Global Communication Planning Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥389M
• Operating Income: ¥-65M
• Net Income: ¥-71M
• EPS: ¥-28.40

Income Statement

Balance Sheet

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

For FY2026 Q1 (non-consolidated, JGAAP), 株式会社ジィ・シィ企画 reported revenue of ¥389 million, declining 27.4% YoY, with an operating loss of ¥65 million and a net loss of ¥71 million. The DuPont breakdown indicates ROE of -35.5%, driven predominantly by a negative net margin (-18.25%), modest asset turnover (0.216x), and high financial leverage (equity multiplier ~8.98x). Gross profit margin is shown as 40.1% in the calculated metrics; however, there is a discrepancy between the disclosed revenue and cost of sales figures and the stated gross profit, suggesting classification or disclosure differences for cost items in Q1. Using the provided gross margin (40.1%), implied quarterly SG&A is roughly ¥221 million, indicating a high fixed-cost base and a breakeven revenue level around ¥550–560 million per quarter. Despite losses, liquidity appears adequate with a current ratio of 143% and working capital of approximately ¥478 million, though cash and cash flow details were not disclosed. Solvency is a concern: total liabilities of ¥1.735 billion against equity of ¥200 million yield a debt-to-equity ratio of 8.67x and an equity ratio of roughly 11% (our calculation; the 0.0% equity ratio shown appears to be undisclosed rather than zero). Interest expense of ¥2.4 million in the quarter is relatively small, but interest coverage is negative (-26.9x) given the operating loss. Ordinary loss of ¥71 million largely reflects operating underperformance with modest non-operating expenses; tax expense is effectively nil due to the loss position. With dividends at zero and persistent losses, distributable capacity is currently constrained absent a turnaround in earnings or balance sheet reinforcement. Cash flow quality cannot be assessed this quarter due to lack of cash flow disclosure, making the sustainability of working capital and liquidity buffers a key monitoring point. The sharp revenue contraction suggests order timing or demand weakness; recovery in top line and stabilization of gross margin will be critical to narrow losses given evident operating leverage. Overall, the quarter reflects high sensitivity of earnings to revenue levels, thin capitalization, and elevated financial leverage, offset by moderate near-term liquidity. Data limitations (notably cash flows, D&A/EBITDA, and share count) constrain precision, so conclusions are based on the available non-zero items and provided calculated metrics.

Profitability Analysis

ROE_decomposition: ROE -35.5% = Net margin (-18.25%) × Asset turnover (0.216x) × Equity multiplier (8.98x). The negative margin is the dominant driver of the negative ROE; low asset turnover and high leverage amplify its impact. margin_quality: Calculated gross margin is 40.1%, but disclosed revenue (¥389m) and cost of sales (¥380.2m) would imply a much lower gross profit. Relying on the provided 40.1% gross margin, the company exhibits value-add at the gross level, but SG&A intensity (~¥221m implied) pushes operating margin to -16.7%. Effective tax rate is ~0% due to losses. operating_leverage: Given implied SG&A of ~¥221m and gross margin ~40.1%, quarterly breakeven revenue is estimated at ¥551m. With revenue at ¥389m, the company is meaningfully below breakeven, highlighting high operating leverage. A 10% increase in revenue (¥39m) would contribute ~¥16m to gross profit at current margin, narrowing losses but still short of breakeven absent SG&A control.

Growth Assessment

revenue_sustainability: Revenue declined 27.4% YoY to ¥389m, suggesting either order timing effects or demand softness. Sustainability hinges on restoring order intake and execution to historical levels exceeding estimated breakeven. profit_quality: Ordinary and net losses (-¥71m) mirror operating underperformance; non-operating items (interest expense ¥2.4m) are minor. Lack of D&A disclosure obscures the cash/non-cash mix of expenses, but negative interest coverage indicates low earnings resilience at current volumes. outlook: Near-term outlook depends on recovering revenue toward or above ~¥550m per quarter and stabilizing gross margin near 40%. SG&A discipline could reduce the breakeven threshold. Without a top-line rebound, losses are likely to persist given fixed-cost intensity.

Financial Health

liquidity: Current assets ¥1,590.4m vs current liabilities ¥1,112.7m yield a current ratio of 143% and working capital of ~¥478m. Quick ratio equals current ratio (inventories undisclosed), indicating reliance on liquid assets, though cash balances were not disclosed. solvency: Total liabilities ¥1,734.5m against equity ¥200m imply D/E 8.67x and an equity ratio near 11.1% (our calculation from the balance sheet). Interest expense is modest but coverage is negative (-26.9x) given operating losses, signaling solvency sensitivity to prolonged earnings weakness. capital_structure: High leverage and thin equity base increase covenant/refinancing risk if lenders require minimum equity ratios. Asset turnover of 0.216x indicates underutilization of the asset base at current revenue levels.

Cash Flow Quality

earnings_quality: OCF was not disclosed this quarter (0 indicates undisclosed), so we cannot triangulate accruals or cash conversion. The negative ordinary income suggests cash generation was likely weak absent significant working capital releases. FCF_analysis: Investing and financing cash flows were also undisclosed. Free cash flow cannot be assessed; capex intensity is unknown due to lack of D&A and investing CF data. working_capital: Working capital stands at ~¥478m, offering a buffer; however, without AR/AP and cash detail, the durability of this buffer is unclear. Monitoring receivable days, unbilled work, and advance billings will be important once disclosed.

Dividend Sustainability

payout_ratio_assessment: Annual DPS is reported as ¥0.00 with a payout ratio of 0.0%. Given a quarterly net loss (¥-71m), payout capacity from earnings is currently absent. FCF_coverage: FCF coverage is not assessable this quarter due to undisclosed OCF and capex; the indicated 0.00x should be treated as not disclosed rather than literal. policy_outlook: With negative profitability and high leverage, near-term distributions appear constrained until earnings recover and balance sheet resilience improves. Future policy clarity would depend on returning to sustained profitability and demonstrable cash generation.

Risk Assessment

Business Risks:

• Revenue volatility and order timing leading to swings around breakeven
• High operating leverage due to fixed SG&A base
• Potential project delays or cost overruns impacting margins
• Talent retention and wage inflation pressures affecting delivery costs
• Customer concentration risk typical for small-cap service providers
• Execution risk in scaling revenue back to breakeven levels

Financial Risks:

• High leverage (D/E 8.67x) and thin equity ratio (~11%)
• Negative interest coverage (-26.9x) at current earnings run-rate
• Refinancing and covenant risk if lenders impose equity ratio or coverage tests
• Liquidity visibility limited due to undisclosed cash and OCF
• Potential working capital stress if receivables expand with revenue recovery

Key Concerns:

• Disclosed gross profit and cost of sales figures are inconsistent; reliance on calculated gross margin (40.1%) introduces uncertainty
• Cash flow statement not disclosed, limiting assessment of earnings quality and FCF
• Sustained losses with high financial leverage elevate going-concern sensitivity if recovery is delayed

Investment Implications

Key Takeaways:

• Top line contracted 27.4% YoY to ¥389m; earnings remained negative with operating loss of ¥65m
• ROE -35.5% driven by negative margin, modest asset turnover (0.216x), and high leverage (8.98x multiplier)
• Implied breakeven revenue ~¥550–560m per quarter at 40.1% gross margin, highlighting high operating leverage
• Liquidity acceptable (current ratio 143%, working capital ~¥478m), but solvency is tight (equity ratio ~11%)
• Cash flow data not disclosed; ability to fund operations from internal cash is unclear

Metrics to Watch:

• Quarterly revenue trajectory and order backlog/booking trends
• Gross margin versus historical levels and project mix
• SG&A ratio to sales and progress on cost containment
• Operating income/ordinary income break-even progress
• OCF and FCF once disclosed; receivable days and unbilled balances
• Equity ratio, D/E, and interest coverage
• Any capital measures (debt refinancing, equity reinforcement) and covenant disclosures

Relative Positioning: Versus small-cap TSE IT/services peers, profitability is weaker and leverage higher, with moderate near-term liquidity but elevated balance sheet risk; recovery depends on restoring revenue above breakeven and preserving gross 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