunications and high-frequency products recovered, while the operating loss narrowed from ¥433 million to ¥4 million. Net income attributable to owners of the parent was ¥1,307 million, due to extraordinary income related to the transfer of fixed assets.

Worth reading
55In focus
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Direction
Improvement
Direction inferred from the company’s description.
Scale
1500
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,483 million+25.1%
Operating profit¥-4 million
Ordinary income¥230 million
Net income¥1,307 million
Operating profit margin-0.1 %
Results for the three months of the current quarter
Net Sales
¥7,483 million
Operating profit
¥-4 million
Ordinary income
¥230 million
Profit attributable to owners of the parent
¥1,307 million
Full-year earnings forecast
Net Sales
¥36,500 million
Operating profit
¥1,650 million
Ordinary income
¥1,650 million
Profit attributable to owners of the parent
¥2,300 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadily
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Mobile communications¥300 million
  • Fixed wireless¥160 million
  • Defense¥353 million
  • Broadcast¥222 million
  • Solutions¥-32 million
  • Other¥140 million
  • Induction heating equipment¥304 million
  • Contract heat treatment processing¥47 million
  • New high-frequency applications¥5 million
  • Operating profit: effect of higher revenue¥612 million
  • Operating profit: decline in gross margin¥-244 million
  • Operating profit: increase in indirect costs¥-27 million
  • Operating profit: decrease in selling, general and administrative expenses¥70 million
  • Operating profit: restructuring expenses¥-17 million
New initiatives
  • Dividend policy targeting a consolidated dividend payout ratio of 40% and a minimum DOE of 2.5%
  • Introduction of a shareholder benefit program from the fiscal year ending March 2027
  • Continued improvement in operating efficiency through generative AI and digital transformation
  • Introduction and launch of new services, including AI-powered telephone support, AI-based pedestrian and traffic analysis, and road patrol solutions
  • Development of new products and equipment and expansion of the product lineup
Key KPIsA metric the company considers important as a management benchmark.
  • Total orders received¥11,388 million
  • Total order backlog¥25,117 million
  • Telecommunications orders received¥8,458 million
  • High-frequency orders received¥2,930 million
Segment results
  • Telecommunications
    Net Sales¥4,835 million
    Revenue_yoy_pct31
    Profit¥322 million
    Profit_yoy_pct378.4
  • High-frequency
    Net Sales¥2,619 million
    Revenue_yoy_pct15.8
    Profit¥353 million
    Profit_yoy_pct46.6
Medium-term management plan targets
Under DKK-Plan2028, the Company formulated a capital strategy centered on business investment for growth and shareholder returns. Specific target figures and target fiscal years: not disclosed
Financial targets
ROE: 6.1% forecast for the fiscal year ending March 2027. Target figure: not disclosed
Orders received and order backlog
Orders received
¥11,388 million
Order backlog
¥25,117 million
Annual Dividend
Annual dividend per share¥105
Interim¥50
End of period¥55
Payout ratio
40 %
DOE
2.5 %
Acquisition of treasury shares
To continue conducting purchases flexibly. Purchase amount, number of shares and period: not disclosed
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥7,483 million (YoY +25.1%)
Operating profit¥-4 million
Ordinary income¥230 million
Net income¥1,307 million
Operating profit margin-0.1 %
Results for the three months of the current quarterNet Sales ¥7,483 million / Operating profit ¥-4 million / Ordinary income ¥230 million / Profit attributable to owners of the parent ¥1,307 million
Full-year earnings forecastNet Sales ¥36,500 million / Operating profit ¥1,650 million / Ordinary income ¥1,650 million / Profit attributable to owners of the parent ¥2,300 million
Self-assessment against the planProgressing steadily
Segment resultsSegment Telecommunications / Net Sales ¥4,835 million / Revenue_yoy_pct 31 / Profit ¥322 million / Profit_yoy_pct 378.4, Segment High-frequency / Net Sales ¥2,619 million / Revenue_yoy_pct 15.8 / Profit ¥353 million / Profit_yoy_pct 46.6
Breakdown of Factors Affecting the ChangeFactors Mobile communications / Amount ¥300 million, Factors Fixed wireless / Amount ¥160 million, Factors Defense / Amount ¥353 million, Factors Broadcast / Amount ¥222 million, Factors Solutions / Amount ¥-32 million, Factors Other / Amount ¥140 million, Factors Induction heating equipment / Amount ¥304 million, Factors Contract heat treatment processing / Amount ¥47 million, Factors New high-frequency applications / Amount ¥5 million, Factors Operating profit: effect of higher revenue / Amount ¥612 million, Factors Operating profit: decline in gross margin / Amount ¥-244 million, Factors Operating profit: increase in indirect costs / Amount ¥-27 million, Factors Operating profit: decrease in selling, general and administrative expenses / Amount ¥70 million, Factors Operating profit: restructuring expenses / Amount ¥-17 million
Key KPIsIndicator name Total orders received / Value ¥11,388 million / Year on year against the same period last year Not disclosed, Indicator name Total order backlog / Value ¥25,117 million / Year on year against the same period last year Not disclosed, Indicator name Telecommunications orders received / Value ¥8,458 million / Year on year against the same period last year Not disclosed, Indicator name High-frequency orders received / Value ¥2,930 million / Year on year against the same period last year Not disclosed
Medium-term management plan targetsUnder DKK-Plan2028, the Company formulated a capital strategy centered on business investment for growth and shareholder returns. Specific target figures and target fiscal years: not disclosed
Financial targetsROE: 6.1% forecast for the fiscal year ending March 2027. Target figure: not disclosed
Annual DividendAnnual dividend per share ¥105 / Interim ¥50 / End of period ¥55
Payout ratio40 %
Acquisition of treasury sharesTo continue conducting purchases flexibly. Purchase amount, number of shares and period: not disclosed
Orders received and order backlogOrders received ¥11,388 million / Order backlog ¥25,117 million
New initiativesDividend policy targeting a consolidated dividend payout ratio of 40% and a minimum DOE of 2.5%, Introduction of a shareholder benefit program from the fiscal year ending March 2027, Continued improvement in operating efficiency through generative AI and digital transformation, Introduction and launch of new services, including AI-powered telephone support, AI-based pedestrian and traffic analysis, and road patrol solutions, Development of new products and equipment and expansion of the product lineup
Items this document does not state (11)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In the telecommunications segment, demand remained firm for 5G antennas and wireless equipment, towers and maintenance services, and digital broadcasting equipment. In the high-frequency segment, capital investment demand recovered, particularly in the automotive-related industries. The increase in profit reflected the effect of higher revenue, fixed-cost reductions, and improved operating efficiency, while increases in raw material and logistics costs, personnel expenses and other costs, as well as restructuring expenses, had an adverse impact. The increase in net income was due to the recognition of extraordinary income from the handover associated with the transfer of fixed assets carried out in the fiscal year ended March 2024.

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Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027 | DKK Co.,Ltd. (6706) timely disclosure | Komori