| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥397.38B | ¥300.38B | +32.3% |
| Operating Income | ¥47.58B | ¥24.93B | +90.8% |
| Profit Before Tax | ¥50.01B | ¥28.46B | +75.7% |
| Net Income | ¥40.38B | ¥23.88B | +69.1% |
| ROE | 14.8% | 10.3% | - |
In addition to revenue growth, operating income grew substantially faster than revenue, resulting in higher revenue and earnings amid continued improvement in the earnings structure. Revenue was ¥397.38B (+32.3% YoY), operating income was ¥47.58B (+90.8%), profit before tax was ¥50.01B (+75.7%), and net income attributable to owners of the parent was ¥36.38B (+73.2%). The operating margin improved to 12.0% (8.3% in the previous year), with project progress and effective cost management generating earnings growth substantially exceeding revenue growth.
【Revenue】Revenue was ¥397.38B, representing an increase of +32.3% from ¥300.38B in the previous year. Progress on large-scale projects and improved utilization rates appear to have been the primary factors, with progress toward the full-year plan of ¥720.04B reaching 55.2%, above the standard level of 50%.
【Profit and Loss】Operating income was ¥47.58B (+90.8% YoY), and the operating margin improved significantly to 12.0% from 8.3% in the previous year. Profit before tax of ¥50.01B was only approximately ¥2.4B higher than operating income, confirming a modest positive contribution from non-operating income and expenses. Net income attributable to owners of the parent was ¥36.38B (+73.2%). This was a result of revenue and earnings growth, with the magnitude of earnings growth substantially exceeding revenue growth, indicating positive operating leverage.
【Profitability】Both the operating margin, at 12.0% (8.3% in the previous year), and the net margin, at 9.2% (7.0% in the previous year), improved. 【Cash Flow Quality】Profit before tax of ¥50.01B slightly exceeded operating income of ¥47.58B, indicating a modest positive contribution from non-operating income and expenses. 【Investment Efficiency】ROE was 14.8%, with both financial leverage and improvement in the net margin contributing to the result. 【Financial Soundness】The equity ratio improved to 32.4% from 30.5% in the previous year, while total assets of ¥824.47B and net assets of ¥272.63B indicate continued expansion of the capital base.
Although details of the cash flow statement are not included in the data, the 10.6% increase in total assets, or +¥78.98B, from the previous year suggests that the accumulation of project assets and working capital has generated funding requirements. At the same time, net assets increased by +¥41.89B (+18.2%), with retained earnings and comprehensive income (¥41.31B) strengthening the capital base. As profit before tax exceeded operating income, non-operating income and expenses appear to have made a positive contribution to both cash flow and earnings during the period. Working capital trends, including collections and advances associated with project progress, will influence future cash-generating capacity.
The operating margin improved by +367bp from 8.3% in the previous year to 12.0%, with improved core earnings profitability being the primary driver of the increase in the net margin. Profit before tax of ¥50.01B slightly exceeded operating income of ¥47.58B, confirming a positive contribution from non-operating income and expenses; however, the details have not been disclosed and may be attributable to interest, foreign exchange, and other factors. The gap between net income and profit before tax is limited to the equivalent tax burden, and no special one-time items have been identified. Comprehensive income of ¥41.31B was approximately at the same level as net income of ¥40.38B, suggesting that the impact of valuation differences on other securities and foreign currency translation adjustments was limited. Overall, earnings growth during the period was supported by improved profitability in the core business, and earnings quality can be assessed as sound.
Progress toward the full-year plan was 55.2% for revenue (¥397.38B/¥720.04B) and 66.1% for operating income (¥47.58B/¥72.00B), with operating income progress substantially exceeding revenue progress. Compared with the standard progress level of 50% as of Q2, operating income was ahead by +16.1pt and revenue by +5.2pt, indicating that operating income was already progressing substantially ahead of the full-year operating income forecast (YoY+5.1%) as of the first half. Progress may normalize in the second half due to seasonality and variations in project schedules, and no revisions to the earnings forecast had been made as of the current quarter.
The interim dividend was ¥100 per share, and the full-year dividend plan was ¥200, above the dividend level of the previous year. The payout ratio based on full-year forecast EPS of ¥847.46 was approximately 23.6%, indicating that a conservative policy of maintaining substantial retained earnings relative to profit growth remains in place. No revision to the dividend forecast had been made as of the current quarter.
Project execution risk: If delays in the schedules of large-scale projects or cost overruns occur, the improvement in the operating margin to 12.0% could reverse.
Dependence on non-operating income and expenses: Profit before tax of ¥50.01B only slightly exceeded operating income of ¥47.58B. This difference (approximately ¥2.4B) is susceptible to fluctuations in interest rates, foreign exchange, and other factors, and its sustainability requires careful assessment.
Sensitivity to foreign exchange and asset expansion: Total assets expanded by +10.6% YoY, and under a capital structure involving financial leverage, the Company has a structure that is susceptible to interest-rate conditions and foreign exchange fluctuations.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 12.0% | 9.7% (5.4%–23.7%) | +2.3pt |
| Net Margin | 10.2% | 5.4% (1.3%–20.1%) | +4.8pt |
The Company's profitability exceeds the industry median, although there remains room for improvement relative to the upper range (IQR upper limit of 23.7%).
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 32.3% | 10.6% (-3.4%–25.4%) | +21.7pt |
The revenue growth rate substantially exceeds the industry median and represents high growth that also surpasses the IQR upper limit of 25.4%.
※Source: Company research
The operating margin improved by +367bp from 8.3% in the previous year to 12.0%, resulting in earnings growth exceeding revenue growth. The progress in margin improvement through both cost management and project execution is noteworthy as a sign of structurally improved profitability.
Progress toward the full-year plan was 66.1% for operating income, exceeding the 55.2% progress for revenue and showing signs of being ahead of schedule. How fluctuations in seasonality and project allocation in the second half will affect the pace of progress will be a key area to monitor.
The equity ratio improved from 30.5% to 32.4%, while the payout ratio remained at a conservative level of approximately 23.6%. Strengthening of the capital base and stability of shareholder returns are progressing in parallel.
This is a reference range mechanically calculated solely from publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Stock Price |
|---|---|
| bear | ¥5,426 |
| base | ¥5,787 |
| bull | ¥6,107 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥3,913 |
| Adjusted Forecast EPS | ¥932.2 |
| Cost of Equity r | 9.27% (10-year government bond 2.77% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Factor ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 23.6% |
| Forecast EPS Confidence Adjustment | ×1.100 (based on progress ahead of the full-year forecast) |
| Implied PBR / PER | 1.48x / 6.2x |
Sensitivity: ¥5,617–¥5,965 at ±1% for the cost of equity, and ¥5,735–¥5,866 at ±0.1 for ω.
Notes:
(Calculation model: Residual income model / Interest rate reference month: 2026-07 / This figure does not forecast or guarantee the future stock price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting with a professional as necessary.
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These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.