| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2400.07 | -37 |
| Intrinsic value (DCF) | 822.86 | -79 |
| Graham-Dodd Method | 2011.92 | -47 |
| Graham Formula | 4324.47 | 13 |
Daisue Construction Co., Ltd. (1814.T) is a well-established Japanese construction company headquartered in Osaka, specializing in the development of condominiums, offices, logistics warehouses, factories, medical facilities, and wedding and funeral buildings. Founded in 1937, the company has built a strong reputation in Japan's real estate development sector, offering comprehensive services that include new construction, repair, extension, and renovation of existing buildings. Operating in a highly competitive industry, Daisue Construction leverages its long-standing expertise and regional presence to cater to diverse construction needs. With a market capitalization of approximately ¥22.6 billion, the company plays a significant role in Japan's real estate and infrastructure development. Its focus on quality and reliability positions it as a trusted partner for commercial and residential projects across the country.
Daisue Construction presents a mixed investment profile. On the positive side, the company operates in Japan's stable real estate development sector, benefiting from consistent demand for infrastructure and commercial spaces. Its low beta (0.285) suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the company reported negative operating cash flow (-¥1.9 billion) in the latest fiscal year, raising concerns about short-term liquidity. While net income stood at ¥1.2 billion, the negative cash flow and modest market cap indicate potential challenges in scaling operations. The dividend yield, based on a ¥108 per share payout, could attract income-focused investors, but the financial health metrics warrant careful scrutiny.
Daisue Construction operates in Japan's highly fragmented construction and real estate development industry, competing against both large conglomerates and regional players. The company's competitive advantage lies in its long-standing reputation (founded in 1937) and specialization in diverse project types, including niche segments like wedding and funeral buildings. Its regional focus in Osaka and surrounding areas allows for deep market penetration and localized expertise. However, the company lacks the scale and financial resources of larger Japanese construction firms, limiting its ability to bid on mega-projects or expand aggressively. The negative operating cash flow suggests potential inefficiencies in working capital management compared to more streamlined competitors. Daisue's relatively small market cap (¥22.6 billion) also restricts its access to capital for large-scale developments. The company's strength lies in its diversified project portfolio and established client relationships, but it faces intense competition from both domestic giants and specialized firms in each of its operating segments.