| Metrics | Current Period | Prior-year Period | YoY |
|---|---|---|---|
| Revenue | - | - | - |
| Operating Income | ¥9.2B | ¥8.2B | +11.9% |
| Ordinary Income | ¥9.7B | ¥8.5B | +14.2% |
| Net Income | ¥7.2B | ¥5.8B | +23.3% |
| ROE | 5.6% | 4.8% | - |
FY2026 Q3 (non-consolidated) results achieved double-digit profit growth at all levels: Operating Income ¥9.2B (YoY +¥1.0B, +11.9%), Ordinary Income ¥9.7B (YoY +¥1.2B, +14.2%), and Net Income ¥7.2B (YoY +¥1.4B, +23.3%). An extraordinary gain of ¥1.2B from the sale of marketable securities was recorded, expanding profit before income taxes to ¥10.7B. Total assets increased significantly to ¥306.3B (+55.4% from ¥197.1B in the prior year), mainly due to the buildup of cash and deposits to ¥104.8B (+69.2% from ¥62.0B in the prior year). Net assets were ¥128.0B (+5.9% from ¥120.9B in the prior year), and book value per share was ¥2,501.83. On the liability side, deposits received stood at ¥134.4B, constituting the major portion of liabilities. Dividends: interim ¥25 and year-end ¥30.
[Profitability] ROE of 5.6% improved from 4.8% in the prior-year period. Operating margin and net margin cannot be calculated due to undisclosed revenue, but profitability is on an improving trend with Operating Income ¥9.2B, Ordinary Income ¥9.7B, and Net Income ¥7.2B, each increasing YoY. EPS ¥141.21. Financial leverage 2.39x, with total assets approximately 2.4x shareholders’ equity. [Cash Quality] Cash and deposits of ¥104.8B, a significant increase of +¥42.9B YoY. Investment securities ¥26.5B (including valuation differences of ¥9.2B). Working capital ¥80.1B, indicating sound funding. Cash coverage of short-term liabilities of ¥170.9B is 0.6x, reflecting a funding structure reliant on deposits received. [Investment Efficiency] Total asset turnover cannot be calculated due to undisclosed revenue. [Financial Soundness] Equity Ratio 41.8% (down from 61.3% in the prior year). Although the ratio declined with asset expansion, net assets increased in absolute terms. Current ratio 146.9% and quick ratio 146.9%, ensuring short-term liquidity. Debt-to-Equity Ratio 1.39x, with deposits received of ¥134.4B as the main liability item.
Due to the lack of detailed disclosure of the cash flow statement, funding trends are analyzed from YoY changes in the balance sheet. Cash and deposits increased by +¥42.9B from ¥62.0B in the prior year to ¥104.8B, presumed to be supported by higher operating profits. Investment securities increased by +¥5.5B to ¥26.5B, confirming expansion of invested assets. On the liability side, deposits received rose significantly by +¥70.9B from ¥63.5B in the prior year to ¥134.4B, likely the main driver of the increase in cash. While total current liabilities increased by +¥77.5B to ¥170.9B, current assets expanded by +¥157.6B to ¥250.9B, maintaining a current ratio of 146.9%. Net assets increased by +¥7.1B, reflecting the net effect of retained earnings accumulation and dividend payments. While cash generation is reinforced by the expansion of the deposits-received business, managing liquidity risk related to customer funds is increasingly important.
Against Ordinary Income of ¥9.7B and Operating Income of ¥9.2B, non-operating income/expenses contributed +¥0.5B. Profit before income taxes of ¥10.7B includes an extraordinary gain of ¥1.2B from the sale of marketable securities; even after offsetting an extraordinary loss of ¥0.2B, extraordinary items provided a net +¥1.0B boost. The gain on sale of securities lifted pre-tax profit by approximately 11%, indicating reliance on non-recurring gains. The effective tax rate is about 32.5%, and Net Income of ¥7.2B rose +23.3% YoY, but this increase includes contributions from extraordinary gains. Valuation differences on investment securities of ¥9.2B are recorded in net assets, exposing capital to market price fluctuation risk. As Operating Cash Flow (OCF) details are undisclosed, the cash backing of profits cannot be confirmed; the substantial increase in cash and deposits is linked to the rise in deposits received, and the core cash-generation capacity from operating activities requires separate scrutiny.
[Position within Industry] (Reference information – Our research) The company’s industry classification is utilities; however, its business model characterized by a liability structure centered on deposits received and investment in marketable securities differs from a typical utility. Direct comparison of operating and net margins with industry benchmarks is difficult due to undisclosed revenue, but the company’s earnings structure should be assessed relative to the industry median for Q3 2025 (operating margin 8.6%, net margin 6.6%). An Equity Ratio of 41.8% is standard for a stable utility, but the decline from 61.3% in the prior year appears to be a temporary dilution accompanying asset expansion. To accurately assess the company’s relative position within the industry, continued disclosure of Revenue and OCF is required. As reference, deviations from the industry median are considered to stem from the unique funding structure of the deposits-received business. Note: Industry: utilities (N=3); comparison target: Q3 2025; Source: Our aggregation
This report is an earnings analysis document automatically generated by AI analyzing XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information aggregated by our firm based on publicly available financial statements. Investment decisions are your responsibility; please consult a professional as needed before making any decisions.