| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 877.29 | -35 |
| Intrinsic value (DCF) | 524.70 | -61 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Daidoh Limited (TYO: 3205) is a leading Japanese apparel manufacturer and retailer with a rich heritage dating back to 1879. Headquartered in Tokyo, the company specializes in ready-made men's and women's clothing, accessories, and custom-made garments under brands like NEWYORKER and House Tartan. Daidoh operates across the entire apparel value chain, from yarn and fabric production to retail, while also offering OEM services and import/export solutions. Beyond fashion, the company engages in real estate leasing and commercial facility management, diversifying its revenue streams. As part of Japan's consumer cyclical sector, Daidoh plays a significant role in domestic apparel manufacturing, combining traditional craftsmanship with modern retail strategies. The company's vertically integrated model and brand portfolio position it as a notable player in Japan's competitive fashion industry.
Daidoh presents a mixed investment profile with both opportunities and risks. The company's long-established brand presence and diversified operations (apparel manufacturing, retail, and real estate) provide stability, while its modest market cap (¥24.4B) suggests potential for growth. However, concerning financial metrics include negative operating cash flow (-¥1.87B) and significant capital expenditures (-¥10.56B), which may strain liquidity. The company maintains a conservative beta (0.688), indicating lower volatility than the broader market, and offers a dividend yield (¥100 per share) that may appeal to income-focused investors. Challenges include Japan's aging demographic pressures on apparel demand and intense competition from fast fashion. Investors should weigh Daidoh's brand legacy against its financial performance and sector headwinds.
Daidoh operates in Japan's highly competitive apparel manufacturing and retail sector, where it differentiates through vertical integration and brand heritage. Its competitive advantages include: 1) Full supply chain control from yarn production to retail, allowing quality oversight and cost management; 2) Established brands (NEWYORKER, House Tartan) with loyal customer bases; 3) Diversification into real estate provides stable secondary income. However, the company faces pressure from larger domestic competitors with greater scale (like Onward Holdings) and international fast fashion brands expanding in Japan. Daidoh's traditional manufacturing focus may limit agility compared to digital-native competitors. The real estate segment offers stability but dilutes apparel focus. While the company's OEM capabilities provide B2B revenue, this lower-margin business exposes it to global supply chain risks. To maintain competitiveness, Daidoh must balance its heritage positioning with innovation in design and retail channels while managing its capital-intensive operations efficiently.