These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥173.05B | ¥155.47B | +11.3% |
| Operating Income | ¥16.35B | ¥12.29B | +33.1% |
| Ordinary Income | ¥19.36B | ¥13.98B | +38.5% |
| Net Income | ¥12.75B | ¥9.87B | +29.2% |
| ROE | 4.0% | 3.1% | - |
The Company achieved higher revenue and earnings, with Operating Income and Ordinary Income expanding at rates exceeding revenue growth, indicating a high-quality earnings growth phase accompanied by improved profitability. Revenue was ¥173.05B (+11.3% year on year), Operating Income was ¥16.35B (+33.1%), and Ordinary Income was ¥19.36B (+38.5%). Net Income attributable to owners of the parent was ¥12.62B (+31.3%). The Operating Income margin improved to 9.5% from 7.9% in the previous year, primarily due to growth in highly profitable businesses, centered on electron tubes and opto-semiconductors, and a decline in the SG&A ratio.
【Revenue】All segments recorded revenue growth. Opto-semiconductors, the largest segment, generated ¥67.38B (38.9% of total revenue, +13.8%), followed by electron tubes at ¥59.38B (34.3%, +9.7%), with the two core segments driving growth. Imaging measurement instruments generated ¥25.82B (+12.6%), while lasers generated ¥16.97B (+4.0%), representing relatively moderate growth. By region, Asia was the largest and fastest-growing region at ¥53.83B (31.1% of total revenue, +14.5%), followed by North America at ¥41.63B (+13.2%). Europe at ¥40.04B (+8.4%) and Japan at ¥37.21B (+8.2%) posted relatively moderate growth.
【Profitability】The Operating Income margin improved to 9.5% from 7.9% in the previous year, primarily because the SG&A ratio declined to 38.9% from 40.4%, while the gross margin remained broadly flat at 48.3% versus 48.3% in the previous year. The Ordinary Income margin expanded further to 11.2% from 9.0%, supported by improved non-operating income and expenses, including foreign exchange gains of ¥0.98B and interest income of ¥1.59B. Special gains and losses consisted of gains of ¥0.18B and losses of ¥0.11B, resulting in a net gain of only +¥0.08B, indicating a limited impact from one-time factors. After income taxes of ¥6.69B (effective tax rate: 34.4%), Net Income attributable to owners of the parent was ¥12.62B (+31.3%). In conclusion, the Company achieved higher revenue and earnings, with profit growth exceeding sales growth and indicating a high-quality earnings performance.
By segment, electron tubes were the largest earnings contributor, generating Operating Income of ¥17.897B (+24.5% year on year; 30.1% margin), followed by opto-semiconductors at ¥12.741B (+29.8%; 18.9% margin). Imaging measurement instruments generated ¥6.857B (+4.1%; 26.6% margin), with earnings growth slowing relative to revenue growth of 12.6%, potentially indicating cost increases or front-loaded investment. Meanwhile, the laser segment’s Operating Loss widened to ¥4.896B, compared with a loss of ¥2.553B in the previous year, and its margin deteriorated to negative 28.9%. Of the Company-wide Operating Income of ¥16.35B, the combined profit of ¥30.64B from electron tubes and opto-semiconductors absorbed the laser segment’s losses and company-wide expenses (a negative adjustment of ¥15.77B). Accordingly, improving the profitability of the laser business will be key to raising the Company-wide margin.
【Profitability】The Operating Income margin improved to 9.5% from 7.9%, the Ordinary Income margin improved to 11.2% from 9.0%, and the Net Income margin, based on income attributable to owners of the parent, improved to 7.3% from 6.2%. EPS was ¥43.05, compared with ¥31.96 in the previous year, representing growth of +34.7%. 【Cash Quality】Cash and deposits increased to ¥102.81B from ¥90.56B in the previous year, strengthening the Company’s liquidity position. 【Investment Efficiency】ROE was 4.0%. Although the absolute level remains low, it improved year on year, primarily due to margin expansion. 【Financial Soundness】The Equity Ratio declined to 65.5% from 70.7%, while the Current Ratio decreased moderately to 190.7% from 217.9%; nevertheless, the Company continues to maintain a high level of liquidity.
Because cash flow statement data was not provided, funding trends are analyzed based on changes in the balance sheet. Cash and deposits increased by +¥12.25B (+13.5%) to ¥102.81B from ¥90.56B in the previous year, indicating that cash on hand was accumulated against the backdrop of earnings growth. Property, plant and equipment increased to ¥161.19B from ¥150.65B. Buildings and structures increased by +¥11.91B, while machinery, equipment and vehicles increased by +¥10.14B, indicating progress in capital investment. At the same time, construction in progress decreased by ¥29.14B, suggesting that investment projects under development entered full-scale operation. In terms of financing, short-term borrowings increased by +¥12.14B to ¥65.64B from ¥53.498B, while long-term borrowings decreased by ¥3.56B to ¥7.01B from ¥10.57B. Fixed lease liabilities also increased significantly to ¥21.05B from ¥4.94B, indicating a shift in the financing mix toward short-term borrowings and leasing. Treasury stock increased by +¥17.85B to ¥44.09B from ¥26.24B, indicating that share repurchases are also progressing as part of shareholder returns.
Special gains and losses consisted of gains of ¥0.18B and losses of ¥0.11B, resulting in a net gain of only ¥0.08B. Their impact on Net Income was therefore limited, indicating that Operating Income and Ordinary Income reflect the Company’s recurring earnings-generating capacity. Non-operating income was ¥4.65B, equivalent to 2.7% of revenue, comprising interest income of ¥1.59B, foreign exchange gains of ¥0.98B, and equity-method investment gains of ¥0.44B, among others. This represents a composition that is not dependent on a specific one-time item. The ¥6.74B difference between Ordinary Income of ¥19.36B and Net Income attributable to owners of the parent of ¥12.62B was primarily attributable to income taxes of ¥6.69B (effective tax rate: 34.4%), with no non-recurring distortion identified. Comprehensive Income was ¥25.61B, substantially exceeding consolidated Net Income of ¥12.75B. The primary factor behind this difference was foreign currency translation adjustments of ¥12.27B, representing valuation fluctuations arising from the conversion of overseas subsidiaries’ financial statements into yen. Accordingly, Net Income should be used as the basis when assessing the Company’s underlying earning power.
Progress against the full-year forecast was 72.4% for Revenue (¥173.05B/¥239.00B), 74.3% for Operating Income (¥16.35B/¥22.00B), 76.0% for Ordinary Income (¥19.36B/¥25.50B), and 72.1% for Net Income (¥12.62B/¥17.50B). Compared with the standard progress benchmark of 75% for the cumulative Q3 period, Ordinary Income is slightly ahead, while the other indicators are broadly at a similar level. Overall progress toward the full-year plan is therefore steady. It should be noted that the earnings forecast was revised during the current quarter.
The full-year dividend forecast is ¥38.00 per share, implying a Payout Ratio of approximately 62.8% based on forecast EPS of ¥60.53. The Q2 dividend paid was ¥19. On the balance sheet, treasury stock increased by +¥17.85B to ¥44.09B from ¥26.24B in the previous year. The simultaneous progress in share repurchases indicates a shareholder return policy that supplements dividends. Given the substantial liquidity position represented by cash and deposits of ¥102.81B, the current level of shareholder returns appears sustainable.
Structural widening of losses in the laser business: The Operating Loss widened to ¥4.896B from ¥2.553B in the previous year, and the margin deteriorated to negative 28.9%. Delays in improving the profitability of this business could constrain the potential for growth in Company-wide Operating Income.
Accumulation of working capital: Accounts receivable increased to ¥50.87B from ¥46.61B in the previous year (+9.2%), while work in process increased to ¥41.38B from ¥39.43B (+4.9%). Working capital is increasing in line with revenue growth, and the efficiency of collections and inventory management will affect future cash-generation capacity.
Shortening of the financing structure: Short-term borrowings increased to ¥65.64B (+22.7%), while long-term borrowings decreased to ¥7.01B (-33.7%), raising the degree of short-term dependence within interest-bearing debt. Although liquidity on hand is substantial, the management of refinancing and rollover risk should be monitored.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 9.5% | 8.3% (4.4%–12.7%) | +1.2pt |
| Net Income Margin | 7.4% | 6.3% (2.8%–10.0%) | +1.1pt |
The Company’s Operating Income margin and Net Income margin both exceed the industry median, placing it in the upper group within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year on Year) | 11.3% | 3.0% (-2.1%–8.9%) | +8.2pt |
The Revenue growth rate substantially exceeds the industry median, placing the Company among the industry leaders in terms of growth.
Source: Compiled by the Company
The Operating Income margin of 9.5% exceeds the industry median of 8.3%. The +155bp improvement from the previous year (7.9%→9.5%) is supported by structural factors, namely a lower SG&A ratio and growth in the highly profitable electron tube and opto-semiconductor segments.
The laser business’s Operating Loss widened from ¥2.5B in the previous year to ¥4.9B, making improvement in the segment’s profitability a key issue in determining whether it can provide further upside to the Company-wide profit margin.
Full-year progress was 72.4% for Revenue, 74.3% for Operating Income, 76.0% for Ordinary Income, and 72.1% for Net Income. Progress was broadly in line with the standard benchmark for cumulative Q3 results (approximately 75%), with Ordinary Income slightly ahead.
The following reference range was mechanically calculated using a residual income model (Ohlson-type model with an explicit five-year fade) based solely on publicly disclosed data. It does not represent a forecast of the market share price or a recommendation to take any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥990 |
| base | ¥1,003 |
| bull | ¥1,019 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥1,103 |
| Adjusted Forecast EPS | ¥65.3 |
| Cost of Equity r | 9.27% (10-year Japanese government bond 2.77% + equity risk premium 6.00% + size premium 0.50%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 62.8% |
| Forecast EPS Confidence Adjustment | ×1.080 (based on the industry’s historical guidance achievement rate) |
| Implied PBR / PER |
Sensitivity: ¥976–¥1,031 at ±1% for the cost of equity, and ¥999–¥1,005 at ±0.1 for ω.
Notes:
(Model: Residual Income Model / Interest Rate Reference Month: 2026-07 / This value does not forecast or guarantee the future share price.)
This report is an earnings analysis document automatically generated by AI through analysis of XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility and, where necessary, after consulting with a professional advisor.
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| 0.91x / 15.3x |