ASIA PILE HOLDINGS CORPORATION FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥53.88B
• Operating Income: ¥5.44B
• Net Income: ¥1.05B
• EPS: ¥108.58

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

Asia Pile Holdings (52880) delivered a strong FY2026 Q2 (cumulative) performance under JGAAP on a consolidated basis, with clear margin recovery and operating leverage. Revenue increased 17.9% YoY to ¥53.885bn, while operating income surged 217.8% YoY to ¥5.437bn, lifting operating margin to roughly 10.1%. Net income rose 231.0% YoY to ¥4.135bn, translating to a net margin of 7.67%, underscoring substantial profitability improvement beyond the topline growth. Gross profit was ¥6.79bn, implying a gross margin of 12.6%; the gap to operating income shows tight SG&A discipline (~¥1.35bn, about 2.5% of sales). Ordinary income (¥5.442bn) tracked operating income closely, indicating limited drag from non-operating items despite reported interest expense of ¥319m. The DuPont breakdown indicates ROE of 7.96% derived from a 7.67% net margin, 0.539x asset turnover, and 1.92x financial leverage. The balance sheet appears solid: total assets ¥99.885bn, equity ¥51.965bn, implying an equity ratio of about 52% (the listed 0% is clearly an unreported placeholder). Liquidity is healthy with a current ratio of 1.62x and quick ratio of 1.45x supported by modest inventories (¥6.76bn). Interest coverage is comfortable at ~17x, reflecting the rebound in operating earnings. While cash flow statements are unreported in this disclosure (zeros are placeholders), the earnings trajectory suggests improved cash generation potential if working capital is well managed. EPS is ¥108.58 on a cumulative basis, though share count and DPS are not disclosed here, limiting per-share and payout analysis. Effective tax rate appears closer to ~12.8% (¥698m tax on ~¥5.44bn pre-tax) rather than the 0% shown in the calculated metrics. The sharp YoY profit expansion likely reflects better project mix, improved pricing/pass-through of input costs (notably steel), and operating leverage on rising volumes. Balance sheet strength provides resilience against project timing swings typical for foundation and civil engineering players. Key data limitations include the absence of cash flow figures, capex, share count, and dividend information, which constrains cash conversion, FCF, and capital return assessment.

Profitability Analysis

ROE_decomposition: ROE 7.96% = Net Profit Margin 7.67% × Asset Turnover 0.539 × Financial Leverage 1.92. The improvement is driven primarily by margin expansion rather than leverage, as leverage is moderate and asset turnover is steady at about 0.54x on this cumulative basis. margin_quality: Gross margin is 12.6% (¥6.79bn/¥53.885bn). Operating margin is 10.1% (¥5.437bn/¥53.885bn), indicating tight SG&A control (¥1.35bn or 2.5% of sales). Net margin is 7.67%. The small gap between operating and ordinary income suggests limited non-operating drag despite ¥319m interest expense. operating_leverage: Operating income grew +217.8% YoY on +17.9% revenue, evidencing strong operating leverage from scale and likely better project pricing/mix. With gross margin only moderately above operating margin, further leverage will depend on sustained volume and disciplined SG&A.

Growth Assessment

revenue_sustainability: Topline growth of +17.9% YoY likely reflects a recovery in domestic civil engineering/foundation demand and improved execution. Sustainability will depend on order intake, backlog quality, and the cadence of public/private infrastructure spending. profit_quality: Profit expansion was driven by margin gains and cost discipline. Ordinary income closely tracking operating income implies core operations are the main driver. The implied effective tax rate (~12.8%) is reasonable; no outsized non-recurring items are evident from the provided data. outlook: If order momentum persists and the company continues passing through raw material costs (especially steel) while maintaining utilization, margins could remain elevated. However, normalization risks remain in H2 due to project timing, competitive bidding, and potential raw material volatility. Monitoring backlog, pricing, and input cost trends is essential.

Financial Health

liquidity: Current ratio 161.6% and quick ratio 144.8% indicate ample short-term liquidity. Working capital is ¥24.721bn, supported by modest inventories of ¥6.755bn. solvency: Total equity ¥51.965bn vs. total assets ¥99.885bn implies an equity ratio of ~52% (reported 0% is unreported). Interest coverage of ~17x demonstrates comfortable debt service capacity. capital_structure: Debt-to-equity is listed at 0.93x (likely using total liabilities/equity: ¥48.081bn/¥51.965bn). Leverage is moderate, with a conservative equity base providing cushion against operating volatility.

Cash Flow Quality

earnings_quality: With OCF unreported in this dataset, we cannot compute OCF/NI. However, the closeness of operating to ordinary income suggests limited reliance on non-operating gains. FCF_analysis: Free cash flow is unreported. Without capex and OCF, FCF coverage of dividends cannot be assessed. Given the working-capital-heavy nature of the business, cash conversion will hinge on receivables collection and project billing. working_capital: Current assets of ¥64.862bn vs. current liabilities of ¥40.141bn provide a buffer. Inventories are modest relative to sales. Monitor receivables and unbilled revenue (not disclosed here) for cash conversion.

Dividend Sustainability

payout_ratio_assessment: EPS is ¥108.58, but DPS and payout are unreported in this disclosure (the 0 values are placeholders). Therefore, payout ratio cannot be reliably assessed. FCF_coverage: Not assessable due to unreported OCF and capex. Dividend sustainability depends on actual cash generation, which is not provided. policy_outlook: With stronger earnings and a solid equity base, capacity for shareholder returns likely improved versus last year. Any policy changes should be evaluated when official DPS and cash flow data are available.

Risk Assessment

Business Risks:

• Cyclical exposure to domestic construction and civil engineering activity
• Raw material price volatility, especially steel, and timing of cost pass-through
• Project execution risk and potential cost overruns
• Order timing and backlog visibility affecting quarterly volatility
• Competitive bidding pressure compressing margins
• Labor availability and subcontractor capacity constraints
• Regulatory and safety risks inherent to foundation works

Financial Risks:

• Working capital swings impacting cash conversion and funding needs
• Interest rate exposure on borrowings amid changing rate environment
• Concentration risk if large projects dominate receivables
• Potential tax rate normalization from ~12–13% toward statutory levels

Key Concerns:

• Absence of cash flow disclosure limits assessment of earnings-to-cash conversion
• Sustainability of recently expanded margins in a competitive environment
• Sensitivity to steel price movements and pass-through effectiveness

Investment Implications

Key Takeaways:

• Material YoY profit recovery with operating margin ~10.1% and net margin 7.67%
• ROE of 7.96% on moderate leverage (1.92x) and improved margin profile
• Healthy liquidity (current ratio 1.62x; quick ratio 1.45x) and strong equity ratio (~52%)
• Interest coverage ~17x underscores improved debt service capacity
• Cash flow data unreported; cash conversion remains the main unknown

Metrics to Watch:

• Order intake and backlog trajectory
• Gross margin per project and price pass-through of steel costs
• OCF/Net income and working capital turns (receivables, unbilled, payables)
• Capex and resulting FCF
• Tax rate trend and non-operating income/expense
• Leverage (net debt/EBITDA when disclosed) and interest coverage

Relative Positioning: Within Japan’s foundation and civil engineering peer set, Asia Pile currently exhibits stronger profitability momentum and solid balance sheet metrics, though visibility on cash conversion and capital return remains limited pending full cash flow and dividend disclosures.

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