| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥133.0B | ¥124.9B | +6.5% |
| Operating Income / Operating Profit | ¥13.1B | ¥14.0B | -7.1% |
| Ordinary Income | ¥13.1B | ¥14.6B | -10.2% |
| Net Income / Net Profit | ¥9.0B | ¥9.8B | -7.8% |
| ROE | 4.5% | 4.8% | - |
For Q1 of the year ending March 2026, Revenue was ¥133.0B (YoY +¥8.1B +6.5%), recording top-line growth, while Operating Income was ¥13.1B (YoY -¥0.9B -7.1%), Ordinary Income was ¥13.1B (YoY -¥1.5B -10.2%), and Quarterly Net Income attributable to owners of the parent was ¥9.0B (YoY -¥0.7B -7.8%), marking declines in profitability. Gross profit margin declined by 1.4pt from 23.4% to 22.0%. SG&A increased to ¥16.2B (YoY +¥1.4B +9.2%), outpacing revenue growth, and Operating Margin deteriorated by 1.4pt from 11.2% to 9.8%. The core OutSourcingService business performed steadily with Revenue of ¥122.0B (+6.7%) but its operating margin fell from 11.2% to 10.1%. The Global business saw Operating Income decline sharply by -39.8%, pressuring company-wide margins.
[Revenue] Revenue was ¥133.0B (YoY +6.5%), showing steady progress. By segment, the OutSourcingService business led growth with ¥122.0B (share 91.9%, YoY +6.7%). The Global business recorded ¥10.8B (share 8.1%, YoY +3.8%), remaining modest. Gross profit increased to ¥29.2B (prior year ¥28.9B), but gross profit margin fell 1.4pt from 23.4% to 22.0% due to rising cost of sales. Increases in personnel costs and subcontracting expenses likely pressured gross margin.
[Profitability] Operating Income declined to ¥13.1B (YoY -7.1%). SG&A was ¥16.2B (YoY +9.2%), outpacing revenue growth (+6.5%), raising SG&A ratio by 0.3pt from 11.9% to 12.2%. Increases in recruitment/training expenses and indirect costs compressed operating leverage. Operating margin worsened by 1.4pt from 11.2% to 9.8%. Non-operating items included interest received ¥0.1B and foreign exchange gains ¥0.2B, while foreign exchange losses ¥0.2B occurred, leaving net non-operating income at ¥0.1B. Ordinary Income was ¥13.1B (YoY -10.2%), and Profit Before Tax was ¥13.1B (YoY -10.2%). Income taxes were ¥4.1B (effective tax rate 31.1%), resulting in Quarterly Net Income attributable to owners of the parent of ¥9.0B (YoY -7.8%). Net profit margin fell 1.0pt from 7.8% to 6.8%. Overall, the company delivered higher revenue but lower profits.
The OutSourcingService business recorded Revenue ¥122.0B (YoY +6.7%), Operating Income ¥12.3B (YoY -3.7%), and Operating Margin 10.1% (down 1.1pt from 11.2%). Revenue expanded steadily, but profitability was hit by rising personnel and subcontracting costs. The Global business posted Revenue ¥10.8B (YoY +3.8%) but Operating Income fell to ¥0.9B (YoY -39.8%). Its Operating Margin plunged by 6.4pt from 14.5% to 8.1%, with upfront investments and changes in price mix significantly compressing profitability. The OutSourcingService business accounts for approximately 94% of consolidated Operating Income, so improving its profitability is key to corporate performance recovery.
[Profitability] Operating Margin was 9.8% (down 1.4pt from 11.2%), Net Profit Margin was 6.8% (down 1.0pt from 7.8%), and ROE was 4.5% (down 0.3pt from 4.8%), indicating deterioration across profitability metrics. The decline in gross margin and rise in SG&A ratio were the main drivers. [Cash Quality] Operating Cash Flow (OCF) data is undisclosed, but Accounts Receivable was ¥76.5B (YoY +¥3.7B +5.1%), broadly tracking revenue growth (+6.5%). Cash and deposits remained high at ¥137.3B (YoY -¥3.9B -2.8%). [Investment Efficiency] Total Asset Turnover annualized improved to 1.78x (prior year 1.70x). [Financial Soundness] Equity Ratio was 67.3% (down 2.2pt from 69.5%) and interest-bearing debt was ¥2.1B (short- and long-term combined), extremely light. Current ratio was 243.3% and quick ratio 243.1%, both very high, indicating no short-term liquidity concerns.
Cash flow statement data is undisclosed, but balance sheet trends were used to assess funds. Cash and deposits were ¥137.3B, a ¥3.9B decrease YoY, yet representing substantial liquidity equal to 45.8% of total assets. Accounts Receivable rose ¥3.7B to ¥76.5B, suggesting increased working capital needs with revenue expansion. Accounts Payable increased ¥1.3B to ¥3.6B (+55.2%), which may reflect changes in procurement/subcontracting terms or extended payment sites providing temporary cash retention. Bonus reserves rose ¥14.5B to ¥33.8B, indicating increased short-term liabilities due to higher personnel cost provisions. Deferred tax assets increased ¥5.6B (+76.6%) to ¥13.1B, showing expanded tax-effect accounting impact. Interest-bearing debt was minimal at ¥2.1B (short-term ¥2.1B), yielding very high interest coverage and negligible interest-burden risk. The company holds sufficient cash to fund dividends and growth investments, but improving receivables collection efficiency and optimizing working capital remain challenges to strengthen future cash generation.
Ordinary Income ¥13.1B and Operating Income ¥13.1B are nearly identical, indicating earnings are driven by core operations. Non-operating income totaled ¥0.4B (interest received ¥0.1B, forex gains ¥0.2B, etc.), and non-operating expenses were ¥0.3B (forex losses ¥0.2B, etc.), leaving net non-operating income contribution at ¥0.1B. Extraordinary items were minimal, with only ¥0.0B gain on sale of fixed assets. Comprehensive income was ¥9.2B (¥0.2B above quarterly net income ¥9.0B), contributed by ¥0.1B valuation gains on other securities and ¥0.1B foreign currency translation adjustments. The gap between comprehensive income and net income is small, indicating limited distortion from valuation changes. Earnings quality is healthy and core-driven, but declining gross and operating margins reduce the company's intrinsic earnings power.
Full Year guidance is maintained at Revenue ¥555.0B (YoY +5.4%), Operating Income ¥57.0B (YoY +5.6%), Ordinary Income ¥58.0B (YoY +4.6%), and Net Income attributable to owners of the parent ¥39.0B. Q1 progress ratios are: Revenue 24.0% (¥133.0B of ¥555.0B), Operating Income 23.0% (¥13.1B of ¥57.0B), Ordinary Income 22.6% (¥13.1B of ¥58.0B), and Net Income 23.1% (¥9.0B of ¥39.0B), indicating a broadly steady start. However, Q1 Operating Margin of 9.8% is 0.5pt below the FY forecast of 10.3%, meaning margin improvement in Q2 and beyond is a precondition for achieving the full-year guidance. Containing SG&A growth, improving utilization rates, and price adjustments are required to restore margins.
At the end of Q1, the dividend forecast is a year-end dividend of ¥54 per share (post stock split), representing an increase from the prior year’s total dividend of ¥47. The payout ratio versus full-year EPS of ¥66.27 is approximately 81.5%, a high level. The dividend forecast reflects a stock split effective July 1, 2026, of 1 share into 3 shares. Strong financial position with Cash and deposits ¥137.3B and interest-bearing debt ¥2.1B supports dividend continuity, but the high payout ratio leaves limited margin for safety if earnings weaken. Sustained earnings growth and cash generation are prerequisites for a stable dividend.
Continued margin pressure: Gross profit margin declined 1.4pt YoY and SG&A ratio rose 0.3pt, resulting in Operating Margin deterioration to 9.8% (prior year 11.2%). Rising personnel and subcontracting costs compressed gross margin, while recruitment/training SG&A rose faster (+9.2%) than revenue growth (+6.5%). The Global business’s Operating Margin dropped sharply to 8.1% (from 14.5%), and delayed profitability recovery there could postpone company-wide margin restoration.
Segment concentration: The OutSourcingService business accounts for 91.9% of Revenue and about 94% of Operating Income, creating a high concentration. Demand swings, price declines, or utilization drops in this core business would materially affect consolidated results. Limited diversification reduces resilience to changes in the main business environment.
Working capital efficiency: Accounts Receivable increased to ¥76.5B (YoY +5.1%), and Accounts Payable rose significantly to ¥3.6B (+55.2%). While higher payables may indicate temporary cash retention or changed payment terms, sustainability is uncertain. Continued lengthening of receivable collection or rising working capital needs could weaken operating cash generation and affect the stable funding of dividends and growth investments.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 9.8% | 6.2% (4.2%–17.2%) | +3.6pt |
| Net Profit Margin | 6.8% | 2.8% (0.6%–11.9%) | +4.0pt |
Profitability is well above the industry median, placing the company in the upper range within the sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 6.5% | 20.9% (12.5%–25.8%) | -14.4pt |
Revenue growth is well below the industry median, placing the company in the lower-growth group within the sector.
※Source: Company compilation
Priority is improving core business profitability: With the OutSourcingService business accounting for 94% of Operating Income and its Operating Margin falling from 11.2% to 10.1%, measures such as utilization improvement, price correction, and efficiency in recruitment/training costs will be key to achieving FY guidance from Q2 onward. The Global business’s Operating Margin plunged to 8.1% (from 14.5%); progress in margin recovery there will significantly affect portfolio-wide profitability.
Balancing financial soundness and dividend policy: A robust balance sheet—Equity Ratio 67.3%, Cash ¥137.3B, Interest-bearing debt ¥2.1B—supports dividend continuity. However, a payout ratio of about 81.5% is high, leaving limited safety in case of downside. Improving working capital efficiency (e.g., stabilizing receivable collection) to enhance cash generation is essential to sustain both stable dividends and growth investments.
This report was automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in specific securities. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your own responsibility; consult a professional advisor as needed.