| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥2112.6B | ¥1894.2B | +11.5% |
| Operating Income / Operating Profit | ¥429.9B | ¥426.7B | +0.8% |
| Ordinary Income (IFRS: Profit Before Tax) | ¥466.3B | ¥462.2B | +0.9% |
| Net Income / Net Profit | ¥331.4B | ¥330.3B | +0.3% |
| ROE | 8.8% | 8.9% | - |
For the fiscal year ended March 2026, Revenue was ¥2112.6B (YoY +¥218.4B, +11.5%), Operating Income was ¥429.9B (YoY +¥3.2B, +0.8%), Ordinary Income (IFRS: Profit Before Tax) was ¥466.3B (YoY +¥4.1B, +0.9%), and Net Income was ¥331.4B (YoY +¥1.1B, +0.3%). Revenue achieved double-digit growth, but a decline in gross margin to 42.1% (prior year 45.1%, -3.0pt) compressed the operating margin to 20.4% (prior year 22.5%, -2.1pt), resulting in a higher-revenue but only marginally higher-profit outcome. While the core Multi-pole Connector business saw revenue growth but profit contraction, the Coaxial Connector segment delivered high-margin expansion (Revenue +34.2% and Operating Income +73.9%), supporting consolidated results.
【Revenue】Revenue of ¥2112.6B (+11.5%) comprised by segment: Multi-pole Connectors ¥1858.1B (+8.8%, composition 88.0%), Coaxial Connectors ¥183.4B (+34.2%, composition 8.7%), and Other ¥71.1B (+45.1%, composition 3.4%). By region: China ¥772.8B (36.6%), Other ¥618.7B (29.3%), Japan ¥363.6B (17.2%), Korea ¥357.5B (16.9%), with growth led by China and Other regions. Multi-pole Connectors showed solid unit demand but appeared affected by product mix and pricing pressure. Coaxial Connectors achieved high growth driven by expanding demand for high-frequency and optical connectors.
【Profitability】Cost of goods sold was ¥1222.7B (57.9% of sales), producing a gross margin of 42.1%, down -3.0pt from 45.1% a year earlier. SG&A was ¥457.1B (21.6% of sales), an improvement of -0.8pt from 22.4%, indicating effective expense control. Consequently, Operating Income of ¥429.9B (Operating margin 20.4%) registered only a slight increase. Financial income of ¥40.8B less financial expense ¥4.5B, together with net other income/expense of -¥2.9B, produced Profit Before Tax (IFRS) of ¥466.3B (+0.9%). After income taxes of ¥134.8B (effective tax rate 28.9%), Net Income was ¥331.4B (Net margin 15.7%, down -1.7pt from 17.4%), concluding in revenue up with marginal profit increase.
Multi-pole Connectors: Revenue ¥1858.1B (+8.8%), Operating Income ¥367.7B (-6.7%), Operating margin 19.8% (prior year 23.1%, -3.3pt), indicating margin deterioration. Coaxial Connectors: Revenue ¥183.4B (+34.2%), Operating Income ¥58.8B (+73.9%), Operating margin 32.0% (prior year 24.7%, +7.3pt), delivering high-margin significant profit growth. Other: Revenue ¥71.1B (+45.1%), Operating Income ¥3.5B (+462.9%), Operating margin 4.9% (prior year -2.0%), turning profitable. While the core Multi-pole Connector business struggled on profitability, high-margin growth in Coaxial Connectors supported consolidated margins. Profitability disparities across segments widened, making recovery of the core business’s profitability a key focus for the next fiscal period.
【Profitability】Operating margin 20.4%, Net margin 15.7%, ROE 8.9%. Gross margin of 42.1% declined -3.0pt from 45.1%, reflecting product mix and cost pressures. SG&A ratio 21.6% improved -0.8pt from 22.4%, indicating progress in cost control. ROE via DuPont decomposition: Net margin 15.7% × Total asset turnover 0.49x × Financial leverage 1.14x ≒ 8.9%, slightly down from 9.0% a year earlier. 【Cash Quality】Operating Cash Flow (OCF) ¥458.8B, 1.38x of Net Income ¥331.4B, indicating high quality, but OCF/EBITDA (Operating Income + Depreciation) is ¥458.8B / ¥624.6B = 0.73x, below 1.0x, with working capital increase a contributing factor. Free Cash Flow ¥366.3B covers dividends of ¥164.9B by 2.22x, indicating high sustainability. 【Investment Efficiency】Capex ¥200.2B is 1.03x of Depreciation ¥194.7B, focused on maintenance and renewal. Total asset turnover 0.49x improved from 0.45x a year ago, but DSO 86 days, DIO 90 days, and CCC 126 days indicate room to improve working capital efficiency. 【Financial Soundness】Equity Ratio 87.7%, D/E ratio 0.14x (Interest-bearing debt ¥62.3B / Net assets ¥3,780.8B), Current Ratio 713% (Current assets ¥2,337.9B / Current liabilities ¥328.0B), demonstrating very strong balance sheet. Interest Coverage ≒ Operating Income ¥429.9B / Financial expense ¥4.5B ≒ 95x, indicating ample interest-paying capacity.
OCF was ¥458.8B, down -17.6% YoY, but remained 1.38x of Net Income, maintaining high quality. Composition: Profit Before Tax ¥466.3B plus Depreciation ¥194.7B and Impairment ¥6.4B; working capital movements included Accounts Receivable -¥72.0B, Inventory -¥35.1B, and Accounts Payable +¥34.7B, making working capital a net cash outflow of -¥72.4B. After corporate tax payments -¥157.2B, subtotal of ¥567.1B yielded OCF ¥458.8B. Investing Cash Flow was -¥92.5B, with Capex -¥200.2B offset by net change in time deposits +¥262.5B and sale of investment securities ¥149.4B against purchases -¥288.5B for a net -¥139.1B. Free Cash Flow was ¥366.3B (substantial increase from prior year ¥127.4B). Financing Cash Flow outflows totaled -¥379.2B (dividends -¥164.9B, share buybacks -¥203.5B, lease repayments -¥10.5B). Cash and cash equivalents increased by ¥16.7B from opening ¥856.7B to closing ¥873.4B, maintaining ample liquidity. OCF/EBITDA 0.73x reflects working capital increases reducing cash conversion, so improving inventory and receivables management is a key near-term issue.
Of Net Income ¥331.4B, Operating Income ¥429.9B is the main component, indicating core operating earnings dominance. Financial income ¥40.8B (1.9% of sales), mainly interest and dividends received, shows limited one-off factors. Net other income/expense of -¥2.9B (Other income ¥6.3B less Other expense ¥9.2B) is small, so special gains/losses had minor impact. From Profit Before Tax ¥466.3B less income taxes ¥134.8B to Net Income, there is no significant divergence due to one-time items. OCF at 1.38x of Net Income and accrual ratio (Net Income - OCF) / Total assets = -¥10.0B / ¥4,311.8B ≒ -0.2% is negative, indicating good earnings quality. However, OCF/EBITDA 0.73x and working capital increases (Accounts Receivable +¥72.0B, Inventory +¥35.1B) partially constrained cash generation, suggesting scope for medium-to-long-term working capital management improvement. The ratio between Ordinary Income (IFRS: Profit Before Tax) ¥466.3B and Net Income ¥331.4B corresponds to an effective tax rate of 28.9%, with no deviation exceeding ±10%, indicating generally stable earnings quality.
For the fiscal year ending March 2027, management forecasts Revenue ¥2300.0B (YoY +8.9%), Operating Income ¥460.0B (YoY +7.0%), Net Income ¥340.0B (YoY +2.6%), and EPS ¥1,039.08. Against current-year Revenue ¥2112.6B, the implied progression rate at year-end is approximately 91.9%. Operating Income is projected to increase by ¥30.1B from ¥429.9B, with improvement in gross margin and further SG&A ratio discipline seen as key. Assumptions likely include continued high-margin growth in Coaxial Connectors, recovery of margins in Multi-pole Connectors, and favorable currency and product mix effects. Dividend guidance is annual ¥260 (with current-year interim ¥245 + year-end ¥260 = ¥505; next year may be adjusted to full-year ¥260), implying a payout ratio around 25.0% of forecast EPS, maintaining conservative policy. Achieving the full-year plan depends on margin stabilization in core segments and normalized working capital efficiency to improve cash generation.
This fiscal year’s dividends totaled Interim ¥245 and Year-end ¥260, sum ¥505, implying a payout ratio of approximately 50.2%: total dividends ¥166.2B (¥505 × weighted average shares 33,412 thousand) against Net Income ¥331.4B. Cash dividend payments on the cash flow statement were ¥164.9B, representing 45.0% of Free Cash Flow ¥366.3B, with coverage of 2.22x, indicating high sustainability. Share buybacks totaled ¥203.5B; combined with dividends ¥164.9B, total shareholder returns were ¥368.4B, giving a Total Return Ratio of 111.1% of Net Income and 100.6% of Free Cash Flow, an aggressive level. Equity Ratio 87.7%, Cash and cash equivalents ¥873.4B, and other liquid financial assets (current) ¥575.9B support capacity for returns, but future sustainability depends on improvements in working capital efficiency and cash generation. Dividend policy appears to target stable dividends, with share buybacks executed flexibly, leveraging a strong balance sheet to enhance shareholder returns.
Profitability deterioration risk in core segment: Multi-pole Connectors’ Operating margin 19.8% (down -3.3pt from 23.1%) reflects product mix and pricing pressure. As Multi-pole accounts for 88.0% of revenue, a continued decline in gross margin (42.1% vs prior 45.1%) could make it difficult to sustain an operating margin in the 20% range.
Cash generation risk from worsening working capital efficiency: CCC 126 days, DSO 86 days, DIO 90 days, and OCF/EBITDA 0.73x indicate weaker working capital efficiency. Continued increases in Accounts Receivable +¥72.0B and Inventory +¥35.1B could reduce Free Cash Flow generation and pressure the sustainability of dividends and share buybacks.
Segment concentration and dependence on Coaxial Connectors: While Multi-pole Connectors account for 88.0% of revenue, high-margin growth in Coaxial Connectors (composition 8.7%, Operating margin 32.0%) currently underpins consolidated profits. If Coaxial growth slows or competition intensifies, consolidated profit elasticity could deteriorate rapidly.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| ROE | 8.9% | 6.3% (3.2%–9.9%) | +2.6pt |
| Operating Margin | 20.4% | 7.8% (4.6%–12.3%) | +12.6pt |
| Net Margin | 15.7% | 5.2% (2.3%–8.2%) | +10.5pt |
ROE, Operating Margin and Net Margin all substantially exceed industry medians, placing the company among the upper tier of manufacturing for profitability.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 11.5% | 3.7% (-0.4%–9.3%) | +7.8pt |
Revenue growth notably outperforms the industry median, indicating a relative advantage in growth.
※ Source: Company compilation
Revenue achieved double-digit growth, but declines in gross margin (-3.0pt) and operating margin (-2.1pt) produced revenue up with only marginal profit improvement. Recovery of Multi-pole Connector profitability and continued high-margin growth in Coaxial Connectors are the top priorities for the next fiscal year.
Working capital increases resulted in OCF/EBITDA 0.73x and CCC 126 days, lowering short-term cash conversion efficiency. Strengthening inventory and receivables management is expected to improve cash generation next period. With Equity Ratio 87.7% and D/E 0.14x, the financial base is very strong; aggressive returns (payout ratio 50.2% and Total Return Ratio 111.1%) are supported by ample liquidity, but sustained returns depend on recovery of OCF.
Industry benchmarks show the company ranks highly in profitability (ROE +2.6pt, Operating Margin +12.6pt) and growth (Revenue growth +7.8pt). Achieving next year’s guidance (Revenue +8.9%, Operating Income +7.0%) would further strengthen its industry position.
This report is an AI-generated earnings analysis based on XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions are your responsibility; please consult a professional advisor as needed.