| Indicator | Current Period | YoY Comparable Period | YoY |
|---|---|---|---|
| Revenue | ¥191.2B | ¥171.8B | +11.3% |
| Operating Income | ¥12.2B | ¥7.6B | +61.0% |
| Ordinary Income | ¥12.6B | ¥7.9B | +58.0% |
| Net Income | ¥8.6B | ¥6.1B | +40.4% |
| ROE | 6.7% | 5.2% | - |
For the cumulative results through Q3 of the fiscal year ending March 2026, Revenue was ¥191.2B (YoY +¥19.4B +11.3%), Operating Income was ¥12.2B (YoY +¥4.6B +61.0%), Ordinary Income was ¥12.6B (YoY +¥4.7B +58.0%), and Net Income Attributable to Owners of the Parent was ¥8.6B (YoY +¥2.5B +40.4%). In addition to higher revenue, a significant profit increase was achieved as the Operating Margin improved to 6.4% (up +2.0pt from 4.4% in the prior year). The Electronic Devices and Information & Communication Equipment Segment recorded revenue of ¥56.8B and operating income of ¥3.2B; the Machinery & Equipment Segment posted revenue of ¥45.3B and operating income of ¥3.8B; and the Electrical Equipment and Industrial Systems Segment recorded revenue of ¥88.3B and operating income of ¥5.8B, with all segments remaining profitable.
[Profitability] ROE 6.7% (improved by +1.5pt from 5.2% in the YoY comparable period), Operating Margin 6.4% (improved by +2.0pt from 4.4% in the prior year), Net Margin 4.5% (improved by +0.9pt from 3.6% in the prior year), Gross Margin 16.1%. In the DuPont three-factor breakdown: Net Margin 4.5%, Asset Turnover 0.79x, Financial Leverage 1.89x. [Cash Quality] Cash and Deposits of ¥84.1B, up +¥19.0B YoY; short-term liabilities coverage 28.0x. Accounts Receivable stood at ¥72.8B (+30.5%), and combined with Electronically Recorded Monetary Claims of ¥30.7B, total receivables were ¥103.5B, equivalent to 54.1% of revenue. [Investment Efficiency] Asset Turnover 0.79x (annualized), Days Sales Outstanding (DSO) 139 days, Days Inventory Outstanding (DIO) 27 days, Days Payables Outstanding (DPO) 149 days, resulting in a Cash Conversion Cycle of 17 days. [Financial Soundness] Equity Ratio 53.0% (down -4.5pt from 57.5% in the prior year), Current Ratio 195.7%, Quick Ratio 182.1%, Debt-to-Equity Ratio 0.89x, Interest Coverage 368.4x. Of total liabilities of ¥113.3B, current liabilities were ¥104.2B, with a Short-term Liabilities Ratio of 92.0%.
Cash and Deposits increased by +¥19.0B YoY to ¥84.1B, with retained earnings from profit growth contributing to cash accumulation. Current assets rose by +¥31.2B YoY to ¥203.9B; by component, Accounts Receivable +¥17.0B, Electronically Recorded Monetary Claims +¥1.9B, and Inventories +¥2.0B, confirming working capital increases accompanying revenue expansion. DSO of 139 days suggests a lengthening collection cycle, with revenue growth lagging in cash conversion. Meanwhile, Accounts Payable expanded significantly by +¥25.1B YoY to ¥93.4B, and DPO of 149 days indicates improved funding from extended trade payables. In investing activities, Investment Securities increased by +¥6.0B YoY to ¥18.7B, reflecting ongoing deployment of funds into securities acquisitions. Cash coverage of short-term liabilities is 28.0x, indicating limited liquidity risk; however, the Short-term Liabilities Ratio of 92.0% shows a short-term bias in the funding structure, making refinancing management a challenge.
With Ordinary Income of ¥12.6B versus Operating Income of ¥12.2B, non-operating income and expenses netted to a +¥0.4B increase. Breakdown: non-operating income included Interest Income of ¥0.05B, Dividend Income of ¥0.32B, and Foreign Exchange Gains of ¥0.05B, totaling ¥0.43B; non-operating expenses included Interest Expense of ¥0.03B, indicating minimal financing costs. Non-operating income equates to 0.2% of revenue, contributing only marginally to recurring earnings; the profit structure is primarily driven by improved profitability at the operating level. Extraordinary Gains of ¥0.12B are presumed to be gains on sales of investment securities and may be non-recurring. Accounts Receivable increased by +30.5% YoY, significantly outpacing revenue growth of +11.3%, suggesting a risk of profit being recognized ahead of cash due to growing receivables. However, the Cash and Deposits balance increased by +29.2% YoY, corroborating cash generation from higher operating profit; overall, the quality of earnings is generally sound.
[Positioning within the Industry] (Reference information - In-house research)
A comparative analysis of 15 companies in the Wholesale (trading) segment for Q3 2025 confirms the following positioning. In profitability, ROE of 6.7% exceeds the industry median of 3.7% (IQR 2.2%~8.4%) and ranks in the second quartile. The Operating Margin of 6.4% is well above the industry median of 3.2% (IQR 1.3%4.6%) and falls within the top 25%. The Net Margin of 4.5% exceeds the industry median of 2.0% (IQR 1.0%91.1 days) by 65 days, indicating a significantly longer collection cycle. In soundness, the Equity Ratio of 53.0% is above the industry median of 47.8% (IQR 43.0%~55.5%), at a mid-range level. The Current Ratio of 195.7% is in line with the industry median of 188.0% (IQR 164%3.9%), indicating strong profitability within the industry. In efficiency, Asset Turnover of 0.79x is below the industry median of 1.06x (IQR 0.701.32) and at or below the second quartile, with asset efficiency below the industry average. DSO of 139 days exceeds the industry median of 73.6 days (IQR 64.8238%), with short-term payment capacity comparable to the industry. In growth, the revenue growth rate of +11.3% exceeds the industry median of +2.6% (IQR -5.3%+10.8%) by 8.7pt, ranking in the top 25% and indicating superior growth within the industry. Note: Industry: Wholesale (N=15 companies), comparison scope: Q3 2025 results, source: our aggregation
The Operating Income growth rate of +61.0% far outpaced the revenue growth rate of +11.3%, demonstrating operating leverage, with SG&A efficiency and Operating Margin improvement (4.4% in the prior year → 6.4%) contributing to enhanced profitability. The company’s FY forecast is Revenue of ¥260B (YoY +6.5%), Operating Income of ¥15B (YoY +32.2%), and Net Income of ¥10.2B; against this, cumulative Q3 results (Revenue ¥191.2B, Operating Income ¥12.2B, Net Income ¥8.6B) indicate progress rates of 73.5%, 81.3%, and 84.3%, respectively, suggesting a high likelihood of achieving full-year targets. The divergence between DSO of 139 days (+65 days versus the industry median of 73.6 days) and Asset Turnover of 0.79x (below the industry median of 1.06x) highlights a structural issue in working capital efficiency; this presents scope for cash flow improvement while also constituting a risk factor warranting ongoing monitoring.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings bulletin data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information compiled by our company based on publicly available financial results data. Investment decisions are your own responsibility; please consult a professional as needed before making decisions.