| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥1120.9B | ¥1066.2B | +5.1% |
| Operating Income | ¥97.6B | ¥60.9B | +60.2% |
| Ordinary Income | ¥100.8B | ¥63.0B | +60.0% |
| Net Income | ¥63.7B | ¥31.2B | +103.9% |
| ROE | 8.6% | 4.7% | - |
For the full year ended March 2026, Revenue was ¥1,120.9B (YoY +¥54.7B +5.1%), Operating Income was ¥97.6B (YoY +¥36.7B +60.2%), Ordinary Income was ¥100.8B (YoY +¥37.8B +60.0%), and Net Income attributable to owners of the parent was ¥66.0B (YoY +¥27.8B +72.7%), delivering significant profit growth across all stages. Operating margin improved to 8.7% (up +3.0pt from 5.7% prior year) and net margin improved to 5.9% (approx. +2.3pt), driven by higher profitability in the Power Equipment Business and the swing to profitability in the GX Solutions Business. Gross margin expanded to 25.5% (from an assumed 23.2% prior year, approx. +2.3pt), while SG&A ratio was controlled at 16.8%, realizing operating leverage.
[Revenue] Revenue rose steadily to ¥1,120.9B (YoY +5.1%). By segment, the Power Equipment Business led with ¥654.1B (+6.8%), accounting for 58.4% of total revenue, supported by expanding demand for substation/distribution equipment and successful price pass-through. The Metering Business was stable at ¥384.1B (-0.0%). The GX Solutions Business achieved double-digit growth to ¥139.1B (+15.3%), notably driven by EV fast chargers and smart grid-related products. The Optical Application Inspection Equipment Business declined to ¥16.7B (-15.8%) due to market conditions. Other businesses (real estate leasing) were stable at ¥15.0B (+0.2%). Revenue composition was Power Equipment 58.4%, Metering 34.3%, GX 12.4%, Optical Application 1.5%, Other 1.3%, indicating high concentration in Power Equipment.
[Profitability] Cost of sales was ¥834.6B, producing Gross Profit of ¥286.3B and a gross margin of 25.5% (approx. +2.3pt from prior year assumption). Improvements were driven by price pass-through progress, better product mix, and absorption of fixed costs. SG&A was controlled at ¥188.7B (16.8% of sales), growing less than revenue (+5.1%) and enabling operating leverage. Operating Income was ¥97.6B (YoY +60.2%), and operating margin improved sharply to 8.7% (from 5.7%, +3.0pt). By segment, Power Equipment led with Operating Income of ¥95.9B (+54.5%), margin 14.7%; GX recorded Operating Income of ¥4.9B (+339.3%) with significant swing to profit; Metering contributed ¥45.9B (+4.9%) steadily. Non-operating income included dividend income ¥1.6B, foreign exchange gains ¥0.3B, and equity-method investment income ¥1.2B, totaling non-operating income ¥5.3B. Non-operating expenses totaled ¥2.1B, including interest expense ¥0.6B and FX loss ¥0.1B, yielding net non-operating income of ¥3.2B and indicating operations-led performance. Ordinary Income was ¥100.8B (YoY +60.0%), reflecting similar growth to Operating Income. Extraordinary items included gain on disposal of fixed assets ¥3.2B (special gains ¥3.2B) and special losses ¥1.8B, netting +¥1.4B, indicating limited one-off impacts. Profit before tax was ¥102.3B, income taxes ¥30.0B (effective tax rate 29.3%). After subtracting Net Income attributable to non-controlling interests of ¥6.3B, Net Income attributable to owners of the parent was ¥66.0B (YoY +72.7%). The divergence between Ordinary Income and Net Income is due to tax burden and non-controlling interest deductions and is within a normal range. In conclusion, the company achieved revenue growth and significant profit expansion, maintaining an operations-driven earnings structure.
The Power Equipment Business recorded Revenue ¥654.1B (YoY +6.8%), Operating Income ¥95.9B (YoY +54.5%), and margin 14.7%, maintaining high profitability as the core segment. Demand expansion for substation/distribution equipment and price pass-through improved profitability. The Metering Business posted Revenue ¥384.1B (YoY -0.0%), Operating Income ¥45.9B (YoY +4.9%), margin 12.0%, remaining stable with steady demand for various meters and contracting work, sustaining double-digit margins. The GX Solutions Business achieved Revenue ¥139.1B (YoY +15.3%), Operating Income ¥4.9B (YoY +339.3%), margin 3.5%, a dramatic improvement led by EV fast chargers and smart grid businesses moving into profitability. The Optical Application Inspection Equipment Business declined to Revenue ¥16.7B (YoY -15.8%), Operating Income ¥1.0B (YoY -59.2%), margin 5.8%; while impacted by market conditions, its small scale limits impact on consolidated results. Other businesses (real estate leasing etc.) posted Revenue ¥15.0B (YoY +0.2%), Operating Income ¥6.2B (YoY -1.7%), margin 41.4%, maintaining high profitability.
[Profitability] Operating margin 8.7% (up +3.0pt from 5.7% prior year), net margin 5.9% (approx. +2.3pt) showing marked improvement. Gross margin expanded to 25.5% (approx. +2.3pt), SG&A ratio was controlled at 16.8%, and operating leverage emerged. ROE 8.6% improved +2.2pt from 6.4% prior year, mainly due to improved net margin. Total asset turnover was stable at 0.93x, financial leverage decreased to 1.63x (more conservative). [Cash Quality] Operating Cash Flow (OCF) ¥107.8B / Net Income ¥63.7B = 1.69x, indicating high cash backing of earnings. Accrual ratio -3.7% is favorable. OCF/EBITDA (Operating Income + Depreciation) was ¥107.8B / ¥128.7B = 0.84x, slightly below the typical >0.9 benchmark, suggesting some working capital (inventory/accounts receivable) stagnation. [Investment Efficiency] Total asset turnover 0.93x (flat from 0.94x prior year). Inventory days (DIO) 124 days, receivables days (DSO) 73 days, payables days (DPO) 55 days, yielding a cash conversion cycle (CCC) of 142 days, which has lengthened. Work-in-progress (WIP) was ¥167.6B (59.1% of inventories), high and potentially indicative of bottlenecks from production lead times and project progress. [Financial Soundness] Equity Ratio 61.3% (up +2.8pt from 58.5% prior year), debt-to-equity 0.63x, Debt/EBITDA 0.19x, interest coverage 157x, indicating low leverage and strong resilience. Current ratio 261%, quick ratio 250%, showing excellent short-term liquidity. Cash and deposits ¥135.6B plus short-term investment securities ¥30.0B provide liquidity assets of ¥165.6B, offering ample buffer against short-term liabilities of ¥280.0B. Interest-bearing debt (short-term borrowings ¥11.9B + long-term borrowings ¥12.0B) totaled ¥23.9B, low, producing net debt of ▲¥141.7B (effectively debt-free). Pension-related liabilities ¥108.6B and product warranty reserves ¥21.3B are recorded appropriately.
Operating Cash Flow was ¥107.8B (YoY +113.9%), a large increase, representing a conversion rate of 105.4% relative to profit before tax ¥102.3B. Operating cash flow before working capital changes was ¥117.7B, reflecting non-cash expenses including depreciation ¥31.1B. Working capital changes included inventory increase ▲¥11.4B (build-up of WIP), receivables decrease (improved collections) +¥18.6B, payables decrease ▲¥8.5B, and contract liabilities decrease ▲¥13.9B (drawdown of advance receipts), resulting in a net negative contribution, but after corporate tax payments ▲¥11.2B the company still secured robust OCF of ¥107.8B. Investing cash flow was ▲¥50.5B, primarily acquisition of tangible and intangible assets ▲¥60.4B, offset by proceeds from sales ¥8.8B, loan repayments received ¥1.1B, and sale of subsidiary shares ¥0.3B. Capital expenditures were focused on renewal and capacity enhancement but remained within self-financing capacity. Financing cash flow was ▲¥26.0B, reflecting net decrease in short-term borrowings ▲¥3.2B, repayment of long-term borrowings ▲¥10.0B, dividend payments ▲¥10.1B, and dividends to non-controlling interests ▲¥2.8B, achieving both debt reduction and shareholder returns. Free Cash Flow (OCF − Investing CF) was ¥57.3B, covering dividend payments ¥10.1B by 5.7x, with surplus cash added to cash and deposits. Cash and cash equivalents at year-end increased to ¥165.6B (YoY +¥31.3B), further strengthening the financial base.
Earnings quality is high and operations-driven. Non-operating income ¥5.3B is less than 0.5% of revenue and limited in size, composed of dividend income ¥1.6B, FX gains ¥0.3B, equity-method investment income ¥1.2B, etc., which are stable and repeatable. Non-operating expenses ¥2.1B are also limited (interest expense ¥0.6B, FX losses ¥0.1B). Extraordinary items netted +¥1.4B (special gains ¥3.2B including gain on sale of fixed assets and special losses ¥1.8B), representing about 2% of Net Income ¥66.0B, indicating limited reliance on one-offs. OCF ¥107.8B / Net Income ¥63.7B = 1.69x shows strong cash backing of profits; accrual ratio -3.7% (profit growth − OCF growth) is favorable. However, OCF/EBITDA = 0.84x is slightly below the >0.9 benchmark, suggesting delayed cash realization due to inventory/receivables increases. The gap between Ordinary Income ¥100.8B and Net Income attributable to owners of the parent ¥66.0B is attributable to tax burden (effective tax rate 29.3%) and Net Income attributable to non-controlling interests ¥6.3B, within normal variation. Comprehensive income was ¥85.8B, ¥22.1B higher than Net Income ¥63.7B, mainly due to actuarial adjustments related to retirement benefits ¥11.1B and valuation differences on available-for-sale securities ¥1.8B recorded in other comprehensive income, which are not directly related to core operations. Overall, the company maintains a high-quality, operations-driven earnings structure.
Company plan for FY ending March 2027 (Full Year) calls for Revenue ¥1,150.0B (YoY +2.6%), Operating Income ¥100.0B (YoY +2.4%), Ordinary Income ¥101.0B (YoY +0.2%), Net Income attributable to owners of the parent ¥100.0B, EPS ¥623.00, DPS ¥67.00. Compared with this fiscal year results, the company expects steady growth in revenue, operating income, and ordinary income, while net income forecasts a significant increase YoY +51.8%, assuming the drop-off of special gains. Revenue growth assumes continued expansion in Power Equipment and GX Solutions businesses, and the plan conservatively maintains an operating margin level of 8.7%. The payout ratio target will be raised to 40% (applied from FY2027 forecast), and the company will calculate dividend base excluding non-recurring items to ensure stability. Progress against this fiscal year’s results versus full-year guidance stood at: Revenue 97.5%, Operating Income 97.6%, Ordinary Income 99.8%, indicating steady progress toward targets. Upside risks include accelerated demand for power infrastructure renewal, scaling of GX business, and improvements in working capital efficiency boosting profit conversion. Downside risks include project delays affecting execution and prolonged high inventories/WIP increasing costs.
Annual dividend is ¥120 (interim ¥37, year-end ¥83), representing a payout ratio of approximately 29.6% (based on Net Income attributable to owners of the parent ¥66.0B), a sustainable level. Total dividends are approximately ¥19.3B, representing 33.7% of FCF ¥57.3B, with FCF coverage 2.97x, indicating ample buffer. Prior year dividend was ¥25 (interim ¥12, year-end forecast ¥13 but actual may differ), and this year’s significant dividend increase reflects strengthened shareholder return stance. At the April 28, 2026 Board meeting the company resolved to raise the payout ratio target to 40% from FY2027, and by excluding non-recurring items (e.g., gains on sale of fixed assets) when calculating dividend base, stability and sustainability of dividends will be enhanced. Next fiscal year dividend forecast ¥67 assumes a 40% payout applied to profit excluding non-recurring items, indicating substantive enhancement of returns. There is no disclosure of share buybacks and no stated total return ratio, but given low leverage (Debt/EBITDA 0.19x) and robust FCF profile, there is ample room to balance sustained dividends and growth investments.
Working Capital Stagnation Risk: Inventory days 124, receivables days 73, and CCC 142 are prolonged, with WIP accounting for 59.1% of inventories. Continued lengthening of production lead times or project progress delays could increase the risk of inventory valuation losses and deterioration of capital efficiency. In the event of demand slowdown or supply chain disruption, impairment losses may occur.
Segment Concentration Risk: The Power Equipment Business accounts for 58.4% of revenue and the bulk of operating profit, making results sensitive to investment cycles and project progress in that area. Intensified bidding/price competition, specification changes that erode margins, or project execution risks (installation delays/cost overruns) could increase earnings volatility.
Project Execution Risk: The high WIP ratio (59.1%) implies cost overrun risk associated with long-duration installation projects. While the decrease in contract liabilities ¥23.9B (advance receipts) indicates project turnover progress, remaining contract assets ¥18.2B reflect uncollected portions of percentage-of-completion projects, posing risks of collection delays or additional costs from specification changes.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 8.7% | 7.8% (4.6%–12.3%) | +1.0pt |
| Net Margin | 5.7% | 5.2% (2.3%–8.2%) | +0.5pt |
Both operating margin and net margin exceed the manufacturing industry median, indicating favorable profitability within the sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 5.1% | 3.7% (-0.4%–9.3%) | +1.4pt |
Revenue growth outpaces the median, reflecting solid growth within the industry.
※Source: Company compilation
Improvement in core-business-driven profitability is notable, with Operating Margin 8.7% (YoY +3.0pt) and Gross Margin 25.5% (approx. +2.3pt), achieving high-quality profit growth. Higher profitability in Power Equipment and the GX Solutions Business turning profitable drove mix improvement and revealed operating leverage. The financial base is extremely solid—Debt/EBITDA 0.19x, current ratio 261%, effectively debt-free (Net Debt ▲¥141.7B)—providing ample room to raise the payout ratio target to 40% while sustaining growth investments.
Improvement in working capital efficiency is the next evaluation hinge. Inventory days 124, receivables days 73, and CCC 142 remain long, and the high WIP ratio 59.1% suggests prolonged production lead times or project progress delays. If DSO/DIO improvements materialize, OCF/EBITDA ratio and cash generation strength would improve, expanding upside to next fiscal year guidance (Revenue ¥1,150B, Operating Income ¥100B).
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in specific securities. Industry benchmarks are reference information compiled by the company based on publicly available financial statements. Investment decisions are your responsibility; please consult a professional advisor as needed.