| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1058.5B | ¥1009.0B | +4.9% |
| Operating Income | ¥120.7B | ¥95.5B | +26.3% |
| Ordinary Income | ¥123.4B | ¥97.4B | +26.8% |
| Net Income | ¥75.5B | ¥62.3B | +21.2% |
| ROE | 11.0% | 10.5% | - |
For the fiscal year ended March 2026, Revenue was ¥1,058.5B (YoY +¥49.6B +4.9%), Operating Income was ¥120.7B (YoY +¥25.2B +26.3%), Ordinary Income was ¥123.4B (YoY +¥26.0B +26.8%), and Net Income attributable to owners of parent was ¥75.5B (YoY +¥13.2B +21.2%), resulting in year-on-year increases in both revenue and profit. Operating margin improved to 11.4% (previous year 9.5%), a 1.9pt improvement, primarily due to a gross margin expansion to 39.4% (up 2.0pt year-on-year). Non-operating income of ¥5.7B (including ¥2.6B foreign exchange gains and ¥1.3B dividend income) accounted for only 0.5% of sales and was limited, indicating high quality earnings driven by operations. The increase in Net Income was supported by improvement in Ordinary Income and a stable effective tax rate at 24.2% (same as prior year).
[Revenue] Revenue expanded steadily to ¥1,058.5B (YoY +4.9%). By segment, the core Fire Alarm Equipment segment is estimated at ¥664.0B and led overall results, followed by Maintenance ¥224.3B, Fire Extinguishing Equipment ¥105.4B, and Security Equipment ¥64.8B. Goods or services transferred at a point in time amount to ¥422.1B, and goods or services transferred over a period amount to ¥636.4B; long-term contracts for construction and maintenance account for 60% of the revenue mix. The main drivers of revenue growth were strong orders for Fire Alarm Equipment and accumulating maintenance and inspection income.
[Profitability] Cost of goods sold was ¥641.9B (cost ratio 60.6%), yielding Gross Profit of ¥416.7B and a gross margin of 39.4%, an improvement of 2.0pt from 37.4% in the prior year. Improvement in price revisions penetration, stabilization of raw material and outsourcing costs, better construction profitability, and mix effects from a higher proportion of maintenance/service contributed to gross margin expansion. SG&A was ¥296.0B (SG&A ratio 28.0%), up 0.6pt from 27.4% in the prior year, impacted by increased personnel costs and core system investments among fixed cost increases. Operating Income improved significantly to ¥120.7B (operating margin 11.4%) from ¥95.5B in the prior year, expanding operating margin by 1.9pt. Non-operating profit (non-operating income ¥5.7B less non-operating expenses ¥2.9B) was +¥2.7B, mainly comprising foreign exchange gains ¥2.6B and dividend income ¥1.3B. Ordinary Income settled at ¥123.4B (YoY +26.8%). Extraordinary profit of ¥0.4B (gain on sale of investment securities) less extraordinary loss of ¥0.2B resulted in net extraordinary items of +¥0.3B, a minor impact. Profit before tax was ¥123.7B; after deducting corporate taxes and others of ¥29.9B, Net Income attributable to owners of parent was ¥75.5B (YoY +21.2%). In conclusion, the company achieved higher revenue and higher profits.
Segment profit for Fire Alarm Equipment was ¥111.9B (YoY +24.7%), recording a large increase and driving consolidated Operating Income growth as the core segment. Maintenance produced ¥52.9B (+4.9%) and grew stably, serving as a support role as stock-type revenue. Fire Extinguishing Equipment was ¥16.5B (+2.6%), and Security Equipment was ¥7.8B (+22.6%), both showing profit growth trends. Total segment profit of ¥189.0B less company-wide expenses of ¥68.4B resulted in consolidated Operating Income of ¥120.7B. High profitability in Fire Alarm Equipment and stable growth in Maintenance are strengths of the profit structure.
[Profitability] Operating margin improved to 11.4% from 9.5% in the prior year, mainly driven by gross margin expansion to 39.4% (prior year 37.4%), a 2.0pt increase. SG&A ratio rose to 28.0% from 27.4% (+0.6pt), but the gross margin improvement absorbed the SG&A increase, demonstrating operating leverage. ROE was 11.0%, below prior year 13.7%, reflecting that the increase in equity exceeded profit growth. Net margin improved to 7.1% from 6.2%, a 0.9pt increase. [Cash Quality] Operating Cash Flow was ¥106.3B, 1.41x Net Income ¥75.5B, indicating strong cash generation. However, the OCF/EBITDA ratio is about 0.78x (EBITDA = Operating Income ¥120.7B + Depreciation ¥16.2B = ¥136.9B; OCF ¥106.3B ÷ ¥136.9B), below 1.0x, showing working capital tie-up is constraining cash conversion. DSO (days sales outstanding) is about 86 days (Accounts receivable ¥248.3B ÷ Annual Revenue ¥1,058.5B × 365), DIO (days inventory outstanding) about 86 days (Inventories ¥151.9B ÷ COGS ¥641.9B × 365), DPO (days payable outstanding) about 24 days (Accounts payable ¥41.9B ÷ COGS ¥641.9B × 365), giving a CCC of about 148 days, which is long and suggests significant room to improve working capital efficiency. [Investment Efficiency] Total asset turnover is 1.08x (Revenue ¥1,058.5B ÷ average total assets during the period approx. ¥979B), a standard level. Capital expenditures were ¥14.3B, below depreciation of ¥16.2B, indicating a maintenance-focused CAPEX stance. [Financial Soundness] Equity Ratio is 69.9%, up 3.7pt from 66.2% in the prior year, indicating a solid financial base. Current ratio is 328% (Current assets ¥727.2B ÷ Current liabilities ¥221.6B), and Quick ratio is also 328%, extremely high, showing robust short-term liquidity. Interest-bearing debt is minimal and Interest Coverage is 402x (Operating Income ¥120.7B ÷ Interest expense ¥0.3B), indicating very high interest-rate resilience.
Operating Cash Flow was ¥106.3B, starting from Profit before tax ¥123.7B and adding back Depreciation ¥16.2B, with working capital movements causing approximately ¥▲29.6B of cash outflow. Inventory increased by ¥10.8B, accounts receivable increased by ¥4.0B, and accounts payable decreased by ¥17.3B, which were the working capital cash absorption factors. After deducting corporate taxes paid of ¥29.6B, Operating Cash Flow amounted to ¥106.3B. Investing Cash Flow was ¥▲16.3B, mainly due to capital expenditures of ¥14.3B. Free Cash Flow (Operating CF + Investing CF) was ¥90.0B, demonstrating ample cash generation. Financing Cash Flow was ¥▲26.8B, mainly reflecting dividend payments of ¥22.8B. Cash and cash equivalents increased by ¥67.9B from beginning balance ¥209.2B to ending balance ¥277.1B, securing plentiful liquidity.
Earnings quality is high and operation-driven. Non-operating income ¥5.7B represents 0.5% of Revenue and is limited, mainly comprising foreign exchange gains ¥2.6B, dividend income ¥1.3B, and interest income ¥0.7B. Extraordinary items were net +¥0.3B (extraordinary profit ¥0.4B less extraordinary loss ¥0.2B), minimal and indicating limited one-off impacts. Operating CF exceeds Net Income by a wide margin (1.41x), so accounting profits are well backed by cash. However, the OCF/EBITDA ratio of 0.78x indicates heavy cash conversion due to working capital growth; delayed receivables collection (DSO 86 days) and inventory buildup (DIO 86 days) are constraining cash generation. The accrual ratio (Net Income − Operating CF) ÷ Total Assets is approximately ▲3.1%, negative, indicating cash generation exceeds accounting profit and confirming good earnings quality.
Full Year guidance projects Revenue ¥1,100.0B (YoY +3.9%), Operating Income ¥123.0B (YoY +1.9%), Ordinary Income ¥125.0B (YoY +1.3%). Net Income attributable to owners of parent is not disclosed, but back-calculating from the EPS forecast of ¥120.64 suggests approximately ¥90B. Operating margin is projected at 11.2% (¥123.0B ÷ ¥1,100.0B), a conservative plan incorporating a 0.2pt decline from this fiscal year’s 11.4%. The slower projected Operating Income growth (+1.9%) versus Revenue growth (+3.9%) likely reflects assumptions of higher SG&A and cautious construction profitability. Dividend guidance on a post-split basis is ¥20 per year (pre-split equivalent ¥120), effectively maintained, with a Payout Ratio of about 22%, continuing a stable return policy.
Dividends are interim ¥40 and year-end ¥80 for an annual ¥120, with a Payout Ratio of 26.0%, a healthy level. Against Net Income ¥75.5B, total dividends amount to approximately ¥22.8B (issued shares 79.2 million − treasury stock 4.6 million = 74.6 million shares × ¥120 per share), implying an estimated payout ratio of about 30%. FCF of ¥90.0B substantially exceeds dividend payments of ¥22.8B, giving dividend coverage of about 3.9x and ample headroom. Including capital expenditures of ¥14.3B, FCF coverage is about 2.5x, enabling both growth investment funded internally and stable dividends. No share buybacks were conducted this fiscal year; shareholder returns are by dividend only. Next fiscal year’s forecast dividend is ¥20 on a post-split basis (pre-split equivalent ¥120), effectively maintained, suggesting continuation of stable dividends aligned with profit growth. Note that a 3-for-1 stock split for common shares was implemented on April 1, 2026.
Risk of deteriorating working capital efficiency: DSO 86 days and CCC 148 days are prolonged, and delayed receivables collection and inventory buildup are pressuring cash circulation. DPO is short at 24 days, indicating room to optimize payment terms. If working capital efficiency does not improve, cash generation growth may be constrained.
Risk of rising SG&A ratio: SG&A ratio rose to 28.0% from 27.4% (+0.6pt), driven by increased personnel costs and core system investments among fixed cost increases. Continued personnel and IT investments could reduce operating leverage and pressure margins.
Risk from large projects and construction progress variability: Construction and maintenance long-term contracts account for 60% of revenue, so progress and profitability fluctuation of large projects can affect results. Given the business model’s high construction exposure, delays in orders/progress management or cost volatility may materially affect margins.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 11.4% | 7.8% (4.6%–12.3%) | +3.6pt |
| Net Margin | 7.1% | 5.2% (2.3%–8.2%) | +1.9pt |
Profitability significantly exceeds the industry median, placing the company in the upper quartile as a high-profit company.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 4.9% | 3.7% (-0.4%–9.3%) | +1.2pt |
Revenue growth rate slightly exceeds the industry median and is within a stable growth range.
※Source: Company compilation
The sustainability of the operating margin improvement led by gross margin is the focal point. This fiscal year, gross margin expanded to 39.4% (up 2.0pt YoY) and Operating Margin reached 11.4%, a top industry level. Price revisions, procurement improvements, and mix effects were the main drivers; whether this level can be maintained going forward is key to profit sustainability. Conversely, SG&A ratio rose by 0.6pt, and rising fixed costs may pressure operating leverage, which warrants monitoring.
Improving working capital efficiency is the next driver for shareholder value enhancement. With DSO 86 days and CCC 148 days prolonged, delayed receivables collection and inventory buildup are constraining cash flow. While Operating CF is strong at ¥106.3B, an OCF/EBITDA ratio of 0.78x indicates heavy cash conversion; improvements in credit management, billing processes, and inventory reduction could materially boost cash generation.
A solid financial base and ample FCF enable simultaneous growth investment and shareholder returns. Equity Ratio 69.9%, Current Ratio 328%, and FCF ¥90.0B indicate financial strength, and dividend coverage of about 3.9x shows ample capacity. Accumulation of stock-type revenue such as maintenance and inspections underpins stable growth, and there is substantial room for medium-term profit growth and expanded returns.
This report is an earnings analysis document automatically generated by AI analyzing XBRL financial statement 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 should be made at your own responsibility and, if necessary, after consulting a professional.