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Daiki Aluminium Industry Co., Ltd. (JP:5702)
:5702
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Daiki Aluminium Industry Co., Ltd. (5702) AI Stock Analysis

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JP:5702

Daiki Aluminium Industry Co., Ltd.

(Frankfurt:5702)

Rating:55Neutral
Price Target:
¥1,002.00
▼(-5.38%Downside)
Daiki Aluminium Industry Co., Ltd.'s overall stock score is primarily influenced by its mixed financial performance and high valuation. While technical indicators suggest positive momentum, the company's financial challenges and high P/E ratio may concern potential investors. The attractive dividend yield provides some compensation for the valuation risks.

Daiki Aluminium Industry Co., Ltd. (5702) vs. iShares MSCI Japan ETF (EWJ)

Daiki Aluminium Industry Co., Ltd. Business Overview & Revenue Model

Company DescriptionDaiki Aluminium Industry Co., Ltd. manufactures, processes, markets, and sells aluminum alloy products in Japan and internationally. It offers secondary aluminum alloy ingots for die-casting, casting, deoxidation, and rolling; secondary aluminum ingots for roll products; and aluminum mother alloy ingots. The company also engages in the design, construction, and repair of aluminum smelting furnaces; and sale of aluminum alloy ingots, melting equipment, and aluminum scrap. Daiki Aluminium Industry Co., Ltd. was founded in 1922 and is headquartered in Osaka, Japan.
How the Company Makes MoneyDaiki Aluminium Industry Co., Ltd. generates revenue through the manufacture and sale of secondary aluminum alloy ingots. The company sources aluminum scrap and recycles it into high-quality aluminum alloys. These products are then sold to various industries, with a significant portion of sales attributed to the automotive sector, where aluminum is used for lightweight vehicle components. The company benefits from strategic partnerships and a robust supply chain that enhances its recycling and production capabilities. Additionally, Daiki Aluminium's revenue is influenced by aluminum price trends, demand from key industries, and its ability to maintain cost-effective production processes.

Daiki Aluminium Industry Co., Ltd. Financial Statement Overview

Summary
Daiki Aluminium Industry Co., Ltd. shows a mixed financial picture with promising revenue growth but declining margins and profitability metrics. The increasing leverage and negative cash flow trends pose financial risks, necessitating strategic measures to improve efficiency and profitability.
Income Statement
52
Neutral
Daiki Aluminium Industry Co., Ltd. showed a mixed performance in its income statement. The gross profit margin has experienced slight fluctuations but remained stable, while net profit margin showed a steep decline over the years, reaching a mere 0.23% in 2025 from a healthier 6.3% in 2023. Revenue growth has been inconsistent, with a significant increase in 2025 by 14.13% but a decline in 2024. The EBIT and EBITDA margins have also decreased over time, indicating potential challenges in operational efficiency.
Balance Sheet
60
Neutral
The balance sheet reflects a moderate financial position. The debt-to-equity ratio increased, indicating rising leverage, which could pose a risk if not managed carefully. The return on equity (ROE) is declining, showing a decrease in profitability. However, the equity ratio remains stable, suggesting a balanced asset management approach. The company's increasing liabilities may pose a financial risk if revenue generation does not improve.
Cash Flow
45
Neutral
The cash flow position is concerning, with negative free cash flow in recent years. The free cash flow growth rate has been volatile, and the operating cash flow to net income ratio indicates inefficiencies in converting income to cash. Despite positive operating cash flow in 2023, the company struggled to maintain a healthy cash flow balance due to high capital expenditures and financing activities.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue299.80B262.67B273.03B236.06B139.19B
Gross Profit13.43B13.03B23.00B29.26B16.13B
EBITDA8.15B10.16B17.24B23.57B12.26B
Net Income698.00M3.24B9.73B14.88B6.14B
Balance Sheet
Total Assets163.29B138.68B133.22B141.62B97.57B
Cash, Cash Equivalents and Short-Term Investments7.34B6.38B4.96B4.86B5.78B
Total Debt67.27B48.25B42.16B58.78B38.07B
Total Liabilities89.58B66.62B64.85B83.11B53.78B
Stockholders Equity73.07B71.39B67.63B57.72B43.23B
Cash Flow
Free Cash Flow-13.95B-2.05B22.10B-19.04B-9.30B
Operating Cash Flow-10.04B2.80B26.16B-15.62B-4.52B
Investing Cash Flow-4.20B-3.64B-4.58B-3.42B-4.97B
Financing Cash Flow14.57B2.22B-21.66B17.91B6.22B

Daiki Aluminium Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1059.00
Price Trends
50DMA
979.28
Positive
100DMA
965.84
Positive
200DMA
997.04
Positive
Market Momentum
MACD
20.58
Negative
RSI
69.06
Neutral
STOCH
83.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5702, the sentiment is Positive. The current price of 1059 is above the 20-day moving average (MA) of 1017.15, above the 50-day MA of 979.28, and above the 200-day MA of 997.04, indicating a bullish trend. The MACD of 20.58 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 83.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5702.

Daiki Aluminium Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
¥42.89B60.610.92%5.26%14.13%-78.95%
44
Neutral
C$848.76M-6.71-16.27%2.80%16.46%-27.75%
€638.69M8.225.70%4.31%
€1.61B9.509.70%2.72%
72
Outperform
¥60.64B8.55
2.73%-6.16%-26.82%
71
Outperform
¥57.34B5.01
6.28%-7.29%-17.17%
64
Neutral
¥63.97B5.17
2.84%-4.57%-12.17%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5702
Daiki Aluminium Industry Co., Ltd.
1,059.00
127.62
13.70%
DE:N9L
Nippon Light Metal Holdings Co
10.10
1.63
19.24%
DE:F4M
UACJ
34.40
12.47
56.86%
JP:5410
Godo Steel,Ltd.
3,920.00
493.42
14.40%
JP:5480
Nippon Yakin Kogyo Co., Ltd.
4,200.00
680.87
19.35%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
1,648.00
-116.24
-6.59%

Daiki Aluminium Industry Co., Ltd. Corporate Events

Daiki Aluminium Reports Increased Sales but Decline in Profits
May 14, 2025

Daiki Aluminium Industry Co., Ltd. reported a significant increase in net sales for the fiscal year ended March 31, 2025, with a 14.1% rise compared to the previous year. However, the company experienced a notable decline in profit attributable to owners of the parent, which dropped by 78.5%. Despite the challenging profit figures, the company has increased its annual dividend payout, reflecting a commitment to shareholder returns. The financial forecast for the next fiscal year anticipates continued growth in net sales and a substantial recovery in profit attributable to owners, indicating a positive outlook for the company’s future performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025