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.
| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥15.78B | ¥13.43B | +17.5% |
| Operating Income | ¥3.04B | ¥2.51B | +21.5% |
| Ordinary Income | ¥3.02B | ¥2.51B | +20.3% |
| Net Income | ¥1.93B | ¥1.63B | +18.8% |
| ROE | 8.3% | 6.5% | - |
Revenue and profit increased in Q1, with the growth rate of operating income (+21.5%) exceeding that of revenue (+17.5%), resulting in earnings growth accompanied by improved cost efficiency. Revenue was ¥15.78B (¥13.43B in the previous year, YoY +17.5%), operating income was ¥3.04B (¥2.51B in the previous year, YoY +21.5%), ordinary income was ¥3.02B (¥2.51B in the previous year, YoY +20.3%), and net income (consolidated net income for the period, including non-controlling interests) was ¥1.93B (¥1.63B in the previous year, YoY +18.8%). The SG&A ratio improved from 20.8% in the previous year to 19.5%, supporting the improvement in the operating margin, which rose to 19.3% from approximately 18.7% in the previous year.
【Revenue】Revenue was ¥15.78B, representing a year-on-year increase of +17.5%. As the Company operates a single segment, the Maintenance Business, it does not disclose a business-by-business breakdown; however, the accumulation of existing contracts and acquisition of new projects appear to have driven the increase in revenue.
【Profit and Loss】Operating income was ¥3.04B (+21.5%), and the operating margin was 19.3%. While the gross margin declined by -0.6pt to 38.8% from 39.4% in the previous year, the SG&A ratio improved by -1.3pt to 19.5% from 20.8%, with cost efficiency improvements exceeding revenue growth and driving the improvement in profitability. Ordinary income was ¥3.02B (+20.3%), with non-operating expenses such as interest expenses of ¥0.01B acting as a slight downward factor. Extraordinary items were limited to extraordinary losses of ¥0.002B, and the impact of one-time factors was almost negligible. Net income was ¥1.93B (+18.8%); income taxes and other taxes of ¥1.09B (effective tax rate of approximately 36.1%) slightly compressed the net income growth rate relative to the growth in profit before tax (+20.3%). In conclusion, both revenue and profit increased.
【Profitability】The operating margin improved to 19.3% from approximately 18.7% in the same period of the previous year, while the net margin improved slightly to 12.2% (net income of ¥1.93B/revenue of ¥15.78B) from 12.1% in the previous year.【Cash Flow Quality】Both extraordinary and non-operating gains and losses remained below 1% of revenue, indicating that the majority of profit was generated by recurring operating activities.【Investment Efficiency】ROE was 8.3%. While improved asset efficiency resulting from revenue growth was an upward factor, both total assets and net assets declined from the end of the same period of the previous year, and the contraction in asset scale also contributed to the improvement in the ratio.【Financial Soundness】The equity ratio was 59.3%, and the current ratio was 148.5% (current assets of ¥20.69B/current liabilities of ¥13.93B), indicating a sound level of short-term payment capacity.
As cash flow statement data have not been disclosed, cash trends are analyzed based on changes in the balance sheet. Cash and deposits were ¥4.45B, up +6.6% from ¥4.17B at the end of the same period of the previous year. Short-term borrowings increased +161.7% (+¥3.17B) to ¥5.14B from ¥1.96B at the end of the same period of the previous year, indicating additional financing. Meanwhile, income taxes payable declined -74.8% (-¥1.81B) to ¥0.61B from ¥2.42B at the end of the same period of the previous year, apparently reflecting progress in the payment of taxes recorded in the previous period. Accounts receivable were ¥8.11B, down -7.4% from ¥8.76B at the end of the same period of the previous year, while inventories (the total of raw materials and work in process) also declined -2.0% to ¥7.37B from ¥7.52B. Thus, despite revenue increasing +17.5%, working capital was generally moving toward contraction, with no deterioration observed in terms of capital efficiency.
The majority of profit consisted of recurring earnings from operating activities, while extraordinary items were limited to extraordinary losses of ¥0.002B, meaning that the impact of one-time factors on business performance was almost negligible. Non-operating income of ¥0.03B and non-operating expenses of ¥0.05B also remained below 1% of revenue, indicating an extremely low degree of dependence on financial income and expenses. The difference between ordinary income of ¥3.02B and net income of ¥1.93B was mainly attributable to income taxes and other taxes of ¥1.09B (effective tax rate of approximately 36.1%); excluding the relatively heavy tax burden, profit was concentrated in the core business. Comprehensive income was ¥1.94B, almost equal to net income of ¥1.93B, and the impact of other comprehensive income items such as foreign currency translation adjustments (+¥0.01B) was limited, resulting in a small divergence between net income and comprehensive income.
Progress against the full-year plan was 24.3% for revenue (¥15.78B/¥65.00B), 23.4% for operating income (¥3.04B/¥13.00B), and 23.3% for ordinary income (¥3.02B/¥13.00B), broadly in line with the standard quarterly progress rate of 25%. No revisions were made to the earnings forecast or the year-end dividend forecast. The full-year forecast calls for revenue and operating income growth of +12.8% and +18.1%, respectively, and the growth rates in Q1 (revenue +17.5%, operating income +21.5%) are tracking above the growth rates assumed in the full-year forecast.
The year-end dividend for the fiscal year ending March 2027 is currently undetermined. No revision to the dividend forecast had been made as of the end of the quarter.
Sharp increase in short-term borrowings: Short-term borrowings were ¥5.14B, an increase of +161.7% (+¥3.17B) from ¥1.96B in the same period of the previous year. Liabilities are concentrated in short-term debt, resulting in somewhat greater sensitivity to refinancing cost increases in a rising interest-rate environment and changes in financing conditions.
High tax burden: The effective tax rate was approximately 36.1%, calculated as income taxes and other taxes of ¥1.09B/profit before tax of ¥3.02B, and compressed net income growth (+18.8%) relative to profit before tax growth (+20.3%).
Business concentration risk: The Company operates a single-segment business, the Maintenance Business, and price revisions upon contract renewals and dependence on specific customers or projects may become factors contributing to fluctuations in business performance.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 19.3% | 8.1% (2.3%–15.9%) | +11.2pt |
| Net Margin | 12.2% | 5.9% (1.6%–10.7%) | +6.4pt |
Both the operating margin and net margin were significantly above the industry median, placing the Company’s profitability at a high level within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year-on-Year) | 17.5% | 9.3% (0.4%–16.9%) | +8.2pt |
The revenue growth rate exceeded both the industry median and the upper bound of the IQR, indicating a high pace of revenue growth within the industry.
※Source: Compiled by the Company
The operating margin of 19.3% was +11.2pt above the industry median of 8.1%, and revenue and profit increased alongside an improvement in the SG&A ratio (-1.3pt year-on-year), indicating high profitability accompanied by cost efficiency improvements.
While both accounts receivable and inventories declined from the end of the same period of the previous year, revenue increased +17.5%, indicating that working capital efficiency did not deteriorate even during a period of revenue growth.
Progress against the full-year plan was in the 23–24% range for revenue, operating income, and ordinary income, in line with the standard quarterly progress rate of 25%; no revisions were made to either the earnings forecast or the dividend forecast.
This is a mechanically calculated reference range based solely on publicly available data using a residual income model (Ohlson-type model with an explicit 5-year fade period). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥245 |
| base | ¥259 |
| bull | ¥278 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | ¥130 |
| Adjusted Forecast EPS | ¥48.1 |
| 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 | 30.0% |
| Forecast EPS Confidence Adjustment | ×1.049 (based on the track record of guidance achievement rates for comparable companies) |
| Implied PBR / PER |
Sensitivity: ¥252–¥267 at cost of equity ±1%, and ¥255–¥265 at ω±0.1.
Notes:
(Calculation model: Residual income model / Interest rate reference month: 2026-07 / This value does not forecast or guarantee the future share 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. Industry benchmarks are reference information compiled by the Company based on publicly available earnings data. Investment decisions should be made at your own responsibility, after consulting with professionals as necessary.
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| 2.00x / 5.4x |