| Metric | This Period | Prior Year Same Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥2362.8B | ¥2284.2B | +3.4% |
| Operating Income / Operating Profit | ¥155.7B | ¥147.3B | +5.7% |
| Ordinary Income | ¥176.3B | ¥147.8B | +19.3% |
| Net Income / Net Profit | ¥126.4B | ¥131.7B | -4.0% |
| ROE | 10.5% | 11.6% | - |
For the fiscal year ended March 2026 (Full Year), Revenue was ¥2,362.8B (YoY +¥78.6B +3.4%), Operating Income was ¥155.7B (YoY +¥8.4B +5.7%), Ordinary Income was ¥176.3B (YoY +¥28.5B +19.3%), and Net Income attributable to owners of the parent was ¥126.4B (YoY -¥5.2B -4.0%). While top-line and operating/ordinary profits increased, Net Income decreased due to the absence of last year’s extraordinary gains (gain on sale of available-for-sale securities, etc., ¥39.97B). Operating margin improved to 6.6% (up +0.2pt from 6.4% a year ago), and gross margin improved to 27.7% (up +0.3pt from 27.4%), indicating steady profitability improvements. Non-operating items, notably foreign exchange gains of ¥14.2B, contributed to a significant increase at the ordinary income level. By segment, Shutter-related products (Revenue +1.1%, Operating Income +4.2%) remained the core, and the Services business (Revenue +5.1%, Operating Income +4.9%, margin 17.5%) drove high-profit growth. Geographically, domestic accounted for 88.9%, supported by steady domestic construction demand.
[Revenue] Revenue of ¥2,362.8B (YoY +3.4%) achieved moderate growth. By segment, Shutter-related products amounted to ¥941.9B (+1.1%) with stable demand; Building Materials-related products were ¥935.1B (+3.9%) benefiting from recovery in non-residential door and partition demand; Services was ¥325.9B (+5.1%) with strong maintenance and repair of existing installations driving high growth; Renovation was ¥69.4B (+6.7%) accelerating due to recovery in residential equipment replacement demand; Others were ¥90.4B (+16.8%), a large increase including the impact of segment reclassification for the heat-shielding business. By region, Domestic was ¥2,099.9B (+4.9%), while Australia was ¥220.2B (-7.6%), showing local demand slowdown even excluding FX effects. Contract liabilities (advance receipts) were ¥40.3B (from ¥45.0B prior year, -10.4%), slightly reduced, suggesting short-term shifts in order timing.
[Profit & Loss] Cost of sales was ¥1,709.0B (72.3% of sales, improved -0.3pt from 72.6% prior year), and Gross Profit was ¥653.9B (Gross margin 27.7%, +0.3pt) improved due to price revisions and favorable product mix. SG&A was ¥498.2B (21.1% of sales, up +0.2pt from 20.9% prior year, YoY +4.3%), partially offsetting operating leverage. Increase in administrative expenses including goodwill amortization of ¥10.4B was limited, resulting in Operating Income of ¥155.7B (Operating margin 6.6%, +0.2pt). Non-operating income included interest income ¥1.1B, equity in earnings of affiliates ¥5.4B, and foreign exchange gains ¥14.2B; non-operating expenses included interest expense ¥5.7B and foreign exchange losses ¥7.7B. Net non-operating income expanded substantially to ¥20.5B (prior year ¥5.1B). Extraordinary items were net +¥1.5B (Extraordinary gains ¥3.0B, Extraordinary losses ¥1.5B), minor, but a reaction to prior year extraordinary gains of ¥39.97B. Profit before tax was ¥177.7B (-4.7%), income taxes ¥51.3B (effective tax rate 28.9%), resulting in Net Income attributable to owners of the parent of ¥126.4B (-4.0%). In summary: revenue, operating and ordinary income increased, while net income declined due to one-off factors.
The Shutter-related products segment recorded Operating Income of ¥101.2B (prior year ¥97.1B, +4.2%), with margin 10.7% (up +0.6pt from 10.1%), maintaining stable profitability as the core segment. Building Materials-related products posted Operating Income of ¥36.1B (prior year ¥34.2B, +5.4%), margin 3.9% (slightly up +0.1pt from 3.8%), still low-margin but achieved profit growth alongside sales increases. Services recorded Operating Income of ¥57.1B (prior year ¥54.4B, +4.9%), margin 17.5% (slightly down -0.1pt from 17.6%), sustaining high profitability and driving consolidated margins. Renovation posted Operating Income of ¥1.2B (prior year ¥0.5B, +144.7%), a small but large improvement. Others recorded Operating Income of ¥15.6B (prior year ¥14.6B, +6.7%), margin 17.3% (down -1.6pt from 18.9%), remaining solid including impact of transfer of heat-shielding business. After corporate adjustments of -¥55.4B (prior year -¥53.5B), consolidated Operating Income was ¥155.7B.
[Profitability] Operating margin was 6.6% (up +0.2pt from 6.4%), Net profit margin was 5.4% (down -0.4pt from 5.8%); operating-level performance improved, but net profit was affected by loss of extraordinary gains. ROE was 10.5% (down -1.6pt from 12.1%) due to increased equity, but remains at a healthy level. ROA (on ordinary income basis) was 8.6% (up +1.4pt from 7.2%), indicating improved asset efficiency. [Cash Quality] Operating Cash Flow / Net Income was 0.79x, indicating weak cash generation relative to net income, mainly due to deterioration in working capital from accounts payable decrease and inventory increase. OCF/EBITDA was 0.48x (EBITDA base ¥211.2B), low compared with industry leaders, indicating significant room to improve working capital efficiency. [Investment Efficiency] Total asset turnover was 1.149x (improved from 1.114x prior year), Days Sales Outstanding 68 days (improved -5 days from 73), but Days Payable Outstanding shortened to 25 days (from 35, -10 days), pressuring working capital. [Financial Soundness] Equity Ratio was 58.4% (up +3.1pt from 55.3%), Interest-bearing debt ¥28.0B (net interest-bearing debt excluding corporate bonds ¥100.0B was -¥344.0B, effectively debt-free), Debt/EBITDA 0.13x, Interest Coverage 27.2x, indicating an extremely solid financial base. Current ratio 231.9%, Quick ratio 210.8% show sufficient short-term liquidity; Cash and deposits ¥372.0B are about 7.5 times short-term liabilities.
Operating Cash Flow was ¥100.1B (YoY -8.8%), indicating weak cash generation relative to Profit before tax ¥177.7B. Operating CF subtotal was ¥163.3B (prior year ¥151.2B), but significant decrease due to working capital changes: decrease in accounts payable -¥72.7B (prior year -¥97.4B), increase in inventories -¥8.3B (prior year +¥2.8B), and corporate tax payments -¥62.7B. Investing CF was -¥31.6B, with capital expenditures -¥32.1B (prior year -¥48.1B) at a restrained yet maintenance-and-replacement level, and proceeds from sale of securities +¥1.9B contributing positively. Financing CF was -¥99.0B, mainly dividend payments -¥56.0B, share buybacks -¥20.1B, lease repayments -¥14.1B, and long-term borrowings repayments -¥8.7B. Free Cash Flow was ¥68.5B (prior year ¥72.3B, -5.3%), covering dividend payments, but total shareholder returns including buybacks (~¥76B) slightly exceeded FCF, resulting in cash balance decline of -¥29.9B. Considering depreciation ¥54.6B and EBITDA ¥211.2B, OCF/EBITDA was 0.48x; improving accounts payable management and inventory efficiency is a key future priority.
Operating Income ¥155.7B is the core of earnings; Non-operating income ¥28.7B (1.2% of sales) is limited. Breakdown of non-operating income: foreign exchange gains ¥14.2B, dividend income ¥3.4B, equity in earnings of affiliates ¥5.4B; foreign exchange gains include one-off elements. Non-operating expenses ¥8.1B (interest expense ¥5.7B, foreign exchange losses ¥7.7B, etc.) deducted leaves net non-operating income ¥20.5B, equivalent to 13.2% of Operating Income, contributing to Ordinary Income. Extraordinary items net +¥1.5B (extraordinary gains ¥3.0B, extraordinary losses ¥1.5B) were small; absence of prior year extraordinary gains ¥39.97B reduced Net Income this period, but the recurring earnings structure remains sound. Operating CF ¥100.1B / Net Income ¥126.4B = 0.79x; Accrual ratio (Net Income - Operating CF)/Total Assets = 1.3% indicates small distortions in accruals, but working capital deterioration has suppressed cash conversion. Comprehensive income was ¥141.8B (Net Income ¥126.4B + Other Comprehensive Income ¥15.4B), with valuation difference on available-for-sale securities ¥16.5B and actuarial differences on retirement benefits ¥4.8B contributing positively, indicating good quality of net assets.
Company plan for the fiscal year ending March 2027 projects Revenue ¥2,500B (YoY +5.8%), Operating Income ¥188B (YoY +20.8%), Ordinary Income ¥195B (YoY +10.6%). The plan assumes improvement in Operating margin to 7.5% (from 6.6%, +0.9pt), relying on continued price revisions, improved product mix (maintaining Services proportion, profitability improvement in Building Materials), and SG&A efficiency. Current period progress (Operating Income basis) is ¥155.7B/¥188B = 82.8%; to add the remaining roughly ¥32B, maintaining gross margins and controlling SG&A are essential. Securing sustainable ordinary income excluding FX effects is the focal point, and recovery in Operating CF generation via working capital efficiency improvements will underpin achievement. Order backlog (contract liabilities ¥40.3B) trends and control of SG&A ratio will serve as leading indicators of progress.
Annual dividend ¥74 per share (interim ¥37, year-end ¥37 forecast), Payout Ratio 40.0% (historically stable in the 40% range), within a sustainable range. Dividend total about ¥56B covered by FCF ¥68.5B gives coverage of approx. 1.2x, sufficient. Share buybacks of ¥20.1B were executed, bringing total returns to approx. ¥76B (Total Return Ratio 60.1%), slightly exceeding FCF, but cash and deposits ¥372.0B and effectively no net debt provide flexibility for the near term. Next fiscal year dividend forecast ¥37 (annualized ¥74 assumed) implies a payout ratio of about 40% against projected Net Income ¥130B, indicating a maintained stable policy. Dividend-only returns are sustainable; share buybacks are expected to be executed opportunistically.
Risk of deterioration in working capital efficiency: Shortening of Days Payable Outstanding (35 days → 25 days) and inventory increases have reduced Operating CF/Net Income to 0.79x and OCF/EBITDA to 0.48x, lagging industry leaders. Failure to optimize working capital management could pressure the sustainability of total shareholder returns and cash generation.
Risk of delayed cost control: SG&A growth +4.3% exceeded revenue growth +3.4%, partially offsetting operating leverage. Achieving next-year Operating margin target of 7.5% (+0.9pt) requires containment of SG&A ratio; ongoing pressures on personnel and administrative costs could delay margin improvement.
Dependency on FX and one-off gains risk: Foreign exchange gains ¥14.2B (equivalent to 9.1% of Operating Income) contributed to ordinary income uplift but are not a sustainable driver. A reversal in FX conditions could slow ordinary income growth, introducing uncertainty in achieving next-year ordinary income plan ¥195B (+10.6%).
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 6.6% | 7.8% (4.6%–12.3%) | -1.2pt |
| Net Profit Margin | 5.4% | 5.2% (2.3%–8.2%) | +0.2pt |
Operating margin is 1.2pt below the industry median, while Net profit margin is 0.2pt above median, placing the company around the industry median overall.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 3.4% | 3.7% (-0.4%–9.3%) | -0.3pt |
Revenue growth rate is 0.3pt below the industry median, placing growth slightly below median.
※ Source: Company compilation
Operating margin improved steadily to 6.6% (+0.2pt), with high-margin Services (17.5%) driving consolidated profitability. Achieving next-year target of 7.5% (+0.9pt) depends on executing price/mix improvements and SG&A control. Segment highlights to watch are profitability improvement in Building Materials (from 3.9% into the 4% range) and sustained growth in Services.
Cash generation is constrained by working capital deterioration; Operating CF/Net Income 0.79x and OCF/EBITDA 0.48x lag industry leaders. Monitoring Days Sales Outstanding 68 days, Days Payable Outstanding 25 days, and inventory efficiency (inventory/sales ratio 4.5% optimization) will be key assessment axes.
Financial base is extremely solid: effectively debt-free (Debt/EBITDA 0.13x), Equity Ratio 58.4%, Cash/short-term liabilities approx. 7.5x, supporting sufficient payment capacity. Total shareholder returns (dividends + buybacks) slightly exceed FCF but ample cash and low leverage provide flexibility; improved working capital efficiency and restored cash generation would be a precondition for further shareholder return expansion.
This report is an AI-generated financial analysis document created by analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on public financial statements. Investment decisions are your responsibility; please consult specialists as needed before making investment decisions.