Daio Paper stock falls 0.73 percent as Q1 loss clouds outlook

Published on 10/06/2026 at 14:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Daio Paper stock was last at JPY 948 on October 6, 2026, while Q1 revenue reached JPY 161.16 billion. Full-year guidance targets JPY 680.0 billion in sales.

Daio Paper, JP3440400004, Illustration mit AI erstellt.

Daio Paper stock (ISIN JP3440400004) was last at JPY 948 on the Tokyo Stock Exchange on October 6, 2026, down 0.73 percent from the previous close. The key issue for shareholders is the contrast between higher sales and a quarterly loss in the company's first reported period of fiscal 2027.

Sales rise as profit turns negative

Daio Paper generated Q1 FY2027 revenue of JPY 161.16 billion, an increase of 1.8 percent from the comparable period, while net income attributable to owners was a JPY 463 million loss. JPX Market Explorer reports that the result shifted from earnings per share of JPY 2 in the prior-year period to a loss per share of JPY 3 in Q1 FY2027.

The revenue increase did not translate into operating momentum. Q1 operating profit was JPY 1.50 billion, while the company recorded a JPY 954 million pretax profit before the net loss after taxes and other items, leaving margins under pressure at the start of the fiscal year.

Guidance requires a second-half recovery

Daio Paper's fiscal 2027 plan calls for first-half revenue of JPY 327.50 billion and operating profit of JPY 4.50 billion. For the full year ending March 31, 2027, the guidance targets revenue of JPY 680.00 billion, operating profit of JPY 24.00 billion, and profit attributable to owners of JPY 12.00 billion, according to JPX Market Explorer.

That plan implies a substantial improvement from the JPY 1.50 billion operating profit delivered in Q1. The company also guides for basic earnings per share of JPY 77.81 for the full fiscal year, giving the market a clear profitability benchmark for the remaining quarters.

Analysts see value above the market

MarketScreener lists a Hold consensus from 3 analysts, with an average target price of JPY 1,143.33, a high target of JPY 1,350.00 and a low target of JPY 1,010.00. Daiwa Securities is listed as upgrading Daio Paper to Outperform from Neutral with a JPY 1,350 target.

Against the JPY 948 reference price, the consensus average target lies 20.6 percent above the stock's October 6 level. The comparison is constructive, but the negative Q1 earnings figure means that the full-year guidance remains the central test for the investment case.

Daio Paper stock stays below yearly high

Daio Paper stock was last at JPY 948 on the Tokyo Stock Exchange at 3:30 p.m. JST on October 6, 2026. The session range was JPY 946 to JPY 957, while the 52-week range was JPY 813 to JPY 1,244.