Daio Paper Returns to Profit and Keeps Dividend as Earnings Rebound

Daio Paper Corporation ( (JP:3880) ) has issued an update.

Daio Paper swung back to profit in the fiscal year ended March 31, 2026, as operating profit surged 145.0% to ¥24.0 billion and ordinary profit climbed 371.0% to ¥21.3 billion, despite a slight 0.3% dip in net sales to ¥666.8 billion. Profit attributable to owners of parent reached ¥8.9 billion, reversing a ¥11.2 billion loss a year earlier, while return on equity recovered to 3.8% and the equity ratio held roughly stable around 26%.

The company maintained its annual dividend at ¥14 per share, implying a consolidated payout ratio of 26.1%, and forecasts modest top-line growth to ¥680.0 billion in the year to March 2027 alongside flat operating profit and lower ordinary profit. Management projects a 35.0% rise in profit attributable to owners of parent to ¥12.0 billion next fiscal year, signaling confidence in earnings quality even as it exits its Turkish subsidiary Elleair International Turkey from the consolidation scope and continues to fund investments while reducing cash and cash equivalents.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen940.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

More about Daio Paper Corporation

Daio Paper Corporation is a Japanese manufacturer in the pulp and paper industry, listed on the Tokyo Stock Exchange. The company produces a broad range of paper, pulp, and hygiene-related products, serving both domestic and overseas markets through its Elleair brand and other consumer and industrial lines.

Average Trading Volume: 397,212

Technical Sentiment Signal: Hold

Current Market Cap: Yen159.2B

Learn more about 3880 stock on TipRanks’ Stock Analysis page.