Dai Dan : Financial Briefing Material for the Third Quarter of the Period Ending March 2022
February 18, 2022 at 02:21 am EST
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of
Ending
March 2022
February 9, 2022
Contents
Consolidated Performance Summary
Third Quarter Financial Closing Highlights
Full-Year Earnings Forecast
Reference: DATA FILE
2
Third Quarter Financial Results for the Period Ending March 2022
Consolidated
Performance
Summary
3
Consolidated Performance Summary
Overview of consolidated management indicators, etc. (operating results)
(Millions of yen)
3rd Quarter of
3rd Quarter of
Increase
Change rate
Major factors behind increase/decrease and
period ended
period ending
(Decrease)
annotation items
March 2021
March 2022
Net sales of uncompleted construction
124,228
143,043
18,814
15.1%
contracts at beginning of period
Net sales of construction contract orders
122,561
150,118
27,556
22.5%
Recovery mainly in large-scale construction
received
contracts to the pre-pandemic level
Despite a sufficient amount of net sales of uncompleted
Net sales of completed construction
111,099
108,257
(2,841)
-2.6%
construction contracts carried forward from the previous
period, value of work done was not recorded in the
contracts
current period because large projects were not fully in
progress, resulting in a slight decrease.
Gross profit on completed construction
16,401
13,562
(2,838)
-17.3%
contracts
Decrease in gross profit margin of completed
Gross profit margin of completed
14.8%
12.5%
-2.2p
construction contracts
construction contracts (%)
Operating profit
7,205
4,060
(3,145)
-43.6%
Decrease in gross profit on completed construction
Operating profit margin (%)
6.5%
3.8%
-2.7p
contracts
Ordinary profit
7,593
4,399
(3,193)
-42.1%
Decrease in operating profit
Ordinary profit margin (%)
6.8%
4.1%
-2.8p
Net profit attributable to owners of parent
5,190
3,059
(2,131)
-41.1%
Net profit margin (%)
4.7%
2.8%
-1.8p
Business environment
Orders received decreased for renovations as a whole in the previous fiscal year due to the effects of the Covid-19 pandemic, but increased in the current period mainly because of recovery in orders for large-scale projects to the pre-pandemic level.
Net sales of completed construction contracts recorded a slight decrease, because large projects were not fully in progress. Additionally, intensifying competition for order acquisition along with soaring prices of materials and equipment pushed down the profit margin and gross profit of completed construction contracts as well.
Following the drop in gross profit of completed construction contracts, the Company recorded decreased profits.
Breakdown of decrease in consolidated operating profit
(Millions of yen)
Increase Decrease
April-December 2020
Decrease in value of
Increase in value of work
Decrease in profit
Due to an increase in
April-December 2021
Result
work done for general
done for renovations
margin of construction
SG&A expenses and
Result
construction contracts
contracts
other factors
General construction saw a decrease in the value of work as large construction projects were not fully in progress, pushing down return on net sales. Meanwhile, on the back of recovery from the pandemic, especially, the value of work done for mid-to-large factory projects increased, pushing up return on net sales compared to the previous period.
The profit margin of completed construction contracts decreased mainly due to intensifying competition for order acquisition and soaring prices of materials and equipment.
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Dai-Dan Co. Ltd. published this content on 18 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2022 07:20:05 UTC.
DAI-DAN CO., LTD. is a Japan-based company mainly engaged in the equipment construction business. The Equipment Construction segment is mainly engaged in the design, supervision and construction of electricity, air conditioning, water supply and sanitation facilities construction, facility construction, and machine and equipment installation construction. The electrical installation work provides power equipment, disaster prevention equipment, information and communication equipment, and special electrical equipment. The air conditioning equipment construction provides environmental air conditioning equipment, air conditioning equipment for medical facilities, air conditioning equipment for industrial facilities, and air conditioning equipment for special facilities. The plumbing work provides plumbing, fire fighting, utility and sanitary facilities for specialty facilities.
DAI-DAN CO., LTD. 
