ASTMAX Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Operating Income: ¥-190M
• Net Income: ¥366M
• EPS: ¥-11.91

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Disclaimer

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

AI Financial Analysis

Executive Summary

Astmax Co., Ltd. (TSE: 71620) reported a consolidated operating loss of ¥190 million for FY2026 Q2, with ordinary loss of ¥262 million and net loss of ¥152 million. The YoY change indicators provided (+27.4% for operating income and +50.7% for net income) suggest a material improvement in loss magnitude versus the prior-year period, but the directionality cannot be fully validated because revenue and several other items are unreported in XBRL. Interest expense totaled ¥42.165 million in the period, indicating that financing costs are a meaningful drag relative to operating performance. The company’s balance sheet shows total assets of ¥15.212 billion and total equity of ¥4.970 billion, implying financial leverage (assets/equity) of roughly 3.06x. Total liabilities are ¥9.919 billion, giving a liabilities-to-equity ratio near 2.0x. Liquidity appears adequate with current assets of ¥8.625 billion versus current liabilities of ¥5.687 billion, translating to a current ratio of about 1.52x and working capital of ¥2.938 billion. Inventories are small at ¥14 million, consistent with a financial-services-oriented model where inventories are not a major balance sheet component. The reported equity ratio field is 0.0%, but based on disclosed assets and equity, a calculated equity ratio is approximately 32.7% (not official), suggesting a moderate capital buffer. Cash flow statement line items (operating, investing, and financing cash flows) are unreported, which limits assessment of earnings quality and cash conversion. EPS was ¥-11.91 for the period, consistent with the consolidated net loss. No dividend was reported (DPS ¥0.00), which aligns with the loss profile and preserves liquidity. The effective tax line shows ¥67.269 million despite a net loss, indicating possible non-deductible items, valuation allowance effects, or tax-on-non-operating items; without detailed notes, interpretation is constrained. Ordinary income weaker than operating income points to negative non-operating factors (e.g., net finance costs or investment-related losses). Overall, the company remains loss-making but maintains acceptable liquidity; leverage and interest costs are key constraints. Data limitations are significant due to multiple items recorded as zero (unreported), so conclusions rely on the few available non-zero figures and standard analytical inferences.

Profitability Analysis

ROE decomposition is constrained by unreported revenue and net sales. Using DuPont, we can robustly observe only the leverage component: financial leverage (assets/equity) ≈ 3.06x (¥15.212bn / ¥4.970bn). Net profit margin and asset turnover are not derivable because revenue is unreported (0 represents non-disclosure). The company posted an operating loss of ¥190 million and an ordinary loss of ¥262 million, indicating that non-operating items (notably ¥42.165 million interest expense and potentially other non-operating factors) deteriorated earnings below operating level. Interest coverage is calculated at approximately -4.5x (operating income / interest expense ≈ -¥190m / ¥42.165m), highlighting the strain from finance costs in a loss-making context. Margin quality cannot be assessed without gross profit, SG&A, or revenue disclosures; however, the widening gap between operating and ordinary income suggests sensitivity to financing and market/valuation items in non-operating results. Operating leverage is indeterminate from the data provided; we do not have revenue or cost breakdowns to assess fixed-cost absorption. The reported effective tax outflow of ¥67.269 million despite losses suggests either non-recurring tax effects or structural tax items, which depress bottom-line profitability beyond operating performance.

Growth Assessment

Revenue trends are not assessable because revenue is unreported in the XBRL (displayed as 0). The YoY change tags for operating and net income (+27.4% and +50.7%, respectively) imply a directional improvement in earnings, but absolute revenue and gross profit are missing, limiting quality-of-growth analysis. Ordinary income remains weaker than operating income, signaling that growth in core operations, if any, is being offset by non-operating factors, including interest costs. With inventories minimal (¥14 million), the business model likely leans toward services/trading/financial products where balance-sheet growth does not necessarily correlate with revenue growth; thus, turnover metrics are essential but unavailable. Outlook is constrained by data gaps; near-term earnings trajectory hinges on controlling finance costs and stabilizing non-operating results while sustaining operating improvements. Any recovery path would likely emphasize fee or spread income growth and tighter cost control. The lack of disclosed depreciation suggests either minimal fixed-asset intensity or non-disclosure; without D&A, we cannot separate EBITDA dynamics from operating income trends.

Financial Health

Liquidity is adequate with current assets of ¥8.625 billion and current liabilities of ¥5.687 billion, yielding a current ratio of 1.52x and working capital of ¥2.938 billion. The quick ratio of 1.51x is close to the current ratio because inventories are small (¥14 million), reinforcing short-term coverage strength. Solvency: total liabilities of ¥9.919 billion against equity of ¥4.970 billion imply liabilities-to-equity of ~2.0x and assets-to-equity (financial leverage) of ~3.06x. Using disclosed assets and equity, a calculated equity ratio is approximately 32.7% (equity/assets), though the reported equity ratio field is 0.0% due to non-disclosure in XBRL. Interest expense of ¥42.165 million during a loss period highlights sensitivity to funding costs; sustained losses could pressure equity over time if not offset by capital measures or improved profitability. No breakdown of interest-bearing debt or maturity profile is provided, so we cannot assess refinancing risk or covenant headroom.

Cash Flow Quality

Operating, investing, and financing cash flows are unreported (zeros indicate non-disclosure), preventing direct assessment of earnings-to-cash conversion or free cash flow. Without OCF, the OCF/Net Income ratio and free cash flow metrics cannot be interpreted, and any reported ratios showing zeros should be disregarded as placeholders. Working capital appears positive at ¥2.938 billion; inventories are negligible, so cash conversion would primarily depend on receivables, payables, and other financial assets/liabilities typical of the company’s business model. The absence of depreciation data limits our ability to reconcile non-cash components of earnings. Given ordinary loss is worse than operating loss, non-operating cash/non-cash items (e.g., valuation changes) may be material, but this cannot be validated without the cash flow statement and notes.

Dividend Sustainability

No dividend is reported for the period (DPS ¥0.00; payout ratio shown as 0.0% due to loss and/or non-disclosure). With net income at ¥-152 million and cash flows unreported, distributable capacity cannot be confirmed, but losses generally preclude near-term distributions absent retained earnings utilization. Free cash flow coverage cannot be assessed because FCF is unreported. Policy outlook is unclear from the data; companies in loss-making phases often prioritize balance sheet resilience and liquidity preservation over distributions. Any future resumption would depend on a sustained return to profitability and demonstrable positive operating cash flow.

Risk Assessment

Business Risks:

• Earnings volatility due to non-operating items impacting ordinary income below operating level
• Sensitivity to funding costs as evidenced by ¥42.165 million interest expense in a loss period
• Potential exposure to market movements and valuation effects typical of financial-services activities
• Client activity and fee/spread income uncertainty (revenue not disclosed)
• Regulatory and compliance risks inherent in financial/asset management businesses

Financial Risks:

• Leverage of ~3.06x assets/equity and ~2.0x liabilities/equity increases downside sensitivity
• Negative interest coverage (~-4.5x) indicating limited capacity to service finance costs from operations
• Sustained losses could erode equity if not offset by improved profitability or capital measures
• Cash flow visibility is low due to unreported OCF/FCF, obscuring liquidity burn rates

Key Concerns:

• Ordinary income materially below operating income, pointing to non-operating headwinds
• Tax expense (¥67 million) despite consolidated net loss complicates bottom-line recovery
• Data gaps (revenue, cash flows, D&A, share count) hinder full assessment of profitability and capital efficiency

Investment Implications

Key Takeaways:

• The company remains loss-making at operating and net levels, though YoY change figures suggest potential improvement.
• Liquidity appears sufficient with a current ratio around 1.5x and ¥2.94 billion in working capital.
• Financial leverage (~3.06x assets/equity) and interest expense are key constraints on earnings.
• Ordinary income underperforming operating income highlights the impact of non-operating items.
• Data limitations are significant; many fields are unreported, restricting precision in analysis.

Metrics to Watch:

• Ordinary income vs. operating income gap (trajectory of non-operating items and interest costs)
• Interest expense trend and any disclosure of interest-bearing debt composition/maturities
• Operating cash flow and free cash flow once disclosed
• Equity ratio (calculated ~32.7%) and changes in total equity
• Revenue and gross profit disclosure to assess margin sustainability

Relative Positioning: Based on available figures, Astmax exhibits moderate balance sheet leverage and adequate liquidity but weaker earnings resilience due to negative interest coverage and ordinary losses; incomplete disclosures prevent benchmarking on revenue scale, margins, or cash generation versus peers.

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