日本テクノ・ラボ (3849) FY2026 Q3 Earnings Report

Quick View

Executive Summary

The key point for the cumulative Q3 of the fiscal year ending March 2026 was the turnaround from an operating loss in the same period of the previous year to operating profitability, driven by revenue growth and the containment of SG&A expenses. Revenue was ¥5.3B (¥4.0B in the previous year, +32.2% YoY), Operating Income was ¥0.1B (△¥0.8B in the previous year), Ordinary Income was ¥0.1B (△¥0.7B in the previous year), and Net Income was ¥0.1B (△¥0.5B in the previous year). The primary reason for the return to profitability was that SG&A expenses declined by 5.9%, outpacing the 29.9% increase in cost of sales. However, the Operating Income margin remained at just 1.1%, indicating that the absolute level of earnings remains thin.

Factors Driving Earnings Fluctuations

【Revenue】Revenue increased significantly to ¥5.3B, up +32.2% YoY. By segment, Security grew to ¥3.2B (+20.3%) and ImagingAndPrinterController grew to ¥1.7B (+43.1%), while StorageSolution contracted to ¥0.1B, down △67.5% YoY. Growth in the two core segments drove the increase in company-wide revenue.

【Profit and Loss】The gross margin improved to 48.4% from 47.5% in the same period of the previous year. As SG&A expenses were contained at ¥2.5B (△5.9% YoY), Operating Income turned profitable at ¥0.1B (△¥0.8B in the previous year). Ordinary Income and Net Income also both turned profitable at ¥0.1B, although Ordinary Income included a contribution of ¥0.04B from non-operating income (insurance proceeds, interest and dividend income, etc.). In conclusion, the company achieved revenue and profit growth, including a return to profitability.

Segment Analysis

Security recorded revenue of ¥3.2B (+20.3%), Operating Income of ¥0.5B (+601.9%), and a 16.0% profit margin, delivering substantial profit growth and becoming the main pillar of company-wide earnings. ImagingAndPrinterController recorded revenue of ¥1.7B (+43.1%), Operating Income of ¥0.7B (+68.8%), and a 42.2% profit margin, making it the most profitable segment; its revenue growth and high margin made a significant contribution to the company-wide return to profitability. Meanwhile, StorageSolution remained in a state of contraction with revenue of ¥0.1B (△67.5% YoY), an operating loss of △¥0.2B (profit margin of △294.8%), and partially offset the profit growth effects of the other two segments.

Key Financial Indicators

【Profitability】The Operating Income margin turned profitable at 1.1% (△18.7% in the same period of the previous year), while the Net Income margin was 1.5% (△12.2% in the same period of the previous year); however, both remain low in absolute terms.【Cash Quality】Cash and deposits stood at ¥4.7B, accounting for 34.3% of total assets. Non-operating income (insurance proceeds of ¥0.02B, interest and dividend income of ¥0.01B, etc.) contributed to the increase in Ordinary Income.【Investment Efficiency】Annualized ROE and annualized ROIC both remained at 0.9%, indicating that the company’s earnings-generating capacity relative to equity and invested capital remains low.【Financial Soundness】The Equity Ratio was 84.9%, the current ratio was approximately 685%, and the debt-to-equity ratio was 0.18x, indicating an extremely conservative financial base and strong resilience to earnings volatility.

Cash Flow Analysis

Although a cash flow statement was not disclosed, an examination of funding trends based on changes in the balance sheet shows that cash and deposits declined by ¥1.3B from ¥6.0B in the same period of the previous year to ¥4.7B. Meanwhile, inventories increased from ¥0.25B to ¥0.52B, and investments and other assets increased from ¥3.1B to ¥4.1B, suggesting that funds were allocated toward inventory buildup and the accumulation of investment assets. Accounts payable also increased from ¥0.07B to ¥0.40B, suggesting that the increase in procurement and subcontracting liabilities mitigated cash outflows to some extent. Net assets remained broadly flat, moving from ¥11.8B to ¥11.7B, and the strength of the financial base was maintained.

Quality of Earnings

The return to profitability this period was primarily attributable to recurring factors—revenue growth and SG&A expense reductions—and no extraordinary gains or losses were recorded. Of Ordinary Income of ¥0.1B, non-operating income of ¥0.04B (insurance proceeds, interest and dividend income, etc.) represented a substantial contribution equivalent to approximately 70% of Operating Income, indicating that the underlying earning power of the core business remains fragile. Inventories increased by 108.5% and accounts payable increased by 479.3%, indicating significant fluctuations in working capital items. From an accrual perspective, the pace at which inventory is sold will influence the quality of earnings going forward. Overall, although the direction of earnings improvement is evident, the Operating Income margin of 1.1% indicates a relatively high degree of dependence on non-operating factors.

Earnings Forecast and Guidance

The full-year company forecast calls for Revenue of ¥8.0B (+25.5% YoY), Operating Income of ¥1.2B, Ordinary Income of ¥1.2B, and Net Income of ¥0.8B. The cumulative Q3 progress rate for Revenue was 66.3%, slightly below the standard 75%, although the revenue growth rate itself is running ahead of the full-year plan’s +25.5% pace. Meanwhile, the progress rates for Operating Income and Net Income were only 5.0% and 10.0%, respectively, requiring the company to record Operating Income of ¥1.14B in Q4 alone, equivalent to a profit margin of approximately 42%, to achieve the full-year plan. The significant divergence between revenue and profit progress indicates that the plan assumes a concentration of earnings toward the fiscal year-end.

Shareholder Returns

The dividend for the end of Q2 (September 30) was ¥0 per share, with no dividend paid. The forecast for the year-end dividend is currently undecided. There was no cash outflow from an interim dividend, and the financial base remains strong, with cash and deposits of ¥4.7B and an Equity Ratio of 84.9%.

Risk Factors

1. Risk of achieving the full-year profit plan: The progress rate for Operating Income remains at 5.0%, requiring the company to record Operating Income of ¥1.14B in Q4. Delays in the acceptance of fiscal year-end projects or deterioration in project profitability could result in failure to achieve the full-year plan.

2. Fragility of the earnings structure: The Operating Income margin is low at 1.1%, making Operating Income and loss susceptible to even small fluctuations in revenue, costs, and labor expenses. The contribution of non-operating income, such as insurance proceeds, to Ordinary Income is also relatively significant.

3. Working capital fluctuations: Inventories increased sharply by +108.5% YoY, while accounts payable increased by +479.3%. In contract development businesses and similar operations, acceptance timing can vary significantly, requiring ongoing monitoring to determine whether inventories are accumulating or payment burdens are increasing.

Industry Benchmark (For Reference; Compiled by the Company)

Industry Benchmark (general)

Profitability and Return

The company’s profitability is below the industry median. Although it has returned to profitability, its earnings level remains relatively weak within the industry.

Growth and Capital Efficiency

The revenue growth rate is substantially above the industry median, representing a high pace of revenue growth within the industry.

※Source: Compiled by the company

Key Points from the Earnings Results

1. Revenue growth was +32.2% YoY, a high rate even within the industry, and the combination of improved gross margin and reduced SG&A expenses enabled a turnaround from an operating loss in the same period of the previous year to operating profitability.

2. The Operating Income margin of 1.1% and annualized ROE and ROIC of 0.9% each remain below industry medians in terms of profitability and capital efficiency, indicating that the company is in the process of converting revenue growth into stable profit growth.

3. Achieving the full-year company forecast requires Revenue of ¥2.70B and Operating Income of ¥1.14B to be recorded in Q4, indicating from the earnings data that the plan assumes a concentration of results toward the fiscal year-end.

Theoretical Share Price (Reference Value)

Sensitivity: ¥638–¥674 at a ±1% change in the cost of equity, and ¥653–¥657 at a ±0.1 change in ω.

Notes:

• Because forecast ROE is below the cost of equity, the theoretical value is below book value per share.
• Net assets as of the quarter-end are used (there is a timing difference from the full-year forecast).
• Because net assets include non-controlling interests, the theoretical value may be calculated somewhat higher.

(Calculation model: Residual Income Model (Ohlson-type, explicit 5-year fade) / Interest rate reference month: 2026-08 / This is a mechanically calculated value based solely on publicly disclosed data; it is not a forecast of the market share price or a recommendation of any specific investment action, nor does it predict or guarantee future share prices.)

---

This report is an earnings analysis document automatically generated by AI through analysis of XBRL earnings summary data. It does not recommend investment in any specific security. Industry benchmarks are reference information compiled by the company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, and you should consult a professional as necessary.

---End of Report---