| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥553.7B | ¥483.1B | +14.6% |
| Operating Income | ¥36.9B | ¥29.5B | +24.9% |
| Profit Before Tax | ¥42.5B | ¥18.2B | +133.5% |
| Net Income | ¥32.3B | ¥22.4B | +44.0% |
| ROE | 2.0% | 1.4% | - |
For Q1 of FY ending March 2026, Revenue was ¥553.7B (YoY +¥70.5B +14.6%), Operating Income was ¥36.9B (YoY +¥7.4B +24.9%), Ordinary Income was ¥42.5B (YoY +¥24.3B +133.5%), and Quarterly Net Income Attributable to Owners of Parent was ¥31.6B (YoY +¥8.9B +39.4%), delivering a substantial increase in top- and bottom-line results. The Industrial Business expanded sharply, with Revenue of ¥365.4B (+23.8%) and Segment Profit of ¥31.1B (+82.3%), while the Medical Business was flat with Revenue of ¥188.2B (+0.1%) yet still contributed to overall profit growth. Gross margin edged down to 29.3% (YoY -0.4pt), but SG&A ratio improved materially to 23.0% (YoY -1.8pt), lifting Operating Margin to 6.7% (YoY +0.6pt). On the non-operating front, net financial income (financial income ¥7.7B less financial expense ¥3.3B) contributed ¥4.4B, and equity-method investment income of ¥1.3B also contributed, expanding Profit Before Tax to ¥42.5B, more than double the prior year. Conversely, Operating Cash Flow (OCF) was a large negative ¥-56.1B (from prior +¥42.1B, a deterioration of ¥-98.2B); decreases in accounts payable of ¥-80.0B, increases in inventories of ¥-15.9B, and decreases in contract liabilities of ¥-11.5B pressured working capital and materially worsened cash conversion of profits.
【Revenue】 Revenue of ¥553.7B was an increase of ¥70.5B YoY (+14.6%), driven by the rapid expansion of the Industrial Business. The Industrial Business recorded Revenue of ¥365.4B (prior ¥295.3B, +23.8%), marking the highest Q1 growth on record and accounting for 66.0% of consolidated Revenue as the core business. Recovery in overseas demand, favorable FX, and digestion of order backlog from the prior period were drivers of the increase. The Medical Business was flat at ¥188.2B (prior ¥188.0B, +0.1%), reflecting stable domestic medical-device demand. Segment mix shifted to Industrial 66% / Medical 34%, increasing concentration of growth drivers.
【Profitability】 Cost of sales rose to ¥391.7B (prior ¥339.6B, +15.3%), outpacing Revenue growth, resulting in Gross Profit of ¥161.9B (+12.9%) and Gross Margin of 29.3% (prior 29.7%, -0.4pt). Rising raw material and logistics costs likely pressured gross margin. SG&A was controlled at ¥127.5B (prior ¥120.0B, +6.3%), significantly below Revenue growth, improving SG&A ratio to 23.0% (prior 24.8%, -1.8pt). Efficiency in fixed costs and scale benefits drove Operating Income to ¥36.9B (+24.9%) and Operating Margin to 6.7% (prior 6.1%, +0.6pt). By segment, the Industrial Business exhibited high profit leverage with Segment Profit ¥31.1B (prior ¥17.1B, +82.3%) and margin 8.5% (prior 5.8%, +2.7pt). The Medical Business posted Segment Profit ¥16.4B (prior ¥17.3B, -5.7%) and margin 8.7% (prior 9.2%, -0.5pt), a slight decline as cost increases pressured profits amid flat sales. Corporate adjustments totaled ¥-10.6B (prior ¥-4.9B), expanding and possibly reflecting upfront investments in HQ capabilities and R&D. Non-operating items: financial income ¥7.7B (prior ¥2.9B) expanded strongly due to FX gains and higher interest/dividend income, while financial expense fell to ¥3.3B (prior ¥14.8B). Prior year included elevated FX losses and interest costs; improved FX environment and lower borrowing costs turned non-operating net into a positive ¥4.4B. Equity-method investment income rose to ¥1.3B (prior ¥0.7B), bringing Profit Before Tax to ¥42.5B (prior ¥18.2B, +133.5%). After income taxes of ¥10.3B, Quarterly Net Income was ¥32.3B (prior ¥22.4B, +44.0%), and Net Income Attributable to Owners of Parent was ¥31.6B (prior ¥22.6B, +39.4%), improving Net Margin to 5.7% (prior 4.7%, +1.0pt). In summary, Industrial Business expansion, SG&A efficiency, and large non-operating improvement drove revenue and profit growth.
The Industrial Business achieved Revenue ¥365.4B (YoY +23.8%), Segment Profit ¥31.1B (YoY +82.3%), and margin 8.5% (prior 5.8%, +2.7pt), delivering strong top- and bottom-line growth. Recovery in capital expenditure demand from overseas manufacturers and favorable FX lifted sales, and fixed-cost absorption dramatically improved margins. Efficiency in selling expenses and price pass-through also contributed, reflecting realized operational leverage. The Medical Business recorded Revenue ¥188.2B (YoY +0.1%), Segment Profit ¥16.4B (YoY -5.7%), and margin 8.7% (prior 9.2%, -0.5pt), a slight increase in Revenue but decline in profit. Higher product development and quality control costs pressured margins, and with domestic medical institutions' capex remaining subdued, cost increases could not be fully passed through, reducing profitability. The Corporate adjustment of ¥-10.6B (prior ¥-4.9B) widened due to expense increases, potentially from strengthening HQ functions and upfront companywide project costs.
【Profitability】 Operating Margin of 6.7% improved +0.6pt from 6.1%, driven by large SG&A ratio improvement. ROE 2.0% (annualized approx. 8.0%) improved YoY, led by higher Net Margin and improved asset turnover (Total Asset Turnover 0.154, prior 0.135). Gross Margin 29.3% (prior 29.7%, -0.4pt) slightly declined due to higher raw material and logistics costs, but SG&A ratio improvement to 23.0% (prior 24.8%, -1.8pt) supported Operating Margin. 【Cash Quality】 With OCF ¥-56.1B vs Net Income ¥32.3B, OCF/Net Income is -1.74x, indicating profits are not converting to cash; large decrease in accounts payable (¥-80.0B) and increase in inventories (¥-15.9B) are main drivers, substantially worsening working capital. Accrual (Net Income − OCF) is ¥88.4B, high and a concern for earnings quality. Free Cash Flow was ¥-78.0B (OCF ¥-56.1B + Investing CF ¥-21.9B), insufficient to cover dividends ¥14.3B and capex ¥17.7B, leading to financing by borrowings. 【Investment Efficiency】 Capex ¥17.7B is about 61% of Depreciation ¥28.98B, remaining at maintenance/renewal level for existing assets; no large-scale investments were confirmed. 【Financial Soundness】 Equity Ratio 45.3% (prior 44.2%, +1.1pt). Interest-bearing debt (short-term borrowings ¥226.9B + long-term borrowings ¥641.4B) totals ¥868.3B vs cash ¥386.1B, net debt ¥482.2B, Net D/E 0.29x, indicating conservative leverage. Current Ratio 205.7% (Current Assets ¥1,922.9B ÷ Current Liabilities ¥934.4B) shows good liquidity, but short-term borrowings surged from ¥86.8B to ¥226.9B (+161%), indicating a shift toward shorter-duration debt that warrants attention. Cash and equivalents ¥386.1B is about 1.7x short-term borrowings, providing near-term liquidity buffer, but the large decline in accounts payable (¥214.9B, prior ¥290.4B, -26.0%) shortens supplier payment terms and increases short-term funding needs.
OCF was a large negative ¥-56.1B (deterioration of ¥-98.2B from prior +¥42.1B), indicating profits did not convert to cash despite Profit Before Tax ¥42.5B. Subtotal before working capital changes was ¥-48.0B (prior +¥49.9B). Contributing working capital movements included decrease in accounts payable ¥-80.0B (prior ¥-0.6B), increase in inventories ¥-15.9B (prior ¥-40.5B), increase in accounts receivable ¥-12.6B (prior +¥11.3B), and decrease in contract liabilities ¥-11.5B (prior +¥39.2B), substantially deteriorating working capital. The decrease in accounts payable suggests accelerated settlement of supplier liabilities, and the decline in contract liabilities may reflect reduction in advance payments due to order cycles or delivery progress. FX translation impact was minor at +¥1.9B (prior +¥2.1B). Income tax payments were ¥-5.9B (prior ¥-7.2B), lower than prior year. Investing CF was ¥-21.9B (prior +¥50.8B); prior year benefited from ¥57.9B proceeds from business divestiture, while this period had capex ¥-17.7B (prior ¥-10.1B) and intangible investments ¥-4.2B (prior ¥-1.6B) as net outflows. Financing CF was +¥16.4B (prior ¥-53.8B), funded by long-term borrowings +¥49.8B and net increase in short-term borrowings +¥3.1B, while repaying long-term borrowings ¥-8.0B, lease repayments ¥-11.0B, and dividend payments ¥-14.3B (prior ¥-9.9B). Short-term borrowing increases combined with long-term borrowings helped cover working capital deficits, utilizing financial flexibility but accelerating balance-sheet short-termization. Cash and equivalents fell from ¥445.8B at beginning of period to ¥386.1B at end, a decrease of ¥-59.7B; after FX impact +¥1.9B, net decrease was ¥-60.0B.
Of Quarterly Net Income Attributable to Owners of Parent ¥31.6B, Operating Income ¥36.9B was generated by recurring business activities, but the large increase in financial income to ¥7.7B (prior ¥2.9B) may include FX gains and temporary financial income, so sustainability requires attention. The sharp reduction in financial expense from prior ¥14.8B (including FX losses) to ¥3.3B also reflects an improving FX environment and temporary tailwinds. Comprehensive Income was ¥66.5B (improvement of ¥+93.0B from prior ¥-26.5B), far exceeding Net Income ¥32.3B; Of Other Comprehensive Income ¥34.3B, FX translation differences +¥15.9B and valuation gains on financial assets measured through OCI +¥15.4B were primary drivers. These are temporary factors and should be distinguished from recurring earning power. The large divergence between OCF ¥-56.1B and Net Income ¥32.3B, with Accrual ¥88.4B high, indicates reduced earnings quality driven by decline in accounts payable and increases in inventories and receivables. If working capital normalization is delayed, timing mismatches between profit recognition and cash collection may persist, posing sustained concerns over earnings quality.
Full Year guidance remains unchanged: Revenue ¥2,335.0B, Operating Income ¥165.0B (YoY +7.6%), and Net Income Attributable to Owners of Parent ¥130.0B. Q1 progress toward full year is 23.7% of Revenue, 22.4% of Operating Income, and 24.3% of Net Income; Operating Income is about -10% below standard quarterly pacing of 25%, indicating some delay. Flat Medical Business and increased corporate expenses likely explain conservative progress versus plan; sustaining Industrial Business momentum from Q2 and recovery in Medical Business are key to achieving full-year targets. Dividend guidance remains ¥25 per share unchanged; total dividends against full-year Net Income ¥130.0B imply total dividends approx. ¥16.3B (Payout Ratio approx. 12.5%), a conservative level. Q1 Operating Income ¥36.9B is about 22.4% of ¥165.0B full-year plan; assuming even quarterly distribution, remaining three quarters need to produce ¥128.1B (avg ¥42.7B/quarter). Unless Industrial Business maintains high growth, Medical Business margin improves, and working capital normalizes, downside risk exists.
Dividend paid this quarter was ¥14.3B (prior ¥9.9B, +44.4%), or ¥18 per share. Full-year dividend forecast remains ¥25 per share, unchanged from prior year, and with issued shares of 69.176M (after treasury shares approx. 65.265M) total dividends are expected at approx. ¥16.3B. Against full-year Net Income forecast ¥130.0B, Payout Ratio is about 12.5%, low and indicating a preference for internal retention. Against this quarter's Net Income of ¥31.6B, the ¥14.3B dividend implies a payout ratio of about 45%, but given OCF ¥-56.1B, dividends are not covered by cash flow, which warrants attention. Although OCF is expected to improve over the full year, delayed working capital normalization could increase reliance on external funding to secure dividend resources. No share buybacks were confirmed; shareholder returns are limited to dividends. Dividend policy is conservative and sustainable, but expansion of dividend capacity depends on early recovery of cash generation.
Working capital deterioration and liquidity risk: Accounts payable decreased substantially to ¥214.9B (prior ¥290.4B, -26.0%), shortening supplier payment terms and increasing short-term funding needs. Inventories ¥629.8B (prior ¥607.5B, +3.7%) and accounts receivable ¥819.1B (prior ¥793.8B, +3.2%) increased, worsening the working capital cycle. The divergence between OCF ¥-56.1B and Net Income ¥32.3B is large; if prolonged, dependence on external borrowings may rise and financial flexibility may decline. Rapid increase in short-term borrowings to ¥226.9B (prior ¥86.8B, +161.3%) heightens maturity mismatch risk.
Concentration risk in the Industrial Business: The Industrial Business accounts for 66% of Revenue and roughly 65% of Segment Profit, increasing dependency on industrial performance. While Industrial Revenue grew +23.8%, results are sensitive to overseas manufacturers' capex cycles and FX movements, making performance vulnerable to external shifts. The Medical Business remains flat and contributes less as a growth driver, diminishing portfolio diversification benefits.
Sustainability risk of non-operating income: The large increase in financial income to ¥7.7B (prior ¥2.9B) and the sharp decline in financial expense to ¥3.3B (prior ¥14.8B) lifted non-operating net by ¥4.4B, but these likely include temporary FX gains. A reversal in FX would deteriorate non-operating results and pose downside risk to Profit Before Tax. Of Comprehensive Income ¥66.5B, ¥34.3B relates to OCI (FX translation differences and valuation gains on financial assets), and capital fluctuations could be misinterpreted as changes in recurring earning power.
収益性・リターン
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 6.7% | 6.8% (2.9%–9.0%) | -0.2pt |
| Net Margin | 5.8% | 5.9% (3.3%–7.7%) | -0.1pt |
Profitability metrics are roughly in line with industry medians, placing the company near the middle.
成長性・資本効率
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 14.6% | 13.2% (2.5%–28.5%) | +1.4pt |
Revenue growth rate exceeds the industry median, positioning the company among the upper cohort.
※Source: Company compilation
Industrial Business rapid growth and SG&A efficiency improved Operating Margin to 6.7% (YoY +0.6pt), maintaining industry-mid profitability. Industrial segment margin 8.5% (prior 5.8%, +2.7pt) reflects realized fixed-cost absorption; if orders persist and price pass-through continues, sustainable margin improvement for the full year is expected. The Medical Business is flat with slightly lower margins, but recovery in domestic medical institution capex and progress in cost pass-through could enable reversal.
The large divergence between OCF ¥-56.1B and Net Income ¥32.3B, coupled with a sharp decline in accounts payable and increases in inventories and receivables, indicates working capital deterioration and the urgent need to restore cash generation. Monitoring items include inventory reduction, stronger receivables collection, and normalization of payables from Q2 onward. The surge in short-term borrowings (YoY +161%) responds to working capital stress, but short-termization of debt raises maturity mismatch risk; refinancing into long-term funding or early OCF recovery is key to securing financial stability.
Material improvement in non-operating results (net ¥4.4B) contributed to Profit Before Tax but may include temporary FX gains, so sustainability is uncertain. Progress toward full-year guidance shows Operating Income about -10% below standard pacing; maintaining Industrial momentum, Medical recovery, and working capital normalization from Q2 are prerequisites for achieving guidance. Payout Ratio approx. 12.5% is conservative and sustainable, but with negative OCF, dividends have been funded by borrowings; improving cash generation is a condition for expanding dividend capacity.
This report is an AI-generated earnings analysis document based on XBRL financial statement data. It is not a recommendation to invest in specific securities. Industry benchmarks are compiled by the firm from public financial statements for reference. Investment decisions are your responsibility; please consult a professional as needed.