UNICON Holdings Co.,Ltd. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥4.11B
• Operating Income: ¥256M
• Net Income: ¥155M
• EPS: ¥15.76

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

UNICON Holdings (IFRS, consolidated) delivered solid topline and profit growth in FY2026 Q1, with revenue of 41.13 and operating income of 2.56, up 28.1% and 40.8% YoY, respectively. Net income reached 1.55 (+22.4% YoY), implying a net margin of 3.8% and an effective tax rate of 21.2%. DuPont decomposition based on provided metrics shows quarterly ROE of 4.5%, driven by a net margin of 3.8%, asset turnover of 0.280x, and financial leverage of 4.22x. The operating margin based on reported figures is approximately 6.2% (2.56/41.13), indicating positive operating leverage as operating profit outpaced revenue growth. The company reports a gross profit of 5.04 (gross margin 12.3%), but this is inconsistent with the stated cost of sales of 27.06 and the SG&A of 3.31 when reconciled to operating income; we therefore anchor margin analysis on revenue, operating income, and net income as the most coherent set. Balance sheet leverage is elevated with total liabilities of 86.94 against equity of 34.79 (D/E of 2.50x; equity ratio 23.7%). Short-term loans amount to 37.48 and long-term loans 4.56; with cash and equivalents of 24.26, minimum net debt is about 17.78, acknowledging that total interest-bearing debt may be higher than the disclosed items. Working capital and liquidity ratios cannot be reliably assessed because current liabilities are unreported; the listed “Working Capital: 88.02” equals current assets and should not be interpreted as true working capital. Accounts receivable of 53.72 are large versus quarterly revenue, suggesting extended collection cycles; inventories are modest at 2.16, and accounts payable are sizable at 36.56. Cash flow data (OCF/FCF) are unreported, limiting assessment of earnings-to-cash conversion and dividend coverage from cash. A Q3 DPS of 230.64 JPY versus Q1 EPS of 15.76 JPY results in a high calculated payout ratio of 287.3%, implying reliance on cash/financing or special distributions; sustainability requires confirmation from full-year earnings and cash flows. Profit growth quality is supported by operating leverage, but the low equity buffer and short-term debt concentration heighten financial risk in a downturn. The outlook hinges on sustaining revenue momentum, tightening working capital discipline, and improving cash conversion. Key data gaps (OCF, capex, interest expense) and the internal inconsistency in gross profit/COGS/SG&A constrain precision, and conclusions should be revisited when full disclosures are available.

Profitability Analysis

ROE_decomposition: ROE (quarterly, not annualized) = Net margin 3.8% x Asset turnover 0.280x x Financial leverage 4.22x ≈ 4.5%. This suggests moderate profitability with ROE primarily supported by leverage and asset utilization, while margins remain thin. margin_quality: - Operating margin: ~6.2% (2.56 / 41.13). - Net margin: 3.8% (1.55 / 41.13). - Gross margin reported at 12.3%, but reconciliation issues exist versus COGS and SG&A; we therefore place greater weight on operating and net margins for quality assessment. operating_leverage: Revenue grew +28.1% YoY while operating income grew +40.8% YoY, indicating positive operating leverage and some fixed-cost dilution. Sustaining this will depend on mix, pricing power, and cost control.

Growth Assessment

revenue_sustainability: Strong topline growth (+28.1% YoY) signals robust demand or order execution; however, the high accounts receivable balance (53.72 vs quarterly revenue 41.13) implies extended billing/collection cycles that could temper growth-to-cash conversion. profit_quality: Operating income outpaced revenue, implying margin expansion. Yet, internal inconsistencies in cost structure reporting (gross profit/COGS/SG&A) reduce confidence in the exact drivers. Net income growth (+22.4% YoY) lagged operating income growth, likely reflecting below-OP items and tax impact. outlook: If demand strength persists and cost control continues, near-term profit growth can remain favorable. Key to sustainability will be improving working capital turnover (DSO) and maintaining pricing/mix discipline given thin net margins.

Financial Health

liquidity: Current assets are 88.02, but current liabilities are unreported; thus, current and quick ratios are not calculable. Cash and equivalents stand at 24.26. Receivables of 53.72 dominate current assets, implying liquidity is sensitive to collections. solvency: Total liabilities of 86.94 versus equity of 34.79 yield a D/E (liabilities/equity) of 2.50x and an equity ratio of 23.7%, indicating a leveraged balance sheet with a modest equity buffer. capital_structure: Short-term loans: 37.48; long-term loans: 4.56. With cash of 24.26, minimum net debt approximates 17.78 (subject to upward revision if other interest-bearing debt exists). Concentration in short-term borrowings raises refinancing and interest rate exposure.

Cash Flow Quality

earnings_quality: OCF and FCF are unreported; OCF/Net income and FCF coverage cannot be assessed. Given large receivables vs quarterly sales, cash conversion risk exists despite profit growth. FCF_analysis: Capex and investing CF are unreported; thus, free cash flow cannot be determined. Cash balance of 24.26 provides some cushion but may be insufficient if working capital outflows or debt service intensify. working_capital: Receivables (53.72) and payables (36.56) are both high relative to quarterly activity, suggesting elongated DSO and DPO (indicatively both around ~115–125 days using Q1 revenue/COGS proxies). Inventory is modest at 2.16, limiting stock risk. Net working capital dynamics are indeterminable without current liabilities detail.

Dividend Sustainability

payout_ratio_assessment: With Q3 DPS of 230.64 JPY against Q1 EPS of 15.76 JPY, the calculated payout ratio is 287.3%. This is elevated for a single quarter, implying the distribution may be funded by prior retained earnings, cash, or special items rather than recurring earnings. FCF_coverage: OCF and FCF are unreported, preventing direct coverage analysis. Minimum net debt and short-term borrowing reliance suggest limited flexibility if cash generation weakens. policy_outlook: Absent full-year guidance and cash flow data, current payout appears aggressive relative to quarterly earnings. Sustainability likely hinges on stronger subsequent-quarter earnings and/or explicit policy (e.g., special/commemorative dividends). Monitoring company guidance is essential.

Risk Assessment

Business Risks:

• Demand volatility affecting revenue momentum and operating leverage.
• Pricing and mix pressures given thin net margins (3.8%).
• Extended receivable cycles and customer credit risk impacting cash conversion.
• Supply chain or subcontractor cost variability affecting gross margins.
• Execution risk on large projects/orders if applicable to the business model.

Financial Risks:

• High leverage (D/E 2.50x; equity ratio 23.7%) reducing shock absorption capacity.
• Short-term debt concentration (37.48) raising refinancing and interest rate risk.
• Dividend outflow risk relative to earnings capacity (calculated payout 287.3%).
• Potential covenant or liquidity constraints if OCF underperforms (OCF unreported).

Key Concerns:

• Inconsistency in cost structure data (gross profit vs COGS vs SG&A) complicates margin analysis.
• Lack of OCF/FCF and interest expense data obscures earnings quality and debt-servicing capacity.
• High receivables relative to quarterly sales heighten working capital risk.

Investment Implications

Key Takeaways:

• Strong YoY growth with positive operating leverage: revenue +28.1%, OP +40.8%.
• Thin net margin (3.8%) and reliance on financial leverage (4.22x) to support ROE (4.5% quarterly).
• Balance sheet is leveraged (D/E 2.50x; equity ratio 23.7%) with significant short-term borrowings.
• Cash flow disclosure gaps limit confidence in dividend sustainability and debt coverage.
• High payout ratio (287.3%) appears aggressive relative to Q1 earnings.

Metrics to Watch:

• Operating cash flow and free cash flow trends (when disclosed).
• Receivable days and collection performance (AR vs quarterly sales).
• Order backlog and revenue visibility (if disclosed).
• Operating margin progression and cost control.
• Net debt and debt maturity profile; interest coverage once interest expense is disclosed.
• Dividend policy guidance and payout framework.

Relative Positioning: Versus typical Japanese industrials, the equity ratio is on the low side and leverage is higher, while margins are modest; near-term growth is strong, but the financial profile suggests a need for disciplined cash management.

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