ALPICO HOLDINGS CO.,LTD. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥2.76B
• Net Income: ¥1.65B
• EPS: ¥22.82

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

For FY2026 Q2 (consolidated, JGAAP), Alpico Holdings delivered solid profit growth at the operating level despite limited revenue disclosure. Operating income was ¥2,757 million, up 13.8% YoY, indicating improved operating efficiency and/or cost discipline. Ordinary income was ¥2,573 million, slightly below operating income, reflecting net non-operating costs largely driven by interest expense of ¥164 million. Net income reached ¥1,623 million, down 1.7% YoY, suggesting the presence of non-operating or below-the-line factors that offset operating gains. EBITDA is estimated at ¥4,217 million (operating income + D&A), providing a clearer view of cash earnings power. On the balance sheet, total assets were ¥59,350 million and total equity ¥15,745 million, implying an analytical equity ratio of about 26.5% (recognizing the reported 0% is a disclosure placeholder) and financial leverage (A/E) of 3.77x. Liquidity is tight: current ratio 74.2% and quick ratio 63.6%, with negative working capital of ¥5,109 million. Cash flow quality in the period appears weak, with operating cash flow of ¥164 million equating to roughly 10% of net income; this likely reflects working capital build and/or timing effects, though detailed CF components are not disclosed. Interest coverage is healthy at 16.8x, indicating ample buffer against current financing costs despite a debt-to-equity ratio of 2.78x. The lack of revenue, gross margin and cash balance disclosures constrains margin and cash runway analysis; zeros should be read as unreported, not actual zeros. Dividend information is also not fully disclosed (DPS and payout shown as zero placeholders), so dividend sustainability cannot be conclusively assessed from this dataset. Overall, the quarter suggests improving operating performance with rising operating income, but cash conversion and short-term liquidity warrant close monitoring. Key uncertainties center on the sustainability of operating gains, the magnitude and mix of working capital movements, and the company’s capital allocation and debt profile.

Profitability Analysis

ROE_decomposition: Due to unreported revenue, a full DuPont is not available. Using disclosed figures: half-year ROE (NI/Equity) ~10.3% (¥1,623m / ¥15,745m); annualized run-rate ~20–21%, assuming steady 2H performance. Financial leverage (Assets/Equity) is 3.77x. Net margin cannot be computed without revenue. Ordinary income of ¥2,573m vs operating income of ¥2,757m indicates net non-operating expenses of roughly ¥184m, largely interest (¥164m) with small additional non-operating losses. margin_quality: EBITDA estimated at ¥4,217m supports underlying earnings quality, but the absence of revenue and gross profit figures prevents assessment of gross and EBITDA margins. The YoY increase in operating income (+13.8%) suggests either cost efficiency gains or mix improvements. operating_leverage: Operating income growth without revenue disclosure suggests positive operating leverage and/or cost controls. With D&A at ¥1,460m, fixed-cost absorption likely plays a role, but revenue sensitivity cannot be quantified given missing sales data.

Growth Assessment

revenue_sustainability: Revenue is unreported for the period; therefore, sales momentum and volume/price mix cannot be evaluated. Operating income growth implies some underlying improvement, but sustainability depends on demand trends in core businesses (e.g., transportation, real estate, leisure), which are not disclosed here. profit_quality: Profit growth at the operating level was strong, but net income dipped 1.7% YoY, implying non-operating headwinds or below-the-line items. Interest expense (¥164m) absorbed part of operating gains. Without detail on extraordinary items, attribution is limited. outlook: If operating initiatives persist, operating income could remain resilient. However, cash conversion was weak this half (OCF/NI ≈ 0.10), and liquidity is tight; both could constrain growth execution. Outlook hinges on normalization of working capital and stability of borrowing costs.

Financial Health

liquidity: Current assets ¥14,684m vs current liabilities ¥19,793m yields a current ratio of 74.2% and quick ratio of 63.6%; working capital is negative at ¥5,109m. This indicates short-term liquidity pressure and reliance on revolving facilities or cash not disclosed. solvency: Total liabilities ¥43,829m and equity ¥15,745m imply debt-to-equity of 2.78x and an analytical equity ratio near 26.5% (vs reported 0% placeholder). Financial leverage (A/E) is 3.77x. Interest coverage is strong at 16.8x (operating income/interest), mitigating near-term solvency risk despite leverage. capital_structure: Leverage is elevated but serviceable given current operating income. Ordinary income being below operating income highlights the drag from financing costs. Any rate increases or refinancing could pressure coverage.

Cash Flow Quality

earnings_quality: OCF of ¥164m is only ~10% of net income (¥1,623m), indicating weak cash conversion in the half. Given EBITDA of ¥4,217m, the gap suggests working capital outflows or timing effects; detailed drivers are not disclosed. FCF_analysis: Investing cash flow is unreported, so FCF cannot be reliably computed from this dataset. The reported ‘Free Cash Flow: 0’ should be treated as undisclosed. Absent capex data, we cannot assess maintenance vs growth spend or FCF coverage. working_capital: Inventories are ¥2,093m; receivables and payables are not disclosed, limiting diagnosis. The negative working capital and low OCF point to potential increases in receivables or decreases in payables during the period.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratio are shown as zero placeholders; dividend policy and actual distributions are not discernible from this data. With EPS at ¥22.82 (half-year), theoretical capacity exists, but cash conversion was weak. FCF_coverage: FCF not disclosed; coverage cannot be assessed. OCF of ¥164m in the half provides limited headroom for cash dividends absent detailed capex. policy_outlook: Without historical payout information and guidance, policy continuity cannot be inferred. Near-term liquidity tightness and leverage suggest a conservative stance would be prudent until cash conversion improves, but this is contingent on undisclosed management policy.

Risk Assessment

Business Risks:

• Demand volatility across transportation, tourism/leisure, and real estate segments (segment mix not disclosed here).
• Cost inflation (fuel, labor, maintenance) potentially compressing margins without pricing power.
• Regulatory and regional exposure risks related to transportation operations.

Financial Risks:

• Tight liquidity: current ratio 74.2%, quick ratio 63.6%, negative working capital of ¥5,109m.
• Leverage: debt-to-equity 2.78x; higher interest rates or refinancing could pressure earnings.
• Weak cash conversion in the period: OCF/NI ≈ 0.10, increasing reliance on external funding if persistent.

Key Concerns:

• Sustainability of operating income growth absent disclosed revenue trends.
• Working capital management and recovery of OCF relative to EBITDA.
• Visibility on capex and investing cash flows to assess FCF and balance sheet trajectory.

Investment Implications

Key Takeaways:

• Operating income rose 13.8% YoY to ¥2,757m, signaling improved operational performance.
• Ordinary income (¥2,573m) trails operating income due to financing and other non-operating costs.
• Interest coverage is solid at 16.8x despite leverage (D/E 2.78x).
• Liquidity is tight with a 74.2% current ratio and negative working capital.
• Cash conversion is weak this half (OCF/NI ≈ 0.10), warranting monitoring.
• Analytical equity ratio estimated at ~26.5% based on disclosed assets and equity.
• Dividend capacity cannot be assessed due to undisclosed DPS/FCF.

Metrics to Watch:

• Revenue and segment disclosures to gauge margin drivers and sustainability.
• Operating cash flow vs EBITDA gap; OCF/EBITDA and OCF/NI ratios.
• Working capital components (receivables, payables, inventory turns).
• Capex (maintenance vs growth) and resulting FCF.
• Interest expense trend and debt maturity profile.
• Current ratio/quick ratio progression and available liquidity lines.

Relative Positioning: Within domestic transportation and regional services peers, Alpico appears to be improving operationally (higher operating income, strong coverage) but exhibits weaker short-term liquidity and cash conversion; comprehensive benchmarking is limited by missing revenue and FCF disclosures.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis