| Metric | Current Period | YoY | YoY |
|---|---|---|---|
| Revenue | ¥69.5B | ¥70.4B | -1.2% |
| Operating Income | ¥12.8B | ¥13.0B | -1.1% |
| Ordinary Income | ¥13.1B | ¥13.0B | +0.8% |
| Net Income | ¥9.2B | ¥9.2B | +0.7% |
| ROE | 5.1% | 5.0% | - |
FY2026 Q3 results were Revenue of ¥69.5B (YoY -¥0.8B -1.2%), Operating Income of ¥12.8B (YoY -¥0.2B -1.1%), Ordinary Income of ¥13.1B (YoY +¥0.1B +0.8%), and Net Income of ¥9.2B (flat YoY +0.7%), reflecting slight declines in revenue and profit while maintaining profitability. Gross margin remained high at 54.0%, and operating margin was 18.4%, roughly flat YoY. Ordinary Income slightly exceeded Operating Income due to a difference between non-operating income of ¥0.3B and non-operating expenses of ¥0.04B. Full-year guidance remains unchanged, projecting Revenue of ¥91.4B (YoY -3.1%), Operating Income of ¥13.1B (YoY -25.9%), Ordinary Income of ¥13.3B (YoY -25.3%), and Net Income of ¥9.4B, indicating lower revenue and earnings.
[Profitability] ROE 5.1% (Net Profit Margin 13.3% × Total Asset Turnover 0.36x × Financial Leverage 1.07x), Operating Margin 18.4% (-0.6pt from 19.0% in the previous year), Ordinary Income Margin 18.9% (+0.4pt from 18.5% in the previous year), with a high product margin supported by a Gross Margin of 54.0%. EPS ¥37.18 (slight increase from ¥36.92 in the previous year), Net Assets per Share ¥734.59. [Cash Quality] Cash and deposits of ¥94.7B account for 48.9% of total assets, with an extremely high coverage of 9.2x against short-term liabilities of ¥10.3B. [Investment Efficiency] Total Asset Turnover 0.36x (annualized), indicating low asset turnover. ROA 4.8% (Net Income ÷ Total Assets). [Financial Soundness] Equity Ratio 93.5% (improved from 92.4% in the previous year), Current Ratio 1,279.4%, and Quick Ratio 1,142.4%, indicating rock-solid short-term solvency. Debt-to-Equity Ratio 0.07x is extremely low, with virtually no interest-bearing debt, reflecting a conservative capital structure.
Cash and deposits increased by ¥15.6B from ¥79.1B in the same period last year to ¥94.7B, continuing earnings growth and cash accumulation. Working capital was ¥121.7B, up ¥2.3B from ¥119.4B in the same period last year, mainly due to increased cash holdings, while accounts receivable were ¥12.7B (¥12.8B in the previous year) and inventories were ¥14.1B (¥13.9B in the previous year), both tracking stably. Current liabilities were ¥10.3B, up ¥1.6B from ¥8.7B in the same period last year, reflecting increases in accounts payable and accrued expenses; however, the ratio to cash is extremely small at 10.9%. Cash coverage of short-term liabilities is 9.2x, indicating near-zero liquidity risk. Investment securities increased from ¥0.3B to ¥0.4B, and intangible fixed assets increased from ¥0.2B to ¥0.3B, indicating partial deployment of surplus funds and business investments. Treasury stock expanded from -¥1.4B to -¥5.6B, suggesting share repurchases as shareholder returns.
With Ordinary Income of ¥13.1B versus Operating Income of ¥12.8B, the net increase from non-operating items was a limited ¥0.3B. The main components of non-operating income were interest and dividends received; non-operating income accounts for about 0.5% of Revenue, indicating a high reliance on core operations. The small gap between Ordinary Income and Operating Income confirms a core business-centered and healthy earnings structure. With Profit before tax of ¥13.1B and taxes of ¥3.9B, the effective tax rate is approximately 29.5%, a standard level. Net Income of ¥9.2B corresponds to about 70.4% of Ordinary Income, and post-tax profitability is stable. Although the cash flow statement details are not disclosed, cash and deposits increased by ¥15.6B YoY, exceeding Net Income of ¥9.2B, indicating robust cash backing for profits. The high Gross Margin of 54.0% supports the Net Profit Margin of 13.3%, with strong product competitiveness and pricing power underpinning earnings quality.
[Position within Industry] (Reference Information, Our Research) Profitability: The Operating Margin of 18.4% far exceeds the industry median of 7.3% (IQR: 4.6%–12.0%), placing the company in the upper tier within the industry. The Net Profit Margin of 13.3% also significantly exceeds the industry median of 5.4% (IQR: 3.5%–8.9%), confirming high product margins and profitability. ROE 5.1% is roughly in line with the industry median of 4.9% (IQR: 2.8%–8.2%), but low Total Asset Turnover suppresses ROE despite the high Net Profit Margin. Soundness: The Equity Ratio of 93.5% far exceeds the industry median of 63.9% (IQR: 51.5%–72.3%), indicating an extremely conservative financial structure even within the industry. The Current Ratio of 12.8x also significantly exceeds the industry median of 2.67x (IQR: 2.00–3.56x), placing liquidity among the highest in the industry. The Net Debt/EBITDA multiple is negative (virtually debt-free, net cash), similar to the industry median of -1.11 (IQR: -3.50–1.24), indicating ample financial capacity. Efficiency: ROA of 4.8% slightly exceeds the industry median of 3.3% (IQR: 1.8%–5.1%), but there remains significant room to improve asset efficiency despite the high Net Profit Margin. Revenue growth rate of -1.2% is below the industry median of 2.8% (IQR: -0.9%–7.9%), placing growth at a low level within the industry. ※Industry: Manufacturing (N=65 companies), Comparison: Q3 2025, Source: Our Aggregation
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmarks are reference information compiled by our company based on publicly available financial statements. Please make investment decisions at your own responsibility and consult a professional as necessary.