| Indicator | Current Period | YoY | YoY |
|---|---|---|---|
| Revenue | ¥47.7B | ¥53.4B | -10.7% |
| Operating Income | ¥2.0B | ¥3.4B | -40.2% |
| Ordinary Income | ¥2.4B | ¥3.8B | -37.0% |
| Net Income | ¥1.5B | ¥5.4B | -71.5% |
| ROE | 1.8% | 6.7% | - |
For FY2026 Q3 year-to-date, Revenue was ¥47.7B (YoY -¥5.7B -10.7%), Operating Income was ¥2.0B (YoY -¥1.4B -40.2%), Ordinary Income was ¥2.4B (YoY -¥1.4B -37.0%), and Quarterly Net Income attributable to owners of the parent was ¥1.5B (YoY -¥3.9B -71.5%). Due to lower revenue and reduced operating efficiency, the operating margin deteriorated to 4.2%, and net income declined by more than 70% from the same period last year. Full-year guidance calls for Revenue of ¥66.0B (YoY -5.8%), Operating Income of ¥2.1B (YoY -39.1%), Ordinary Income of ¥2.5B (YoY -37.0%), and Net Income of ¥1.7B (YoY -70.3%).
Profitability: ROE 1.8% (sharply lower from 5.4% in the same period last year), Operating Margin 4.2% (down -2.2pt from 6.4% in the same period last year), Net Margin 3.2% (down -6.9pt from 10.1% in the same period last year), Return on Assets 1.5%. Cash quality: Cash and deposits ¥10.6B (YoY -¥7.1B -40.0% decline), short-term debt coverage 0.7x. Investment efficiency: Total asset turnover 0.48x. Financial soundness: Equity Ratio 83.1%, Current Ratio 417.9%, Quick Ratio 353.3%, Interest-bearing debt ¥0.7B, Debt/Equity Ratio 0.8%.
Cash and deposits decreased by ¥7.1B YoY to ¥10.6B, while Investment Securities increased by ¥3.0B to ¥11.3B. The main drivers of the cash decrease are estimated to be the decline in profit due to lower operating earnings and the reallocation of funds into investment securities. In working capital efficiency, Accounts Receivable contracted by ¥2.8B to ¥7.0B, while Accounts Payable increased by ¥0.7B to ¥2.3B, indicating working capital compression and changes in payment terms. Although cash coverage of short-term liabilities declined to 0.7x, total current assets stood at ¥59.5B and the Current Ratio was 417.9%, suggesting ample short-term liquidity. The increase in investment securities was driven by redeployment of surplus funds and higher valuation gains (Net unrealized gains on available-for-sale securities +¥1.0B), indicating a shift in asset composition from cash to securities.
Against Ordinary Income of ¥2.4B, Operating Income was ¥2.0B, implying approximately ¥0.4B in net non-operating gains. The breakdown indicates financial income as the main contributor, including Dividend Income of ¥0.2B and Interest Income of ¥0.01B. Non-operating income accounts for 1.2% of revenue. Meanwhile, a Gain on Sale of Investment Securities of ¥0.5B was recorded under Extraordinary Income, indicating that earnings generation from core operations is limited and that asset sales temporarily supported net income. Although there is no disclosure on Operating Cash Flow, given the sharp decline in net income and the decrease in cash and deposits, the cash backing of earnings should be carefully assessed.
Position within industry (reference information - our research) Profitability: Operating Margin 4.2% (industry median 7.3%, below the lower bound of IQR 4.6%〜12.0%), Net Margin 3.2% (industry median 5.4%, at the lower bound of IQR 3.5%〜8.9%), ROE 1.8% (well below industry median 4.9%, IQR 2.8%〜8.2%), Return on Assets 1.5% (below industry median 3.3%). Soundness: Equity Ratio 83.1% (well above industry median 63.9%, IQR 51.5%〜72.3%, indicating upper-tier financial stability within the industry), Current Ratio 417.9% (well above industry median 267%). Growth: Revenue growth rate -10.7% (well below industry median +2.8%, IQR -0.9%〜+7.9%, indicating sluggish growth versus peers). Overall assessment: While financial soundness is high relative to peers, profitability and growth are significantly below industry medians, leaving substantial room to improve operating efficiency and earnings generation. Industry: Manufacturing (N=65 companies), Comparison period: Q3 2025, Source: Our aggregation
This report is an earnings analysis 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 us based on publicly available financial statements. Investment decisions are your own responsibility; consult a professional as necessary before making any investment.