| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥986.8B | ¥989.8B | -0.3% |
| 営業利益 | ¥58.7B | ¥59.7B | -1.6% |
| 経常利益 | ¥69.5B | ¥66.4B | +4.6% |
| 純利益 | ¥39.7B | ¥42.6B | -6.8% |
| ROE | 4.7% | 5.3% | - |
For the fiscal year ended March 2026, Revenue was ¥986.8B (YoY -¥3.0B, -0.3%), Operating Income was ¥58.7B (YoY -¥1.0B, -1.6%), Ordinary Income was ¥69.5B (YoY +¥3.1B, +4.6%), and Net Income attributable to owners of the parent was ¥46.6B (YoY -¥1.2B, -2.5%). Revenue remained in a flat range and Operating Income slightly declined; however, an increase in non-operating income (Dividend income received ¥4.0B, Other ¥9.3B) led to higher Ordinary Income. In extraordinary items, gain on sale of investment securities of ¥3.2B was recorded while impairment losses of ¥1.8B were recognized; combined with an effective tax rate of 32.7%, this resulted in a modest decline in final profit. Comprehensive income rose sharply to ¥69.8B (YoY +61.1%), aided by valuation differences on available-for-sale securities of ¥22.5B. The core Gas Business performed solidly with Operating Income of ¥69.5B (+5.4% YoY) driving consolidated profits, whereas the Chemical Products Business saw Operating Income decline to ¥7.6B (-11.7% YoY) and Other Businesses turned to an operating loss of ¥0.9B.
【Revenue】 Revenue of ¥986.8B was essentially flat YoY at -0.3%. By segment, the core Gas Business recorded ¥734.7B (share 74.5%, YoY -0.1%) largely unchanged, the Chemical Products Business ¥217.0B (share 22.0%, +0.6%) slightly increased, and Other Businesses ¥35.1B (share 3.6%, -9.7%) declined. In the Gas Business, base demand for dissolved acetylene and industrial gases remained firm, and price pass-through plus improved product mix sustained revenue levels. The Chemical Products Business saw modest increases in adhesives and coatings-related sales, while Other Businesses experienced significant revenue declines due to weaker demand for LSI cards, etc. Gross profit was ¥264.8B (gross margin 26.8%, improvement of +0.2pt from 26.6%) reflecting effective cost control.
【Profitability】 Operating Income of ¥58.7B (Operating margin 5.9%) decreased slightly by -1.6% YoY. SG&A expenses rose to ¥206.1B (SG&A ratio 20.9%, +0.3pt from 20.6%), increasing fixed-cost burden amid flat sales. By segment, the Gas Business delivered Operating Income of ¥69.5B (margin 9.5%, +5.4% YoY) and drove consolidated profits through price pass-through and efficiency improvements. The Chemical Products Business posted Operating Income of ¥7.6B (margin 3.5%, -11.7% YoY) with margins pressured by raw material costs and market fluctuations. Other Businesses recorded an operating loss of ¥0.9B (previously ¥0.9B profit) and turned negative. Non-operating income of ¥14.9B (including Dividend income received ¥4.0B and Interest income received ¥0.8B) contributed to Ordinary Income of ¥69.5B (+4.6%). Extraordinary items (gain on sale of investment securities ¥3.2B, impairment losses ¥1.8B, etc.) resulted in a net ¥0.5B increase, and Profit Before Tax was ¥70.0B (YoY -2.4%). Income taxes of ¥22.9B (effective tax rate 32.7%) resulted in Net Income attributable to owners of the parent of ¥46.6B (-2.5%). In summary: flat Revenue, slight decline in Operating Income, higher Ordinary Income, and slight decrease in Net Income.
The Gas Business (Revenue ¥734.7B, share 74.5%) produced Operating Income of ¥69.5B (margin 9.5%), up +5.4% YoY, and was the primary earnings driver. Firm demand for dissolved acetylene and industrial gases, price pass-through, and a shift to higher value-added product mix improved profitability. The Chemical Products Business (Revenue ¥217.0B, share 22.0%) saw Operating Income of ¥7.6B (margin 3.5%), down -11.7% YoY. While adhesives and coatings sales slightly increased, rising raw material costs and market volatility compressed margins from 4.0% to 3.5% (-0.5pt), evidencing deteriorating profitability. Other Businesses (Revenue ¥35.1B, share 3.6%) posted an operating loss of ¥0.9B (margin -2.6%), turning from a prior-year profit to a loss. Reduced demand for LSI cards and RFID caused Revenue to fall -9.7%, increasing fixed-cost burden. Large profitability disparities across segments mean rising dependence on the Gas Business is a portfolio risk.
【Profitability】Operating margin of 5.9% narrowed by 0.1pt from 6.0%, with gross margin improvement to 26.8% (+0.2pt from 26.6%) offset by SG&A ratio rising to 20.9% (+0.3pt from 20.6%). ROE 4.7% (prior year 6.1%) declined due to higher equity and slightly lower Net Income, while ROA (on Ordinary Income basis) improved to 5.6% (prior year 5.4%, +0.2pt) from better asset efficiency and higher Ordinary Income. 【Cash Quality】Operating Cash Flow (OCF) ¥80.0B is 2.0x Net Income ¥39.7B, indicating high quality; OCF/EBITDA ratio 0.87x (benchmark 0.9x) slightly below benchmark but within temporary working capital fluctuation range. Accrual ratio -0.5% (=(Net Income ¥39.7B - OCF ¥80.0B)/Total Assets ¥1,233.8B) is healthy, demonstrating solid cash backing of profits. 【Investment Efficiency】Total Asset Turnover 0.80x (prior year 0.80x) is stable, with ample cash ¥275.4B and investment securities ¥168.9B capping turnover. Capital expenditures ¥44.2B were 1.34x depreciation ¥32.9B, supporting maintenance and growth investment, contributing to medium-term supply capacity and efficiency improvement. 【Financial Soundness】Equity Ratio 68.9% (prior year 64.1%, +4.8pt), Current Ratio 217.9% (prior year 219.4%, -1.5pt), D/E Ratio 0.08x (prior year 0.15x improved) indicate extremely robust financial position. Interest-bearing debt ¥63.8B (prior year ¥118.9B, -46.4%) was significantly reduced; Debt/EBITDA 0.70x (=(Short-term borrowings ¥15.4B + Long-term borrowings ¥53.0B - Cash ¥275.4B)/EBITDA ¥91.6B, net debt effectively negative), and Interest Coverage 69.0x (=Operating Income ¥58.7B / Interest expense ¥0.9B) indicates negligible interest burden.
OCF ¥80.0B (prior year ¥64.2B, +24.6%) was generated above Profit Before Tax ¥70.0B, aided by depreciation ¥32.9B (non-cash) and working capital improvements (change in trade receivables +¥5.3B, inventories +¥2.6B, trade payables -¥7.0B for net working capital change +¥0.9B). After absorbing tax payments ¥25.2B, OCF subtotal (before working capital changes) was robust at ¥100.7B. Investing Cash Flow was -¥44.5B (prior year -¥50.9B), driven primarily by capital expenditures ¥44.2B and acquisition of investment securities ¥0.8B, partially offset by recoveries from sales, etc. of ¥5.3B. Free Cash Flow (FCF) was ¥35.5B (prior year ¥13.6B, +161.0%), comfortably covering dividends ¥16.6B with FCF coverage 2.14x (=FCF ¥35.5B / Dividends ¥16.6B). Financing Cash Flow was -¥63.5B (prior year -¥10.9B), mainly due to repayment of long-term borrowings ¥50.4B and dividend payments ¥16.6B, partially offset by net increase in short-term borrowings +¥0.6B and new long-term borrowings ¥3.0B. Cash and cash equivalents at period-end were ¥260.3B (prior year ¥287.6B, -9.5%) but liquidity remains ample. OCF ¥80.0B covers dividends ¥16.6B and capital expenditures ¥44.2B (total ¥60.8B) by 1.32x, indicating sustainable cash generation.
Quality of earnings is generally good. Operating Income ¥58.7B is generated consistently from core Gas and Chemical Products businesses, with non-operating income ¥14.9B (1.5% of Revenue) supplementing Ordinary Income. Breakdown of non-operating income: Dividend income received ¥4.0B, Interest income received ¥0.8B, Other ¥9.3B, primarily dividends from investment securities and financial income, so dependence on excessively non-recurring items is limited. Extraordinary items produced net +¥0.5B (gain on sale of investment securities ¥3.2B, impairment losses ¥1.8B, other losses ¥0.3B), which is minor relative to Profit Before Tax ¥70.0B (0.7%). The ¥0.5B gap between Ordinary Income ¥69.5B and Profit Before Tax ¥70.0B indicates limited impact from one-off items. OCF ¥80.0B is 2.0x Net Income ¥39.7B and accrual ratio -0.5% is healthy, supporting solid cash backing of profits. Effective tax rate 32.7% (Income taxes ¥22.9B / Profit Before Tax ¥70.0B) is relatively high and structurally restrains Net Income growth. Comprehensive income ¥69.8B significantly exceeds Net Income ¥46.6B, mainly due to valuation differences on available-for-sale securities ¥22.5B, which are unrealized gains and distinct from realized profits. Overall, recurring operating profits form the foundation of earnings, one-off item impacts are limited, and cash generation is strong, so earnings quality is high.
Progress against Full Year guidance: Revenue 97.7% (¥986.8B / ¥1,010.0B), Operating Income 99.5% (¥58.7B / ¥59.0B), Ordinary Income 99.3% (¥69.5B / ¥70.0B), Net Income attributable to owners of the parent 101.3% (¥46.6B / ¥46.0B), indicating results largely in line with guidance. Revenue missed guidance by -2.3%, mainly due to larger-than-expected decline in Other Businesses. Operating Income and Ordinary Income missed by only -0.5% to -0.7%, with cost control and non-operating income supporting profitability. Net Income exceeded guidance by +1.3%, as extraordinary items and tax burden were within assumptions. Deviations from guidance were within ±3% for all items, confirming the accuracy and execution capability of company guidance. The company’s conservative guidance posture appears to be maintained.
Dividends were implemented at ¥40 annual (interim ¥20, year-end ¥20). Dividend payout ratio to EPS ¥84.43 was 47.4%, within an appropriate range (30–60%), and FCF coverage of dividends (FCF ¥35.5B / Dividends ¥16.6B) was 2.14x, indicating ample coverage. Cash and deposits ¥275.4B, Equity Ratio 68.9%, D/E Ratio 0.08x reflect a very strong financial base, supporting high sustainability of dividends. The prior year disclosed only a ¥10 interim dividend, so this fiscal year may represent an increase on an annual basis; total dividends increased from ¥11.0B last year to ¥16.6B this year, indicating a stable shareholder return stance. No share buyback was disclosed; shareholder returns are dividend-focused. Given ROE 4.7% at a low level, payout ratio 47.4% reflects a cautious return policy balancing retained earnings.
Concentration risk in the Gas Business: The majority of Operating Income depends on the Gas Business (¥69.5B, share 94.3%), making consolidated performance highly sensitive to market and demand fluctuations in that segment. Industrial gas demand ties to manufacturing activity and may face volume and price risk in economic downturns. Limited contribution from Chemical Products and Other Businesses reduces portfolio diversification benefits.
Declining profitability in Chemical Products: Operating margin at 3.5% (down -0.5pt from 4.0% prior year) shows vulnerability to rising raw material costs and market volatility. With Revenue ¥217.0B and Operating Income ¥7.6B, the thin margin structure raises concerns about business sustainability and capital efficiency if cost pass-through or absorption capacity weakens.
Deterioration in working capital efficiency: Trade receivables ¥174.4B versus Revenue ¥986.8B imply DSO of about 65 days, exceeding the 60-day benchmark and suggesting extended collection periods. Even after netting with trade payables ¥109.9B, working capital has an expanding tendency and could pressure OCF. Rising credit risk and declining capital efficiency are concerns.
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 5.9% | 7.8% (4.6%–12.3%) | -1.8pt |
| 純利益率 | 4.0% | 5.2% (2.3%–8.2%) | -1.2pt |
Both Operating margin and Net margin are below industry medians, placing profitability in the mid-to-lower range within the manufacturing sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | -0.3% | 3.7% (-0.4%–9.3%) | -4.0pt |
Revenue growth lags the industry median by 4.0pt, positioning growth capacity in the lower tier within the manufacturing sector.
※Source: Company compilation
Stable earnings power of the core Gas Business and strong financial base provide support: The Gas Business generating Operating Income ¥69.5B (+5.4% YoY), together with strong balance sheet metrics (Equity Ratio 68.9%, D/E Ratio 0.08x, Cash ¥275.4B), provide resilience in economic cycles. OCF ¥80.0B and FCF ¥35.5B provide capacity to fund dividends and investments, supporting sustainability of shareholder returns. However, ROE 4.7% is low, indicating significant room to improve capital efficiency.
Short-term watch items include declining profitability in Chemical Products and weakening working capital efficiency: The Chemical Products margin decline to 3.5% (from 4.0%) and DSO of approximately 65 days signal structural issues in both profitability and cash conversion. Volatility in raw material prices and the need to strengthen receivables management are key to short-term stability. Given high dependence on the Gas Business, delayed margin recovery in Chemical Products would increase portfolio risk.
This report is an earnings analysis automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by our firm based on publicly available financial statements. Investment decisions should be made at your own responsibility and, if necessary, after consulting a professional advisor.