| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥752.5B | ¥687.2B | +9.5% |
| Operating Income | ¥35.9B | ¥33.1B | +8.4% |
| Equity-Method Investment Gain/Loss | - | - | - |
| Ordinary Income | ¥38.9B | ¥35.7B | +9.0% |
| Net Income | ¥22.7B | ¥22.8B | -0.4% |
| ROE | 7.7% | 8.4% | - |
The Company recorded higher revenue and earnings, with revenue, operating income, ordinary income, and net income attributable to owners of the parent all exceeding the previous year. Revenue was ¥752.5B (¥687.2B in the previous year, YoY +9.5%), operating income was ¥35.9B (up +8.4%), ordinary income was ¥38.9B (up +9.0%), and net income attributable to owners of the parent was ¥26.9B (up +7.8%). The main drivers of revenue growth were the strong growth of the CUSPA Sales Division (revenue +54.6%) and expansion of the Overseas Sales Division (up +10.4%). On the earnings side, the gross margin improved to 19.2% from 18.7% in the previous year, supporting earnings growth. However, segment income declined at the Overseas Sales Division, indicating regional differences in profitability.
【Revenue】Revenue was ¥752.5B, an increase of YoY +9.5%. By segment, on a total basis including intersegment transactions, the CUSPA Sales Division showed particularly strong growth at ¥72.2B (+54.6%), while the Domestic Sales Division at ¥329.9B (+5.1%) and the Overseas Sales Division at ¥280.0B (+10.4%) also contributed to revenue growth. In contrast, the Machinery and Equipment Sales Division declined to ¥81.6B (-0.9%). By geographic region, revenue increased across all regions: Japan ¥459.6B (¥417.7B in the previous year, +10.0%), Asia and Oceania ¥124.1B (+9.2%), Latin America ¥59.1B (+5.5%), and Other ¥109.7B (+9.8%), indicating broad-based growth without concentration in any particular region.
【Profit and Loss】Operating income was ¥35.9B (YoY +8.4%), and the operating margin was 4.8%, remaining almost unchanged from the previous year. The gross margin improved by +0.5pt year on year to 19.2%, while the SG&A ratio was 14.4%, broadly in line with the previous year; consequently, the gross margin improvement contributed to earnings growth. Ordinary income was ¥38.9B (YoY +9.0%). Non-operating income of ¥4.0B, including dividend income of ¥1.4B and foreign exchange gains of ¥0.6B, exceeded non-operating expenses of ¥1.0B, providing an uplift at the ordinary income level. Extraordinary items were limited, with extraordinary income of ¥0.1B and extraordinary losses of ¥0.0B, indicating virtually no impact from temporary factors. Net income attributable to owners of the parent was ¥26.9B (YoY +7.8%), slightly below the growth in ordinary income (+9.0%), with the difference limited to a small fluctuation in the tax burden ratio. In conclusion, the Company achieved higher revenue and earnings.
Three of the four reportable segments recorded revenue growth, although earnings trends varied. The Domestic Sales Division recorded revenue of ¥329.9B (+5.1%) and segment income of ¥15.2B (+2.6%), achieving higher revenue and earnings; its margin was 4.6%, almost unchanged from 4.7% in the previous year. The Overseas Sales Division recorded the largest absolute increase in revenue, rising to ¥280.0B (+10.4%), but segment income declined to ¥9.8B (¥11.1B in the previous year, -11.5%), and its margin fell from 4.4% to 3.5%. The Machinery and Equipment Sales Division posted revenue of ¥81.6B (-0.9%) and segment income of ¥5.7B (-2.7%), representing a slight decline in both revenue and earnings. The CUSPA Sales Division recorded revenue of ¥72.2B (+54.6%) and segment income of ¥4.2B (¥1.0B in the previous year, +319.2%), representing substantial earnings growth; its margin also improved by +3.6pt from 2.1% to 5.8%. Company-wide earnings growth was driven by the strong growth and margin improvement of the CUSPA Sales Division, while declining profitability at the Overseas Sales Division constrained the improvement in the overall operating margin.
【Profitability】The operating margin was 4.8%, almost unchanged from the previous year, while the gross margin improved by +0.5pt year on year to 19.2%. The improvement in gross margin absorbed the increase in SG&A expenses, with the SG&A ratio at 14.4%, broadly unchanged. 【Cash Flow Quality】Operating Cash Flow (OCF) was ¥25.6B, equivalent to 0.95x net income attributable to owners of the parent of ¥26.9B. The increase in inventories, which resulted in ¥13.9B of cash tied up, weighed on cash generation. 【Investment Efficiency】ROE was 7.7%, while total asset turnover was 1.64x, calculated by dividing revenue of ¥752.5B by average total assets during the period of ¥459.9B. Asset efficiency improved from the previous year. 【Financial Soundness】The equity ratio was 61.4% (61.3% in the previous year), remaining almost unchanged and at a high level. Current assets of ¥375.3B against current liabilities of ¥149.9B resulted in a current ratio exceeding 250%, securing ample short-term payment capacity.
Operating Cash Flow (OCF) was ¥25.6B, a substantial increase of +114.4% from ¥11.9B in the previous year. The increase reflected not only growth in income before taxes but also the impact of corporate income tax payments (-¥12.7B) and changes in working capital. In terms of working capital, inventories increased by ¥13.9B, placing pressure on cash, while trade receivables decreased by ¥5.8B, reflecting progress in collections, and trade payables decreased by ¥3.9B. The buildup of inventories therefore acted as a factor that relatively constrained OCF growth. Investing Cash Flow was -¥7.8B, including capital expenditures of -¥2.3B and investments in intangible assets, but was substantially lower than the previous year’s large investment of -¥28.9B involving the acquisition of shares in a subsidiary. Financing Cash Flow was -¥0.9B, as an increase in short-term borrowings (+¥33.1B) was offset by repayments of long-term borrowings (-¥24.5B, etc.). As a result, free cash flow (OCF + investing cash flow) was positive at ¥17.8B, a level sufficient to cover the current-period dividend payment of ¥6.6B.
Ordinary income of ¥38.9B exceeded operating income of ¥35.9B by ¥3.0B. The primary factor was non-operating income of ¥4.0B, including dividend income of ¥1.4B and foreign exchange gains of ¥0.6B; even after deducting non-operating expenses of ¥1.0B, including interest expenses of ¥0.6B, it made a net positive contribution. Extraordinary items were extremely small, comprising extraordinary income of ¥0.1B and extraordinary losses of ¥0.0B, indicating that most of current-period income arose from recurring business activities. Comprehensive income was ¥29.1B, including ¥28.9B attributable to owners of the parent. The difference from net income attributable to owners of the parent of ¥26.9B was attributable to foreign currency translation adjustments of +¥1.5B and valuation differences on securities of +¥0.7B. The divergence was small, indicating stable earnings quality. However, OCF of ¥25.6B remained at 0.95x net income, showing that the working capital burden from higher inventories moderated the conversion of earnings into cash through accruals, or the difference between accrual and cash accounting. Inventory trends should therefore be monitored closely going forward.
The Company disclosed its earnings forecasts for the next fiscal year ending March 2027: revenue of ¥800.0B (YoY +6.3%), operating income of ¥37.0B (up +3.1%), ordinary income of ¥39.0B (up +0.3%), and forecast EPS of ¥135.22. Compared with the current-period results of revenue growth of +9.5%, operating income growth of +8.4%, and ordinary income growth of +9.0%, the plan for the next fiscal year assumes a slowdown in both revenue and earnings growth. In particular, the ordinary income forecast is notable for being approximately flat. The dividend forecast is ¥20.00, but the Company conducted a 2-for-1 stock split of its common shares effective April 1, 2026; therefore, this forecast is stated on a post-split basis.
The current-period dividend totaled ¥73, comprising an interim dividend of ¥33 and a year-end dividend of ¥40. The payout ratio remained stable at 24.2%, the same level as in the previous fiscal year. Total dividends were within the current-period free cash flow of ¥17.8B, indicating that cash-based capacity for shareholder returns was secured. The Company conducted a 2-for-1 stock split effective April 1, 2026. As the next fiscal year’s dividend forecast of ¥20.00 is stated on a post-split basis, the impact of the stock split must be taken into account when making a simple comparison with the current-period dividend of ¥73.
Declining profitability of the Overseas Sales Division: Although revenue increased to ¥280.0B (+10.4%), segment income declined to ¥9.8B (¥11.1B in the previous year, -11.5%), and the margin fell from 4.4% to 3.5%. If the structure in which revenue growth is not readily translated into earnings continues, it could become a factor limiting the Company-wide profit margin.
Inventory buildup and working capital burden: Inventories increased to ¥126.4B (¥111.1B in the previous year, +¥13.9B), constraining OCF growth. Inventory levels are a key factor to monitor as they will influence future cash-generation capacity.
Shorter-term borrowing structure: Short-term borrowings increased sharply to ¥38.6B (¥5.6B in the previous year, +¥33.1B), while long-term borrowings were halved to ¥22.5B (¥45.7B in the previous year, -¥23.2B), resulting in a shift toward shorter debt maturities. Cash and deposits of ¥95.9B exceed short-term liabilities, but interest-rate conditions and refinancing trends will continue to require monitoring.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.8% | 3.4% (1.4%–5.0%) | +1.4pt |
| Net Profit Margin | 3.0% | 2.3% (1.0%–4.6%) | +0.7pt |
| The Company’s profitability, as measured by both operating margin and net profit margin, is above the industry median. |
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (Year on Year) | 9.5% | 5.9% (0.4%–10.7%) | +3.6pt |
| Although the revenue growth rate exceeds the industry median, it remains within the IQR upper bound of 10.7%. |
※Source: Compiled by the Company
The trend of higher revenue and earnings was driven by the strong growth of the CUSPA Sales Division (revenue +54.6%, segment income +319.2%), and the rising contribution of this business has supported the improvement of the Company-wide profit margin.
The Overseas Sales Division recorded higher revenue but a -11.5% decline in segment income, and the financial results indicate a structure in which profitability varies by region.
Inventory growth (+¥13.9B) and the shortening of debt maturities (short-term borrowings +¥33.1B, long-term borrowings -¥23.2B) progressed simultaneously. Changes in working capital and the financing structure should therefore be considered when interpreting cash flow and financial indicators.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly available earnings data. Investment decisions should be made at your own discretion and responsibility, after consulting with professionals as necessary.
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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. Per-share values are adjusted to the latest share basis for stock splits. Historical values are computed retrospectively using current guidance-achievement statistics.