Miahelsa Holdings Corporation FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥11.99B
• Operating Income: ¥193M
• Net Income: ¥112M
• EPS: ¥50.03

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Miahelsa Holdings (7129) delivered a solid FY2026 Q2 (cumulative) performance with top-line growth and stronger operating leverage. Revenue rose 4.3% year over year to ¥11.99bn, while operating income grew 55.1% to ¥193m, pointing to meaningful margin improvement. Ordinary income reached ¥197m and net income increased 25.0% to ¥139m, implying a net margin of 1.16%. Gross profit was ¥998m, translating to a gross margin of 8.3%, and EBITDA was ¥466m (3.9% margin), indicating better cost absorption versus the prior year. DuPont analysis suggests ROE of 3.58%, driven by modest asset turnover of 0.963, low net margin of 1.16%, and financial leverage of 3.20x. Operating cash flow (OCF) of ¥174m exceeded net income (OCF/NI 1.25x), which supports earnings quality, though absolute cash generation remains modest relative to sales. The current ratio is 84.3% and working capital is negative at ¥-1.02bn, underscoring tight liquidity that merits monitoring despite adequate interest coverage of 11.4x. Total liabilities of ¥9.48bn against equity of ¥3.89bn result in a debt-to-equity ratio of 2.44x, a moderately leveraged capital structure for a low-margin business. Using reported assets and equity, the equity ratio is approximately 31.2% (computed), although the disclosed “0.0%” should be treated as not reported. Financing cash outflow of ¥425m suggests debt repayment and/or other shareholder or lease-related cash outlays, while investing cash flow was not disclosed. With depreciation and amortization of ¥273m, underlying capital intensity is non-trivial; thus, true free cash flow is likely below OCF even though FCF was not disclosed. EPS was ¥50.03; dividend data were not reported, so payout and coverage cannot be concluded from the provided figures. Overall, profitability is improving on better operating leverage, but liquidity is tight and leverage is meaningful, necessitating continued cash discipline. The outlook hinges on sustaining revenue growth, preserving margin gains, and converting earnings to cash while managing working capital. Data limitations (several unreported items presented as zeros) constrain depth of analysis, but available metrics point to improving operations offset by balance sheet and liquidity sensitivities.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 1.16%
• asset_turnover: 0.963
• financial_leverage: 3.2
• calculated_ROE: 3.58%
• commentary: ROE of 3.58% reflects low margins typical of healthcare services/pharmacy operations, decent asset turnover, and moderate leverage. Upside to ROE depends primarily on sustaining operating margin gains. margin_quality:
• gross_margin: 8.3%
• operating_margin: 1.61%
• ordinary_margin: 1.64%
• EBITDA_margin: 3.9%
• interest_coverage: 11.4x
• notes: YoY operating income growth (+55.1%) outpaced revenue (+4.3%), evidencing improved cost control and mix. Interest burden remains manageable relative to EBIT. operating_leverage: Positive operating leverage is evident as small revenue growth delivered outsized operating profit growth. Further scalability may be achievable if selling, general and administrative efficiencies persist, but low gross margin limits ultimate ceiling absent structural changes.

Growth Assessment

revenue_sustainability: Revenue grew 4.3% YoY to ¥11.99bn. This pace is consistent with steady volume growth and/or modest pricing/mix effects; sustainability will depend on prescription volumes, care service utilization, and reimbursement stability. profit_quality: Operating profit rose 55.1% to ¥193m, indicating better cost discipline and scale. Net profit increased 25.0% to ¥139m; the smaller increase versus operating profit suggests some below-the-line pressures (taxes, minor financial items). outlook: If the company can maintain mid-single-digit top-line growth and defend recent margin gains, full-year profit should improve. Key external variables include drug price revisions, staffing costs, and public reimbursement trends. Seasonality in the first half and unreported items (capex, cash balances) temper visibility.

Financial Health

liquidity:

• current_ratio: 84.3%
• quick_ratio: 84.3% (inventories not disclosed)
• working_capital: ¥-1,016,501,000
• commentary: Sub-1.0x current ratio and negative working capital indicate tight liquidity. Given industry norms (high payables vs. receivables), this may be structurally negative working capital, but cash buffers are not disclosed. solvency:
• total_assets: ¥12,451,000,000
• total_liabilities: ¥9,482,454,000
• total_equity: ¥3,887,000,000
• debt_to_equity: 2.44x
• equity_ratio_computed: ≈31.2% (equity/total assets)
• interest_coverage: 11.4x
• commentary: Leverage is moderate for a low-margin profile but currently serviceable given coverage. Any margin compression would quickly reduce headroom. capital_structure: Liabilities are 2.44x equity, implying reliance on debt/leases and payables. Financing cash outflow indicates potential deleveraging or lease repayments in the period.

Cash Flow Quality

earnings_quality: OCF/Net income of 1.25x indicates acceptable cash conversion for the half-year, suggesting accruals are not aggressive. FCF_analysis: Investing cash flow and capex were not disclosed. With D&A at ¥273m, maintenance capex is likely material, so underlying FCF may be meaningfully below OCF. Reported FCF of 0 should be treated as undisclosed, not zero. working_capital: Negative working capital structure can support cash generation in growth, but can reverse if growth slows or payables terms tighten. Specific movements (receivables, payables, inventories) were not disclosed.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio were not disclosed (values shown as 0 should be treated as unreported). With EPS of ¥50.03 and modest OCF, there is potential capacity, but no conclusion can be drawn without an actual DPS. FCF_coverage: Not assessable due to undisclosed capex and FCF. OCF of ¥174m provides a base, but financing outflows suggest cash prioritization toward balance sheet obligations. policy_outlook: Given leverage and liquidity constraints, a conservative shareholder return stance would be prudent until FCF visibility improves; however, actual policy details are not provided in the data.

Risk Assessment

Business Risks:

• Regulatory risk from drug price revisions and long-term care reimbursement changes
• Labor cost inflation and staffing shortages in healthcare and elder care
• Pressure on pharmacy margins from generic mix and dispensing fee adjustments
• Volume sensitivity to prescription trends and competitive density
• Operational execution across multi-site footprint and service lines

Financial Risks:

• Tight liquidity (current ratio 0.84x, negative working capital)
• Moderate leverage (liabilities/equity 2.44x) amid low operating margins
• Refinancing and interest rate risk if credit conditions tighten
• Potential working capital swings impacting OCF
• Limited visibility on capex and cash balances due to undisclosed items

Key Concerns:

• Sustaining margin improvements in a structurally low-margin sector
• Maintaining adequate liquidity buffers given negative working capital
• Executing deleveraging while funding maintenance capex

Investment Implications

Key Takeaways:

• Top-line grew 4.3% with strong operating leverage (+55.1% OP YoY).
• Margins remain thin (OP margin 1.61%, EBITDA margin 3.9%), but improving.
• Cash conversion is acceptable (OCF/NI 1.25x), though absolute OCF is modest.
• Liquidity is tight (current ratio 0.84x; working capital ¥-1.02bn).
• Leverage is meaningful (2.44x liabilities/equity) but interest coverage is adequate (11.4x).
• Several critical datapoints (capex, cash balance, dividends) are not disclosed, limiting visibility.

Metrics to Watch:

• Operating margin and SG&A ratio trends
• OCF/Net income and EBITDA-to-OCF conversion
• Working capital days (receivables, payables, inventory) when disclosed
• Capex versus D&A to gauge FCF trajectory
• Equity ratio and net debt/EBITDA (once cash and debt details are available)
• Regulatory updates on drug and care reimbursement

Relative Positioning: Within Japan’s small-to-mid cap healthcare services/pharmacy cohort, Miahelsa shows typical low margins but demonstrates improving operating leverage; balance sheet leverage and liquidity are on the tighter side relative to peers that maintain higher equity buffers.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis