| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥664.2B | ¥634.9B | +4.6% |
| 営業利益 | ¥18.8B | ¥25.0B | -24.6% |
| 経常利益 | ¥18.7B | ¥24.1B | -22.3% |
| 純利益 | ¥8.3B | ¥13.2B | -37.1% |
| ROE | 1.6% | 2.5% | - |
2026 March FY Q1 results: Revenue ¥664.2B (YoY +¥29.3B +4.6%), Operating Income ¥18.8B (YoY -¥6.1B -24.6%), Ordinary Income ¥18.7B (YoY -¥5.4B -22.3%), Net Income attributable to owners of parent ¥6.9B (YoY -¥5.2B -43.1%). Revenue increased driven by growth in human resources-related businesses, but significant revenue decline and lower gross margin in the Real Estate Business worsened the operating margin to 2.8% (down -1.1pt from 3.9% a year earlier). Ordinary Income declined more than Operating Income due to higher interest expense (¥2.6B, up from ¥1.7B +¥0.9B), and a high effective tax rate of 55.4% materially compressed Net Income. The result was revenue up but profit down.
[Revenue] Revenue ¥664.2B (+4.6%) was driven by double-digit growth in the Products HR Business ¥326.9B (+15.6%) and Services HR Business ¥226.4B (+17.6%). The Products HR Business continued to grow as the core business—accounting for 49.2% of consolidated revenue—supported by expanded dispatch/contract staffing activity for the manufacturing sector. The Services HR Business, with a 34.1% share, also captured demand from the service sector. Conversely, the Real Estate Business declined sharply to ¥77.1B (-38.5%), reducing its share to 11.6%. The Real Estate segment exhibits timing concentration for project closings; Q1 had fewer large project revenue recognitions, which suppressed consolidated revenue growth. ICT Business ¥24.8B (-2.7%) and Agricultural Park Business ¥11.9B (+8.0%) were small and had limited consolidated impact. Consolidated revenue after inter-segment eliminations grew only +4.6% YoY, though quantitative expansion in HR-related operations is being maintained.
[Profitability] Gross profit was ¥102.8B (Gross margin 15.5%, down -0.7pt from 16.2%) deteriorating due to a lower share of the high-gross-margin Real Estate segment and higher labor costs in HR businesses. SG&A was ¥84.0B (SG&A ratio 12.6%, up +0.3pt from 12.3%) increasing due to higher headcount and larger bonus provisions (¥17.1B, up from ¥6.3B +¥10.8B). As a result, Operating Income ¥18.8B (Operating margin 2.8%, down -1.1pt from 3.9%) fell sharply by -24.6%. By segment, Products HR Operating Income ¥9.9B (+32.4%, margin 3.0%) led profit growth, but the steep decline in Real Estate Operating Income ¥5.4B (-64.2%, margin 7.0%) offset this. Services HR Operating Income ¥1.4B (+35.0%) remained low-margin (0.6%), ICT ¥0.8B (margin 3.2%), Agricultural Park loss -¥0.8B (loss narrowed) provided limited contribution. Non-operating expenses included higher interest expense ¥2.6B (up from ¥1.7B +52.6%), pressuring Ordinary Income ¥18.7B (-22.3%). A high effective tax rate of 55.4% (tax expense ¥10.4B / profit before tax ¥18.7B) further reduced Net Income attributable to owners of parent to ¥6.9B (-43.1%, Net margin 1.0%), exceeding the operating decline. In conclusion, it was a revenue-increase but profit-decrease result.
Products HR Business: Revenue ¥326.9B (+15.6%), Operating Income ¥9.9B (+32.4%, margin 3.0%), margin improved +0.3pt from 2.7% a year earlier. As the main segment it accounted for 52.7% of consolidated operating income, achieving both volume growth and efficiency gains. Services HR Business: Revenue ¥226.4B (+17.6%), Operating Income ¥1.4B (+35.0%, margin 0.6%) improved +0.1pt from 0.5% last year but remains thin-margin; despite a 24.2% revenue share, its profit contribution was only 7.4%. Real Estate Business: Revenue ¥77.1B (-38.5%), Operating Income ¥5.4B (-64.2%, margin 7.0%) deteriorated -5.0pt from 12.0% a year earlier. The timing concentration of project closings led to fewer revenue recognitions in H1, causing the main reason for consolidated profit decline. ICT Business: Revenue ¥24.8B (-2.7%), Operating Income ¥0.8B (-12.2%, margin 3.2%) slightly down. Agricultural Park Business: Revenue ¥11.9B (+8.0%), Operating loss -¥0.8B (loss narrowed from -¥1.2B) remained in red but showed improvement.
[Profitability] Operating margin 2.8% (down -1.1pt from 3.9%), Net margin 1.0% (down -0.9pt from 1.9%)—profitability deteriorated. Decline in gross margin to 15.5% (down -0.7pt from 16.2%) and rise in SG&A ratio to 12.6% (up +0.3pt from 12.3%) compressed Operating margin, and a high effective tax rate of 55.4% further reduced Net margin. ROE 1.6% (down -1.6pt from 3.2%) materially worsened due to lower Net margin. [Cash Quality] DSO 158 days is prolonged due to a mix of receivable turnover from inventory-type real estate and monthly collection cycles in HR operations. CCC 160 days suggests delayed inventory turnover driven by accumulated inventories for properties for sale (¥22.42B? see note) — (note: reported as 224.2億円 = ¥224.2B) (up from ¥195.8B +¥28.4B) indicating slower inventory turnover. [Investment Efficiency] Total asset turnover 0.35x (annualized 1.41x) is low given the heavy real estate inventory (including WIP total ¥709.3B). [Financial Soundness] Equity Ratio 27.7% (down -1.0pt from 28.7%), D/E ratio 2.60x (up +0.11pt from 2.49x) indicating continued high leverage. Short-term borrowings increased to ¥566.9B (up from ¥476.5B +¥90.5B), raising short-term debt ratio to 59.2% and heightening refinancing risk. Cash and deposits ¥352.4B vs. short-term borrowings ¥566.9B gives Cash/Short-term borrowings 0.62x, indicating limited liquidity cushion. Interest coverage 7.2x (EBIT ¥18.8B / interest expense ¥2.6B) maintains a degree of interest-paying capacity, but with low EBIT margins the buffer against rising rates is thin. Current ratio 163.8%, Quick ratio 162.5% — short-term liquidity is secured.
Cash and deposits decreased to ¥352.4B (down ¥41.8B from ¥394.2B, -10.6%). The increase in short-term borrowings +¥90.5B partially offset the cash decline, indicating working capital outflows and investing/financing needs were financed by short-term funding. Inventories for properties for sale ¥224.2B (+¥28.4B) and properties for sale (WIP) ¥484.7B (+¥31.0B) together totaled ¥709.3B (up from ¥650.9B +¥58.4B, +9.0%), and delays in closing the real estate pipeline have locked working capital and pressured cash generation. Accounts receivable ¥288.2B (down from ¥299.8B -¥11.6B) decreased but DSO remains long at 158 days, indicating room to accelerate collections. Accounts payable ¥15.4B (down from ¥16.4B -¥1.0B) and accrued corporate taxes ¥11.6B (down from ¥20.7B -¥9.1B, -44.2%) reflect progress in tax payments. Rapid rise in bonus provisions ¥17.1B (up from ¥6.3B +¥10.8B, +171%) increased current liabilities due to headcount increase and higher bonus levels, pressuring short-term liquidity. Equity ¥479.5B (down from ¥494.5B -¥14.9B, -3.0%) declined despite ¥6.9B Net Income as other comprehensive income ¥2.3B and changes in non-controlling interests also affected net assets. Weakening Operating Cash Flow generation and working capital lock-up present a headwind to funding.
Non-operating income ¥3.9B (0.6% of revenue) was mainly other non-operating income ¥2.2B, including subsidies ¥0.9B, but scale is small. Non-operating expenses ¥4.1B were mainly interest expense ¥2.6B (up from ¥1.7B +¥0.9B, +52.6%), with higher interest costs from increased short-term borrowings depressing Ordinary Income. Extraordinary items: no extraordinary income recorded, no extraordinary losses noted—temporary factors are minimal. Pretax profit ¥18.7B essentially matched Ordinary Income ¥18.7B, reflecting recurring earnings structure. Tax expense ¥10.4B resulted in Net Income attributable to owners of parent ¥6.9B (effective tax rate 55.4%), materially reduced by high tax rates. Comprehensive income ¥10.6B (parent company owners ¥9.1B) exceeded Net Income ¥8.3B by +¥2.3B; other comprehensive income ¥2.3B comprised FX translation adjustments ¥0.2B, valuation differences on available-for-sale securities ¥0.2B, retirement benefit adjustments ¥0.5B, and share of OCI of equity-method affiliates ¥1.3B. The gap between Net Income and Comprehensive Income is limited, indicating modest valuation gains. Prolonged working capital turnover (DSO 158 days, CCC 160 days) extends the lag between revenue recognition and cash conversion, raising concerns about cash backing of earnings.
Full Year guidance: Revenue ¥3003.3B (+5.6%), Operating Income ¥125.0B (+15.5%), Ordinary Income ¥118.0B (+8.6%), no explicit forecast for Net Income attributable to owners of parent (inferred approximately ¥69.7B from EPS forecast ¥389.29). Q1 progress rates: Revenue 22.1% (standard 25% -2.9pt), Operating Income 15.1% (standard 25% -9.9pt), Ordinary Income 15.9% (standard 25% -9.1pt); profit progress is weak even assuming back-loaded full-year plan. Real Estate project closings tend to concentrate in H2, so recovery from Q2 onward is a premise for achieving the full-year target. If HR businesses can raise utilization and unit prices and improve SG&A efficiency, and the Real Estate pipeline ¥709.3B is sold according to plan, and the effective tax rate normalizes (assumed to converge to the 30% range for the full year), full-year targets are achievable; however, continued Q1 low margins and high tax burden pose downside risk. No revisions to forecasts or dividend guidance have been made; the company assumes full-year plan achievement.
Interim dividend forecast: 0円, Full-year dividend forecast: 0円, Payout Ratio 0%. No dividend was paid against Net Income attributable to owners of parent ¥6.9B, reflecting a capital allocation policy prioritizing internal reserves. Given high leverage (D/E 2.60x) and high reliance on short-term borrowings (¥566.9B), strengthening the balance sheet and improving working capital efficiency to reduce debt are priority issues, making a no-dividend policy consistent. No share buyback disclosure; Total Return Ratio also 0%. With Cash and deposits ¥352.4B vs. short-term borrowings ¥566.9B and limited liquidity cushion, scope for dividend resumption is limited until stable FCF generation and margin recovery are confirmed.
Revenue volatility in Real Estate segment: Real Estate revenue ¥77.1B (-38.5%), Operating Income ¥5.4B (-64.2%) showed a marked slowdown. Timing concentration of project closings is large; slow progress in sales against accumulated inventory ¥709.3B for properties for sale & WIP can lock working capital and increase interest costs. Margin deterioration to 7.0% (from 12.0% a year earlier) suggests deterioration in project mix quality; prolonged closing delays would make full-year plan achievement difficult.
Refinancing risk from high leverage and short-term funding dependence: D/E ratio 2.60x, short-term borrowings ¥566.9B (YoY +¥90.5B, +19.0%), and short-term debt ratio 59.2% make the company sensitive to rising rates and worsening refinancing conditions. With Cash ¥352.4B vs. short-term borrowings ¥566.9B, Cash/Short-term borrowings 0.62x signals large maturity mismatch. Interest expense ¥2.6B (YoY +52.6%) is already trending up; deterioration in interest rate environment or refinancing difficulty could tighten liquidity.
Deterioration in working capital efficiency and weakening cash generation: DSO 158 days, CCC 160 days reflect slower receivable collections and rising real estate inventories. With weaker Operating Cash Flow, reliance on short-term borrowings to fund working capital increases interest cost upside risk. If collections of accounts receivable ¥288.2B and inventory turnover improvement are delayed, further cash decline and additional borrowing could increase financial burden.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 2.8% | 6.2% (4.2%–17.2%) | -3.4pt |
| 純利益率 | 1.3% | 2.8% (0.6%–11.9%) | -1.6pt |
Profitability is below the industry median, indicating a low-margin structure.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 4.6% | 20.9% (12.5%–25.8%) | -16.3pt |
Revenue growth rate is well below the industry median; growth pace is relatively slow.
※ Source: Company compilation
With the offsetting structure of HR business volume expansion and Real Estate revenue volatility continuing, Q1 saw a low Operating margin of 2.8% (-1.1pt) due to a large decline in Real Estate revenue. Achieving the full-year target requires planned closings of the ¥709.3B Real Estate pipeline and simultaneous margin improvement in HR businesses (higher utilization and unit prices, SG&A efficiency).
High leverage (D/E 2.60x) and dependence on short-term borrowings (¥566.9B, YoY +¥90.5B) raise interest sensitivity and refinancing risk. Increased interest expense ¥2.6B (YoY +52.6%) is already pressuring Ordinary Income; changes in interest rates and borrowing conditions directly affect profitability. Working capital efficiency (shortening DSO/CCC) and strengthening Operating Cash Flow are keys to reducing financial risk.
The high effective tax rate of 55.4% may include temporary factors, but normalization of the tax rate for the full year is a precondition for Net Income recovery. Q1 Net margin 1.0% indicates a thin profit buffer against economic downturns; sustained growth requires gross margin improvement, SG&A control, and financial efficiency.
This report is an AI-generated earnings analysis document based on XBRL financial statements. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions are your responsibility; please consult a professional as necessary.