| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1634.3B | ¥1548.1B | +5.6% |
| Operating Income / Operating Profit | ¥110.4B | ¥123.4B | -10.5% |
| Ordinary Income | ¥98.8B | ¥111.4B | -11.3% |
| Net Income / Net Profit | ¥52.4B | ¥78.3B | -33.1% |
| ROE | 5.8% | 9.8% | - |
For the fiscal year ended March 2026, Revenue was ¥1634.3B (YoY +¥86.3B +5.6%), Operating Income was ¥110.4B (YoY -¥13.0B -10.5%), Ordinary Income was ¥98.8B (YoY -¥12.6B -11.3%), and Net Income was ¥52.4B (YoY -¥25.9B -33.1%). The results show higher revenue but lower profits: Revenue expanded broadly with Japan +7.4% and Overseas +5.9%, but an increase in SG&A ratio (33.2%, YoY +0.9pt) and a decline in Overseas segment Operating Income (-32.7%) compressed the Operating Margin to 6.8% (prior year 8.0%), a 1.2pt contraction. At the ordinary level, foreign exchange losses of ¥5.8B and interest burden of ¥7.0B weighed on results, and at the Net Income level, special losses of ¥15.9B—primarily an impairment of ¥12.4B related to domestic software development—significantly reduced final profit. On the other hand, Operating Cash Flow was strong at ¥132.7B (YoY +6.4%), and Free Cash Flow was ¥51.6B, sufficient to cover dividends and capital expenditures.
【Revenue】Revenue expanded steadily to ¥1634.3B (YoY +5.6%). By segment, the Automatic Identification Solutions Business (Japan) was ¥964.8B (+7.4%) representing a 50.3% share, and the Automatic Identification Solutions Business (Overseas) was ¥954.2B (+5.9%) representing 49.7%, nearly balanced. By geography, Japan was ¥850.4B (+7.3%), Americas ¥217.9B (+0.9%), Europe ¥337.6B (+6.9%), and Asia & Oceania ¥228.4B (+2.0%), showing broad-based growth. Cost of goods sold was ¥981.0B, maintaining a gross margin of 40.0%, but SG&A increased to ¥542.9B (from ¥511.3B, +6.2%), outpacing revenue growth and raising the SG&A ratio to 33.2% (YoY +0.9pt).
【Profitability】Operating Income was ¥110.4B (YoY -10.5%), with an Operating Margin of 6.8% (down 1.2pt from 8.0%). By segment, Japan increased to ¥54.1B (+38.6%) while Overseas declined to ¥57.0B (-32.7%), dragging down consolidated operating profit. Ordinary Income was ¥98.8B (-11.3%), pressured at non-operating level by foreign exchange losses of ¥5.8B and interest expense of ¥7.0B. Special items included Special Losses of ¥15.9B (impairment loss ¥12.4B, loss on disposal of fixed assets ¥2.6B, business structure reform costs ¥0.6B), which materially impaired final profit. Profit before tax was ¥83.5B (YoY -28.4%); after deducting Income Taxes of ¥31.1B (effective tax rate 37.2%), Net Income was ¥52.4B (-33.1%). In conclusion, the company reported higher revenue but lower profit, with Overseas segment margin deterioration and one-off charges significantly suppressing profit levels.
The Automatic Identification Solutions Business (Japan) achieved Revenue of ¥964.8B (YoY +7.4%), Operating Income of ¥54.1B (+38.6%), and a margin of 5.6%, delivering revenue and profit growth. Its revenue mix was 50.3%, concentrated in Japan. The Automatic Identification Solutions Business (Overseas) expanded Revenue to ¥954.2B (+5.9%) but recorded Operating Income of ¥57.0B (-32.7%) and a margin of 6.0%, a substantial profit decline that weakened consolidated profitability. The Japan segment improved margins through deepening high-margin projects, whereas the Overseas segment saw profitability decline due to cost increases and FX effects, creating a clear contrast between the two segments.
【Profitability】Operating Margin was 6.8%, down 1.2pt from 8.0%. Gross Margin remained at 40.0%, but the rise in SG&A ratio to 33.2% (YoY +0.9pt) compressed operating results. ROE was 5.8%, down from 9.7% the prior year (a 3.9pt decline), mainly due to a contraction in Net Profit Margin to 3.2% (prior year 5.1%). 【Cash Quality】Operating Cash Flow was ¥132.7B, 2.53x Net Income of ¥52.4B, indicating high cash quality; Operating Cash Flow/Revenue was 8.1%, and OCF/EBITDA (based on ¥170.1B) was 0.78x, reflecting working capital weight that constrained cash conversion. 【Investment Efficiency】Total Asset Turnover was 1.12x; Contracted backlog is recorded as Contract Liabilities of ¥85.8B (from ¥77.6B, +10.6%), and backlog/Revenue ratio is 5.2%, indicating some visibility into future revenue. 【Financial Soundness】Equity Ratio was 61.6%, Current Ratio 245%, Debt/Equity Ratio 13.5%, reflecting a conservative financial profile. Interest-bearing debt was ¥120.9B versus cash of ¥283.1B, yielding Net Cash of ¥162.2B.
Operating Cash Flow was ¥132.7B (YoY +6.4%). Starting from Profit before tax of ¥83.5B, adjustments for non-cash charges including Depreciation & Amortization of ¥59.7B and Impairment loss of ¥12.4B, and after paying corporate taxes of ¥16.6B, the company sustained strong cash generation. In working capital, inventory increased ¥14.8B, trade receivables decreased ¥0.6B, and trade payables decreased ¥29.9B, with the reduction in payables depressing Operating Cash Flow. Investing Cash Flow was -¥81.2B, primarily due to Capital Expenditures of ¥50.3B and Intangible Asset investments of ¥30.5B. Financing Cash Flow was -¥61.3B, driven by net repayment of short-term borrowings ¥21.0B, dividend payments ¥24.7B, and lease liability repayments ¥14.8B. Free Cash Flow was ¥51.6B (Operating CF ¥132.7B + Investing CF -¥81.2B), sufficient to cover dividends and capex. Cash balance was ¥283.1B, up +3.2% from ¥274.3B, indicating very high liquidity.
Earnings quality is split between recurring earnings centered on Operating Income of ¥110.4B and one-off effects from Special Losses of ¥15.9B. Breakdown of Special Losses: impairment of domestic software development ¥12.4B (revision of maintenance service system development plan), loss on disposal of fixed assets ¥2.6B, and business structure reform costs ¥0.6B—one-off items roughly equivalent to 30% of Net Income that materially depressed final profit. Non-operating income of ¥9.1B (including interest received ¥5.7B) was modest, while non-operating expenses of ¥20.7B (interest expense ¥7.0B, foreign exchange losses ¥5.8B) pressured Ordinary Income. On an accrual basis, Operating CF of ¥132.7B is 2.53x Net Income of ¥52.4B, showing strong cash backing, but OCF/EBITDA 0.78x indicates working capital drag, with decreases in payables and inventory increases restraining cash conversion. The divergence between Ordinary Income ¥98.8B and Net Income ¥52.4B (¥46.4B gap) is mainly due to special losses, suggesting a potential rebound in the following fiscal year.
Against the full-year forecast (Revenue ¥1685.0B, Operating Income ¥117.0B, Ordinary Income ¥112.0B, Net Income ¥74.0B), achievement rates were: Revenue 97.0%, Operating Income 94.4%, Ordinary Income 88.2%, Net Income 70.8%. Revenue outperformed the plan (planned +3.1% YoY vs actual +5.6%), but Operating Income underperformed (planned +6.0% vs actual -10.5%), with the shortfall most pronounced at the Net Income level. Special Losses of ¥15.9B, the decline in Overseas segment Operating Income (-32.7%), and foreign exchange losses of ¥5.8B were factors behind the downside versus guidance. Next fiscal year’s plan assumes EPS ¥227.94 and dividend ¥40, and if non-recurring items dissipate and Overseas profitability improves, there is scope for Operating Margin expansion.
Annual dividend was ¥76 (interim ¥38, year-end ¥38). Against Net Income ¥52.4B, total dividends amounted to ¥24.5B (based on 32,464 thousand shares outstanding), for a Payout Ratio of 34.0%, which is within a sustainable range. This maintains the prior year’s Payout Ratio of 34.0% and a stable dividend policy. Free Cash Flow of ¥51.6B covers dividends of ¥24.5B with an FCF coverage of 2.1x, and Net Cash of ¥162.2B combined with low leverage (Debt/Equity 13.5%) supports dividend sustainability. Share buybacks were marginal at ¥0.01B, indicating shareholder returns are dividend-centric. The forecast dividend for the next fiscal year is ¥40, but it may be flexibly reviewed depending on profit recovery.
Overseas segment profitability risk: Overseas Operating Income declined significantly YoY -32.7%, pulling consolidated Operating Margin down to 6.8% (prior year 8.0%). With Overseas accounting for 49.7% of Revenue, continued margin deterioration could risk stagnation of consolidated ROE (5.8%).
Working capital efficiency deterioration: Trade payables decreased to ¥75.8B (YoY -¥29.9B), which depressed Operating Cash Flow. OCF/EBITDA of 0.78x indicates slowed cash conversion; if Inventory ¥159.9B (from ¥149.2B, +7.2%) and Trade Receivables ¥310.2B are not compressed, cash retention risk may persist.
Recurrence risk of one-off losses: The impairment of domestic software development ¥12.4B—about 24% of Net Income—occurred. If similar project write-downs or business restructuring costs recur, volatility in Net Income could increase, affecting Payout Ratio and investment capacity.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 6.8% | 7.8% (4.6%–12.3%) | -1.0pt |
| Net Profit Margin | 3.2% | 5.2% (2.3%–8.2%) | -2.0pt |
Profitability is below the industry median, primarily due to one-off items and Overseas margin deterioration.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 5.6% | 3.7% (-0.4%–9.3%) | +1.9pt |
Growth rate exceeds the industry median by 1.9pt, with solid revenue expansion in both Japan and Overseas.
※Source: Company aggregation
The contrast between Japan segment profit growth and Overseas profit decline is pronounced; deepening high-margin projects in Japan and improving Overseas profitability will be key. Japan Operating Income +38.6% suggests quality improvement and price revisions, while Overseas -32.7% highlights the need to manage cost increases and FX effects.
Operating Cash Flow ¥132.7B is 2.53x Net Income, and the balance sheet is conservative (Equity Ratio 61.6%, Net Cash ¥162.2B), providing capacity to cover dividends and capex. However, OCF/EBITDA 0.78x and the working capital burden constrain cash conversion, making it urgent to address the decrease in payables and inventory increases.
One-off Special Losses ¥15.9B (about 30% of Net Income) significantly depressed final profit, but the impairment was driven by a revision of the domestic software development plan and a rebound in the next fiscal year is expected. The rise in SG&A ratio (33.2%, YoY +0.9pt) is an emerging structural risk, and restoration of operating leverage will require cost control and expansion of service revenue.
This report is an AI-generated earnings analysis based on 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 from public financial statements. Investment decisions are your own responsibility; consult a professional advisor as necessary.