| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥381.1B | ¥363.4B | +4.9% |
| Operating Income | ¥46.6B | ¥46.3B | +0.6% |
| Ordinary Income | ¥47.1B | ¥46.6B | +1.1% |
| Net Income | ¥31.6B | ¥38.6B | -18.1% |
| ROE | 15.7% | 20.9% | - |
2026 FY results: Revenue ¥381.1B (YoY +¥17.7B +4.9%), Operating Income ¥46.6B (YoY +¥0.3B +0.6%), Ordinary Income ¥47.1B (YoY +¥0.5B +1.1%), Net Income ¥31.6B (YoY -¥7.0B -18.1%). While revenue and operating profit increased, net income declined due to the reversal of one-off factors in the prior year (tax effects). Operating margin remained high at 12.2% (prior year 12.7%, -0.5pt). Gross margin declined to 21.3% (prior year 22.7%, -1.4pt), which was absorbed by an improvement in SG&A ratio to 9.1% (prior year 9.9%, -0.8pt). Ordinary Income largely tracked Operating Income, with non-operating income ¥0.6B and non-operating expenses ¥0.1B being immaterial. The decline in Net Income reflects pretax profit ¥47.1B less corporate taxes ¥14.3B (effective tax rate 30.3%, prior year 31.1%), the year-over-year difference mainly due to the absence of the prior year deferred tax asset recognition effect. ROE was 15.7% (prior year 17.9%), lower mainly due to an increase in shareholders' equity (¥201.9B, YoY +¥17.2B +9.3%).
[Revenue] Revenue was ¥381.1B (YoY +¥17.7B +4.9%), showing steady growth. As the company reports a single segment, detailed business breakdown is not disclosed, but expansion of IT services projects and improved personnel utilization are presumed contributors. Cost of sales rose to ¥299.7B (YoY +¥18.7B +6.6%), outpacing revenue growth, resulting in gross profit of ¥81.3B (YoY -¥1.0B -1.2%). Gross margin decreased to 21.3% (prior year 22.7%, -1.4pt), likely due to changes in project mix (projects with differing price levels) and lagged pass-through of rising labor costs. Accounts receivable increased to ¥74.8B (YoY +¥3.0B), and work-in-progress (construction progress) remained at ¥0.8B (prior year ¥1.3B), indicating order intake growth and project progress.
[Profitability] Operating Income was ¥46.6B (YoY +¥0.3B +0.6%). SG&A was ¥34.7B (YoY -¥1.3B -3.6%), reflecting efficiency gains, with SG&A ratio improving to 9.1% (prior year 9.9%, -0.8pt). Economies of scale and operational efficiencies appear to have materialized. Ordinary Income was ¥47.1B (YoY +¥0.5B +1.1%); non-operating income ¥0.6B (interest income ¥0.2B, investment limited partnership gains ¥0.1B, etc.) and non-operating expenses ¥0.1B (interest expense ¥0.0B) were immaterial. Extraordinary income ¥0.1B (gain on sale of investment securities) and extraordinary losses ¥0.9B (loss on disposal of fixed assets, etc.) resulted in pretax profit of ¥47.1B (YoY +¥1.2B +2.7%). After deducting corporate taxes ¥14.3B (effective tax rate 30.3%), Net Income was ¥31.6B (YoY -¥7.0B -18.1%), mainly because the prior year's deferred tax asset recognition effect did not recur. Comprehensive income was ¥32.9B (prior year ¥31.6B); unrealized gains on securities were ¥0.0B and had negligible impact, so comprehensive income largely aligned with Net Income, indicating sound recurring earnings quality. In summary: revenue up, operating profit slightly up, Net Income down due to tax-effect factors.
[Profitability] Operating margin 12.2% (prior year 12.7%, -0.5pt), Net margin 8.3% (prior year 10.6%, -2.3pt). Gross margin 21.3% (prior year 22.7%, -1.4pt) declined due to project mix and labor cost trends, but improvement in SG&A ratio to 9.1% (prior year 9.9%, -0.8pt) limited the fall in Operating margin. ROE 15.7% (prior year 17.9%) is composed of ROA 11.7% (on Ordinary Income basis) and financial leverage 1.34x (Total assets ¥270.5B / Shareholders’ equity ¥201.9B), maintaining a high level from both margin and leverage perspectives. [Cash Quality] Operating Cash Flow / Net Income 1.08x (Operating CF ¥34.1B / Net Income ¥31.6B) — cash backing of earnings is solid. Operating CF / EBITDA 73.0% (Operating CF ¥34.1B / EBITDA ¥46.7B; calculated as Depreciation ¥1.9B + Operating Income ¥46.6B) is borderline; working capital absorption (accounts receivable increase -¥2.1B, inventories increase ¥0.5B) impacted this. Free Cash Flow -¥4.8B resulted from intangible asset acquisitions -¥9.4B (software, etc.) and acquisitions of subsidiary shares -¥12.8B, reflecting front-loaded growth investments. [Investment Efficiency] Total asset turnover 1.41x (Revenue ¥381.1B / Total assets ¥270.5B) indicates good asset efficiency. Capital expenditures -¥0.2B / Depreciation ¥1.9B = 0.11x indicates restrained tangible investment, reflecting an intangible-heavy business model. [Financial Soundness] Equity Ratio 74.6% (prior year 72.1%) — extremely healthy; interest-bearing debt consists only of short-term borrowings ¥2.0B (prior year ¥2.0B). Debt/EBITDA 0.04x, current ratio 302% (current assets ¥187.8B / current liabilities ¥62.2B) — liquidity is robust. Cash and deposits ¥108.3B (prior year ¥128.8B) decreased due to dividends and investments but still exceed current liabilities by over 1.7x.
Operating CF was ¥34.1B (YoY +¥2.2B +6.9%), with subtotal ¥48.5B (prior year ¥43.0B) but affected by working capital changes of -¥14.4B. Increase in accounts receivable -¥2.1B (prior year -¥6.0B) and increase in inventories ¥0.5B (prior year -¥0.2B) reflect order expansion and project progress; decrease in trade payables -¥1.1B (prior year +¥1.1B) combined to absorb cash in working capital. Corporate tax payments -¥16.4B (prior year -¥11.9B) responded to the prior period tax burden increase. Investing CF was -¥38.9B (prior year -¥9.2B), a large outflow driven by intangible asset acquisitions -¥9.4B (prior year -¥7.0B, mainly software development) and acquisitions of subsidiary shares -¥12.8B (not conducted in prior year). Capital expenditures were -¥0.2B (prior year -¥2.1B), indicating very limited tangible investment and a business structure centered on people and intangibles. Free Cash Flow was -¥4.8B due to front-loaded investments, but ample cash balances absorb this. Financing CF was -¥15.8B (prior year -¥15.1B), mainly dividend payments -¥15.8B (prior year -¥15.1B, annual ¥50 per share). Ending cash was ¥108.3B (prior year ¥128.8B, -¥20.6B) but remains over 1.7x current liabilities ¥62.2B, maintaining very high financial safety.
Ordinary Income ¥47.1B vs Operating Income ¥46.6B — the difference of ¥0.5B arises from non-operating items, primarily interest income ¥0.2B and investment limited partnership gains ¥0.1B, indicating minimal reliance on non-core income. Extraordinary items net to -¥0.8B (extraordinary income ¥0.1B: gain on sale of investment securities; extraordinary losses ¥0.9B: loss on disposal of fixed assets, etc.), small relative to pretax profit ¥47.1B, so temporary factors are limited. Comprehensive income ¥32.9B comprises Net Income ¥31.6B plus Other Comprehensive Income ¥1.3B (unrealized gains on securities ¥0.0B, etc.); divergence from Net Income is minor and valuation distortions are negligible. Operating CF ¥34.1B is 1.08x Net Income ¥31.6B, showing solid cash backing, though Operating CF subtotal ¥48.5B was absorbed by working capital changes of -¥14.4B, mainly accounts receivable increase (-¥2.1B) and trade payables decrease (-¥1.1B). DSO (days sales outstanding) is 72 days (¥74.8B / (¥381.1B / 365)), somewhat long and suggests room for collection process improvement. Accrual (Net Income - Operating CF) is -¥2.5B (negative), meaning cash exceeds accounting profit and there is no sign of earnings management risk. Overall, earnings quality is recurring and healthy, with very limited impact from one-off items or valuation gains/losses.
Full Year forecast: Revenue ¥420.0B (YoY +10.2%), Operating Income ¥47.0B (YoY +0.8%), Ordinary Income ¥47.3B (YoY +0.4%), Net Income ¥32.3B. Current results ¥381.1B represent 90.7% of the full-year Revenue forecast — progress is slightly behind, but Operating Income ¥46.6B is 99.1% of the full-year forecast ¥47.0B and nearly on track. Net Income ¥31.6B is 97.8% of the full-year forecast ¥32.3B, indicating a high achievement rate; the forecast assumes revenue growth and a modest margin improvement in H2. The lag in Revenue progress is presumed planned delivery of large-scale projects in H2 and seasonality (year-end demand). Actual EPS this period ¥103.00 already exceeds the forecast EPS ¥101.27. The dividend forecast ¥13.0 (annual) compared with actual payments this period ¥50.0 is based on payments through Q2; the full-year is expected to align with the forecast ¥13.0.
Dividends are ¥50 (annual; ¥12.5 per quarter ×4), total payout ¥15.8B (prior year ¥15.3B). Dividend payout ratio to current Net Income ¥31.6B is 48.4% (prior year Net Income ¥38.6B, payout ratio 48.4%), stable at the prior-year level. Against the full-year EPS forecast ¥101.27 and dividend forecast ¥13.0, the payout ratio would be about 12.8%, but the current period shows ~48% as noted above; the discrepancy between forecast and actual is likely due to timing differences when dividing forecast Net Income across quarters. Free Cash Flow -¥4.8B cannot cover dividends ¥15.8B, but abundant cash and deposits ¥108.3B and stable Operating CF ¥34.1B sufficiently secure dividend funding in practice, indicating high operational sustainability. No share buybacks were conducted (Treasury stock ¥0.99B, prior year ¥1.02B, flat), so Total Return Ratio equals the dividend payout ratio at 48.4%. The dividend policy emphasizes stable dividends while balancing growth investments and shareholder returns.
Gross Margin Decline Risk: Gross margin at 21.3% decreased -1.4pt from 22.7% last year; cost of sales ratio rose to 78.7% (prior year 77.3%). Rising labor costs and delayed contract price adjustments are likely drivers. If price corrections and acquisition of higher-value-added projects are delayed, further pressure on Operating margin may occur. Although SG&A improvement (-0.8pt) has absorbed some impact, sustained gross margin deterioration could indicate structural profitability weakening; project selection and pricing power strengthening are challenges.
Working Capital Strain: Accounts receivable ¥74.8B (YoY +¥3.0B) and inventories ¥0.8B increases have absorbed working capital. DSO 72 days is somewhat long, and collection delays or stuck work-in-progress expenditures could pressure Operating CF. Operating CF / EBITDA 73.0% is borderline; if working capital burden increases with order growth, persistent negative Free Cash Flow and accelerating cash outflow risks may materialize.
Liquidity Pressure from Investment Execution: Investing CF -¥38.9B driven by intangible asset acquisitions -¥9.4B and subsidiary share acquisitions -¥12.8B caused large outflows. Cash and deposits remain ample at ¥108.3B but decreased ¥20.6B YoY; if similar investment levels continue alongside dividend payments, further cash balance depletion risk exists. While the current ratio 302% is healthy, balancing growth investment and shareholder returns necessitates strengthening Operating CF (improving working capital efficiency).
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 12.2% | 8.1% (3.6%–16.0%) | +4.1pt |
| Net Margin | 8.3% | 5.8% (1.2%–11.6%) | +2.5pt |
Operating and Net margins both substantially exceed the industry median, placing the company among the top performers in profitability.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 4.9% | 10.1% (1.7%–20.2%) | -5.2pt |
Revenue growth rate lags the industry median, placing the company from mid- to lower-tier in growth speed.
※ Source: Company compilation
Balance of profitability and financial safety: Maintaining high profitability (Operating margin 12.2%, ROE 15.7%) while building an extremely solid balance sheet (Equity Ratio 74.6%, Cash ¥108.3B) provides a strong foundation to balance growth investment and stable dividends. The gross margin decline (-1.4pt) appears a short-term adjustment, and absorption via SG&A efficiency (-0.8pt) is commendable. If price corrections and a shift to higher-value-added projects reverse gross margin trends, there is upside to re-expand Operating margin.
Active growth investment and scrutiny of cash generation: Investing CF -¥38.9B (intangible acquisitions -¥9.4B, subsidiary share acquisitions -¥12.8B) led to significant outflow and Free Cash Flow -¥4.8B. Operating CF ¥34.1B (YoY +6.9%) is stable but Operating CF / EBITDA 73.0% is borderline; improving working capital efficiency (DSO 72 days, accounts receivable increase -¥2.1B) has substantial room for improvement. Monitoring whether strengthened collection processes and project progress management can sustainably boost Operating CF to internally fund investments and dividends is critical. If the investments (monetization of intangibles, M&A synergies) enhance future revenue and gross margins, sustainable improvement in cash generation is expected.
This report is an AI-generated financial analysis document produced by analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial data. Investment decisions are your responsibility; consult professionals as appropriate before making any investment decisions.