Engineering & Construction - Building Systems & Industrial Facilities
Strategic Profile
The company demonstrates that project selection and cost discipline matter more than sheer volume, as evidenced by softer sales but a sharp rise in net income. Dai-Dan has ¥66.7 billion in net cash and free cash flow of ¥63 billion, representing 110% of its EBIT.
Cyborg Score Rationale
Dai-Dan's share price surged 75% year-to-date and delivered 97% total shareholder return over the past year. The company's net income growth is quite high compared to the industry average of 7.5%. However, softer annual revenue growth and a recent dip in net income highlight that future financial performance is not assured.
Top Insights
Net income increased to ¥19.2 billion from ¥12.1 billion despite sales declining to ¥180.2 billion from ¥185.9 billion, indicating improved cost control and project mix.
Trading at a P/E ratio of 11.8x, below both peer average (14.2x) and estimated fair P/E, suggesting the market may be undervaluing the company's strong profit expansion.
EBIT grew 131% last year, which if maintained will make debt even more manageable.
Recent upgrades include an improved outlook for full fiscal year, 3-for-1 share split, and substantial dividend increases amid strong order momentum.
Named Competitors
Energy Conservation Services — Energy conservation and renewable energy solutions in Japan
Communications Construction — Information and communications infrastructure construction
General Engineering Construction — Engineering and construction services in Japan and internationally
Recent Developments
(February 2026) Trading at P/E of 11.8x with strong balance sheet and net cash position
(December 2025) Nine-month results show ¥19.2 billion net income (+58% YoY) with higher profitability despite slightly lower sales
(November 2025) Announced 3-for-1 share split and dividend increase following upgraded full-year guidance
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