| Metrics | Current Period | Prior-year period | YoY |
|---|---|---|---|
| Revenue | ¥52.0B | ¥52.8B | -1.6% |
| Operating Income | ¥6.8B | ¥5.9B | +13.8% |
| Ordinary Income | ¥6.8B | ¥6.0B | +13.0% |
| Net Income | ¥5.0B | ¥4.2B | +18.1% |
| ROE | 6.0% | 5.4% | - |
For FY2026 Q3, Kaji Technology Corporation reported Revenue of ¥52.0B (YoY -¥0.8B, -1.6%), essentially flat, while achieving double-digit profit growth with Operating Income of ¥6.8B (YoY +¥0.9B, +13.8%), Ordinary Income of ¥6.8B (YoY +¥0.8B, +13.0%), and Net Income of ¥5.0B (YoY +¥0.8B, +18.1%). Maintaining a high Gross Profit Margin of 34.1% and curbing SG&A drove Operating Margin to 13.0%, resulting in higher profits without top-line growth. The company maintains a conservative financial structure with Total Assets of ¥119.0B and Equity of ¥82.5B, and leaves its full-year forecast unchanged at Revenue ¥71.0B, Operating Income ¥6.8B, and Net Income ¥5.1B.
[Profitability] ROE 6.0% (composed of Net Profit Margin 9.6% × Total Asset Turnover 0.437x × Financial Leverage 1.44x), Operating Margin 13.0% (+1.7pt improvement from 11.3% in the prior year), Net Profit Margin 9.6% (+1.6pt improvement from 8.0% in the prior year), Return on Assets 4.2%. Operating Income of ¥6.8B increased +13.8% YoY, and Net Income of ¥5.0B increased +18.1% YoY, indicating a substantial improvement in profitability amid flat sales. The effective tax rate is approximately 30.4%. [Cash Quality] Cash and Deposits ¥20.6B (+23.1% from ¥16.7B in the prior year), with cash coverage of short-term liabilities at 205.9x, an extremely high level. Interest coverage is 83.9x, indicating a very light interest burden. [Investment Efficiency] Total Asset Turnover 0.437x, Accounts Receivable decreased from ¥18.9B to ¥15.5B (-17.7%), improving collection efficiency. Work-in-process increased from ¥16.8B to ¥18.3B (+9.1%). [Financial Soundness] Equity Ratio 69.3%, Current Ratio 408.8%, Quick Ratio 408.8%, Debt-to-Equity Ratio 0.44x, Interest-bearing Debt ¥12.3B (10.3% of total assets). Current assets are ¥41.8B, more than 4x current liabilities of ¥10.2B, indicating extremely strong short-term liquidity.
Cash and Deposits increased by ¥3.9B from ¥16.7B in the prior-year period to ¥20.6B (+23.1%), presumably supported by higher operating profits. Working capital is ample at ¥59.7B; while Accounts Receivable decreased by ¥3.3B from the prior year, cash increased, and improved sales collection efficiency has translated into better capital efficiency. Work-in-process increased by ¥1.5B, reflecting production progress, but overall working capital management remains sound. Short-term borrowings are ¥1.0M and long-term borrowings ¥12.2B, leaving Interest-bearing Debt at a low level, and cash coverage of short-term liabilities far exceeds 2.0x. Equity increased by ¥4.3B from ¥78.2B to ¥82.5B (+5.5%), strengthening the capital base through retained earnings accumulation.
Ordinary Income of ¥6.8B is nearly equal to Operating Income of ¥6.8B, indicating minimal impact from non-operating gains and losses. Non-operating income consists of interest and dividend income and foreign exchange gains, but as net non-operating gains/losses are small, core operating earnings account for the majority of profit. The Gross Profit Margin of 34.1% is high; Operating Income of ¥6.8B, derived by subtracting SG&A of ¥11.0B from Gross Profit of ¥17.7B, corresponds to 13.0% of Revenue. The 1.7pt improvement in Operating Margin amid flat sales reflects restrained growth in SG&A. The increase in cash and the decrease in receivables indicate that profit recognition has been accompanied by appropriate cash collection, demonstrating good quality of earnings with alignment between accounting profit and actual cash generation. With a tax burden coefficient of 0.696 and an interest burden coefficient of 1.059, no unusual distortions are observed in tax or financial aspects.
[Position within the industry] (Reference information; our survey) Profitability: Operating Margin of 13.0% significantly exceeds the manufacturing sector median of 7.3% (IQR 4.6%–12.0%) and ranks at an upper level within the industry. The Net Profit Margin of 9.6% also exceeds the sector median of 5.4% (IQR 3.5%–8.9%), indicating an advantage in profitability within the industry. ROE 6.0% is slightly above the sector median of 4.9% (IQR 2.8%–8.2%). Return on Assets 4.2% exceeds the sector median of 3.3% (IQR 1.8%–5.1%). Soundness: The Equity Ratio of 69.3% surpasses the sector median of 63.9% (IQR 51.5%–72.3%), placing financial safety at a high level within the industry. The Current Ratio of 408.8% far exceeds the sector median of 267% (IQR 200%–356%), indicating extremely strong short-term liquidity. The Net Debt/EBITDA multiple reflects a net cash position due to minimal interest-bearing debt, and financial leverage is extremely low even compared with the sector median of -1.11 (IQR -3.50–1.24). Efficiency: Revenue growth rate of -1.6% is below the sector median of +2.8% (IQR -0.9%–7.9%), positioning growth at a lower level within the industry. However, the company achieved profit growth, and the growth challenge is partially offset by improved profitability. *Industry: Manufacturing (65 companies), comparison target: FY2025 Q3 results period, 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 benchmark is reference information aggregated by our firm based on publicly available earnings data. Investment decisions are your own responsibility; consult a professional as needed before making any investment decisions.