p-ban.com Corp. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥1.06B
• Operating Income: ¥58M
• Net Income: ¥40M
• EPS: ¥8.66

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend 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

Verdict: A solid but mixed Q2 with revenue growth and healthy cash generation, offset by mild operating margin compression and flat earnings. Revenue rose 5.2% YoY to 10.60, while operating income declined 1.4% YoY to 0.58 and net income edged down 0.8% YoY to 0.40. Gross profit was 3.56, implying a gross margin of 33.6%. Operating margin was 5.47% this quarter, down from approximately 5.83% a year ago, a compression of about 36 bps, indicating opex pressure outpaced topline growth. Ordinary income fell 1.9% YoY to 0.59, reflecting minimal non-operating contribution (non-operating income 0.02 vs expenses 0.01). EPS (basic) printed 8.66 yen; diluted 8.64 yen suggests negligible dilution. Cash generation outpaced accounting profit: operating cash flow was 0.60 versus net income of 0.40, yielding a robust OCF/NI of 1.49x. The balance sheet remains exceptionally strong, with cash and deposits of 11.38, total assets of 17.28, and equity of 13.77 (equity ratio ~79.7%). Liquidity is ample (current ratio 434%) and leverage is very low (D/E 0.26x using total liabilities), with minimal noncurrent liabilities at 0.14. Working capital is abundant at 11.41, and payables (2.19) are well covered by cash. ROE stands at 2.9% per DuPont (NPM 3.8%, asset turnover 0.613x, leverage 1.25x), implying returns are constrained by low leverage and modest margins amid a large cash balance. Profit quality appears high given OCF conversion and limited reliance on non-operating factors. The calculated payout ratio of 124.8% flags potential pressure if earnings do not re-accelerate, though the cash position provides a near-term buffer. Capex was minimal (-0.01), supporting strong implied free cash generation even with flat profits. Forward-looking, sustaining growth will require tightening SG&A discipline and/or enhancing gross margin to restore operating leverage. Overall, fundamentals are defensive with strong liquidity and cash conversion, but margin execution will be key to lift ROE and sustain shareholder returns.

Profitability Analysis

ROE (2.9%) = Net Profit Margin (3.8%) × Asset Turnover (0.613x) × Financial Leverage (1.25x). The binding constraint on ROE is the combination of modest margins and low leverage. The most notable component change versus last year is the effective operating margin compression (operating margin ~5.47% vs ~5.83% a year ago), which likely translated to a slightly lower net margin; asset turnover and leverage appear largely stable given steady balance sheet conservatism. Business-wise, opex intensity (SG&A as a percent of sales) seems to have ticked up or gross margin moderated, as operating profit declined despite revenue growth; no material help came from non-operating items. This looks more like a manageable cost drift or revenue mix effect than a structural deterioration. Sustainability: absent a cost reset or pricing/mix improvement, current margins could remain capped; however, the asset-light model and small capex needs support operating leverage if growth re-accelerates. Watch for concerning trends such as SG&A ratio creeping up faster than sales; the current -1.4% YoY dip in OP despite +5.2% sales suggests slight negative operating leverage this period.

Growth Assessment

Topline grew 5.2% YoY to 10.60, indicating steady demand. Operating income fell 1.4% YoY to 0.58 and ordinary income fell 1.9% YoY to 0.59, implying mild earnings pressure despite growth. Net income declined 0.8% to 0.40, cushioned by a stable tax rate (31.3%) and limited non-operating swings. The operating margin compressed by ~36 bps YoY, pointing to either softer gross margin or higher SG&A ratio; gross margin printed at 33.6% this period. EBITDA was 0.68 (6.5% margin), showing limited D&A drag (0.10) consistent with an asset-light platform. Near-term outlook hinges on managing cost growth relative to sales; even modest pricing or mix improvements could restore positive operating leverage. With ample liquidity and negligible capex needs, the company has capacity to invest in customer acquisition or platform upgrades that can support sustainable growth.

Financial Health

Liquidity is very strong: current ratio 434.2% and quick ratio 434.2%, with cash and deposits of 11.38 comfortably exceeding current liabilities of 3.41. Solvency is conservative: total liabilities are 3.55 versus equity of 13.77, implying an equity ratio of ~79.7% and D/E of 0.26x (using total liabilities as proxy in absence of disclosed interest-bearing debt). There is no warning on Current Ratio (<1.0) or D/E (>2.0). Maturity mismatch risk appears low given the large cash buffer relative to accounts payable (2.19) and the small noncurrent liabilities (0.14). Off-balance sheet obligations were not reported; none can be assessed from the provided data.

Cash Flow Quality

OCF/Net Income is 1.49x (0.60 / 0.40), indicating high-quality earnings with strong cash conversion. Working capital appears well managed given AR of 3.20 against half-year revenue of 10.60, and no inventory data reported; there are no evident signs of aggressive working capital maneuvers. Capex was minimal (-0.01), consistent with an asset-light model. While FCF was not reported, a simple proxy (OCF minus capex) suggests approximately 0.59 of free cash generation this period; treat as indicative due to incomplete investing CF disclosure. Financing CF was -0.37, likely reflecting distributions (dividends or buybacks), but specific breakdown was not disclosed. Overall cash flow quality is solid, providing flexibility for reinvestment and shareholder returns.

Dividend Sustainability

The calculated payout ratio is 124.8%, implying dividends exceed current period earnings. With OCF at 0.60 vs NI at 0.40, cash coverage is stronger than earnings coverage, but sustainability at this payout level depends on profit growth or a draw on cash reserves. Given the sizable cash balance (11.38) and minimal capex needs (-0.01), near-term dividend payments are likely serviceable from cash flow and balance sheet capacity. However, maintaining a payout above earnings over multiple periods would erode retained earnings growth and constrain reinvestment optionality. Dividends paid and repurchases were not disclosed, limiting precise FCF coverage analysis. Policy outlook: if management targets stable or progressive dividends, restoring margin-driven earnings growth will be important to align payout with earnings and keep the payout ratio closer to or below 60% over time.

Risk Assessment

Business Risks:

• Margin pressure from rising SG&A intensity or softer gross margin, evidenced by ~36 bps operating margin compression YoY.
• Demand variability in PCB prototyping/EMS-related markets tied to electronics and semiconductor cycles.
• Input cost volatility (laminates, logistics) that can squeeze gross margin if not fully passed through.
• Customer concentration risk and order lumpiness typical in prototyping/short-run manufacturing services.

Financial Risks:

• Dividend payout above earnings (124.8%) if sustained could pressure retained earnings and limit financial flexibility.
• Low asset turnover (0.613x) and a large cash position depress ROE, potentially incentivizing riskier capital deployment if pressured to lift returns.
• Limited disclosure on interest-bearing debt and investing cash flows restricts visibility on hidden leverage or contingent exposures (though headline leverage appears low).

Key Concerns:

• Negative operating leverage this period as operating profit fell despite revenue growth.
• Reliance on cost control and pricing/mix to protect margins amid modest topline growth.
• Data gaps (investing CF, dividend cash out, detailed SG&A breakdown) hinder granular assessment of recurring vs one-off drivers.

Investment Implications

Key Takeaways:

• Topline grew 5.2% YoY, but operating income declined 1.4% YoY; margin management is the swing factor.
• Operating margin compressed ~36 bps YoY to 5.47%, signaling cost or mix headwinds.
• Cash conversion is strong (OCF/NI 1.49x) and capex-light model supports FCF.
• Balance sheet is cash-rich (cash 11.38) with low liabilities (3.55) and high equity ratio (~79.7%).
• ROE at 2.9% is constrained by modest margins and low leverage; improving asset efficiency or margins is key.
• Payout ratio of 124.8% looks elevated relative to earnings; sustainability hinges on profit growth and cash discipline.

Metrics to Watch:

• Operating margin and SG&A-to-sales ratio trend
• Gross margin (pricing/pass-through of input costs)
• OCF/NI and working capital turns (AR days)
• Order intake/backlog and repeat customer rate
• Dividend policy updates vs earnings trajectory
• Capital allocation use of excess cash (buybacks, M&A, growth capex)

Relative Positioning: Versus domestic small-cap electronics manufacturing and prototyping peers, the company exhibits superior liquidity and a conservative balance sheet with strong cash conversion, but currently lags on profitability momentum (mild negative operating leverage) and ROE due to a cash-heavy structure and modest margins.

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