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.
| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥59.70B | ¥48.85B | +22.2% |
| Operating Income | ¥5.05B | ¥3.72B | +35.5% |
| Equity-Method Investment Gain (Loss) | - | - | - |
| Ordinary Income | ¥5.20B | ¥3.65B | +42.3% |
| Net Income | ¥3.58B | ¥2.55B | +40.6% |
| ROE | 9.1% | 7.2% | - |
The Company posted higher revenue and earnings, primarily driven by a substantial increase in revenue from the Domestic Sales Business. The key highlight was margin improvement in both gross margin and the SG&A expense ratio. Revenue was ¥59.70B (+22.2% YoY), Operating Income was ¥5.05B (+35.5%), Ordinary Income was ¥5.20B (+42.3%), and consolidated net income was ¥3.58B (+40.6%; net income attributable to owners of the parent was ¥3.56B, +39.2%). The increase in revenue was largely attributable to growth in the Domestic Sales Business (+32.6% in revenue), and, together with improved cost efficiency, resulted in an improvement in the Operating Income margin to 8.5% (7.6% in the previous year). Meanwhile, Operating Cash Flow was ¥0.30B, remaining subdued relative to the growth in earnings.
【Revenue】Revenue of ¥59.70B (+22.2% YoY) was driven by growth in the Domestic Sales Business. The composition of total segment revenue (¥66.06B) was 70.3% for the Domestic Sales Business, 19.0% for the Overseas Business, and 10.7% for the Domestic Manufacturing Business. While the Domestic Sales Business posted a 32.6% increase in revenue and the Domestic Manufacturing Business also recorded a 19.8% increase, indicating generally firm domestic demand, the Overseas Business experienced a 6.9% decline in revenue, resulting in divergent performance across the business portfolio.
【Profit and Loss】Gross profit was ¥12.55B, with a gross margin of 21.0% (20.7% in the previous year, +0.3pt), while the SG&A expense ratio declined to 12.6% (13.1% in the previous year, -0.5pt), improving the Operating Income margin to 8.5% (+0.9pt YoY). Ordinary Income grew 42.3%, outpacing Operating Income, partly due to ¥0.17B in non-operating income, including a foreign exchange gain of ¥0.06B and dividend income of ¥0.03B. Net income after deducting income taxes and other taxes of ¥1.61B (effective tax rate: 31.0%) was ¥3.58B (+40.6%). Both extraordinary income and extraordinary loss were a negligible ¥0.002B, indicating that the impact of temporary factors was limited and that the Company recorded higher revenue and earnings.
Segment Operating Income was centered on the Domestic Sales Business, with the following results:
Although dependence on the Domestic Sales Business is high, the decline in revenue and earnings in the Overseas Business restrained the improvement in the Company-wide profit margin, and the performance gap between segments has widened.
【Profitability】Profitability improved due to higher gross margins and improved SG&A efficiency, with the Operating Income margin at 8.5% (7.6% in the previous year, +0.9pt) and the net profit margin at 6.0% (5.2% in the previous year, +0.8pt). ROE was 9.1%, primarily due to the improvement in the net profit margin. 【Cash Flow Quality】Operating CF was only ¥0.30B, representing 0.08x net income of ¥3.58B, a low level. Increases in working capital, including a decrease in trade payables (-¥2.54B), constrained the conversion of earnings into cash. 【Investment Efficiency】Total asset turnover was 0.74x (Revenue of ¥59.70B ÷ average total assets of ¥80.46B), while ROA was 4.4% (based on net income attributable to owners of the parent), with asset efficiency supporting capital efficiency. 【Financial Soundness】The Equity Ratio rose to 48.3% (44.8% in the previous year), and the Current Ratio was 186.0% (current assets of ¥71.34B ÷ current liabilities of ¥38.35B), indicating ample liquidity. Interest-bearing debt consisted only of short-term borrowings of ¥0.35B, substantially outweighed by cash and deposits of ¥20.76B, reflecting a conservative financial structure.
Operating CF was ¥0.30B, a substantial 90.6% decline from the ¥3.06B level in the previous year, creating a divergence between earnings growth and cash generation. The primary factors were the working capital cash outflows associated with a decrease in trade payables (accounts payable) of -¥2.54B, an increase in inventories of -¥0.35B, and an increase in trade receivables of -¥0.29B; income taxes paid of ¥1.21B also reduced cash flow. Investing CF was +¥0.13B, mainly reflecting movements in time deposits, while capital expenditures were -¥0.27B, approximately in line with depreciation and amortization of ¥0.24B. Financing CF was -¥1.22B, primarily due to dividend payments. Free Cash Flow (Operating CF + Investing CF) was ¥0.43B, and cash and cash equivalents at the end of the period were ¥20.04B (-¥0.60B from the beginning of the period). The fact that working capital fluctuations are weighing on cash flow despite improvements in earnings is an important consideration when assessing earnings quality.
Both extraordinary income and extraordinary loss were a negligible ¥0.002B, with recurring business activities accounting for the majority of earnings. Of the ¥0.17B in non-operating income, the ¥0.06B foreign exchange gain is susceptible to market conditions; however, its scale was limited at approximately 0.3% of revenue. The difference between Ordinary Income of ¥5.20B and net income of ¥3.58B was attributable to income taxes and other taxes of ¥1.61B (effective tax rate: 31.0%), with no structural distortion evident. On the other hand, the fact that Operating CF of ¥0.30B was substantially below net income indicates a significant divergence between accrual-based earnings and cash flows (accruals), requiring monitoring of earnings quality, including trends in trade payables, inventories, and trade receivables. Comprehensive income was ¥5.03B, exceeding net income of ¥3.58B, primarily due to valuation gains and losses, including a +¥1.22B increase in the valuation difference on securities.
The full-year earnings forecast calls for revenue of ¥118.00B (+14.4% YoY), Operating Income of ¥9.00B (+28.4%), and Ordinary Income of ¥9.15B (+27.8%). During the current quarter, revisions were made to the earnings and dividend forecasts. First-half progress rates were 50.6% for revenue, 56.1% for Operating Income, and 56.8% for Ordinary Income (¥5.20B ÷ ¥9.15B), all above the simple 50% benchmark. The first half progressed slightly ahead of plan against a backdrop of growth in the Domestic Sales Business and improved cost efficiency. However, attention should be paid to the potential impact on the pace of profit accumulation in the second half if the decline in revenue and earnings in the Overseas Business and the increase in working capital continue.
A 2-for-1 stock split of common shares was conducted effective January 1, 2026. The interim dividend was ¥55 per share on a post-split basis, while the full-year dividend forecast was ¥120 (equivalent to ¥240 without taking the split into account). The Payout Ratio calculated from the ¥120 dividend forecast against forecast EPS of ¥298.93 was 40.2%, which can be viewed as a single, consistent forecast-based figure. Given the financial foundation represented by an Equity Ratio of 48.3% and cash and deposits of ¥20.76B, there is little concern regarding the availability of funds for dividends. However, the fact that first-half Operating CF was only ¥0.30B should be considered when assessing cash-based capacity for shareholder returns. No share buybacks were confirmed.
Deterioration in the profitability of the Overseas Business: Revenue was ¥12.53B (-6.9%) and Operating Income was ¥0.79B (-37.6%), with a margin of 6.3%, also lower than that of the two domestic businesses, making it a drag on Company-wide profitability.
Increase in working capital and decline in cash-generation capacity: Operating CF was ¥0.30B, representing only 0.08x net income of ¥3.58B, primarily due to a decrease in trade payables (-¥2.54B). An expanding working capital burden during a period of revenue growth is a subject for monitoring from a funding perspective.
Concentration of earnings in the Domestic Sales Business: The Domestic Sales Business accounted for 70.3% of total segment revenue and was also the central contributor in terms of earnings, creating a structure in which results are susceptible to demand trends in a specific business.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 8.5% | – | – |
| Net Profit Margin | 6.0% | 7.0% (6.4%–7.5%) | -1.0pt |
The net profit margin was slightly below the industry median, while the Operating Income margin was at a certain level within the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 22.2% | 4.5% (2.2%–5.8%) | +17.8pt |
The revenue growth rate was substantially above the industry median, demonstrating strong growth within the industry.
※Source: Compiled by the Company
Growth in the Domestic Sales Business (revenue +32.6%, earnings +73.3%) improved the Operating Income margin to 8.5% (+0.9pt). The simultaneous improvement in the gross margin and decline in the SG&A expense ratio suggest a qualitative improvement in the earnings structure.
Operating CF was ¥0.30B, only 0.08x net income of ¥3.58B, representing a substantial decline of 90.6% from the ¥3.06B level in the previous year. The primary factor was the increase in working capital, centered on the decrease in trade payables. The divergence between earnings growth and cash-generation capacity is a point requiring confirmation in future periods.
While full-year progress was proceeding smoothly at 50.6% for revenue and 56.1% for Operating Income, the Overseas Business continued to experience declines in revenue and earnings (-6.9% and -37.6%, respectively). Correcting the earnings disparity between segments will be a structural focus going forward.
This is a reference range mechanically calculated solely from publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade period). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | ¥2,215 |
| base | ¥2,249 |
| bull | ¥2,309 |
| Calculation Assumption | Value |
|---|---|
| Book Value per Share (BPS) | ¥1,866 |
| Adjusted Forecast EPS | ¥309.9 |
| Cost of Equity r | 9.65% (10-year Japanese Government Bond 2.65% + Equity Risk Premium 6.00% + Size Premium 1.00%) |
| Residual Income Persistence Coefficient ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 40.1% |
| Forecast EPS Confidence Adjustment | ×1.037 (based on the track record of guidance achievement in the same industry) |
| Implied PBR / PER |
Sensitivity: ¥2,187–¥2,315 at a ±1% change in the cost of equity, and ¥2,240–¥2,263 at a ±0.1 change in ω.
Notes:
(Calculation model: Residual Income Model / Interest Rate Reference Month: 2026-06 / This value does not forecast or guarantee the future share price)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment 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 experts as necessary.
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| 1.21x / 7.3x |