| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥409.2B | ¥400.2B | +2.3% |
| Operating Income / Operating Profit | ¥24.3B | ¥17.8B | +36.1% |
| Equity-method Investment Income (Loss) | ¥0.7B | ¥0.2B | +170.8% |
| Ordinary Income | ¥29.7B | ¥23.6B | +25.6% |
| Net Income / Net Profit | ¥15.8B | ¥10.8B | +46.5% |
| ROE | 3.8% | 2.7% | - |
For FY ending March 2026 cumulative Q2, Revenue was ¥409.2B (YoY +¥9.0B +2.3%), Operating Income was ¥24.3B (YoY +¥6.4B +36.1%), Ordinary Income was ¥29.7B (YoY +¥6.0B +25.6%), and Net Income attributable to owners of the parent was ¥15.8B (YoY +¥5.0B +46.5%), marking year-on-year increases in both revenue and profit. Gross margin was 21.6% (YoY +0.7pt) and Operating Margin was 5.9% (YoY +1.5pt), showing significant improvement in profitability despite a low-growth environment.
【Revenue】Revenue of ¥409.2B represents a YoY increase of +2.3%. Regional composition: Japan ¥220.6B (share 53.9%, YoY +2.6%), Americas ¥141.1B (34.5%, +3.3%), ASEAN ¥32.0B (7.8%, +5.4%), China ¥23.7B (5.8%, -15.4%), Europe ¥14.9B (3.6%, +4.6%), Taiwan ¥10.9B (2.7%, -11.3%). Overseas sales ratio was 46.1%. Growth in Americas, ASEAN, and Europe was solid, while double-digit decline in China and a decline in Taiwan constrained overall growth. Gross margin improved to 21.6% (YoY +0.7pt), aided by control of Cost of Goods Sold of ¥320.6B.
【Profit & Loss】Gross profit was ¥88.6B (gross margin 21.6%); deducting SG&A of ¥64.3B (SG&A ratio 15.7%) yielded Operating Income of ¥24.3B (Operating Margin 5.9%, YoY +1.5pt). SG&A decreased ¥1.7B YoY and included Salaries and Allowances ¥24.5B, Retirement Benefit Expense ¥0.7B, R&D Expense ¥0.4B (0.1% of sales). Non-operating income was ¥5.7B (Interest Income ¥2.5B, Dividend Income ¥0.8B, Foreign Exchange Gains ¥0.4B, Equity-method Investment Income ¥0.7B), non-operating expense was ¥0.3B (Interest Expense ¥0.1B, Foreign Exchange Losses ¥0.2B), resulting in Ordinary Income of ¥29.7B. Extraordinary gains were ¥7.9B (mainly Gain on Sales of Investment Securities ¥7.3B) and extraordinary losses were ¥6.2B (mainly Impairment Losses ¥6.0B), producing Profit before Income Taxes of ¥31.3B. After deducting Income Taxes ¥10.4B and Non-controlling Interests ¥0.1B, Net Income was ¥15.8B. One-off items fluctuated materially: proceeds from sales of investment securities and impairment losses affected Net Income, while improvement on an ordinary-income basis is evident. Conclusion: revenue and profit increased.
Japan (Revenue ¥220.6B, Operating Income ¥9.8B, Margin 4.4%) recorded Revenue +2.6% and Profit +0.4%, a slight rise. Americas (Revenue ¥141.1B, Operating Income ¥8.9B, Margin 6.3%) posted Revenue +3.3% and Profit +62.3%, with Operating Margin improving by approximately +2.3pt YoY. ASEAN (Revenue ¥32.0B, Operating Income ¥4.5B, Margin 14.2%) saw Revenue +5.4% and Profit +22.4%, maintaining high profitability. China (Revenue ¥23.7B, Operating Loss -¥0.9B, Margin -4.0%) had Revenue -15.4% but reduced its loss by 59.6% YoY. Europe (Revenue ¥14.9B, Operating Income ¥1.7B, Margin 11.2%) delivered Revenue +4.6% and Profit +135.6%, a sharp increase. Taiwan (Revenue ¥10.9B, Operating Income ¥0.3B, Margin 2.8%) experienced Revenue -11.3% and Profit -29.3%. Profitability improvements in overseas segments drove the company's overall margin expansion, with particularly notable strengthening in Americas, ASEAN, and Europe. Reduction of losses in China suggests room for future return to profitability.
【Profitability】Operating Margin of 5.9% improved by +1.5pt YoY. Gross Margin 21.6% (YoY +0.7pt) and SG&A ratio 15.7% (YoY -0.8pt) indicate profitability improved through both gross margin expansion and SG&A control. ROE 3.8% (simple annualized) achieved EPS-based YoY increase of +40.4% to ¥81.40, but absolute capital efficiency remains low. 【Cash Quality】Operating Cash Flow (OCF) ¥25.2B is 1.6x Net Income ¥15.8B, indicating good cash realization of profit. OCF/EBITDA (EBITDA = Operating Income ¥24.3B + Depreciation ¥10.2B = ¥34.5B) was 0.73x, leaving room for improvement in cash conversion. Free Cash Flow ¥16.3B covered Capital Expenditure ¥17.3B and funded Dividends and Share Buybacks (total ¥9.4B). 【Investment Efficiency】Capex ¥17.3B is 1.7x Depreciation ¥10.2B, indicating a phase of forward investment. Construction in Progress ¥11.1B increased +182% YoY, warranting attention for upcoming production capacity increases and start-up. 【Financial Soundness】Equity Ratio 85.3% (YoY +4.9pt), Current Ratio 631%, Quick Ratio 528%, Debt-to-Equity Ratio 0.17x indicate extremely healthy finances. Cash and Deposits ¥226.0B are 3.8x Current Liabilities ¥59.0B, providing ample short-term liquidity. Interest Coverage 302x (OCF ¥25.2B / Interest Paid ¥0.1B) shows negligible interest burden.
OCF ¥25.2B was derived from Profit before Income Taxes ¥31.3B plus Depreciation ¥10.2B, Impairment Losses ¥6.0B and other non-cash expenses, adjusted for Gain on Sales of Investment Securities -¥7.3B and Equity-method Income -¥0.7B, and reflecting working capital changes: Inventories -¥5.6B, Trade Receivables +¥17.2B (improved collection), Trade Payables -¥22.7B (decrease in payables), and Income Taxes Paid -¥8.6B. Significant reduction in Trade Payables (including electronic recorded obligations) depressed CF, while improvement in AR collection is positive. Investing CF was -¥8.9B, mainly Capex -¥17.3B, partly offset by proceeds from sale of investment securities +¥8.7B. Financing CF was -¥13.5B, including Dividends -¥9.1B, Share Buybacks -¥2.9B, and Lease Liabilities Repayment -¥1.3B. FCF ¥16.3B covered shareholder returns (~¥12.0B total), and with Forex effect +¥3.0B, cash increased by ¥5.9B. Accrual (Net Income - OCF) was -¥9.4B, indicating good earnings quality, though improvement in working capital management—particularly payables—will be key for CF stability next fiscal year.
The gap between Ordinary Income ¥29.7B and Net Income ¥15.8B is substantial, driven primarily by extraordinary items (Gain on Sales of Investment Securities ¥7.3B and Impairment Losses ¥6.0B) and Income Taxes ¥10.4B. Non-operating income ¥5.7B, mainly Interest Income ¥2.5B and Dividend Income ¥0.8B, has boosted Ordinary Income via financial income. Equity-method Investment Income ¥0.7B also provided stable contribution. As temporary factors, Gain on Sales of Investment Securities ¥7.3B is not recurring, and Impairment Losses ¥6.0B are also one-off; excluding these yields a substantive profit level better evaluated on an Ordinary Income basis. Comprehensive Income ¥26.3B substantially exceeded Net Income ¥15.8B, mainly due to Foreign Currency Translation Adjustments ¥5.8B, where FX valuation of overseas operations lifted Comprehensive Income. Accrual ratio -0.9% ((OCF ¥25.2B - Net Income ¥15.8B) / Total Assets ¥481.3B) is low, indicating generally healthy cash conversion. Inventory increases and payables decreases temporarily pressured CF; normalization of working capital will be a future driver of quality improvement.
Full-year forecast: Revenue ¥430.0B (YoY +5.1%), Operating Income ¥25.5B (YoY +5.1%), Ordinary Income ¥30.0B (YoY +1.1%), Net Income ¥21.0B, EPS ¥82.00, DPS ¥22.50. Progress toward the full year based on cumulative Q2 is 95.2% for Revenue, 95.3% for Operating Income, and 98.9% for Ordinary Income—already almost at target. The full-year guidance is conservative, assuming second-half incremental Revenue ¥20.8B and marginal Operating Income increase ¥1.2B, with maintenance of gross and operating margins. Slower growth in Ordinary Income (+1.1%) likely assumes variability in non-operating income or the absence of one-off gains. EPS ¥82.00 is nearly the same as cumulative Q2 EPS ¥81.40, indicating limited planned incremental profit in H2. DPS ¥22.50 is consistent with maintaining a Payout Ratio of 58.6% (Q2 basis).
A dividend at Q2-end of ¥37.00 (post-stock-split adjusted ¥18.50) and full-year forecast DPS ¥22.50 (split-adjusted) indicate a stable dividend policy. Payout Ratio of 58.6% is relatively high. Share buybacks of ¥2.9B were executed, reducing Treasury Stock from -¥4.8B YoY to -¥1.9B (shares held 205k). Total dividends ¥9.1B plus share buybacks ¥2.9B amount to ~¥12.0B in total returns, giving a Total Return Ratio of ~76% (Return ¥12.0B / Net Income ¥15.8B), which is high. FCF ¥16.3B covers returns, and the ample cash balance ¥226.0B reduces concerns about the sustainability of returns. However, the company is in an investment-forward phase despite positive FCF, so future Capex and CF generation will determine the sustainability of current return levels.
Inventory Efficiency Risk: Inventories ¥61.1B increased +10.9% YoY, and inventory turnover days are 70 days, exceeding the prior year. Tighter working capital constraints have contributed to a decline in OCF/EBITDA to 0.73x. It is necessary to determine via future turnover improvements whether inventory increases are precautionary for demand variability or represent excess stock; delayed improvement would pressure CF generation and investment capacity.
Regional Profitability Concentration Risk: Continued operating loss in China (-¥0.9B, Margin -4.0%) and low profitability in Taiwan (Margin 2.8%) could leave regional portfolio profitability uneven. Demand slowdown in China, geopolitical risks, or deterioration in Taiwan’s competitive environment could be downside factors. Conversely, if high profitability in Americas, ASEAN, and Europe is maintained, overall profitability can be sustained, but shifts in regional exposure remain a risk.
Net Income Volatility from One-off Items: Gain on Sales of Investment Securities ¥7.3B and Impairment Losses ¥6.0B impacted Net Income by roughly 40% of Net Income level. While Ordinary Income-based earning power is solid, the presence or absence of future one-off items will determine Net Income stability. Timing of disposals of investment securities and impairment assessments are potential volatility drivers.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 5.9% | 3.4% (1.4%–5.0%) | +2.6pt |
| Net Profit Margin | 3.9% | 2.3% (1.0%–4.6%) | +1.6pt |
Both Operating Margin and Net Profit Margin exceed industry medians, placing profitability at an upper level within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 2.3% | 5.9% (0.4%–10.7%) | -3.6pt |
Revenue growth is below the industry median, with profitability improvement under a low-growth environment being a defining feature.
※Source: Company aggregation
Sustainability of Profitability Improvement: With Gross Margin 21.6% (YoY +0.7pt) and Operating Margin 5.9% (YoY +1.5pt), profitability has materially improved, driven by margin recovery in overseas segments (Americas, ASEAN, Europe). Together with the narrowing loss in China, regional mix optimization is advancing. If overseas profit depth is maintained, there remains significant scope for profit growth even in a low-growth environment. However, one-off items (Gain on Sales of Investment Securities, Impairment Losses) affect Net Income, making evaluation on an Ordinary Income basis important.
Financial Safety and Capital Allocation Headroom: Equity Ratio 85.3%, Cash and Deposits ¥226.0B, Current Ratio 631% indicate an extremely solid financial base. FCF ¥16.3B covers Dividends and Share Buybacks (total ¥12.0B), suggesting ample capacity for returns. Capex ¥17.3B is 1.7x Depreciation and reflects forward investment, and the build-up in Construction in Progress is expected to contribute to future production capacity and profitability. If inventory efficiency and OCF/EBITDA improve, room to balance returns and investment will expand further.
Conservatism of Next-year Guidance and Upside Potential: Full-year forecast of Revenue ¥430.0B and Operating Income ¥25.5B shows cumulative Q2 progress above 95%, so targets are largely met. The plan allows limited upside for H2, but recovery in overseas demand and normalization of inventory could enable upside. Auto production trends and FX movements are key variables, and improvements in China and Taiwan profitability are critical points to watch.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; please consult a professional advisor as necessary.