Miyakoshi Holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥-39M
• Net Income: ¥228M
• EPS: ¥1.75

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Miyakoshi Holdings (TSE:6620) reported FY2026 Q2 (cumulative) consolidated results under JGAAP with a small net profit of ¥70 million despite an operating loss of ¥39 million. A large portion of profitability stems from non-operating and/or extraordinary items, as evidenced by positive ordinary income of ¥97 million and an implied extraordinary gain to reconcile to pre-tax earnings. Many statement lines (e.g., revenue, cash flows, depreciation, inventories, interest expense) show as zero, which should be interpreted as undisclosed rather than actual zeros; conclusions are therefore constrained by data gaps. The balance sheet is exceptionally strong: total assets are ¥27.909 billion, liabilities ¥0.869 billion, and equity ¥27.247 billion, implying an equity ratio around 97.6% (despite the reported 0.0% figure) and a debt-to-equity ratio near 0.03x. Liquidity appears ample with current assets of ¥12.794 billion and current liabilities of ¥0.358 billion, implying a current ratio of roughly 35.7x and working capital of ¥12.436 billion. Cash and cash flow line items were not disclosed; therefore, operating cash flow quality cannot be validated this quarter. The DuPont metrics provided are not meaningful because revenue was undisclosed; however, a rough ROE proxy using period-end equity suggests a very low single-digit annualized ROE of about 0.5%, reflecting low earnings relative to the company’s sizable equity base. The income tax expense of ¥92 million is large relative to ordinary income, indicating the presence of material extraordinary items or tax adjustments. The company currently pays no dividend (DPS: ¥0), which is consistent with its capital preservation stance amid project-driven earnings volatility. With minimal leverage and abundant liquidity, solvency risk appears low, but earnings visibility and cash conversion remain key uncertainties. Given Miyakoshi’s business model (real estate redevelopment with long-cycle, event-driven profits), quarter-to-quarter operating metrics can be lumpy and non-operating items can dominate, as seen this period. Key watch items are project milestones, any recognized valuation gains/losses, and disclosure of operating cash flows in subsequent filings. Overall, the balance sheet strength is a clear positive, but profit quality is mixed and dependent on non-operating/extraordinary factors. Data limitations prevent a definitive view on operating momentum, revenue sustainability, or cash generation in the period.

Profitability Analysis

roe_decomposition: Reported DuPont values based on zero revenue are not meaningful. Using available data, NI/Equity (period) ≈ ¥70m / ¥27.247b = 0.26% for the half-year; annualized ROE ≈ ~0.5%. Financial leverage ≈ Assets/Equity = ¥27.909b / ¥27.247b ≈ 1.02x, indicating negligible leverage contribution. Net margin and asset turnover cannot be reliably computed due to undisclosed revenue. margin_quality: Operating income was a loss of ¥39m while ordinary income was ¥97m, implying ¥136m of net non-operating gains. With net income at ¥70m and income tax expense at ¥92m, implied pre-tax income is ~¥162m, suggesting ~¥65m of extraordinary gains. Profitability is therefore driven by non-operating/extraordinary items, not core operations, indicating weaker margin quality. operating_leverage: Insufficient revenue and cost disclosure this quarter to quantify operating leverage. The negative operating income despite a positive bottom line suggests limited near-term operating scale efficiency and high dependence on non-operating factors.

Growth Assessment

revenue_sustainability: Revenue was undisclosed (reported as zero), preventing assessment of top-line momentum or sustainability. The business model (project-driven) typically yields uneven recognition of revenue and gains. profit_quality: Earnings depend on non-operating and extraordinary elements this quarter. Core profitability (operating level) was negative, which lowers the quality of reported profit. outlook: With a strong balance sheet and low leverage, the company is positioned to pursue project milestones; however, earnings visibility remains low until operating revenue and cash flow are disclosed or project-related gains crystallize. Watch for updates on project progress and any guidance on revenue recognition timing.

Financial Health

liquidity: Current assets ¥12.794b vs. current liabilities ¥0.358b → current ratio ≈ 35.7x; working capital ≈ ¥12.436b. Quick ratio equals current ratio due to undisclosed inventories, implying abundant short-term liquidity. solvency: Total liabilities ¥0.869b vs. equity ¥27.247b → equity ratio ≈ 97.6% (calculated), debt-to-equity ≈ 0.03x. The capital structure is conservatively financed with minimal leverage. capital_structure: Low reliance on debt reduces refinancing and interest rate risk. The liability base likely comprises payables/contract liabilities rather than interest-bearing debt, but interest expense was undisclosed.

Cash Flow Quality

earnings_quality: OCF, investing CF, and financing CF were undisclosed (reported as zero), so cash conversion cannot be assessed. With operating loss and positive net income driven by non-operating/extraordinary items, near-term earnings quality is uncertain. fcf_analysis: Free cash flow cannot be computed without OCF and capex data. The large working capital base and cash-like current assets suggest capacity to fund operations, but actual cash generation remains unverified. working_capital: Working capital is strong at ¥12.436b. Composition details (receivables, cash, advances) are undisclosed; changes cannot be analyzed, limiting insight into cash conversion cycles.

Dividend Sustainability

payout_ratio_assessment: DPS is ¥0 and payout ratio is 0%, consistent with reinvestment and liquidity preservation given project-driven earnings and operating losses. fcf_coverage: Not assessable due to undisclosed OCF/FCF. With a strong balance sheet and no current dividend, coverage is a non-issue near term. policy_outlook: Absent steady operating profits and cash inflows, continuation of a no-dividend policy appears likely. Any policy change would hinge on material project monetization and visibility into recurring cash generation.

Risk Assessment

Business Risks:

• Project concentration risk and timing uncertainty for revenue recognition
• Regulatory and market risks related to property redevelopment (including overseas exposure if applicable)
• Earnings volatility due to reliance on non-operating/extraordinary gains
• Limited transparency this quarter due to undisclosed revenue and cash flows
• FX exposure if assets or projects are denominated in foreign currencies

Financial Risks:

• Profitability risk at the operating level (operating loss)
• Potential tax volatility given large tax expense relative to ordinary income
• Cash conversion risk due to unknown OCF and working capital movements
• Valuation and impairment risk on long-duration assets

Key Concerns:

• Sustainability of profits without non-operating/extraordinary items
• Lack of disclosed operating cash flow and revenue metrics
• Execution milestones and monetization timing for key projects

Investment Implications

Key Takeaways:

• Net profit of ¥70m despite an operating loss of ¥39m indicates reliance on non-operating/extraordinary items
• Balance sheet is very strong with equity ratio ~97.6% and D/E ~0.03x
• Liquidity is ample (current ratio ~35.7x; working capital ¥12.436b), lowering near-term solvency risk
• Earnings quality is mixed and operating visibility is low due to undisclosed revenue and cash flows
• Annualized ROE is low (~0.5%), reflecting low earnings on a large equity base

Metrics to Watch:

• Disclosure of revenue and operating cash flow in subsequent quarters
• Breakdown of non-operating and extraordinary gains and their recurrence
• Project milestones, pre-sales/lease-up, and regulatory approvals
• Tax normalization and effective tax rate trajectory
• Changes in interest-bearing debt and cash balances

Relative Positioning: Financially conservative with substantial equity and liquidity compared to typical project-driven peers, but currently weaker on core operating profitability and earnings visibility.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis