| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥50.4B | ¥67.1B | -24.9% |
| 営業利益 | ¥2.2B | ¥15.3B | -85.9% |
| 経常利益 | ¥3.9B | ¥17.0B | -77.2% |
| 純利益 | ¥1.6B | ¥11.4B | -86.0% |
| ROE | 0.8% | 5.6% | - |
In Q1 of FY2026, the company recorded Revenue of ¥50.4B (YoY -¥16.7B -24.9%), Operating Income of ¥2.2B (YoY -¥13.2B -85.9%), Ordinary Income of ¥3.9B (YoY -¥13.1B -77.2%), and Net Income of ¥1.6B (YoY -¥9.8B -86.0%), representing a sharp decline in both sales and profits. The core Pharmaceutical Dispensing Systems Business saw initial revenue decline leading to Revenue down 25.8% YoY, and Selling, General & Administrative Expenses (SG&A) of ¥20.8B imposed a heavy fixed-cost burden, causing the Operating Margin to plunge to 4.3% (down 18.5pt from 22.8% in the prior-year period). Non-operating income of ¥2.9B provided some support to profit, but Special Losses of ¥1.0B (including impairment of ¥0.97B) and a high effective tax rate of 44.1% substantially compressed Net Income, leaving Net Margin at 3.2% (down 13.9pt from 17.0% in the prior-year period). Progress against the Full Year plan (Revenue ¥227.6B, Operating Income ¥33.2B) was 22.1% for Revenue and 6.5% for Operating Income, well below standards, implying that recovery reliant on a back-loaded second half is assumed.
[Revenue] Revenue was ¥50.4B (YoY -24.9%), a significant decline. The primary cause was a sharp drop in initial revenues to ¥19.9B; subscription/recurring revenue of ¥21.4B (YoY +¥0.9B) remained steady but could not offset the overall decrease. By segment, the Pharmaceutical Dispensing Systems Business generated Revenue of ¥40.7B (composition ratio 80.8%) and decelerated sharply by -25.8% YoY, serving as the main driver of the company-wide decline. The Medical Systems Business recorded Revenue of ¥5.9B (YoY -28.8%), a double-digit decline, while the Nursing care/Welfare IT Systems recorded ¥1.3B (YoY +4.7%) slight increase but remained small in scale. The slowdown in core initial revenue was due to variability in renewal cycles and timing shifts of implementations; high concentration (dispensing systems ≈80% of Revenue) amplified company-level volatility.
[Profitability] Gross margin fell to 45.5% (prior-year period 56.0%), down 10.5pt, with higher cost of sales pressuring profitability. SG&A was ¥20.8B (YoY -¥1.5B -6.7%) and decreased, but showed low elasticity relative to the Revenue decline, causing Operating Margin to fall sharply to 4.3% (from 22.8% in the prior-year period, -18.5pt). The high fixed-cost nature of SG&A triggered reverse operating leverage, and Operating Income declined substantially to ¥2.2B (YoY -85.9%). On the non-operating front, Non-operating Income totaled ¥2.9B including Interest Income of ¥0.1B, and after subtracting Non-operating Expenses of ¥1.2B, Ordinary Income was ¥3.9B (YoY -77.2%). Special Losses of ¥1.0B, centered on impairment losses of ¥0.97B, compressed Profit Before Tax to ¥2.9B. Corporate taxes of ¥1.3B (effective tax rate 44.1%) imposed a heavy tax burden, and after deducting Non-controlling Interests of ¥0.1B, Net Income was ¥1.6B (YoY -86.0%). In conclusion, sharp decline in initial revenues combined with the fixed-cost nature of SG&A resulted in a large drop in both Revenue and profit.
The Pharmaceutical Dispensing Systems Business reported Revenue of ¥40.7B (YoY -25.8%) and Operating Income of ¥3.7B (YoY -74.4%), deteriorating the segment margin to 9.2% (from 26.6% in the prior-year period, -17.4pt). The decline in initial revenues in the core business dragged company performance, and the heavy fixed-cost burden pressured margins. The Medical Systems Business recorded Revenue ¥5.9B (YoY -28.8%) and an Operating Loss of ¥1.7B (turned from Operating Income of ¥1.2B in the prior-year period), with segment margin deteriorating to -28.7%. Cost structure adjustments lagged the Revenue decline, widening the deficit. The Nursing care/Welfare IT Systems achieved Revenue ¥1.3B (YoY +4.7%) small increase, but continued to post an Operating Loss of ¥0.8B (segment margin -57.1%). During the period, the company acquired Conduct Co., Ltd. as a consolidated subsidiary via M&A, generating provisional goodwill of ¥3.4B, but short-term profitability has not yet been achieved. Margin deterioration in the core dispensing systems and losses in the two non-core segments significantly diluted company-level profitability.
[Profitability] Operating Margin was 4.3% (prior-year period 22.8%), deteriorating by 18.5pt, mainly due to a 10.5pt decline in Gross Margin and the fixed-cost nature of SG&A. Net Margin declined to 3.2% (prior-year period 17.0%), down 13.9pt, with high tax burden (effective tax rate 44.1%) and Special Losses of ¥0.97B pressuring Net Income. ROE declined to 0.8% (prior-year period 5.6%), largely driven by the sharp drop in Net Margin. [Cash Quality] Accounts Receivable stood at ¥30.6B, equivalent to DSO of 222 days against quarterly Revenue of ¥50.4B, indicating prolongation; Inventory was ¥5.0B with Inventory Days of 66 and CCC of 124 days, confirming deterioration in working capital efficiency. Contract liabilities of ¥8.0B indicate advance collections, but in a slowdown scenario they pose cancellation risk. [Investment Efficiency] Total Asset Turnover on an annualized basis was 0.77x (prior-year period 0.98x), reflecting the Revenue decline. Goodwill increased to ¥23.4B (prior-year period ¥20.6B) due to M&A, but the Goodwill/Equity ratio remains at a healthy 12.2%. [Financial Soundness] Equity Ratio was 72.9% (prior-year period 74.2%), remaining high; interest-bearing debt consisted of Long-term Borrowings ¥2.6B and total interest-bearing debt ¥7.2B including short-term borrowings, yielding a Debt/Equity ratio of 3.8%, extremely conservative. Cash and deposits were ¥71.3B, Current Ratio 205.3%, Quick Ratio 196.4%, indicating ample short-term liquidity.
While the cash flow statement is not disclosed, funding trends can be inferred from balance sheet movements. Cash and deposits decreased by ¥7.1B to ¥71.3B (prior-year period ¥78.5B), likely driven by Revenue decline and working capital stagnation. Accounts Receivable slightly decreased to ¥30.6B (prior-year period ¥32.1B), but remained high with DSO of 222 days against quarterly Revenue of ¥50.4B, indicating prolonged collection periods that strain cash conversion. Inventory increased by ¥0.4B to ¥5.0B (prior-year period ¥4.6B) with Inventory Days of 66, maintaining material cash tie-up. Contract liabilities (advance-receipt-like) were ¥8.0B (prior-year period ¥8.2B), roughly flat, and the advance collection structure from subscription-type revenues supports cash stability. Long-term borrowings rose sharply to ¥2.6B from ¥0.05B a year earlier, likely a temporary funding for M&A and working capital, but with total interest-bearing debt ¥7.2B against cash and deposits ¥71.3B, the net cash position is maintained. Accounts Payable increased slightly to ¥12.3B (prior-year period ¥11.8B), and accrued expenses and other current liabilities decreased to ¥12.5B (prior-year period ¥13.6B), indicating progress in intra-period settlements. Cash generation from operating activities remains low given Net Income of ¥1.6B, and improving working capital efficiency (accelerating receivables collection, optimizing inventory) is key to improving liquidity.
Ordinary earnings are reflected in Gross Profit of ¥22.9B and Operating Income of ¥2.2B as core earning power. However, Non-operating Income of ¥2.9B is large relative to Revenue (5.8%) and is about 1.3x Operating Income, underpinning Ordinary Income of ¥3.9B, indicating high dependence on non-operating items. Non-operating Expenses of ¥1.2B are effectively near-zero interest burden and healthy, but the sustainability of Non-operating Income is limited. Of Special Losses ¥1.0B, impairment losses of ¥0.97B were booked; while this is considered a one-off factor, its impact on asset efficiency and future profit-generating ability should be monitored. Comprehensive Income was ¥2.7B (Net Income ¥1.6B plus ¥1.1B), with Other Comprehensive Income from valuation differences on available-for-sale securities of ¥0.8B and foreign currency translation adjustments of ¥0.3B contributing, indicating reasonable profit on a comprehensive-income basis. The gap between Ordinary Income and Net Income is large at -59.0%, primarily due to the high effective tax rate of 44.1% and Special Losses, meaning weak core profitability heavily affected Net Income. High Accounts Receivable and prolonged CCC of 124 days raise accrual-related concerns, and attention to cash backing of earnings is warranted.
Full Year forecast: Revenue ¥227.6B (YoY -3.8%), Operating Income ¥33.2B (YoY -9.8%), Ordinary Income ¥39.4B (YoY -8.7%), EPS forecast ¥31.69. Q1 progress rates were Revenue 22.1%, Operating Income 6.5%, Ordinary Income 9.8%, Net Income 7.1%, all substantially below a standard Q1 progress rate of 25%. In particular, Operating Income progress is low, and achieving the Full Year targets depends on a substantial recovery in initial revenues in the second half, continued buildup of subscription/maintenance revenue, and margin improvement through cost optimization. The company has revised its earnings forecast this quarter, and the market should closely monitor the assumed back-loaded scenario and actual progress.
Dividends are forecast at ¥5.00 per share annually, implying a Payout Ratio of 15.8% against Full Year EPS forecast of ¥31.69, a conservative level. This is a substantial cut from the prior-year annual dividend of ¥17.00, reflecting earnings deterioration. With Cash and Deposits of ¥71.3B and effectively net-debt-free position (cash ¥71.3B vs. interest-bearing debt ¥7.2B), financial resilience is high and dividend funding capacity is sufficient. Given the low payout ratio and a strong balance sheet, the risk of further dividend cuts is limited even with low profit progress. No share buybacks or total return measures have been announced at this time, consistent with a policy prioritizing growth investment and M&A capacity.
Segment concentration risk: Pharmaceutical Dispensing Systems accounts for 80.8% of Revenue, and variability in its initial revenue cycle or project delays directly affect company performance. Deceleration in the core business triggered reverse operating leverage, with Operating Margin plunging from 22.8% to 4.3%. High concentration amplifies performance volatility.
Deterioration in working capital efficiency: Accounts Receivable DSO 222 days and CCC 124 days indicate prolonged working capital stagnation, reducing cash conversion efficiency. Contract liabilities of ¥8.0B provide stability as advance receipts but pose cancellation/reduction risk in a Revenue slowdown. Delay in compressing working capital constrains cash-generation capacity.
Continued deficits in non-core segments: The Medical Systems Business (Operating Loss ¥1.7B, Margin -28.7%) and Nursing care/Welfare IT Systems (Operating Loss ¥0.8B, Margin -57.1%) continue to post losses and dilute company margins. Recovery of goodwill ¥3.4B from the M&A in the care/welfare area requires achieving profitability; delays in realizing integration synergies pose impairment risk.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 4.3% | 6.2% (4.2%–17.2%) | -1.9pt |
| 純利益率 | 3.2% | 2.8% (0.6%–11.9%) | +0.4pt |
Operating Margin is 1.9pt below the industry median, with fixed SG&A and initial revenue slowdown pressuring profitability. Net Margin is 0.4pt above the median, but this is driven by support from non-operating income and has limited sustainability.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | -24.9% | 20.9% (12.5%–25.8%) | -45.9pt |
Revenue growth rate underperforms the industry median by 45.9pt, reflecting a notable temporary slowdown in the core business. The company ranks in the lower tier within the industry, and second-half recovery will be the inflection point for valuation.
※Source: Company compilation
Q1 showed Revenue -24.9% and Operating Income -85.9%, with Operating Margin plunging from 22.8% to 4.3%. The slowdown in initial revenues in the core Pharmaceutical Dispensing Systems Business (Revenue composition 80.8%) drove company performance, and the fixed nature of SG&A reversed operating leverage. Non-operating Income of ¥2.9B (1.3x Operating Income) supported profits, but sustainability is limited; core recovery requires reacceleration of initial revenues and accumulation of subscription/recurring charges.
Progress against Full Year plan is weak: Revenue 22.1% and Operating Income 6.5% of the annual plan, well below the standard 25%, making a back-loaded recovery in the second half a prerequisite. Working capital efficiency is deteriorating (DSO 222 days, CCC 124 days), and accelerating receivables collection and optimizing inventory to improve cash conversion are key issues. Conversely, Equity Ratio 72.9%, Cash and Deposits ¥71.3B, and Interest-bearing Debt ¥7.2B indicate an extremely strong financial base, providing high downside resilience and limiting dividend-cut risk given the low Payout Ratio of 15.8%.
Non-core Medical and Nursing care/Welfare segments continue to post losses (combined Operating Loss ¥2.5B), diluting company margins, and the ¥3.4B goodwill from M&A requires profitability to be recovered. The ability to achieve Full Year targets hinges on recovery in the core order intake and progress in monetizing non-core segments; how much the second-half recovery can offset first-half weakness will be the decisive factor in evaluation.
This report was automatically generated by AI analyzing XBRL financial statement data and is a financial analysis document. It does not constitute a recommendation to invest in specific securities. Industry benchmarks are reference information compiled by the company based on public financial statement data. Investment decisions are your responsibility; please consult professionals as necessary before making any investment decisions.