The company operates in three business segments: Specialty Steel, High-Performance Materials, and Parts for Automobile and Industrial Equipment. Daido Steel's market presence extends globally, serving key sectors such as automotive, aerospace, industrial machinery, and energy, with a product portfolio encompassing bearing steels, high-speed steels, stainless steels, alloy steels, and advanced functional materials like magnetic alloys.
Cyborg Score Rationale
FY24 guidance shows sales of ¥580,000mil with operating profit of ¥40,000mil. The company maintains stable dividend policy and benefits from structural demand in specialty steel sectors, though faces cyclical pressures from automotive segment weakness.
Top Insights
High-Performance Materials & Magnetic Materials segment expects earnings to pick up as demand from the SPE sector enters into a full-fledged recovery from FY25 onwards
Open die forging business, especially high alloys, will likely lead to higher profits, with further expansion becoming more apparent beyond FY2026
Sales mix driven by higher sales of open die forging and increased volumes of stainless-steel products have boosted operating profit
Company maintains annual dividend payout ratio of more than 30% as benchmark for shareholder return policy
Named Competitors
Bearing Steels & Specialty Alloys — Global bearing and precision steel manufacturers
Stainless & Alloy Steel Products — Major Japanese integrated steel producers
High-Performance Alloys — Specialty metals and advanced alloys
Recent Developments
(February 2025) FY24 maintains revised forecast with ¥40,000mil operating profit guidance on ¥580,000mil sales
(February 2025) Q1-Q3 operating profit of ¥34,070mil achieved 85% of full-year guidance despite automotive segment weakness
(Ongoing) Expansion of certified supplier status and open die forging capacity expansion planned beyond FY2026
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