| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥137.8B | ¥118.4B | +16.4% |
| Operating Income / Operating Profit | ¥18.6B | ¥15.0B | +24.0% |
| Ordinary Income (JGAAP) | ¥18.6B | ¥15.3B | +20.9% |
| Net Income / Net Profit | ¥12.4B | ¥10.1B | +22.3% |
| ROE | 9.1% | 7.9% | - |
FY2027 Q1 results: Revenue ¥137.8B (YoY +¥19.4B +16.4%), Operating Income ¥18.6B (YoY +¥3.6B +24.0%), Ordinary Income ¥18.6B (YoY +¥3.2B +20.9%), Quarterly net income attributable to owners of parent ¥12.2B (YoY +¥2.3B +22.6%). Gross margin was 60.9% (up 0.5pt from 60.4% a year earlier), SG&A ratio was 47.5% (down 0.3pt from 47.8%), resulting in Operating Margin of 13.5% (up 0.9pt from 12.6%), indicating improved profitability. Revenue growth lagged operating income growth in absolute rate but both increased, demonstrating operating leverage. Progress against the full-year plan is: Revenue 25.1%, Operating Income 34.8%, Net Income 34.5%, indicating front-loaded profit performance.
[Revenue] Revenue was ¥137.8B (YoY +16.4%), achieving double-digit growth. By segment, the core Reuse Business recorded ¥134.0B (+16.8%) and accounted for 97.2% of revenue; Other Businesses (Rental, Systems, Real Estate, etc.) totaled ¥5.4B (+12.8%) or 2.8%. Expansion in both purchasing and sales within the Reuse Business drove companywide growth. Trade receivables increased to ¥22.7B (from ¥16.7B a year earlier, +35.5%), rising faster than revenue growth, suggesting easing credit terms or changes in customer mix.
[Profitability] Cost of sales was ¥53.9B, delivering a gross margin of 60.9% (up 0.5pt from 60.4%), supported by product mix improvement or procurement efficiency gains. SG&A was ¥65.4B (SG&A ratio 47.5%, down 0.3pt from 47.8%), with revenue growth outpacing expense increases, yielding operating leverage. Operating Income was ¥18.6B (+24.0%), Operating Margin 13.5% (up 0.9pt from 12.6%). Ordinary Income was ¥18.6B (+20.9%), with non-operating income of ¥0.3B (interest income ¥0.1B, subsidies, etc.) and non-operating expenses ¥0.3B (interest expense ¥0.2B, etc.), so non-operating items were immaterial. Pretax income ¥18.6B and corporate taxes ¥6.2B (effective tax rate 33.2%) resulted in Quarterly net income attributable to owners of parent ¥12.2B (+22.6%), Net Income Margin 9.0% (up 0.6pt from 8.4%). Extraordinary items were effectively zero with no one-off impacts; the increase in revenue and profit was driven by core operations.
The Reuse Business delivered Revenue ¥134.0B (YoY +16.8%), Operating Income ¥22.6B (+16.4%), Segment Margin 16.9% (unchanged from 16.9%), maintaining stable high profitability. Other Businesses recorded Revenue ¥5.4B (+12.8%), Operating Income ¥0.7B (+21.1%), Segment Margin 12.9% (up 1.0pt from 11.9%), showing improved profitability despite small scale. Company-level expenses of ¥4.8B (down 5.9% from ¥5.1B) also helped lift Operating Income.
[Profitability] ROE 9.1% (Net Income Margin 9.0% × Total Asset Turnover 0.50 × Financial Leverage 2.0), with improvement driven by higher Net Income Margin. Operating Margin 13.5% (up 0.9pt from 12.6%), supported by gross margin improvement (+0.5pt) and SG&A ratio decline (-0.3pt). Interest coverage 84.3x (Operating Income ¥18.6B ÷ Interest Expense ¥0.2B), indicating minimal interest burden. [Cash Quality] Cash and deposits ¥51.3B, representing 18.8% of total assets, providing liquidity. Inventories ¥98.4B (up 8.3% from ¥90.9B) account for 36.0% of total assets, indicating high inventory dependence; however inventory growth is below revenue growth (+16.4%), suggesting efficiency gains. Trade receivables ¥22.7B (up 35.5%), rising well above revenue growth and warranting monitoring of collection terms. [Investment Efficiency] Total Asset Turnover 0.50x (Revenue ¥137.8B ÷ average total assets during period ¥274.5B), standard for retail. [Financial Soundness] Equity Ratio 50.0% (down 0.6pt from 50.6%), Debt/Equity ratio 0.61x (Interest-bearing debt ¥83.6B ÷ Net assets ¥136.6B), reflecting moderate financial leverage. Current Ratio 173.1% (Current assets ¥184.5B ÷ Current liabilities ¥106.6B) is healthy, but Quick Ratio 80.7% (Cash & deposits + Trade receivables ¥22.7B = ¥74.0B ÷ Current liabilities ¥106.6B -> effectively 69.4%) indicates high inventory dependence. Short-term borrowings ¥52.3B (up 30.0% from ¥40.2B) show expanded short-term funding, requiring attention to refinance management.
Although a cash flow statement is not disclosed, balance sheet movements indicate funding trends. Cash and deposits were ¥51.3B (up ¥1.2B from ¥50.1B). Inventories increased by ¥7.5B and trade receivables by ¥5.9B, expanding working capital demand. Short-term borrowings increased by ¥12.1B, indicating working capital financed with short-term debt. Tangible fixed assets were ¥43.7B (up ¥3.2B from ¥40.5B), showing ongoing capital expenditure. Long-term borrowings were ¥20.1B (up ¥1.4B from ¥18.7B), indicating part of investment financing via long-term debt. The gap between Net Income ¥12.2B (vs ¥10.0B prior year) and cash increase (+¥1.2B) suggests working capital accumulation and capital expenditures compressed Operating Cash Flow. Rapid increase in trade receivables (+35.5%) and continued inventory buildup imply lengthening of the cash conversion cycle; improving inventory turnover and receivables collection are priorities.
Non-operating income was ¥0.3B (0.2% of Revenue), non-operating expenses ¥0.3B (0.2%), both immaterial, so most earnings are generated by operations. Breakdown of non-operating income: interest income ¥0.1B, foreign exchange gains ¥0.1B, subsidy income ¥0.1B, all recurring and small. Non-operating expenses centered on interest expense ¥0.2B, limiting interest burden. Extraordinary items were effectively zero (impairment of fixed assets ¥0.0B, valuation loss on investment securities ¥0.0B), so no one-off distortions. Ordinary Income ¥18.6B equals Pretax Income ¥18.6B, and the difference to Net Income ¥12.2B is solely corporate taxes ¥6.2B, indicating transparent profit structure. Comprehensive income ¥12.4B and Net Income ¥12.4B differ only by foreign currency translation adjustment -¥0.0B, showing negligible other comprehensive income impact. Overall, earnings quality is high and driven by core business.
Full-year plan: Revenue ¥549.8B (YoY +13.1%), Operating Income ¥53.3B (+11.6%), Ordinary Income ¥53.3B (+9.8%), Net Income ¥35.5B. Q1 progress rates vs full-year plan: Revenue 25.1% (¥137.8B ÷ ¥549.8B), Operating Income 34.8% (¥18.6B ÷ ¥53.3B), Ordinary Income 34.8% (¥18.6B ÷ ¥53.3B), Net Income 34.5% (¥12.2B ÷ ¥35.5B), indicating profits are 9–10 percentage points ahead. Gross margin improvement and SG&A control are progressing faster than planned. Both earnings forecasts and dividend forecasts were revised this quarter, and current trends may exceed company assumptions.
Dividend outlook: annual ¥24 (interim undecided, year-end ¥24), implying Payout Ratio 15.8% based on full-year EPS forecast ¥151.49, a conservative level. Prior-year dividend was annual ¥19, so forecast implies ¥5 increase. Q1 EPS ¥52.23, representing 34.5% progress vs full-year EPS forecast, indicating dividend resources are likely sufficient. Treasury shares are ¥9.1B (3.7% of outstanding shares) with no intra-period changes; no share buybacks executed. As returns are by dividend only, Payout Ratio 15.8% serves as the shareholder return metric rather than Total Return Ratio. Given cash ¥51.3B and Operating Income ¥18.6B, despite rising short-term debt dependence, dividend-paying ability appears adequate and sustainable.
Inventory turnover risk: Inventories ¥98.4B (36.0% of total assets) show high inventory dependence. While inventory growth +8.3% lags revenue growth +16.4%, risks remain that inventory write-downs or price declines could compress gross margin. Given characteristics of the Reuse Business, uncertainty in supply (purchases) and volatility in secondhand market prices amplify inventory risk.
Short-term debt concentration risk: Short-term borrowings ¥52.3B (YoY +30.0%), with short-term debt comprising 78.1% of current liabilities ¥106.6B, raising refinancing risk. Cash and deposits ¥51.3B versus short-term borrowings ¥52.3B are almost equal, and the cash/short-term debt ratio is 0.48x (Cash & deposits ¥51.3B ÷ Current liabilities ¥106.6B), indicating limited liquidity buffer. Rising interest rates could increase refinancing costs, and rapid working capital demand could pose funding constraints.
Business concentration risk: The Reuse Business accounts for 97.2% of revenue and the majority of Operating Income, indicating extreme dependence on a single business. Supply-demand volatility in the secondhand market, intensified competition from EC and flea-market apps, and shifts in consumer preferences directly affect performance. While geographic and product diversification are progressing, industry-wide growth slowdown or regulatory tightening could significantly impact earnings.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 13.5% | 3.4% (0.8%–7.7%) | +10.1pt |
| Net Income Margin | 9.0% | 2.2% (0.5%–6.2%) | +6.7pt |
Both Operating Margin and Net Income Margin substantially exceed the retail industry median, placing the company among the industry leaders in profitability.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 16.4% | 7.7% (0.8%–14.6%) | +8.7pt |
Revenue growth rate exceeds the industry median by 8.7 percentage points, indicating top-tier growth in the sector.
※Source: Company compilation
Structural improvement in profitability: Operating Margin 13.5% (up 0.9pt from 12.6%) was achieved through both gross margin improvement (+0.5pt) and SG&A ratio decline (-0.3pt), exceeding the industry median of 3.4% by 10.1 points. Full-year progress in profits at 34.8% is front-loaded, highlighting potential sustainability of operational excellence. Operating leverage is evident, indicating scope for margin expansion in revenue growth phases.
Working capital management challenges: Trade receivables +35.5% and Inventories +8.3% expanded working capital, financed in part by short-term borrowings +30.0%. Cash/short-term debt ratio 0.48x and effective Quick Ratio 69.4% indicate limited liquidity buffer; lengthening cash conversion cycle threatens Operating Cash Flow. Improving inventory turnover and receivables collection is key to financial health and sustaining growth.
This report is an AI-generated earnings analysis created by analyzing XBRL financial statement data. 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 should be made at your own responsibility and, if necessary, after consulting a professional advisor.