| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥647.3B | ¥505.6B | +28.0% |
| Operating Income / Operating Profit | ¥87.2B | ¥73.9B | +17.9% |
| Equity-Method Investment Income (Loss) | - | - | - |
| Ordinary Income | ¥99.1B | ¥73.5B | +35.0% |
| Net Income / Net Profit | ¥96.6B | ¥168.4B | -42.6% |
| ROE | 8.4% | 15.0% | - |
For the cumulative Q3 of the fiscal year ending March 2026, Revenue was ¥647.3B (YoY +¥141.7B, +28.0%), Operating Income was ¥87.2B (YoY +¥13.3B, +17.9%), Ordinary Income was ¥99.1B (YoY +¥25.6B, +35.0%), and Net Income was ¥96.6B (YoY -¥71.8B, -42.6%). Revenue rose substantially driven by the Information & Communications segment (+137.2%) and strong growth in the Design Business (+45.7%). Operating Income increased double-digits due to higher revenue, but Operating Margin fell to 13.5% (from 14.6%, -1.1pt) due to margin compression in Information & Communications. Ordinary Income outperformed Operating Income growth thanks to improved non-operating income including foreign exchange gains of ¥4.5B and equity-method gains of ¥4.8B. The large decline in Net Income mainly reflects the prior-year one-off gain of ¥142.96B from negative goodwill recognized in connection with the share exchange of Iwasaki Tsushinki. This period also recorded asset disposal gains of ¥38.4B, but not enough to offset the prior-year one-off; the drop in Net Income is therefore due to the lapse of temporary factors.
【Revenue】Revenue was ¥647.3B, a substantial increase of +28.0% YoY. By segment, Information & Communications was ¥211.6B (+137.2% YoY), accounting for 32.7% of total revenue and serving as the primary growth driver. The Design Business maintained high growth at ¥62.0B (+45.7%), comprising 9.6% of company revenue. Core Security Equipment recorded ¥124.0B (+4.2%)—a modest increase—reducing its share from 23.5% to 19.2%. Peripheral Information Equipment declined to ¥93.0B (-8.7%), and Card Equipment & Others fell to ¥18.0B (-26.5%). Other Businesses expanded steadily to ¥105.1B (+14.4%). The revenue mix shifted toward the low-margin Information & Communications segment, driving Gross Margin down to 40.1% (from 46.6%, -6.5pt).
【Profitability】Operating Income was ¥87.2B, up +17.9% YoY. By segment, Security Equipment produced Operating Income of ¥49.3B (margin 39.7%), accounting for 56.5% of consolidated Operating Income and remaining the profit pillar. The Design Business saw Operating Income rise to ¥15.8B (+246.9%, margin 25.4%), emerging as a new profit source. Information & Communications, despite rapid revenue expansion, had Operating Income of ¥9.7B (margin 4.6%), reflecting low margins and diluting consolidated margins. Card Equipment & Others posted Operating Income of ¥1.8B (-74.0%), a significant decline. The change in sales mix improved SG&A ratio to 26.6% (from 32.0%), but the decline in Gross Margin lowered Operating Margin by -1.1pt YoY. Ordinary Income of ¥99.1B (+35.0%) was supported by ¥12.4B in non-operating income (interest income ¥1.4B, foreign exchange gains ¥4.5B, equity-method gains ¥4.8B, etc.), which outpaced operating growth. Profit before income taxes was ¥136.6B, including Special Gains of ¥38.7B (asset disposal gains ¥38.4B, etc.). After deducting corporate taxes of ¥39.9B (effective tax rate 29.2%), Net Income was ¥96.6B (-42.6%). The prior-year negative goodwill gain of ¥142.96B had bolstered Net Income last year, so this year’s decline is due to the lapse of that one-off gain. In summary, the company shows revenue and operating income growth, but Operating Margin fell due to segment mix changes, and Net Income declined YoY due to the prior-year large one-off gain.
Security Equipment: Revenue ¥124.0B (+4.2%), Operating Income ¥49.3B (+1.2%), margin 39.7% — high profitability and the core business, accounting for 56.5% of consolidated Operating Income. Information & Communications: Revenue ¥211.6B (+137.2%) — rapid expansion, but Operating Income ¥9.7B with margin 4.6%, indicating monetization challenges during scale-up. Design Business: Revenue ¥62.0B (+45.7%), Operating Income ¥15.8B (+246.9%), margin 25.4% — high growth and high profitability, emerging as a new profit contributor. Measurement Instruments: Revenue ¥39.5B (+1.1%), Operating Income ¥6.3B (-2.9%), margin 15.9% — stable. Peripheral Information Equipment: Revenue ¥93.0B (-8.7%), Operating Income ¥2.8B (+4.9%), margin 3.0% — signs of efficiency improvement. Card Equipment & Others: Revenue ¥18.0B (-26.5%), Operating Income ¥1.8B (-74.0%), margin 10.2% — continued weakness. Other Businesses: Revenue ¥105.1B (+14.4%), Operating Income ¥3.0B (+104.7%), margin 2.9% — improving. Significant disparity in margins across segments; improving Information & Communications profitability and restructuring Card Equipment business are key to overall earnings power.
【Profitability】Operating Margin was 13.5% (down -1.1pt from 14.6% YoY). The decline in Gross Margin to 40.1% (from 46.6%) is the main driver, reflecting margin compression in Information & Communications and changes in the sales mix. Net Profit Margin is 14.9% on the surface, but this includes asset disposal gains of ¥38.4B (5.9% of revenue), so core profitability is closer to Operating Margin. ROE is 8.4%, consistent with Net Profit Margin 14.9% × Total Asset Turnover 0.449 × Financial Leverage 1.26x. Low Total Asset Turnover (0.449) and low leverage (1.26x) constrain capital efficiency. 【Cash Quality】DSO 118 days, DIO 162 days, CCC 219 days indicate deterioration in working capital efficiency. Accounts receivable rose to ¥209.8B (YoY +¥31.6B), and inventory rose to ¥106.8B (YoY +¥9.6B), potentially headwinds to operating cash generation. 【Investment Efficiency】Fixed assets decreased to ¥539.2B (from ¥576.4B, -¥37.2B); tangible fixed assets fell to ¥299.8B (from ¥332.5B, -¥32.7B). Land decreased to ¥217.4B (from ¥239.6B, -¥22.2B), consistent with asset disposal gains of ¥38.4B. Intangible fixed assets increased to ¥39.6B (from ¥33.5B, +¥6.1B), led by software ¥17.1B (from ¥10.2B, +¥6.9B), reflecting digital investment. 【Financial Soundness】Equity Ratio 79.4% (from 77.7%, +1.7pt) and D/E 0.26x indicate low leverage and a solid financial base. Cash and deposits ¥487.9B is 2.6x current liabilities ¥189.8B, with Current Ratio 475% and Quick Ratio 419%, showing very strong liquidity. Interest Coverage is Operating Income ¥87.2B ÷ Interest Expense ¥0.04B = 2,180x, indicating negligible interest burden.
DSO 118 days, DIO 162 days, CCC 219 days demonstrate a prolonged working capital cycle; Accounts Receivable ¥209.8B (YoY +17.7%), Inventory ¥106.8B (YoY +9.8%) have accumulated. The increase in project-based activity from Information & Communications and Design Businesses likely caused inventory and receivables buildup, indicating risk to Operating Cash Flow. Cash and deposits increased to ¥487.9B (YoY +¥37.3B), supported by asset disposal gains of ¥38.4B and profit inflows, but core cash generation from operations may be weakening due to working capital expansion. Accrued corporate taxes payable rose to ¥27.3B (YoY +¥11.5B, +73.3%), reflecting increased taxable income and one-off gains. While asset disposals and profit recognition have strengthened cash balances, persistent deterioration in working capital efficiency could impair medium-term cash conversion. Inventory reduction and shortening collection cycles are key issues going forward.
Operating Income ¥87.2B (Operating Margin 13.5%) reflects core earning power, but Ordinary Income of ¥99.1B includes ¥12.4B in non-operating income (1.9% of revenue): foreign exchange gains ¥4.5B, equity-method gains ¥4.8B, interest income ¥1.4B, etc. FX gains are volatile and equity-method gains depend on external factors, so part of Ordinary Income is non-recurring. Net Income ¥96.6B includes Special Gains of ¥38.7B (asset disposal gains ¥38.4B, etc., 6.0% of revenue), meaning about 40% of Net Income is from one-off items. The prior-year negative goodwill gain of ¥142.96B substantially boosted last year’s Net Income, so the YoY decline is chiefly due to differences in one-off gains. The effective tax rate of 29.2% is within normal range and shows no tax-related anomalies. Core operating profitability is stable, but Net Income depends heavily on special and non-operating items; assessing sustainable earnings requires focus on trends in core Operating Income. The working capital backlog (DSO 118 days, DIO 162 days) suggests sizable accruals and warrants attention to potential divergence between profit and cash flow.
Full Year forecast: Revenue ¥900.0B (YoY +36.0%), Operating Income ¥107.0B (+20.4%), Ordinary Income ¥114.0B (+26.6%), Net Income ¥103.0B (EPS ¥193.34). Cumulative Q3 progress rates: Revenue 71.9% (standard 75% benchmark -3.1pt), Operating Income 81.5% (benchmark +6.5pt), Ordinary Income 87.0% (benchmark +12.0pt), Net Income 93.7% (benchmark +18.7pt). Revenue is somewhat delayed due to timing of recognition for large projects, but profits have advanced significantly aided by asset disposal gains of ¥38.4B and non-operating income such as FX and equity-method gains. Q4 is projected at Revenue ¥252.7B (+48.4% YoY), Operating Income ¥19.8B (-33.1%), Ordinary Income ¥14.9B (-49.7%), Net Income ¥6.4B (-93.7%), reflecting the lapse of one-off gains and expected revenue catch-up. Achieving the full-year forecast depends on Q4 revenue buildup and securing operating profit excluding dependence on one-off items.
Interim dividend was ¥55, and the full-year dividend forecast is ¥70 (unchanged from prior year ¥70). Based on full-year Net Income forecast ¥103.0B, forecasted total dividends are approximately ¥37.3B, implying a payout ratio of 36.2%—conservative. For cumulative Q3 Net Income ¥96.6B, the interim dividend ¥55 (total dividends approx. ¥29.3B) has been paid. With cash and deposits ¥487.9B and D/E 0.26x, the financial position supports dividend sustainability. The company holds 3.317M treasury shares (5.9% of issued shares), providing flexibility in total return policy. Excluding one-off gains and assessing on core Operating Income, post-tax Operating Income (effective tax rate 29.2%) is about ¥61.7B, which sufficiently covers forecasted dividends ¥37.3B. Going forward, assuming the lapse of one-off items, there is scope to reconsider payout policy gradually while confirming alignment between core profitability and operating cash flow.
Margin dilution risk from changes in sales mix: Information & Communications has grown to 32.7% of revenue but carries a low margin of 4.6%, which reduced consolidated Operating Margin by -1.1pt YoY. If monetization in Information & Communications stalls, the trade-off between scale and margin may persist and weaken capital efficiency.
Risk of reduced operating cash generation due to worsening working capital efficiency: DSO 118 days, DIO 162 days, CCC 219 days indicate a lengthened working capital cycle and notable accumulation of Accounts Receivable +¥31.6B and Inventory +¥9.6B. Continued delays in inventory turnover and collections could constrain Operating Cash Flow and reduce free cash flow generation capacity.
Risk from reliance on one-off items: Approximately 40% of Net Income ¥96.6B depends on Special Gains such as asset disposal gains ¥38.4B. Foreign exchange gains ¥4.5B and equity-method gains ¥4.8B are also volatile. Limits to asset disposal opportunities and fluctuations in FX and equity-method results could impair earnings sustainability.
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 13.5% | 3.2% (1.7%–4.9%) | +10.3pt |
| Net Profit Margin | 14.9% | 2.7% (1.3%–6.0%) | +12.2pt |
Profitability substantially exceeds the industry median, supported by high margins in Security Equipment and the profitability of the Design Business.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 28.0% | 5.0% (-5.0%–7.8%) | +23.0pt |
Revenue growth significantly outpaces the industry median, driven by rapid expansion in Information & Communications and strong performance in the Design Business.
※Source: Company compilation
Scale expansion and monetization progress in the Information & Communications segment: Information & Communications grew rapidly to ¥211.6B (+137.2%) but has a low Operating Margin of 4.6%, diluting consolidated profitability. Future order trends and margin improvement will be key to restoring consolidated Operating Margin and capital efficiency. Whether operational leverage will materialize is a mid-term evaluation focus.
Room to improve working capital efficiency: With DSO 118 days, DIO 162 days, CCC 219 days, working capital is a headwind to Operating Cash Flow. If inventory compression and shorter collection cycles can be executed, the company could better utilize ample cash deposits ¥487.9B and improve Total Asset Turnover 0.449, thereby creating upside for ROE.
Segment portfolio optimization: While Security Equipment (margin 39.7%) and Design Business (25.4%) maintain high profitability, Card Equipment & Others (margin 10.2%, Operating Income -74.0%) struggles. Concentrating resources on high-margin businesses and restructuring low-margin operations should support sustainable profit growth and expand dividend capacity.
This report was automatically generated by AI analyzing XBRL financial disclosure data and is an earnings analysis document. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed before making investment decisions.
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