| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥172.2B | ¥155.4B | +10.8% |
| 営業利益 | ¥12.3B | ¥10.8B | +13.2% |
| 経常利益 | ¥13.0B | ¥12.4B | +4.7% |
| 純利益 | ¥8.8B | ¥8.4B | +5.6% |
| ROE | 3.5% | 3.4% | - |
FY2026 Q1 results showed Revenue of ¥172.2B (YoY +¥16.8B +10.8%), Operating Income of ¥12.3B (YoY +¥1.4B +13.2%), Ordinary Income of ¥13.0B (YoY +¥0.6B +4.7%), and Net Income of ¥8.8B (YoY +¥0.5B +5.6%). Revenue achieved double-digit growth, driven by a substantial expansion in the Information Services Business (+17.0%). Operating income outpaced revenue growth due to an improvement in SG&A ratio to 10.8% (prior year 11.2%), indicating realized operating leverage. Meanwhile, Ordinary Income growth was dampened by a decline in non-operating income to ¥0.9B (prior year ¥2.2B), resulting in an Ordinary Income margin of 7.6% (prior year 8.0%), down 0.4pt. Net margin modestly declined to 5.1% (prior year 5.4%) but absolute profit increased.
[Revenue] Revenue reached ¥172.2B (YoY +10.8%), achieving double-digit growth. By segment, the Information Services Business posted ¥115.0B (+17.0%), a significant increase and the main driver of company-wide revenue growth. This core segment accounted for 66.7% of total revenue, likely benefiting from expanded project volume and higher utilization. Conversely, the Payment Agency Services Business was ¥57.4B (+0.3%), essentially flat, contributing limited growth. Gross profit was ¥30.8B with a gross margin of 17.9% (prior year 18.2%), down 0.3pt. This gross margin decline is attributed to a mix effect: relatively lower contribution from the high-margin Payment Agency (Operating Margin 10.2%) and increased weight of the low-margin, large-scale Information Services (Operating Margin 5.5%).
[Profitability] Cost of sales was ¥141.4B, and the modest gross margin decline pressured profits. SG&A was ¥18.5B, with an SG&A ratio improving to 10.8% (prior year 11.2%), reflecting dilution of fixed costs via scale benefits. As a result, Operating Income was ¥12.3B (+13.2%), with an Operating Margin of 7.1% (prior year 7.0%), up 0.1pt. In non-operating items, non-operating income declined materially to ¥0.9B (prior year ¥2.2B); investment partnership gains of ¥1.9B remained at prior-year levels but other items contracted. Non-operating expenses improved to ¥0.1B (prior year ¥0.6B), but the drop in non-operating income outweighed this, so Ordinary Income rose to ¥13.0B (+4.7%), lagging Operating Income growth. Pre-tax income was ¥13.0B with corporate taxes of ¥4.2B (effective tax rate 32.0%), resulting in Net Income of ¥8.8B (+5.6%). Non-controlling interests were ¥0.0B and immaterial. In conclusion, revenue growth in Information Services and SG&A efficiency drove both top- and bottom-line increases.
Information Services Business delivered Revenue of ¥115.0B (YoY +17.0%), Operating Income of ¥6.4B (YoY +52.3%), and Operating Margin of 5.5% (prior year 4.3%), achieving substantial profit growth. The 1.2pt margin improvement likely reflects scale benefits from larger project sizes and improved utilization. The absolute Operating Income increase of +¥2.2B exceeded the company-wide Operating Income increase of +¥1.4B, making it the core of earnings growth. Payment Agency Services Business was flat at ¥57.4B (+0.3%), with Operating Income down to ¥5.8B (-12.1%) and Operating Margin decreasing to 10.2% (prior year 11.6%), a 1.4pt decline. The profit decline of -¥0.8B suggests cost increases or margin pressure from price competition. The profitability gap between the two segments remains large: Payment Agency retains a high-margin profile, while Information Services is driving growth and margin improvement.
[Profitability] Operating Margin of 7.1% (prior year 7.0%) improved 0.1pt due to SG&A efficiency. Gross Margin of 17.9% (prior year 18.2%) declined 0.3pt due to business mix shifts—cost management and mix optimization remain priorities. Net Margin of 5.1% (prior year 5.4%) slightly decreased due to lower non-operating income. ROE is 3.5%, decomposed as Net Margin 5.1% × Total Asset Turnover 0.23 × Financial Leverage 2.95x. Equity Ratio is 34.0%, indicating room to improve asset turnover and profitability.
[Cash Quality] Days Sales Outstanding (DSO) is 213 days, indicating signs of lengthening receivables. Inventories are ¥8.8B, up ¥3.0B YoY (+51.8%), with Work-in-Progress (WIP) at ¥5.96B (prior year ¥3.45B) up +72.8%, a significant increase. This suggests concentration of large projects in progress or timing shifts in acceptance, posing a cash conversion delay risk.
[Investment Efficiency] Annualized Total Asset Turnover is 0.93x (quarterly revenue ×4 ÷ total assets), low and indicating a need to improve asset efficiency.
[Financial Soundness] Equity Ratio 34.0% (prior year 35.6%) slightly declined but remains healthy. Current Ratio is 137.6% and Quick Ratio 135.7%, showing solid short-term liquidity. Interest-bearing debt is ¥35.7B versus cash and deposits of ¥236.8B, yielding net cash of ¥201.1B and a strong financial position. Interest Coverage is 306.8x (Operating Income ¥12.3B ÷ Interest Expense ¥0.04B), indicating extremely high tolerance for interest burden. Although the short-term debt ratio is 87% and relatively high, refinancing risk is limited given the business characteristic that largely consists of contract liabilities of ¥97.2B.
Operating Cash Flow statement details are not disclosed, so funding trends were analyzed from balance sheet movements. Cash and deposits are ¥236.8B, up ¥10.1B YoY, with profit accumulation contributing to cash generation. Accounts receivable are ¥100.5B, down ¥10.7B YoY, indicating improved collection. Inventories increased by ¥3.0B, with the sharp rise in WIP pressuring working capital. Contract liabilities are ¥97.2B, down ¥10.1B YoY, suggesting a reduction in advance-payment-like cash inflows. Short-term borrowings are ¥31.0B, down ¥3.0B YoY, and long-term borrowings (current + non-current) are ¥6.0B, down ¥0.3B YoY, indicating slight deleveraging. Retained earnings are ¥197.0B, up ¥3.5B YoY, showing continued internal accumulation. Overall, profit accumulation and improved AR contributed to higher cash, while WIP buildup and contract liability declines were headwinds. Cash remains ample and short-term liquidity risk is low, but timely WIP realization and acceptance are key for future cash generation.
With Operating Income of ¥12.3B and Ordinary Income of ¥13.0B, non-operating income contributed ¥0.9B, accounting for 0.5% of Revenue—limited. The gap between Ordinary Income and Net Income is ¥4.2B, primarily corporate taxes (effective tax rate 32.0%), with minimal extraordinary items. Non-operating income mainly comprises investment partnership gains of ¥1.9B, at the same level as the prior year. Total non-operating income declined from ¥2.2B to ¥0.9B, likely due to reduced foreign exchange gains and other items. This decline appears temporary, and operating profit growth reflects core business earning power. Comprehensive income was ¥8.3B; the -¥0.5B difference versus Net Income ¥8.8B is due to a decrease in valuation differences on available-for-sale securities, indicating market value fluctuation of investment securities. From an accrual perspective, the large inventory increase (notably WIP +¥2.5B) and DSO extension to 213 days suggest potential divergence between reported profits and cash realization timing. Earnings quality is centered on recurring profits and generally sound, but WIP accumulation contains risk of delayed cash conversion.
Full Year guidance remains Revenue ¥700.0B (YoY +2.7%), Operating Income ¥36.5B (YoY +0.7%), Ordinary Income ¥38.5B (YoY +0.2%), and Net Income ¥26.2B. Q1 progress rates are Revenue 24.6% (close to the standard 25%), Operating Income 33.6% (standard 25% +8.6pt), Ordinary Income 33.8% (+8.8pt), and Net Income 33.7% (+8.7pt), indicating substantial front-loading of profits. This outperformance is likely due to strong Information Services and SG&A efficiency. The company has maintained guidance, retaining a conservative stance. If Information Services project delivery and utilization improvements persist, upside to full-year results is substantial. However, high WIP levels and DSO lengthening could lead to timing shifts in cost recognition or collections in the latter half, posing downside risk to profits and cash flow. Sustainability of progress depends on working capital management.
Full-year dividend forecast is ¥50 per share, implying a Payout Ratio of 20.5% against forecast EPS of ¥244.11. This is an increase of ¥10 from the prior-year dividend of ¥40, indicating a continued dividend-up stance. With cash and deposits of ¥236.8B and interest-bearing debt of ¥35.7B, net cash is ¥201.1B, supporting a solid financial base and sufficient dividend funding. Payout Ratio of 20.5% is conservative, leaving room for further dividend increases if earnings grow. No share buyback has been disclosed; returns are via dividends only. Given profit outperformance through Q1, sustainability of full-year dividend increases is assessed as high.
Excess WIP Risk: WIP of ¥5.96B accounts for 67.7% of inventories and increased sharply YoY by ¥2.51B (+72.8%). This suggests concentration of large projects in progress or acceptance delays, embedding risks of schedule extensions, cost overruns, or impairments. Tightened project management and strict milestone billing are urgent.
Receivables Collection Delay Risk: DSO of 213 days is well above industry norms, indicating potential inefficiencies in collection processes or laxer credit control. Although Accounts Receivable of ¥100.5B is relatively small versus Cash and Deposits of ¥236.8B, continued elongation could delay cash generation and increase working capital burden.
Low Gross Margin Structure Risk: Gross Margin of 17.9% provides limited cushion against cost fluctuations or price declines. Continued rise in the share of Information Services could further depress company-wide gross margin. The -12.1% decline in Payment Agency Operating Income also contributes to margin pressure. Cost control and optimized pricing strategy across both segments are key to stabilizing earnings.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 7.1% | 6.2% (4.2%–17.2%) | +0.9pt |
| 純利益率 | 5.1% | 2.8% (0.6%–11.9%) | +2.3pt |
Profitability exceeds the industry median, placing the company in the upper tier within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 10.8% | 20.9% (12.5%–25.8%) | -10.1pt |
Growth rate is 10.1pt below the industry median, placing the company in the mid-to-lower range of industry growth.
※Source: Company compilation
Growth acceleration and margin improvement in the Information Services Business are driving company performance; the Operating Income increase of +52.3% indicates realized SG&A efficiency and scale benefits. Profit progress is running ahead of full-year guidance by +8–9pt, implying upside potential to conservative guidance. Monitoring order intake and utilization in Information Services is critical.
Working capital management issues are emerging: WIP +72.8% and DSO 213 days pose cash conversion delay risks. Strengthened WIP controls, timely acceptance, and improved collection processes are essential to convert profit growth into cash. The ¥97.2B decline in contract liabilities also suggests a reduction in advance-payment-like inflows, making monitoring of liquidity important.
Payout Ratio 20.5% is conservative and the strong net cash position of ¥201.1B supports additional dividend increases. Given profit progress ahead of schedule, the sustainability of full-year dividend increases is assessed as high, highlighting stability and potential expansion of shareholder returns.
This report was auto-generated by AI analyzing XBRL financial disclosure data and is a financial analysis document. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company from public financial statements. Investment decisions are your own responsibility; consult a professional advisor as needed.