| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1396.6B | ¥1337.0B | +4.5% |
| Operating Income / Operating Profit | ¥183.5B | ¥156.8B | +17.0% |
| Ordinary Income | ¥193.6B | ¥162.2B | +19.4% |
| Net Income / Net Profit | ¥110.5B | ¥91.2B | +21.2% |
| ROE | 7.9% | 7.0% | - |
For the fiscal year ending March 2026, Revenue was ¥1396.6B (YoY +¥59.6B +4.5%), Operating Income was ¥183.5B (YoY +¥26.7B +17.0%), Ordinary Income was ¥193.6B (YoY +¥31.4B +19.4%), and Net Income attributable to owners of the parent was ¥110.5B (YoY +¥19.3B +21.2%), delivering growth in both revenue and profit. Gross margin improved to 37.5% (YoY +2.8pt), and Operating Margin rose to 13.1% (YoY +1.4pt). SG&A ratio increased to 24.3% (YoY +1.3pt), but gross margin improvement absorbed this, generating operating leverage.
[Revenue] Revenue progressed steadily at ¥1396.6B (+4.5%). By segment, Fire-Fighting Equipment was ¥469.5B (+3.8%), Fire Alarm Equipment was ¥511.4B (+6.2%), and Maintenance & Inspection was ¥367.3B (+6.0%), with all reported segments achieving revenue growth. Fire-Fighting Equipment benefited from increased demand for sprinkler systems and plant fire protection systems; Fire Alarm Equipment was supported by backlog in environmental monitoring systems and smoke control systems. Maintenance & Inspection growth continued through renewals/expansions of existing contracts and accumulation of new orders. Other segments (e.g., parking lot traffic control systems) declined to ¥52.4B (-15.0%), but the impact on the overall business was limited.
[Profitability] Cost of sales was ¥873.4B, yielding gross profit of ¥523.2B (gross margin 37.5%, YoY +2.8pt). Improvement in project mix and price pass-through were the main drivers of gross margin expansion. SG&A was ¥339.7B (SG&A ratio 24.3%, YoY +1.3pt), rising due to higher personnel and R&D expenses; however, gross margin gains more than offset this, expanding Operating Income to ¥183.5B (Operating Margin 13.1%, YoY +1.4pt). Non-operating items included an increase in equity-method investment income to ¥5.8B (prior year ¥3.3B) and dividend income of ¥1.4B (YoY +¥0.2B), supporting Ordinary Income of ¥193.6B (+19.4%). Extraordinary items were minor (Extraordinary Gains ¥2.8B, Extraordinary Losses ¥0.3B), resulting in Profit Before Tax of ¥196.1B (+22.2%). Corporate taxes were ¥59.6B (effective tax rate 30.4%), producing Net Income of ¥110.5B (+21.2%). In conclusion, structural improvements in gross margin and cost absorption drove revenue and profit growth.
The Fire-Fighting Equipment segment reported Revenue of ¥469.5B (+3.8%) and Operating Income of ¥108.4B (+29.8%), improving margin to 23.1% and becoming the largest contributor to company profit. The substantial margin improvement (from 18.6% to 23.1%) appears attributable to a higher mix of high-value-added projects and efficient project execution. Fire Alarm Equipment posted Revenue of ¥511.4B (+6.2%) and Operating Income of ¥99.6B (+16.8%), achieving a margin of 19.5% (prior year 17.8%) with revenue and profit growth. Maintenance & Inspection delivered steady Revenue of ¥367.3B (+6.0%), while Operating Income slightly declined to ¥79.8B (-0.8%), and margin fell to 21.7% (prior year 23.2%), likely pressured by higher personnel and patrol costs. Other segments saw Revenue decline to ¥52.4B (-15.0%) but Operating Income increased to ¥4.7B (+22.5%), with margin improving substantially to 9.0% (prior year 6.3%). After corporate expense eliminations, consolidated Operating Income was ¥183.5B.
[Profitability] Operating Margin was 13.1% (YoY +1.4pt), and Net Margin rose to 7.9% (prior year 6.8%). ROE was 7.9% (prior year 8.8%), slightly lower due to equity increasing by ¥89.7B outpacing Net Income growth. [Cash Quality] Operating Cash Flow (OCF) was ¥145.5B, with OCF / Net Income at 1.32x, indicating solid cash backing of profits. OCF / EBITDA was 0.70x, reflecting working capital burdens characteristic of project-based businesses. [Investment Efficiency] Total Asset Turnover was 0.77x (annualized), impacted by long project recovery cycles, and Days Sales Outstanding (DSO) was long at 163 days. Inventory turnover days were short at 13 days, consistent with an order-made, integrated production-sales model. Cash Conversion Cycle (CCC) was 197 days, with long receivables collection a challenge for working capital efficiency. [Financial Soundness] Equity Ratio was 76.4% (prior year 77.9%), very high; Current Ratio was 335.0%, Quick Ratio 320.6%, indicating ample short-term liquidity. Interest-bearing debt was minor at ¥1.5B (short-term borrowings only), Debt/EBITDA was 0.01x, and Interest Coverage was 798x, indicating extremely strong debt service capacity.
Operating Cash Flow was ¥145.5B (YoY +26.0%), with subtotal OCF (before working capital changes) at ¥212.3B, reflecting strong profit generation. In working capital, trade receivables increased by ¥3.1B, inventories decreased by ¥11.1B (cash inflow), and accounts payable increased by ¥1.9B. Contract liabilities (advances received) rose by ¥9.4B. After corporate tax payments of ¥68.6B, OCF totaled ¥145.5B. Investing Cash Flow was -¥158.7B, mainly due to acquisition of subsidiary shares -¥91.9B, acquisition of tangible and intangible fixed assets -¥52.3B, and increase in short-term investment securities -¥40.0B. With more active M&A and growth investments, Free Cash Flow was negative at -¥13.1B. Financing Cash Flow was -¥67.9B, centered on dividend payments of ¥56.6B (interim and year-end combined). Cash and cash equivalents at year-end decreased to ¥345.9B (YoY -¥80.5B), but liquidity including short-term investment securities of ¥41.0B amounted to ¥386.9B, a sufficient level.
Of Ordinary Income of ¥193.6B, Operating Income accounted for ¥183.5B, meaning core business profit contribution was high at 94.8%. Non-operating income of ¥12.9B comprised equity-method investment income ¥5.8B, dividend income ¥1.4B, insurance dividend ¥0.3B, foreign exchange gains ¥0.3B, etc., and mainly consisted of recurring items. Extraordinary items were mainly gains on sales of investment securities ¥2.8B and impairment losses ¥4.6B, resulting in net extraordinary items of -¥0.3B, a minor impact. The ratio of OCF to Net Income was 1.32x, indicating accounting profits are supported by cash. Total Comprehensive Income was ¥153.6B; the ¥43.1B difference from Net Income of ¥110.5B was attributable to Other Comprehensive Income items such as valuation differences on securities ¥14.5B, foreign currency translation adjustments ¥1.1B, and actuarial gains/losses on retirement benefits ¥1.4B, supporting a high quality of earnings.
Full Year guidance forecasts Revenue ¥1576.0B (+12.8%), Operating Income ¥190.0B (+3.5%), Ordinary Income ¥198.4B (+2.5%), and Net Income ¥107.7B (-2.5%). Revenue is expected to achieve double-digit growth reflecting backlog accumulation in the second half and increased handover projects at year-end, while Operating Margin is assumed to moderate to 12.1% (current year 13.1%) due to anticipated SG&A increases in the second half. Ordinary Income outlook remains firm assuming stable contributions from equity-method investments. Net Income is expected to decline slightly due to normalization after prior-year extraordinary gains and tax optimization; this reflects a return to a normalized effective tax rate. Progress toward the full-year forecast is generally strong: Revenue 88.6%, Operating Income 96.6%, Ordinary Income 97.6%, Net Income 102.6%, indicating high probability of meeting full-year guidance.
Annual dividend is ¥116 (interim ¥50, year-end ¥66), unchanged from prior year dividend of ¥116. Payout Ratio is 50.0% (annual dividend ¥116 / FY EPS forecast ¥226.13), maintaining a stable dividend policy. On an actual basis, with Dividend ¥116 / Actual EPS ¥231.88, payout ratio is 50.0%. Total dividends are estimated at approximately ¥6.82B (based on weighted average shares outstanding of 58,860 thousand shares), and Dividend Coverage relative to OCF of ¥145.5B is 2.1x, ample. However, Free Cash Flow was negative at -¥13.1B this year, meaning dividends plus investments exceeded internally generated cash. No share buybacks were implemented this term; shareholder returns consist solely of dividends, so Total Return Ratio equals the payout ratio. The company appears likely to maintain the same payout ratio next fiscal year, conditional on improvements in OCF or smoothing of investment pace to underpin dividend sustainability.
Long receivables retention risk: Accounts receivable and notes receivable amounted to ¥623.6B, representing 44.6% of Revenue with DSO of 163 days, indicating protracted collection. Given the project-based nature, long lead times to acceptance, billing, and collection mean that customer credit deterioration or acceptance delays could deteriorate cash flows and increase bad debt risk. Allowance ratio is low at 0.96%; depending on the economic environment, allowance shortfalls may materialize.
Accelerating SG&A growth risk: SG&A was ¥339.7B (YoY +10.4%), growing faster than Revenue (+4.5%), with personnel, R&D and corporate expenses becoming more fixed. In an environment requiring continued talent acquisition and digital investment, if Revenue underperforms assumptions, margin compression risk increases. SG&A ratio has risen to 24.3% (prior year 23.0%), and strengthening cost control is a medium-term priority.
M&A integration and goodwill burden: Goodwill increased to ¥38.3B (YoY +¥30.4B) following subsidiary acquisitions of ¥91.9B this term. If integration does not proceed as planned and expected earnings are not realized, there is a risk of impairment losses. Current goodwill / equity ratio is 2.8% and goodwill / EBITDA is 0.18x, indicating a light burden, but further M&A or missed synergies could crystallize medium-term risks.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 13.1% | 7.8% (4.6%–12.3%) | +5.4pt |
| Net Margin | 7.9% | 5.2% (2.3%–8.2%) | +2.7pt |
Profitability is substantially above the industry median and exceeds the upper quartile.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 4.5% | 3.7% (-0.4%–9.3%) | +0.8pt |
Revenue growth slightly exceeds the median, maintaining a stable expansion trend.
※Source: Company aggregation
Structural improvement in gross margin and rising Operating Margin have been confirmed; improvements in project mix and price pass-through underpin the sustainability of profitability gains. The Fire-Fighting Equipment segment margin improved to 23.1%, strengthening the core business revenue base. Although SG&A ratio is trending upward, gross margin improvement has absorbed this, and operating leverage effects are expected in the short to medium term.
Financial position is very strong with an Equity Ratio of 76.4% and effectively net cash; liquidity including on-hand funds is ¥386.9B. Although Free Cash Flow turned negative due to active M&A and growth investments this term, OCF of ¥145.5B is robust and Dividend Coverage is 2.1x. With smoothing of investment pace and expansion of OCF, continued stable shareholder returns are expected.
Improving working capital efficiency is a medium-term focus. With DSO at 163 days and CCC at 197 days, long collection periods are a lever for improving capital efficiency. Enhancing billing and collection processes and revising contract terms could improve OCF / EBITDA and expand investment capacity.
This report is an AI-generated financial analysis created from XBRL earnings release data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on public financial statements. Investment decisions are your own responsibility; consult a professional advisor as appropriate.