| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥900.9B | ¥828.8B | +8.7% |
| Operating Income | ¥50.2B | ¥42.3B | +18.7% |
| Ordinary Income | ¥55.3B | ¥39.3B | +40.8% |
| Net Income | ¥30.0B | ¥0.5B | +6154.2% |
| ROE | 5.0% | 0.1% | - |
For the fiscal year ended March 2026, Revenue was ¥900.9B (YoY +¥72.1B +8.7%), Operating Income was ¥50.2B (YoY +¥7.9B +18.7%), Ordinary Income was ¥55.3B (YoY +¥16.0B +40.8%), and Net Income Attributable to Owners of the Parent was ¥38.9B (YoY +¥16.6B +74.4%). Operating margin improved by 0.5pp to 5.6% (prior year 5.1%), and ordinary income margin expanded by 1.4pp to 6.1% (prior year 4.7%), indicating stepwise profitability improvement. ROE improved by 2.5pp to 6.9% (prior year 4.4%), primarily driven by higher profit margins. Total assets expanded to ¥893.6B (YoY +¥130.8B +17.1%), and Net Assets increased to ¥603.4B (YoY +¥83.1B +16.0%), with an Equity Ratio of 67.4%, indicating a robust financial position.
【Revenue】 Revenue reached ¥900.9B (YoY +8.7%), achieving steady growth. By segment, VCCS was ¥560.9B (YoY +¥1.3B +0.2%) and essentially flat, CTC was ¥196.1B (YoY +¥40.0B +25.6%) with substantial growth, FC・MD was ¥114.6B (YoY +¥4.3B +3.9%) with modest growth, and the Incubation Center was ¥29.2B (prior year ¥2.7B) with significant expansion. By region, Japan was ¥301.4B (prior year ¥254.8B), Americas & Europe ¥341.9B (prior year ¥329.6B), and Asia ¥257.6B (prior year ¥244.5B), with all regions showing revenue increases and notable strength in the Japanese market. Revenue mix was balanced at Americas & Europe 38%, Asia 29%, Japan 33%. Addition of one newly consolidated subsidiary (succession due to company split for the Incubation Center) also contributed to revenue expansion.
【Profitability】 Operating Income was ¥50.2B (YoY +18.7%), outpacing revenue growth and improving operating margin by 0.5pp to 5.6%. By segment, VCCS Operating Income was ¥22.0B (prior year ¥28.4B) — a decline, CTC was ¥29.3B (prior year ¥14.8B) — roughly doubled, FC・MD was ¥5.5B (prior year ¥7.9B) — a decline, and Incubation Center was an operating loss of -¥6.9B (prior year -¥8.9B) — a narrower deficit; CTC’s profit increase drove consolidated profits. Ordinary Income of ¥55.3B (YoY +40.8%) exceeded operating profit growth, with improvements in non-operating items (including equity-method losses of -¥0.2B) contributing approximately ¥5.1B. Extraordinary items included negative goodwill gain of ¥3.1B and impairment losses on fixed assets of ¥2.7B (prior year ¥0.03B). Net Income Attributable to Owners of the Parent was ¥38.9B (YoY +74.4%), resulting in a net margin of 4.3% (prior year 2.7%), a 1.6pp improvement. The divergence between ordinary income and net income is mainly within tax burden and extraordinary items; overall, the company achieved both revenue and profit growth.
VCCS (in-vehicle antenna systems) reported Revenue of ¥560.9B (YoY +0.2%) and Operating Income of ¥22.0B (YoY -22.5%), a decline, with margin falling to 3.9% (prior year 5.1%). Major customer Toyota Motor North America, Inc. accounted for ¥134.8B (prior year ¥131.6B), a slight increase, while regional profitability diverged with Japan ¥211.6B (prior year ¥196.3B), Americas & Europe ¥263.0B (prior year ¥268.4B), and Asia ¥86.4B (prior year ¥95.0B). CTC (connectors for semiconductor test) achieved Revenue of ¥196.1B (YoY +25.6%) and Operating Income of ¥29.3B (YoY +98.0%), a substantial profit increase, with margin improving to 14.9% (prior year 9.5%). Growth was driven by the Asia market at ¥118.8B (prior year ¥95.6B) and a recovery in semiconductor demand. FC・MD (precision connectors & medical devices) posted Revenue of ¥114.6B (YoY +3.9%) and Operating Income of ¥5.5B (YoY -30.2%), a decline, with margin down to 4.8% (prior year 7.2%). Incubation Center (strategic new product development) recorded Revenue of ¥29.2B (prior year ¥2.7B) due to succession from a company split, and reduced the operating loss to -¥6.9B (prior year -¥8.9B). Consolidated profitability structure was driven by CTC’s high profitability complemented by reduced deficits in investment segments.
【Profitability】Operating margin improved by 0.5pp to 5.6% (prior year 5.1%), and net margin expanded by 1.6pp to 4.3% (prior year 2.7%). ROE rose to 6.9% (prior year 4.4%), a 2.5pp increase, primarily due to improved net margin. ROA improved by 1.6pp to 6.7% (prior year 5.1%), reflecting better asset efficiency. 【Cash Quality】Operating Cash Flow / Net Income ratio was 1.11x (Operating Cash Flow ¥43.2B / Net Income ¥38.9B), indicating solid cash backing of profits; the accrual ratio was contained at -0.5%. 【Investment Efficiency】Total Asset Turnover was 1.01x (prior year 1.09x), down 0.08x, reflecting temporary efficiency dilution from expanded investment and asset growth. 【Financial Soundness】Equity Ratio was 67.4% (prior year 68.1%), remaining high, and D/E ratio was a conservative 0.48x. Cash and cash equivalents were ¥181.7B (prior year ¥171.2B), indicating ample liquidity and high financial flexibility.
Operating Cash Flow was ¥43.2B (YoY -40.3%), down from ¥72.4B in the prior year, but exceeded Net Income Attributable to Owners of the Parent of ¥38.9B, yielding OCF/Net Income ratio of 1.11x and healthy cash realization of profits. The decline in Operating Cash Flow was mainly due to increased working capital needs accompanying revenue growth, not deterioration in earnings quality. Investing Cash Flow was -¥44.2B (prior year -¥40.9B), reflecting continued proactive investment; additions to tangible and intangible fixed assets totaled ¥40.8B (prior year ¥39.7B). As a result, Free Cash Flow was -¥1.0B (prior year +¥31.5B), a modest negative as the company prioritized investment. Financing Cash Flow was -¥1.7B (prior year -¥46.2B), with reduced outflows, primarily driven by dividend payments of ¥11.2B. Ending cash balance was ¥181.7B, maintaining liquidity despite investment execution, balancing growth investment and financial soundness.
Operating profit growth (+18.7%) indicates improved core earning power, and ordinary income benefited from approximately ¥5.1B of additional improvements in non-operating items. The scale of non-operating income can be inferred from the gap between ordinary income and operating income, representing about 0.6% of revenue, well below a 5% threshold, indicating low reliance on non-operating sources. The accrual ratio of -0.5% is low, and Operating Cash Flow ¥43.2B exceeds Net Income ¥38.9B, supporting cash backing of earnings. Equity-method investment gains/losses were small at -¥0.2B (prior year -¥0.2B) and do not distort evaluation of recurring earnings. Extraordinary items included negative goodwill gain of ¥3.1B (one-off gain from company split for the Incubation Center) and impairment losses on fixed assets of ¥2.7B; these are transitory and do not affect assessment of recurring profitability. The gap between Ordinary Income ¥55.3B and Net Income ¥38.9B falls within tax and extraordinary item ranges, with no material accounting distortions observed.
Full-year guidance projects Revenue of ¥970.0B (YoY +7.7%), Operating Income of ¥70.0B (YoY +39.5%), Ordinary Income of ¥65.0B (YoY +17.6%), and Net Income Attributable to Owners of the Parent of ¥45.0B. Operating margin is expected to improve significantly to 7.2% from 5.6% this fiscal year, assuming cost structure optimization and product mix improvement. EPS is projected at ¥193.05 (current year ¥166.71), and dividend is planned at ¥32 (current year ¥56), a conservative plan. While operating profit growth is projected at +39.5%, ordinary income growth is projected at +17.6%, implying exceptional operating-level expansion with normalization of non-operating items. Sales growth of +7.7% versus operating profit growth of +39.5% implies positive operating leverage; realization of margin expansion depends on continued high profitability in the CTC segment, recovery of VCCS profitability, and reduction of Incubation Center losses.
Annual dividend was ¥56 (interim ¥25, year-end ¥31), a substantial increase from ¥24 in the prior year, and payout ratio was planned at 50.2% (based on Net Income Attributable to Owners of the Parent). Based on actual Net Income Attributable to Owners of the Parent ¥38.9B and EPS ¥166.71, the dividend of ¥56 corresponds to a payout ratio of approximately 33.6%, a sustainable level tied to earnings. Total dividend payments were ¥11.2B; coverage was insufficient relative to Free Cash Flow of -¥1.0B, but the ending cash balance of ¥181.7B and strong financial position mitigate concerns over dividend payments. Next fiscal year guidance sets dividend at ¥32 against EPS ¥193.05 (payout ratio ~16.6%), reflecting a conservative approach prioritizing growth investment and maintenance of financial soundness. No share buyback was disclosed; shareholder returns are being made solely through dividends.
Segment profitability dispersion: VCCS segment showed flat sales but saw operating margin decline to 3.9% (prior year 5.1%), continuing pressure on the core business’s profitability. Recovery of this segment is essential to achieve the next fiscal year’s target operating margin of 7.2%; however, customer concentration risk (Toyota Motor North America, Inc. accounts for approximately 15% of consolidated sales) and regional profitability disparities could become bottlenecks.
Investment expansion and pressure on Free Cash Flow: Investing Cash Flow of -¥44.2B resulted in Free Cash Flow of -¥1.0B, a slight deficit, and Operating Cash Flow declined by 40.3% YoY to ¥43.2B. The overlap of working capital increases and aggressive investments temporarily dampened cash generation. With continued investment expected, the pace of Operating Cash Flow recovery and normalization of Free Cash Flow will affect liquidity and dividend sustainability.
Decline in asset efficiency and slowdown in Total Asset Turnover: Total Asset Turnover declined to 1.01x (prior year 1.09x), down 0.08x, as total assets grew +17.1% YoY (including addition of one consolidated subsidiary), outpacing revenue growth of +8.7%. If capital efficiency does not improve, sustained ROE improvement may be constrained, and improving asset utilization is a medium-term challenge.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.6% | 7.8% (4.6%–12.3%) | -2.2pt |
| Net Margin | 3.3% | 5.2% (2.3%–8.2%) | -1.8pt |
Although profitability is below the industry median, year-on-year improvements of Operating Margin +0.5pp and Net Margin +1.6pp indicate narrowing of the gap to the median.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 8.7% | 3.7% (-0.4%–9.3%) | +5.0pt |
Revenue growth outperformed the industry median by +5.0pp, positioning the company in a high-growth group within manufacturing.
※Source: Company compilation
Continuity of profitability improvement trend: Operating Margin of 5.6% (prior year 5.1%) and ROE 6.9% (prior year 4.4%) show realized profitability improvement. Next fiscal year guidance embeds a further 1.6pp improvement to an operating margin of 7.2%, and it will be important to monitor whether the structure driven by CTC’s high profitability (margin 14.9%) persists. Recovery of VCCS margin and progress in reducing Incubation Center losses are key to achieving guidance.
Balance between investment cycle and cash generation: Investing Cash Flow of -¥44.2B led to Free Cash Flow of -¥1.0B, a modest negative, but Operating Cash Flow / Net Income ratio of 1.11x shows solid cash backing of profits, and cash on hand of ¥181.7B supports growth investment. If integration benefits from the newly consolidated subsidiary and monetization of capital expenditures progress, Free Cash Flow recovery and improvement in asset efficiency (reversal of Total Asset Turnover) are expected. The payout ratio is set conservatively, indicating a policy to maintain investment, dividends, and financial soundness.
This report was auto-generated by AI analyzing XBRL financial statement disclosure data. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the Company based on public financial statement data. Investment decisions are the responsibility of the investor; please consult a professional advisor as necessary.